By Jacob Darling – Chief Operating Officer, Just Avocados.
Avocado market update with Jacob Darling, COO of Darling Group
As of week 44, Darling Group has packed 40% of its total volume. As a group, we are about 5% behind our forecasted loadout. Interestingly, the industry sits at 26% through which suggests quite a different strategy around harvest timing.
The focus for the sales and marketing team remains developing our key Asian markets to ensure the long-term viability of the business. To date, our plan comprised 35% into Asian markets and the balance into Australia, which we should be within approx. 5% of at the close of the 2022-23 season.
At this point in the season our teams’ focus pivots to Australia. Values in this market have only recently lifted, but it is great to see this market moving in a positive direction.
When analysing the supply figures out of Australia and New Zealand, we forecast that the market will dip under 350,000 trays per week from November through to Christmas and will continue to fall, which is all positive when reviewing value. The Australian market historically can handle approx. 400,000 trays before values start to see pressure.
The domestic market processed 156,000 trays in week 42 which makes life challenging when trying to extract value out of a market that can consume approx. 85,000 trays per week.
Packouts for the industry continue to be challenging ranging from 40% – 45% class one on any given week. This has contributed significantly to the additional volume into the domestic market.
Maturity appears to be about 4-5 weeks ahead on average, in comparison to previous seasons.
Darling Group is full steam ahead for the remainder of the season with the new MAF Roda packing line installed performing well.
If you would like to know more about our business, get in touch with our team on info@justavocados.co.nz