Avocado prices have fallen sharply over the past month as an oversupply of Peruvian avocado and fears of recession impact consumption of relatively expensive food products, according to agriculture commodities data group Tridge.
Tridge data shows that wholesale prices of avocado in Mexico dropped by 47% month-on-month, and avocado prices in the US also fell by 27% month-on-month. Colombian avocado prices were also down by 39% month-on-month.
“The price downturn is due mainly to oversupply,” Tridge said. “Peru has been increasing avocado exports by 25% every year for almost five years, and this year, its export volume has increased by 30%.”
In Europe, there is an “avocado disaster” because of an oversupply issue, and US and Asian markets are starting to exhibit similar market reactions. Moreover, some avocado market participants observe that consumption of avocado is falling due to high inflation and the economic recession. In some countries, avocados are sold lower than the farmgate price, Tridge said.