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Assessment BriefDiploma of Business Economics for Business
Credit points : 6 Prerequisites : None Co-requisites :
Subject Coordinator : Harriet Scott
Deadline : Sunday at the end of week 10 (Turnitin via CANVAS
submission). Reflection due week 11 in tutorials.
ASSESSMENT TASK #3: FINAL CASE STUDY REPORT 25%
TASK DESCRIPTION
This assessment is a formal business report on a case study.
Case studies will be assigned to students in the Academic and
Business Communication subject. Readings on the case study
are available on Canvas, in the Economics for Business subject.
Students will also write a reflection on learning in tutorial
classes in week 11.
LEARNING OUTCOMES
· Demonstrates understanding of microeconomic and
macroeconomic concepts
· Applies economic concepts to contemporary issues and events
· Evaluates possible solutions for contemporary economic and
business problems
· Communicates economic information in a business report
format
INSEARCH CRICOS provider code: 00859D I UTS CRICOS
provider code: 00099F INSEARCH Limited is a controlled
entity of the University of Technology, Sydney (UTS), a
registered non-self accrediting higher education institution and
a pathway provider to UTS.
1. Refer to the case study you are working on for your
presentation in Academic and Business Communication. Read
the news stories for your case study, found on Canvas.
2. Individually, write a business report that includes the
following information:
· Description of the main issue/problem and causes
· Description of the impact on stakeholders
· Analysis of economic concepts relevant to the case study (3-5
concepts)
· Recommendations for alternate solutions to the issue/problem
3. In your week 11 tutorial, write your responses to the
reflection questions provided by your tutor, describing your
learning experience in this assessment.
Other Requirements Format: Business Report
· Use the Business Report format as taught in BABC001 (refer
to CANVAS Help for more information)
· Write TEEL paragraphs (refer to CANVAS Help for more
information)
· All work submitted must be written in your own words, using
paraphrasing techniques taught in BABC001
· Check Canvas — BECO — Assessments — Final Report page
and ‘Writing a report' flyer for more information
Report Presentation: You need to include:
· Cover page as taught in BABC001
· Table of contents - list headings, subheadings and page
numbers
· Reference list - all paraphrased/summarised/quoted evidence
should include citations; all citations should be detailed in the
Reference List
Please ensure your assignment is presented professionally.
Suggested structure:
· Cover page
· Table of contents (bold, font size 18)
· Executive summary (bold, font size 18)
· 1.0 Introduction (bold, font size 16)
· 2.0 Main issue (bold, font size 16)
o 2.1 Causes (italics, font size 14)
· 3.0 Stakeholders (bold, font size 16)
o 3.1 Stakeholder 1 (italics, font size 14) o 3.2 Stakeholder 2
(italics, font size 14) o 3.3 Stakeholder 3 (italics, font size 14)
· 4.0 Economic concepts (bold, font size 16)
o 4.1 Economic concept 1 (italics, font size 14) o 4.2 Economic
concept 2 (italics, font size 14) o 4.3 Economic concept
3(italics, font size 14)
· 5.0 Alternate solutions (bold, font size 16)
o 5.1 Alternate solution 1 (italics, font size 14) o 5.2 Alternate
solution 2 (italics, font size 14) o 5.3 Alternate solution 3
(italics, font size 14)
· 6.0 Conclusion and Recommendations (bold, font size 16)
· 7.0 Reference List (font size 16)
o list to be presented in alphabetical order of author’s surname
or organization
o indent every second line of reference
o go to CANVAS — Help for citation and referencing rules
Graphs and images: Ensure you label your graphs and images
(in sequential order). You must also provide a source for any
images used. See below for examples:
Words: 1500 - 2000 words
Figure 2. Australia Balance of Trade Source: Trading
Economics 2018
Due: Sunday at the end of Week 10
· Submit your assignment to Turnitin via CANVAS —Turnitin:
less than 25%
· Make sure you attend your tutorial in week 11 to complete the
reflection questions in class.
DEADLINE
Your report must be submitted to Turnitin (via CANVAS) by
the end of week 10. The reflection will be written in class in
your week 11 tutorial.
ASSESSMENT CRITERIA
Identifies issues and stakeholders
15%
Analyses relevant economic concepts
45%
Recommends alternate actions
20%
Writes clearly and follows the required report structure
10%
Reflects on learning (in-class written task)
10%
Economics reports: Shortage of Avocado
Table of Contents
Executive summary 1
Introduction 2
1 Main issue 3
2 Stakeholders 3
2.1 Avocado Australia 3
2.2 Cafe 4
2.3 Consumers 4
2.4 Industry group 5
2.5 Grower 5
3 Economic concepts 5
3.1 The increase in demand for avocado5
3.2 The decrease in supply for avocado 7
3.3 Shortage 7
3.4 Law of demand8
3.5 Elasticity of supply 8
4 Recommendations 8
4.1 Investment in agriculture, education and tourism 8
4.2 Investment in manufacturing and technology 9
5 Conclusion 9
6 Reference 9
Executive summary
The purpose of this report is to outline the main issue and the
stakeholders associated with the shortage of avocado in
Australia. This report concluded the economic concepts related
to the shortage of avocado and listed out the recommendation
that could solve this issue — this report was written by using
the knowledge and resource from new, reports and lecture notes.
The research shows that the climate changes in Australia have
affected the supply of avocado cause to the shortage of avocado.
Also, will explain how the avocado production centre
Michoacán in Mexico having a price dispute with the packaging
company producer, affecting the supply of avocado to Australia.
The main stakeholders are avocado Australia, cafe, customers,
industry group and grower. The effect of the stakeholder
discussed in detail in this report. Furthermore, five economic
concepts are analysis, which are the increase in demand, the
decrease in supply, shortage, the law of demand and elasticity
in supply. Lastly, regarding the issue happening, the
recommendation was made based on agriculture and technology.
