By Midge Munro – Group Communications and Marketing Manager, Darling Group.
Darling Group Marketing and their New Zealand avocados supply group Just Avocados aim to begin their export season next month [July]. Key Asian markets for the 2023-24 season are China and Hong Kong with Korea also playing a role.
Shaun McKone, Darling Group’s sales and marketing manager says Darling Group has a continued focus on Asia and will refine their opportunities in this region for the 2023-24 season to manage quality, supply chain efficiencies, and most importantly grower returns.
“Volumes into Asia will be targeted by value and by channel so we can maximise returns for our New Zealand grower base. The timing of our harvest will be based on Peru being out of the marketplace. With Mexico and Peru both having larger crops this year, our timing will be monitored very closely, and could require a more condensed harvest window.”
Darling Group are working towards having on ground representation in Asia soon to assist with market intel and business development.
“Being in the market consistently will support building our channels to market and getting closer to the consumer and mitigate unnecessary costs so that we can extract the best possible value the market has to offer.”
After two difficult seasons and a Western Australia crop that is forecast to be up 140% on last, maximising Asia has added importance.
McKone says that the 2022-23 season was challenging with all sections of the supply chain having to overcome factors outside of their control.
“The unprecedented rainfall was the most disruptive factor and the flow on effects of not being able to harvest were felt right through to the market. Low packouts, shipping, and oversupply in Australia all contributed to one of the most difficult seasons in recent memory.”
Despite low industry packouts of class 1 fruit in the 2022-23 season, Darling Group exported over 60% of their total harvested fruit, represented over 50% of the industry export volume to China, and they achieved exporting 35% of their class 1 fruit to Asia versus the industry at 25%.
McKone says that Darling Group is continuing to consistently achieve a greater market share in Asia (25% for the 2022-23 season) versus total export market share.
Looking forward, Darling Group and Just Avocados are developing market and harvest plans that have an emphasis on efficiency for the harvest and packing teams.
“We are focussing on the elements that affect profitability that we can have control over such as having a condensed harvest plan that in theory will allow higher packouts and return crop.
“We want to harvest larger volumes over a more condensed period and maximise volumes through the packhouse with the aim of ensuring that 2-3 days from pick date we are loading containers.”
Gains are also looking to be made in shipping.
“Shipping in the 2022-23 season was the worst it has ever been, but we have seen a significant improvement since then in terms of frequency and reliability which creates greater opportunity to service customers in line with the market plan.”