By Midge Munro – Group Communications and Marketing Manager, Darling Group.
Darling Group and their avocado supply arm, Just Avocados, have completed the New Zealand avocado export season and released a summary of returns to their growers for the early season pool.
Although returns as an industry are lower for a second season in a row; Jacob Darling, Darling Group’s chief operating officer, says a positive for their business, and Just Avocados suppliers, is that they were able to pick, pack, and sell all their growers’ fruit across all grades and sizes. He adds that not all packers/exporters were able to achieve this.
“To do what we have requires a close working relationship between our export and domestic sales teams, access to all levels of the supply chain both internationally and domestically, and an understanding that in a tough quality year we have to maximise opportunities and values.”
Class 1 fruit volume this season was low at an industry figure of approximately 45%. Process grade was particularly high across the board at 22%. Darling says Just Avocados process figure was only 12%.
Darling says diversity in their business allowed them to mitigate the worst impacts of another extremely difficult season and find value for the higher volumes of lower grade fruit.
This season Darling Group was the leading exporter by volume for diverting lower quality grades to higher value offshore channels.
“Exporting Class 2, 3 and process grades to the appropriate channels offshore yielded better results for growers than a strategy of Class 2 to domestic and Class 3 to oil.”
Darling Group comprises J.H. Leavy & Co. based in the Australian market and Zeafruit who focus on domestic sales, they also have plans underway to set up an office in Asia to support the growth of their avocado sales in China and Hong Kong.
Looking ahead to 2023-24 season, Darling says their focus is to continue to maximise total crop value through finding value for all their growers’ fruit; improving tonnage per hectare and quality levels on orchard to improve class 1 pack outs; and monitoring costs across the supply chain including those on the orchard.
Darling Group is also keen to keep growers engaged amid mounting compliance.
“The Just Avocados team is looking at new ideas and different options around compliance such as GLOBALG.A.P. to enable all growers to stay involved and be profitable in the industry.”
Of future seasons, Darling says market dynamics have shifted and that there are many new norms that growers should start considering.
“The future of export for the New Zealand avocado sector is not the traditional late Australian window. We see ongoing challenges in that space with continual production growth in Australia, Chile targeting the post-Christmas window in wholesale, and the early Shepard crop chasing a bigger slice of the early new season window.
“As an industry our export window will tighten, and we have to have the capability to pick, pack, ship and market larger tray volumes in tighter timeframes.”
Darling says this will require growers to partner with companies who offer a simpler, integrated service from orchard to consumer.
“Growers that partner with the right companies will give themselves the opportunity to maintain profitable. The market access variance between companies is not equal and that will be tough for some growers to work through.”