Introduction
Avocado used to define as the dips and salads. However, they
transformed as a superfood, according to their nutritional
properties and smooth texture. More people found avocado’s
benefit to their health. Lead to the demand of the avocado
increase by year in Australia. For the past decade, each
consumption has tripled from 1.2 kg to 3.5 kg, production has
more than doubled from 30,000 tons to 60,000 tons, and the
industry has increased almost fivefold from $100 million to
$460 million (Tiger.W.,2017). Avocado has become the most
favourite toast topping for those millennials in Australia. Due to
the wave of how citizen love avocado, the Australia government
said that’ Young teenagers spend too much their housing
deposit on the smash avocado’ (Tiger W.,2017). However,
avocado is seasonal fruit. Therefore, in the domestic area in
Australia, the production of avocado is the covering whole year.
This report will explain the main issue associated with the
shortage of avocado and the effect on the related stakeholder.
Besides, this report will discuss the economics concepts and
give out the relevant recommendation to solve the issue.1 Main
issue
The main issue of the shortage of avocado is the decrease in
supply from Australia. Due to the climate changes in the
domestic area, the production of avocado in Australia is
affected (Avocado Australia,2017). Avocado become more
popular as breakfast for Australian. The demand for avocado is
increasing rapidly, requires more and more supplies from
producers. However, the supply can’t satisfy the increasing
demand. Due to the avocado is a seasonal fruit (Avocado
Australia,2017). At the Christmas event, are the bottom of the
production. Due to the Christmas event in Australia, it is
summer when the market is happening an increase in demand
and decrease in supply. Due to the economics concepts of
shortage, it will increase the price of the product. Therefore,
customers have to buy the product will a higher rate. As a
result, the price of avocado increased. One tray of 24 avocado,
the price has increased from $40 to $150 (Jenny.N.,2018). When
customers don’t will to pay more on the product, the demand
will decrease and back to normal.2 Stakeholders2.1 Avocado
Australia
Avocado is the most needed fruit in Australia. Australians have
more than doubled their yearly intake of the fruit to kilograms
in the past decade, Avocados Australia said (Esther.H,2016).
Therefore, the supply of domestic farmer can’t produce the
product that satisfies the current demand from the citizen. Thus,
Australia received a large number of products from New
Zealand, and many unexpected storms have occurred due to the
inability to pick avocados in wet weather (Ally.F,2018). Due to
the Kenyan government banned the expert of avocado, Australia
loses a stabilization export supplier. Which make the shortage
of avocado Australia facing become worse. (Ally.F,2018).2.2
Cafe
Due to the shortage of the avocado, many cafes forced to set
their price soaring on their chopped avocado powder
(Ally.F.,2018). Especially cafe and restaurant in Queensland,
for one pallet have to pay more than half of the original price.
(Ally.F.,2018). On the other hands, facing the shortage of
avocado. Some of the cafes have to reduce their amount of dish
weight, by escaping the lack. (Ally.F.,2018).” We have reduced
the scale of our services, so we sold a quarter instead of a full
half of avocado,” Ms. Crawford said (Ally.F,2018).2.3
Consumers
Avocado Australia said that “In the past decade, Australian
have more than doubled yearly intake to 3.2 kilograms.
(Esther.H,2016). According to a different store, the consumer
has to pay a single avocado about $4 to $ 8 each. (Ally.F,2018).
People used to think that avocado is a bit of luxury. However, it
has been changed. Avocado has become a staple. People use
butter to replace the avocado on toast and salads.
(Esther.H,2016). When the customer came to the cashier noticed
that the store no longer sale avocado, they feel lost and couldn’t
speak. However, they won’t blame the store. They know what
happens in Australia. Barista Benjamin Sneddon told the Gold
Coast Gazette (Ally.F,2018). Besides, the consumer can afford
the housing now without buying any avocado. (Ally.F,2018).2.4
Industry group
According to September and October in 2015, there are more
than 22,000 avocados traded (Olivier.L.2016). Also, according
to November and December in 2015, there are more than 32,000
avocados purchased on Australia’s east coast. Until 2017, the
sales of avocado have increased to 77,032. (avocado
Australia,2017). The producer makes the price of a 5.5-kilogram
tray stay about $45. Lead to reasonable retail prices and very
healthy sales (Esther.H,2016). However, for the past few weeks
industry blamed the rain and bushfire for Australia summer
shortage. Lead to wholesale prices doubled, retail prices soared
to $7 a fruit, and avocados were rationed (Esther.H,2016).2.5
Grower
Due to some grower in Western Australia believes that demand
for avocado will decrease therefore they grow a lot most of the
summer supply (Esther.H,2016). Most of the grower is trying to
make sure get avocado flowing into the market 52 weeks a year
(Olivier.L.,2016). Mr. Alan said” grower decided to float more
fruit before the Christmas. Due to this decision, it makes the
avocado a little unusual, because the grower didn’t wait them
ripen before they are picked (Esther.H,2016)3 Economic
concepts3.1 The increase in demand for avocado
The increased in demand of avocado is a result of avocado is a
seasonal fruit. When the Christmas time, the production of
avocado reaches the bottom of its supply. Due to severe weather
issues and incidents of forest fire, the demand of the avocado is
rising at a higher pace, as compared with the supply
(Raushenbush, 2012). As can be seen from the Graph1 below,
the demand for avocados has been growing rapidly in recent
years. As demand increases, the demand curve has moved to the
right from D1. In addition, control the supply to maintain the
appropriate price to keep the supply curve constant at S1. As a
result, we can see that supply increases by the lowest level due
to changes in demand
Graph 1 An increase in demand
3.2 The decrease in supply for avocado
Due to severe weather issues and incidents of forest fire
(Raushenbush,2012). Lead to the supple of avocado decreased.
Supply is expected to fall over the next few years. Currently,
the price of avocados in the retail market has increased to $7 a
piece due to increased demand and supply shortages. As you can
see, avocados are sold at black market prices in some retail
markets to maintain profitability. As can be seen from the
Graph2 below, the supply of avocado has been decreasing this
year. As supply decreases, the supply curve has moved to the
left from S. In addition, with the demand curve stay in the same
level. The decrease in supply will make the price of the product
increased.
Graph2 A decreases in supply3.3 Shortage
The current supply in the market is not enough to meet the
growing demands of the consumers. The shortage has occurred
due to increase in demand due to fall in the price of the
Avocado in the past years. Currently, it can be seen that the
demand for Avocado has increased at a tremendous rate that has
emerged to be a problem for the Avocado producers (Riggs and
Bonk, 2008). Hence, a high bulk of supply within a certain
period led to shortage of supply in the current market scenario.
