Calavo Growers Inc. in Santa Paula, California said that shapely lower avocado prices was key in its fourth fiscal quarter explaining that, “During our fiscal fourth quarter, the industry experienced prolonged and meaningful downward pricing pressure on per-unit avocado prices. This was a unique situation, reflective of an avocado industry rapidly transitioning to annual consumption well in excess of two billion pounds”.
“Avocado industry growth continues to be fueled by demographic shifts-specifially, the expanding Hispanic population of the U.S.-awareness of the fruit’s healthful properties and formidable marketing” said Lee Cole, Chief Executive of Calavo Growers Inc.
The sharp decline in prices will be surprising due to the fact that people thought prices would be rising immensely in 2016 as demand is met with tightening supply. Also more than 80% of avocados grown in the U.S. come from California which is suffering its third year in a severe drought.