While it is true that the prices of most products only continue to rise, there are other products that are coming down in cost. And it is that avocado prices decreased by 35% compared to last year. This is the lowest this product has gone in five years.
According to data published by Rabo AgriFinance, a loan and insurance company for agricultural businesses, the wholesale price of avocados is not only down compared to last year, but also it has also plummeted 67% from its peak price that was recorded in June 2021.
In other words, while the other products increase in price, the avocado goes down.
The website FreshFruitPortal.com, which provides the most important news about the fruit and vegetable industry, compiled data from the United States Department of Agriculture and found that the current price of a kilogram of avocados of the Hass variety is the lowest in five years.
Richard Kottmeyer, managing director of the Food, Agriculture and Beverage section of FTI Consulting, a business advisory firm, told CNN that low avocado prices are one of those situations where extreme oversupply of avocados it was due to a perfect storm of negative events.
And it is that there was a problem of overconsumption of avocados due to Mexico dealing with commercial incidents, which in turn caused prices to rise.
Remember that, for example, in February, the US briefly paused imports of Mexican avocados from the state of Michoacán after threats were made against a US official. The ban only lasted a week, but it still drove prices up.s.
Now that those incidents have been ironed out and suppliers around the world are experiencing an even better-than-expected crop, there is now an accidental oversupply of avocados, which in turn has caused the price to drop.
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.