As can be seen from the Graph3 below, the green line has
higher requirements for avocados than lower product offerings.
As a result, avocados are in short supply on the market. The
shortage of avocados has caused prices to rise to match the
Australian market equilibrium
Graph2 A decreases in supply
3.4 Law of demand
The current market requires more than the current supply.
Therefore, the market will increase the price of the product, to
ensure the demand from the consumer will decrease. By using
this economic of concept, the demand of avocado could be
solved when the price is increases to the level that consumers
won’t willing to pay. When the demand is decreased to the level
that supply can satisfy, shortage of the avocado will be solved.
Graph 4 show the supply curve stay at the same amount.
However, the demand increased from D1 to D2, the respond of
price increased either.
Graph 4 law of demand
3.5 Elasticity of supply
Elasticity of supply is focused on the substitute goods are the
easiest to transfer factors of production. The easier it is for
these factors to shift from the production of one good to the
production of another, the greater the elasticity of supply.
Because durable goods can be stored for a long time, their
supply elasticity is very high. But for non-durable and
perishable goods, supply elasticity is often low. Graph 5 show
that with a longer supply curve, its product a more flexible
market. Industry group have more time to respond to the market
changes.
Graph 5 Elasticity of supply4 Recommendations4.1 Price
control
Due to the shortage issue, according to the basic of the demand.
The price of the avocado increased is predictable. Therefore,
price control is the most effective way to reduce the shortage. It
also helps market to control the market couldn’t be black-
marketed price. Reducing the crime of black-market. Setting up
the market standard price also ensure the consumer won’t pay
more than that to keep their personal right to enjoy what they
want.4.2 Stocking to control shortage
In order to manage deficit situation, stocking of product to a
level of extent must be considered following government
regulations (King, 2012). The marketers and Australian
Avocado Association must look for such facilities to control
such shortage situation. Preparing some stock before the
summer season. Due to the summer is the bottom of the
production of avocado, the shortage usually happens in this
period of time. Keeping them by putting into the refrigerated
warehouse. In the last decade year, refrigerate food are more
popular to people. People will be willing to purchase the
refrigerate avocado.
5 Conclusion
In conclusion, reduced supply and increased demand for
avocados have led to a shortage in Australia. This report
Outlines issues and stakeholders related to the avocado
shortage. It also discusses five economic concepts related to the
mining boom and provides the above questions.
6 Reference
· Cyntia, D.,2018,” There Is a Coming Avocado Shortage at
Restaurant”, viewed 21st dec,2018,
<https://table.skift.com/2018/11/08/there-is-a-coming-avocado-
shortage-at-restaurants/>
· Foster, A.,2018, “Avocado price hike amid a nationwide
shortage of the popular fruit”, viewed 21st dec,2018,
<https://www.news.com.au/lifestyle/food/eat/avocado-price-
hike-amid-a-nationwide-shortage-of-the-popular-fruit/news-
story/3573a0f804aee6884771b05d4ce385ab>
· Frank, A., n.d.,” Case Study On Avocado Shortage In
Australian Market”, viewed 21st dec,2018,
<https://myassignmenthelp.com/free-samples/case-study-on-
avocado-shortage-in-australian-market>
· Han, E., 2016, “Avocado growers reject market manipulation
claims amid national shortage”, viewed 21st dec,2018,
<https://www.smh.com.au/business/retail/avocado-growers-
reject-market-manipulation-claims-amid-national-shortage-
20160126-gmem47.html>
· Han, E., 2016, “The truth behind the avocado shortage:
growers made 'innocent mistake', viewed 21st dec,2018,
<https://www.smh.com.au/business/companies/the-truth-behind-
the-avocado-shortage-growers-made-innocent-mistake-
20160125-gmdbvw.html>
· Jen.C.,2018, “Here's Why Avocados Have Gotten So
Expensive Lately”, viewed 21st dec,2018,
<http://gothamist.com/2018/11/14/avocado_shortage_prices.php
>
· Lambert, O.,2016, “Farmers blamed for avocado shortage”,
viewed 21st dec,2018,
<https://www.news.com.au/lifestyle/food/eat/farmers-blamed-
for-avocado-shortage/news-
story/b9e74e7e6ba8a5e3a3f567e155a3115f>
· Michael, C.,2016, “When avocado demand outstrips supply”,
viewed 21st dec,2018, <http://sex-drugs-
economics.blogspot.com/2016/08/when-avocado-demand-
outstrips-supply.html>
· Tejvan, P.,2017, “Diagram for Supply and Demand”, viewed
21st dec,2018,
<https://www.economicshelp.org/blog/1811/markets/diagrams-
for-supply-and-demand/>
· Tiger, W.,2017,” How the avocado smashed its way into
Australia's heart”, viewed 21st dec,2018,
<https://www.abc.net.au/news/2017-06-22/how-the-avocado-
smashed-its-way-into-australias-heart/8634456>
2
Facts at a Glance
2016/17
for the Australian
avocado industry
Key statistics of the Australian avocado industry
Data current at August 2017
2
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
This report has been produced as part of the strategic levy
investment project Avocado industry market data capture and
analysis (AV16006), part of the Hort Innovation Avocado
Fund. It is funded by Hort Innovation, using the avocado
research and development levy and contributions from the
Australian Government. Hort Innovation is the grower-owned,
not-for-profit research and development corporation for
Australian horticulture.
Avocados Australia
Phone: (61) 07 3846 6566 or toll free 1300 303 971
Fax: (61) 07 3846 6577 or toll free 1300 303 972
General enquiries: [email protected]
Media enquiries: [email protected]
Online
www.avocado.org.au
www.facebook.com/AvocadosAustralia
https://twitter.com/AvocadosAu
Copyright © Hort Innovation 2017
Horticulture Innovation Australia Limited (Hort Innovation)
makes no representations
and expressly disclaims all warranties (to the extent permitted
by law) about the accura-
cy, completeness, or currency of information in Avocado
industry market data cap-
ture and analysis (AV16006).
Reliance on any information provided by Hort Innovation is
entirely at your own risk.
