23 Jul 2013

Avocado exporters hope collaboration bears fruit

2:37 pm on 23 July 2013

The trend for New Zealand avocado exporters to co-operate rather than compete in offshore markets has taken another step.

The country's two biggest avocado exporters have joined forces in a new partnership, AVOCO, to sell their fruit in Australia, the biggest overseas market, where they have formerly been rivals.

The partnership is anticipating higher returns this year and says the trade there could reach $50 million for the first time.

Southern Produce in the Bay of Plenty and Primor Produce in Auckland have already been co-operating as part of another export grouping, AVANZA, which is focusing on other markets such as Japan.

AVOCO director John Carroll says the new entity means they are now collaborating in all their markets.

He says New Zealand is a small supplier of avocados with 2% of the world's trade in the crop available for only a portion of year.

Mr Carroll says AVOCO expects to handle about three quarters of New Zealand's export crop and supply about 75% of the avocado trade to the main Australian market.

He says the partnership is looking at a pretty favourable market in Australia this year despite a Buy Australian campaign running.

He says that while that's not ideal, commercial realities mean supermarket are keen to supply and offer quality to their customers - which New Zealand growers can supply.

Mr Carroll says after Australia, Japan is the next most important market for New Zealand avocado exports.