Avocado Prices Are the Lowest They've Been in 5 Years
Meanwhile, overall grocery prices are skyrocketing.
All we hear about these days is inflation. Or until now, that is. In a needed turn of events, CNN is reporting avocado prices down 35% year over year, which also happens to be the lowest we've seen in half a decade.
According to data published by Rabo AgriFinance, the wholesale price for avocados is not only down year over year but has also plummeted 67% from its peak in June 2021. While grocery prices continue to rise, the guacamole ingredient continues to decline.
Don't believe us? FreshFruitPortal.com did the hard work and compiled USDA data to find that the current price for a kilogram of Hass avocados is the lowest it's been across that whole time frame.
Managing Director of Food, Agriculture, and Beverage for FTI Consulting Richard Kottmeyer told CNN, "it's one of those odd situations where this extreme oversupply of avocados is only possible because of a perfect storm of Black Swan events."
There was an overconsumption problem last year while Mexico was dealing with trade incidents, which in turn, drove up prices. Now that things have settled and suppliers across the globe are experiencing an even better crop turnout than expected, we've seen an accidental oversupply of avocadoes.
"Bumper crops would usually be sold across the globe," Kottmeyer told the outlet. "[But] Europe has significant food inflation, so when avocado prices got high earlier this year, the demand went down in that market ... Much of the avocado oversupply has wound up in the US."