Hort Innovation is not responsible for, and will not be liable
for, any loss, damage, claim,
expense, cost (including legal costs) or other liability arising in
any way, including from
any Hort Innovation or other person’s negligence or otherwise
from your use or non-use
of Avocado industry market data capture and analysis
(AV16006), or from reliance
on information contained in the material or that Hort Innovation
provides to you by any
other means.
Report notes
Export values are calculated using Free on Board (FOB) price.
Gross Value of Production (GVP) for annual Australian avocado
production is
estimated by combining: local wholesale value of fresh volume;
local wholesale value of
processing volume; and export value (FOB) of exported volume.
Consumer market value is estimated using average retail prices
(Coles and
Woolworths online price data) multiplied by Australian avocado
volumes (fresh and
processed) that are supplied to the Australian consumer market.
The consumer market
is broadly defined as both retail and foodservice channels.
Farmgate value is estimated by multiplying the Australian
avocado production volume
by the local wholesale price minus estimated marketing/supply
chain costs.
Data source is Infocado unless otherwise stated. Infocado is the
data collection
platform from which avocado supply and forecast volumes are
reported. The production
of these reports is currently funded through AV16006. See
http://www.avocado.org.au/
our-programs/supply-chain-data/infocado/ for more information.
Consumption is estimated using total supply volume divided by
Australian population
(based on ABS data).
Report version updated 09 March 2018.
http://www.avocado.org.au/
http://www.avocado.org.au/
tel:0738466566
tel:1300303971
tel:0738466577
tel:1300303972
mailto:[email protected]?subject=Facts%20at%20a%20Glance%
202016/17
mailto:[email protected]?subject=Facts%20at%20a%20Glance%
202016/17
http://www.avocado.org.au/
https://www.facebook.com/AvocadosAustralia/
https://twitter.com/AvocadosAu
http://www.avocado.org.au/our-programs/supply-chain-
data/infocado/
http://www.avocado.org.au/our-programs/supply-chain-
data/infocado/
3
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Australian avocado production
Year
Production
volume
(tonnes)
Number of
5.5kg trays
Gross
value of
production
(GVP)
(AUD
million)
Farmgate
value
(AUD
million)
Consumer
market value
of Australian
fruit sold
domestically
(AUD million)
Export
value
(AUD
million)
2007/08 39,394 7,162,546 $ 127 $ 108 $ 326 $ 4.2
2008/09 46,446 8,444,728 $ 174 $ 152 $ 462 $ 6.0
2009/10 39,641 7,207,501 $ 182 $ 167 $ 426 $ 6.2
2010/11 49,612 9,020,281 $ 202 $ 180 $ 498 $ 7.3
2011/12 51,113 9,293,315 $ 178 $ 155 $ 461 $ 8.1
2012/13 54,877 9,977,567 $ 296 $ 276 $ 661 $ 8.1
2013/14 48,715 8,857,217 $ 313 $ 297 $ 668 $ 5.6
2014/15 57,595 10,471,887 $ 356 $ 331 $ 750 $ 6.4
2015/16 66,716 12,130,207 $ 438 $ 412 $ 899 $ 9.2
2016/17 65,992 11,998,467 $ 398 $ 374 $ 755 $ 12.5
Avocado production and value
Sources: Infocado, IHS Global Trade Atlas, and Avocados
Australia analysis
using Ausmarket Consultants data and Freshlogic assumptions
Australia produced almost 66,000 tonnes of avocados
in 2016/17, which was slightly less (1%) than the
previous year. The gross value of production (GVP) for
Australian avocados was estimated at $398 million.
Australian annual avocado production and value
http://www.avocado.org.au/
http://www.avocado.org.au/
4
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Queensland continues to produce the
majority of Australian avocados, with 69%
of production. Western Australia
produced the next largest share at 18%.
Avocado production by state (tonnes)
Year Qld NSW Vic/Tas SA WA/NT Total
2007/08 31,416 4,385 55 484 3,053 39,394
2008/09 33,179 5,456 120 248 7,443 46,446
2009/10 32,484 3,203 62 167 3,724 39,641
2010/11 40,654 4,009 77 210 4,661 49,612
2011/12 40,665 4,012 186 1,931 4,319 51,113
2012/13 29,294 3,116 119 956 21,392 54,877
2013/14 35,602 5,601 770 719 6,024 48,715
2014/15 28,703 4,286 1,106 913 22,587 57,595
2015/16 32,374 8,305 1,646 1,429 22,961 66,716
2016/17 45,608 6,108 1,296 1,105 11,875 65,992
Avocado production by state
http://www.avocado.org.au/
http://www.avocado.org.au/
5
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Avocado regions in Australia
Australia’s avocado production is divided into regions which
have similar growing conditions and seasons. Some regions
cross state boundaries. On average across 2015/16 and
2016/17, production has mostly come from the Queensland
regions (59%) and Western Australia (26%).
Annual tonnes produced in each region averaged
over two years*: 2015/16 and 2016/17
* A two-year average is used to compare production by region,
because some regions have irregular bearing years, meaning
crop load may vary significantly from year to year.
State/s Region
Queensland
North Queensland (NQ)
Central Queensland (CQ)
Sunshine Coast (SC)
South Queensland (SQ)
Queensland &
New South Wales Tamborine / Northern Rivers (TNR)
New South Wales Central New South Wales (CNSW)
New South Wales, Victoria,
South Australia & Tasmania Tristate (Tri)
Western Australia &
Northern Territory
Western Australia & Northern Territory
(WA/NT)
http://www.avocado.org.au/
http://www.avocado.org.au/
6
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Avocado production by region
http://www.avocado.org.au/
http://www.avocado.org.au/
7
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Avocado production by region
Australian avocado production by growing region (tonnes)
Year North Qld
Central
Qld
Sunshine
Coast
South
Qld
Tamborine
Northern
Rivers
Central
NSW Tristate
Western
Australia Total
2007/08 6,205 14,757 4,082 4,841 1,509 3,309 1,180 3,510
39,394
2008/09 6,227 14,783 3,160 7,456 2,567 4,475 710 7,069
46,446
2009/10 6,667 17,105 2,766 4,779 1,220 2,914 394 3,797
39,642
2010/11 6,211 20,210 3,000 4,864 890 3,748 974 9,715 49,612
2011/12 6,378 20,870 3,337 6,738 1,743 3,462 4,668 3,917
51,113
2012/13 10,399 13,164 2,603 4,027 533 2,843 2,734 18,575
54,877
2013/14 10,859 13,668 2,131 7,243 1,586 4,208 2,857 6,163
48,715
2014/15 12,310 10,054 1,782 3,848 781 3,815 3,182 21,824
57,595
2015/16 12,285 13,857 1,421 5,301 1,737 4,752 3,592 23,771
66,716
2016/17 17,599 15,882 1,401 6,964 1,500 5,645 3,517 13,483
65,992
2016/17 %
by region 27 % 24 % 2 % 11 % 2 % 9 % 5 % 20 %
Past 2yr
average % by
region
23 % 22 % 2 % 9 % 2 % 8 % 5 % 28 %
Production in Central
Queensland shows continued
signs of recovery from the
flooding events of 2011 and
2013, producing 24% of the
nation’s avocados in
2016/2017. Western Australian
production has continued to
increase significantly, albeit
with some ‘off years’. North
Queensland production
continues to grow steadily.
