Australia is producing more avocados than ever before, and the recent excess of fruit has been dubbed the Great Australian Avo Glut. The Washington Post reported that Tim Kemp, owner of his family farm, recently stored a whopping nine tons of avocados in his refrigerated storage.
This amount of fruit would have been valued at roughly $40,000 just a few years back. But, today, like in any other market, the excess of supply means a lack of demand. Kemp told the Washington Post that he expects a fifth of that price, noting that his farm is selling avocados “for less than the cost of production.”
Although Australia was the alleged country to bring avocado toast to the masses, citizens can now purchase their beloved green fruit for roughly 60 cents each. Since Australia is moving into their summer, farms that were abundant and satisfied are now feeling crushed.
It’s said that some farms are trying to dump avocados in any way possible. Whether that’s turning them into cooking oil or blatantly running them over with tractors, they’re in need of finding ways to get the excessive amounts of avocados out of their hands.
Kemp told the Washington Post that what we’re seeing with the new surplus of avocados and their low prices is the perfect storm, adding that “this has been coming for five or six years. I just didn’t expect it to hit us as hard as it has.”
Australia isn’t blaming the fruit’s new and abundant excess on other countries or economic factors, as it’s solely a homegrown issue. Since millennial trends and spending habits have increased over the past decade, this inherently led to the doubling of avocado sales and production. In fact, it’s reported that in 2021 alone, the production of avocados has risen by 65%.
Kemp added that avocado growth is partly because of the ideal growing conditions after summers of droughts. But it’s also due to the tens of thousands of avocado trees that were planted nearly three years ago that are beginning to produce fruit.
He continued to explain that he and his family farm had steered away from the temptation to expand operations when prices were high. But now, witnessing the Great Australian Avo Glut, he’s taking a different route to even things out. He added that his farm should be down 2,000 avocado trees by next year, allowing him to “farm fewer, better.”