Avocado prices have fallen sharply over the past month due to an oversupply of Peruvian avocado. The decline is spurred by fears of recession impacting the consumption of relatively expensive food products, according to agriculture commodities data group Tridge.
Tridge data reveals wholesale prices of avocado in Mexico dropped by 47% month-on-month, and avocado prices in the U.S. also fell by 27% month-on-month.
Colombian avocado prices also fell by 39% month-on-month.
“The price downturn is due mainly to oversupply,” Tridge reported.
“Peru has been increasing avocado export by 25% every year for almost five years, and this year, its export volume has increased by 30%.”
There is an “avocado disaster” in Europe because of oversupplies, and U.S. and Asian markets are starting to exhibit similar market reactions.
Additionally, some avocado market participants observe consumption of avocados is falling because people are buying fewer avocados while high inflation and recession affect household income. In some countries, avocados are sold lower than the farmgate price, Tridge reported.