http://www.avocado.org.au/
http://www.avocado.org.au/
8
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Avocado supply periods by region
Australian avocado supply periods by region and variety
Region Variety Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov
Dec
North Queensland
Hass
Shepard
Hass
Central Queensland
Shepard
Sunshine Coast Hass
South Queensland Hass
Tamborine/Northern Rivers Hass
Central New South Wales Hass
Tristate Hass
Western Australia Hass
New Zealand Hass
http://www.avocado.org.au/
http://www.avocado.org.au/
9
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
In Australia, avocados are
produced almost all year round
due to the range of climates and
conditions in our eight major
avocado growing regions. Hass
is the main avocado variety, and
is produced almost all year
round. In 2016/17 Hass
represented 87% of production.
Shepard, which is grown in
Queensland through late
Summer and Autumn, made up
10% of production, and at that
time of year, is the dominant
Australian variety on the market.
Avocado production by variety
http://www.avocado.org.au/
http://www.avocado.org.au/
10
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Production by Variety (tonnes)
Year Hass Shepard Other Total
2007/08 31,578 5,933 1,883 39,394
2008/09 36,669 7,450 2,327 46,446
2009/10 29,790 8,353 1,498 39,641
2010/11 39,913 6,418 3,280 49,612
2011/12 43,155 4,923 3,035 51,113
2012/13 41,398 9,923 3,556 54,877
2013/14 37,513 8,882 2,320 48,715
2014/15 46,540 9,090 1,966 57,595
2015/16 53,965 10,281 2,470 66,716
2016/17 52,962 10,860 2,169 65,992
Avocado production by variety
Production by variety
in 2016-2017
Variety Production (%)
Hass 87.270%
Shepard 10.499%
Lamb Hass 0.678%
Reed 0.638%
Sharwil 0.244%
Gwen 0.220%
Wurtz 0.201%
Fuerte 0.123%
Unnamed 0.098%
Pinkerton 0.013%
Gem 0.012%
Bacon 0.004%
Edrinol 0.001%
http://www.avocado.org.au/
http://www.avocado.org.au/
11
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
Australian consumption of avocado
Australian production is forecast to increase
strongly over the next few years, with 100,000 tonne
per annum expected to be produced by 2025.
Australians’ love of avocados grows steadily each year.
Consumption in 2016/17 reached just over 3.5kg per person.
Imported New Zealand fruit supplements Australian supply
during their harvest season during Spring and Summer.
Australian annual domestic avocado supply, NZ imports
and Australian per capita consumption
Sources: Infocado, IHS Global Trade Atlas (2017) and
population based on ABS data Sources: Infocado, Avocados
Australia analysis
http://www.avocado.org.au/
http://www.avocado.org.au/
12
Facts at a Glance for the Australian avocado industry—2016/17
www.avocado.org.au
Compiled by Avocados Australia. Data source is Infocado
unless otherwise stated.
In both production and exports, Australia is currently a small
player in the world avocado market. Ongoing activity
is underway targeting Australia’s growth in export markets with
Malaysia and Singapore currently Australia’s main
avocado export markets. In 2016/17 Australia exported over
2,300 tonnes of avocados, a one-third increase on the
previous year, approaching the highest exports previously
recorded in 2011/12.
Australian avocado export markets
Australian annual avocado export volumes in tonnes by country
and AU$/kg FOB (blue line)
http://www.avocado.org.au/
http://www.avocado.org.au/

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#Assessment BriefDiploma of Business Eco.docx

  • 1. # Assessment BriefDiploma of Business Economics for Business Credit points : 6 Prerequisites : None Co-requisites : Subject Coordinator : Harriet Scott Deadline : Sunday at the end of week 10 (Turnitin via CANVAS submission). Reflection due week 11 in tutorials. ASSESSMENT TASK #3: FINAL CASE STUDY REPORT 25% TASK DESCRIPTION This assessment is a formal business report on a case study. Case studies will be assigned to students in the Academic and Business Communication subject. Readings on the case study are available on Canvas, in the Economics for Business subject. Students will also write a reflection on learning in tutorial classes in week 11. LEARNING OUTCOMES · Demonstrates understanding of microeconomic and macroeconomic concepts · Applies economic concepts to contemporary issues and events · Evaluates possible solutions for contemporary economic and
  • 2. business problems · Communicates economic information in a business report format INSEARCH CRICOS provider code: 00859D I UTS CRICOS provider code: 00099F INSEARCH Limited is a controlled entity of the University of Technology, Sydney (UTS), a registered non-self accrediting higher education institution and a pathway provider to UTS. 1. Refer to the case study you are working on for your presentation in Academic and Business Communication. Read the news stories for your case study, found on Canvas. 2. Individually, write a business report that includes the following information: · Description of the main issue/problem and causes · Description of the impact on stakeholders · Analysis of economic concepts relevant to the case study (3-5 concepts) · Recommendations for alternate solutions to the issue/problem 3. In your week 11 tutorial, write your responses to the reflection questions provided by your tutor, describing your learning experience in this assessment. Other Requirements Format: Business Report · Use the Business Report format as taught in BABC001 (refer to CANVAS Help for more information) · Write TEEL paragraphs (refer to CANVAS Help for more information) · All work submitted must be written in your own words, using paraphrasing techniques taught in BABC001 · Check Canvas — BECO — Assessments — Final Report page and ‘Writing a report' flyer for more information Report Presentation: You need to include: · Cover page as taught in BABC001 · Table of contents - list headings, subheadings and page numbers
  • 3. · Reference list - all paraphrased/summarised/quoted evidence should include citations; all citations should be detailed in the Reference List Please ensure your assignment is presented professionally. Suggested structure: · Cover page · Table of contents (bold, font size 18) · Executive summary (bold, font size 18) · 1.0 Introduction (bold, font size 16) · 2.0 Main issue (bold, font size 16) o 2.1 Causes (italics, font size 14) · 3.0 Stakeholders (bold, font size 16) o 3.1 Stakeholder 1 (italics, font size 14) o 3.2 Stakeholder 2 (italics, font size 14) o 3.3 Stakeholder 3 (italics, font size 14) · 4.0 Economic concepts (bold, font size 16) o 4.1 Economic concept 1 (italics, font size 14) o 4.2 Economic concept 2 (italics, font size 14) o 4.3 Economic concept 3(italics, font size 14) · 5.0 Alternate solutions (bold, font size 16) o 5.1 Alternate solution 1 (italics, font size 14) o 5.2 Alternate solution 2 (italics, font size 14) o 5.3 Alternate solution 3 (italics, font size 14) · 6.0 Conclusion and Recommendations (bold, font size 16) · 7.0 Reference List (font size 16) o list to be presented in alphabetical order of author’s surname or organization o indent every second line of reference o go to CANVAS — Help for citation and referencing rules Graphs and images: Ensure you label your graphs and images (in sequential order). You must also provide a source for any images used. See below for examples:
  • 4. Words: 1500 - 2000 words Figure 2. Australia Balance of Trade Source: Trading Economics 2018 Due: Sunday at the end of Week 10 · Submit your assignment to Turnitin via CANVAS —Turnitin: less than 25% · Make sure you attend your tutorial in week 11 to complete the reflection questions in class. DEADLINE Your report must be submitted to Turnitin (via CANVAS) by the end of week 10. The reflection will be written in class in your week 11 tutorial. ASSESSMENT CRITERIA Identifies issues and stakeholders 15% Analyses relevant economic concepts 45% Recommends alternate actions 20% Writes clearly and follows the required report structure 10% Reflects on learning (in-class written task) 10% Economics reports: Shortage of Avocado Table of Contents Executive summary 1 Introduction 2 1 Main issue 3 2 Stakeholders 3
  • 5. 2.1 Avocado Australia 3 2.2 Cafe 4 2.3 Consumers 4 2.4 Industry group 5 2.5 Grower 5 3 Economic concepts 5 3.1 The increase in demand for avocado5 3.2 The decrease in supply for avocado 7 3.3 Shortage 7 3.4 Law of demand8 3.5 Elasticity of supply 8 4 Recommendations 8 4.1 Investment in agriculture, education and tourism 8 4.2 Investment in manufacturing and technology 9 5 Conclusion 9 6 Reference 9 Executive summary The purpose of this report is to outline the main issue and the stakeholders associated with the shortage of avocado in Australia. This report concluded the economic concepts related to the shortage of avocado and listed out the recommendation that could solve this issue — this report was written by using the knowledge and resource from new, reports and lecture notes. The research shows that the climate changes in Australia have affected the supply of avocado cause to the shortage of avocado. Also, will explain how the avocado production centre Michoacán in Mexico having a price dispute with the packaging company producer, affecting the supply of avocado to Australia. The main stakeholders are avocado Australia, cafe, customers, industry group and grower. The effect of the stakeholder discussed in detail in this report. Furthermore, five economic concepts are analysis, which are the increase in demand, the decrease in supply, shortage, the law of demand and elasticity in supply. Lastly, regarding the issue happening, the recommendation was made based on agriculture and technology.
  • 6. Introduction Avocado used to define as the dips and salads. However, they transformed as a superfood, according to their nutritional properties and smooth texture. More people found avocado’s benefit to their health. Lead to the demand of the avocado increase by year in Australia. For the past decade, each consumption has tripled from 1.2 kg to 3.5 kg, production has more than doubled from 30,000 tons to 60,000 tons, and the industry has increased almost fivefold from $100 million to $460 million (Tiger.W.,2017). Avocado has become the most favourite toast topping for those millennials in Australia. Due to the wave of how citizen love avocado, the Australia government said that’ Young teenagers spend too much their housing deposit on the smash avocado’ (Tiger W.,2017). However, avocado is seasonal fruit. Therefore, in the domestic area in Australia, the production of avocado is the covering whole year. This report will explain the main issue associated with the shortage of avocado and the effect on the related stakeholder. Besides, this report will discuss the economics concepts and give out the relevant recommendation to solve the issue.1 Main issue The main issue of the shortage of avocado is the decrease in supply from Australia. Due to the climate changes in the domestic area, the production of avocado in Australia is affected (Avocado Australia,2017). Avocado become more
  • 7. popular as breakfast for Australian. The demand for avocado is increasing rapidly, requires more and more supplies from producers. However, the supply can’t satisfy the increasing demand. Due to the avocado is a seasonal fruit (Avocado Australia,2017). At the Christmas event, are the bottom of the production. Due to the Christmas event in Australia, it is summer when the market is happening an increase in demand and decrease in supply. Due to the economics concepts of shortage, it will increase the price of the product. Therefore, customers have to buy the product will a higher rate. As a result, the price of avocado increased. One tray of 24 avocado, the price has increased from $40 to $150 (Jenny.N.,2018). When customers don’t will to pay more on the product, the demand will decrease and back to normal.2 Stakeholders2.1 Avocado Australia Avocado is the most needed fruit in Australia. Australians have more than doubled their yearly intake of the fruit to kilograms in the past decade, Avocados Australia said (Esther.H,2016). Therefore, the supply of domestic farmer can’t produce the product that satisfies the current demand from the citizen. Thus, Australia received a large number of products from New Zealand, and many unexpected storms have occurred due to the inability to pick avocados in wet weather (Ally.F,2018). Due to the Kenyan government banned the expert of avocado, Australia loses a stabilization export supplier. Which make the shortage of avocado Australia facing become worse. (Ally.F,2018).2.2 Cafe Due to the shortage of the avocado, many cafes forced to set their price soaring on their chopped avocado powder (Ally.F.,2018). Especially cafe and restaurant in Queensland, for one pallet have to pay more than half of the original price. (Ally.F.,2018). On the other hands, facing the shortage of avocado. Some of the cafes have to reduce their amount of dish weight, by escaping the lack. (Ally.F.,2018).” We have reduced the scale of our services, so we sold a quarter instead of a full half of avocado,” Ms. Crawford said (Ally.F,2018).2.3
  • 8. Consumers Avocado Australia said that “In the past decade, Australian have more than doubled yearly intake to 3.2 kilograms. (Esther.H,2016). According to a different store, the consumer has to pay a single avocado about $4 to $ 8 each. (Ally.F,2018). People used to think that avocado is a bit of luxury. However, it has been changed. Avocado has become a staple. People use butter to replace the avocado on toast and salads. (Esther.H,2016). When the customer came to the cashier noticed that the store no longer sale avocado, they feel lost and couldn’t speak. However, they won’t blame the store. They know what happens in Australia. Barista Benjamin Sneddon told the Gold Coast Gazette (Ally.F,2018). Besides, the consumer can afford the housing now without buying any avocado. (Ally.F,2018).2.4 Industry group According to September and October in 2015, there are more than 22,000 avocados traded (Olivier.L.2016). Also, according to November and December in 2015, there are more than 32,000 avocados purchased on Australia’s east coast. Until 2017, the sales of avocado have increased to 77,032. (avocado Australia,2017). The producer makes the price of a 5.5-kilogram tray stay about $45. Lead to reasonable retail prices and very healthy sales (Esther.H,2016). However, for the past few weeks industry blamed the rain and bushfire for Australia summer shortage. Lead to wholesale prices doubled, retail prices soared to $7 a fruit, and avocados were rationed (Esther.H,2016).2.5 Grower Due to some grower in Western Australia believes that demand for avocado will decrease therefore they grow a lot most of the summer supply (Esther.H,2016). Most of the grower is trying to make sure get avocado flowing into the market 52 weeks a year (Olivier.L.,2016). Mr. Alan said” grower decided to float more fruit before the Christmas. Due to this decision, it makes the avocado a little unusual, because the grower didn’t wait them ripen before they are picked (Esther.H,2016)3 Economic concepts3.1 The increase in demand for avocado
  • 9. The increased in demand of avocado is a result of avocado is a seasonal fruit. When the Christmas time, the production of avocado reaches the bottom of its supply. Due to severe weather issues and incidents of forest fire, the demand of the avocado is rising at a higher pace, as compared with the supply (Raushenbush, 2012). As can be seen from the Graph1 below, the demand for avocados has been growing rapidly in recent years. As demand increases, the demand curve has moved to the right from D1. In addition, control the supply to maintain the appropriate price to keep the supply curve constant at S1. As a result, we can see that supply increases by the lowest level due to changes in demand Graph 1 An increase in demand 3.2 The decrease in supply for avocado Due to severe weather issues and incidents of forest fire (Raushenbush,2012). Lead to the supple of avocado decreased. Supply is expected to fall over the next few years. Currently, the price of avocados in the retail market has increased to $7 a piece due to increased demand and supply shortages. As you can see, avocados are sold at black market prices in some retail markets to maintain profitability. As can be seen from the Graph2 below, the supply of avocado has been decreasing this year. As supply decreases, the supply curve has moved to the left from S. In addition, with the demand curve stay in the same level. The decrease in supply will make the price of the product increased.
  • 10. Graph2 A decreases in supply3.3 Shortage The current supply in the market is not enough to meet the growing demands of the consumers. The shortage has occurred due to increase in demand due to fall in the price of the Avocado in the past years. Currently, it can be seen that the demand for Avocado has increased at a tremendous rate that has emerged to be a problem for the Avocado producers (Riggs and Bonk, 2008). Hence, a high bulk of supply within a certain period led to shortage of supply in the current market scenario. As can be seen from the Graph3 below, the green line has higher requirements for avocados than lower product offerings. As a result, avocados are in short supply on the market. The shortage of avocados has caused prices to rise to match the Australian market equilibrium Graph2 A decreases in supply 3.4 Law of demand The current market requires more than the current supply. Therefore, the market will increase the price of the product, to ensure the demand from the consumer will decrease. By using this economic of concept, the demand of avocado could be solved when the price is increases to the level that consumers won’t willing to pay. When the demand is decreased to the level that supply can satisfy, shortage of the avocado will be solved. Graph 4 show the supply curve stay at the same amount. However, the demand increased from D1 to D2, the respond of price increased either.
  • 11. Graph 4 law of demand 3.5 Elasticity of supply Elasticity of supply is focused on the substitute goods are the easiest to transfer factors of production. The easier it is for these factors to shift from the production of one good to the production of another, the greater the elasticity of supply. Because durable goods can be stored for a long time, their supply elasticity is very high. But for non-durable and perishable goods, supply elasticity is often low. Graph 5 show that with a longer supply curve, its product a more flexible market. Industry group have more time to respond to the market changes. Graph 5 Elasticity of supply4 Recommendations4.1 Price control Due to the shortage issue, according to the basic of the demand. The price of the avocado increased is predictable. Therefore, price control is the most effective way to reduce the shortage. It also helps market to control the market couldn’t be black- marketed price. Reducing the crime of black-market. Setting up the market standard price also ensure the consumer won’t pay more than that to keep their personal right to enjoy what they want.4.2 Stocking to control shortage In order to manage deficit situation, stocking of product to a level of extent must be considered following government regulations (King, 2012). The marketers and Australian Avocado Association must look for such facilities to control such shortage situation. Preparing some stock before the summer season. Due to the summer is the bottom of the production of avocado, the shortage usually happens in this period of time. Keeping them by putting into the refrigerated
  • 12. warehouse. In the last decade year, refrigerate food are more popular to people. People will be willing to purchase the refrigerate avocado. 5 Conclusion In conclusion, reduced supply and increased demand for avocados have led to a shortage in Australia. This report Outlines issues and stakeholders related to the avocado shortage. It also discusses five economic concepts related to the mining boom and provides the above questions. 6 Reference · Cyntia, D.,2018,” There Is a Coming Avocado Shortage at Restaurant”, viewed 21st dec,2018, <https://table.skift.com/2018/11/08/there-is-a-coming-avocado- shortage-at-restaurants/> · Foster, A.,2018, “Avocado price hike amid a nationwide shortage of the popular fruit”, viewed 21st dec,2018, <https://www.news.com.au/lifestyle/food/eat/avocado-price- hike-amid-a-nationwide-shortage-of-the-popular-fruit/news- story/3573a0f804aee6884771b05d4ce385ab> · Frank, A., n.d.,” Case Study On Avocado Shortage In Australian Market”, viewed 21st dec,2018, <https://myassignmenthelp.com/free-samples/case-study-on- avocado-shortage-in-australian-market> · Han, E., 2016, “Avocado growers reject market manipulation claims amid national shortage”, viewed 21st dec,2018, <https://www.smh.com.au/business/retail/avocado-growers-
  • 13. reject-market-manipulation-claims-amid-national-shortage- 20160126-gmem47.html> · Han, E., 2016, “The truth behind the avocado shortage: growers made 'innocent mistake', viewed 21st dec,2018, <https://www.smh.com.au/business/companies/the-truth-behind- the-avocado-shortage-growers-made-innocent-mistake- 20160125-gmdbvw.html> · Jen.C.,2018, “Here's Why Avocados Have Gotten So Expensive Lately”, viewed 21st dec,2018, <http://gothamist.com/2018/11/14/avocado_shortage_prices.php > · Lambert, O.,2016, “Farmers blamed for avocado shortage”, viewed 21st dec,2018, <https://www.news.com.au/lifestyle/food/eat/farmers-blamed- for-avocado-shortage/news- story/b9e74e7e6ba8a5e3a3f567e155a3115f> · Michael, C.,2016, “When avocado demand outstrips supply”, viewed 21st dec,2018, <http://sex-drugs- economics.blogspot.com/2016/08/when-avocado-demand- outstrips-supply.html> · Tejvan, P.,2017, “Diagram for Supply and Demand”, viewed 21st dec,2018, <https://www.economicshelp.org/blog/1811/markets/diagrams- for-supply-and-demand/> · Tiger, W.,2017,” How the avocado smashed its way into Australia's heart”, viewed 21st dec,2018, <https://www.abc.net.au/news/2017-06-22/how-the-avocado- smashed-its-way-into-australias-heart/8634456> 2
  • 14. Facts at a Glance 2016/17 for the Australian avocado industry Key statistics of the Australian avocado industry Data current at August 2017 2 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. This report has been produced as part of the strategic levy investment project Avocado industry market data capture and analysis (AV16006), part of the Hort Innovation Avocado Fund. It is funded by Hort Innovation, using the avocado research and development levy and contributions from the Australian Government. Hort Innovation is the grower-owned, not-for-profit research and development corporation for Australian horticulture. Avocados Australia Phone: (61) 07 3846 6566 or toll free 1300 303 971 Fax: (61) 07 3846 6577 or toll free 1300 303 972 General enquiries: [email protected] Media enquiries: [email protected]
  • 15. Online www.avocado.org.au www.facebook.com/AvocadosAustralia https://twitter.com/AvocadosAu Copyright © Hort Innovation 2017 Horticulture Innovation Australia Limited (Hort Innovation) makes no representations and expressly disclaims all warranties (to the extent permitted by law) about the accura- cy, completeness, or currency of information in Avocado industry market data cap- ture and analysis (AV16006). Reliance on any information provided by Hort Innovation is entirely at your own risk. Hort Innovation is not responsible for, and will not be liable for, any loss, damage, claim, expense, cost (including legal costs) or other liability arising in any way, including from any Hort Innovation or other person’s negligence or otherwise from your use or non-use of Avocado industry market data capture and analysis (AV16006), or from reliance on information contained in the material or that Hort Innovation provides to you by any other means. Report notes
  • 16. Export values are calculated using Free on Board (FOB) price. Gross Value of Production (GVP) for annual Australian avocado production is estimated by combining: local wholesale value of fresh volume; local wholesale value of processing volume; and export value (FOB) of exported volume. Consumer market value is estimated using average retail prices (Coles and Woolworths online price data) multiplied by Australian avocado volumes (fresh and processed) that are supplied to the Australian consumer market. The consumer market is broadly defined as both retail and foodservice channels. Farmgate value is estimated by multiplying the Australian avocado production volume by the local wholesale price minus estimated marketing/supply chain costs. Data source is Infocado unless otherwise stated. Infocado is the data collection platform from which avocado supply and forecast volumes are reported. The production of these reports is currently funded through AV16006. See http://www.avocado.org.au/ our-programs/supply-chain-data/infocado/ for more information.
  • 17. Consumption is estimated using total supply volume divided by Australian population (based on ABS data). Report version updated 09 March 2018. http://www.avocado.org.au/ http://www.avocado.org.au/ tel:0738466566 tel:1300303971 tel:0738466577 tel:1300303972 mailto:[email protected]?subject=Facts%20at%20a%20Glance% 202016/17 mailto:[email protected]?subject=Facts%20at%20a%20Glance% 202016/17 http://www.avocado.org.au/ https://www.facebook.com/AvocadosAustralia/ https://twitter.com/AvocadosAu http://www.avocado.org.au/our-programs/supply-chain- data/infocado/ http://www.avocado.org.au/our-programs/supply-chain- data/infocado/ 3 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Australian avocado production
  • 18. Year Production volume (tonnes) Number of 5.5kg trays Gross value of production (GVP) (AUD million) Farmgate value (AUD million) Consumer market value of Australian fruit sold domestically (AUD million) Export value (AUD
  • 19. million) 2007/08 39,394 7,162,546 $ 127 $ 108 $ 326 $ 4.2 2008/09 46,446 8,444,728 $ 174 $ 152 $ 462 $ 6.0 2009/10 39,641 7,207,501 $ 182 $ 167 $ 426 $ 6.2 2010/11 49,612 9,020,281 $ 202 $ 180 $ 498 $ 7.3 2011/12 51,113 9,293,315 $ 178 $ 155 $ 461 $ 8.1 2012/13 54,877 9,977,567 $ 296 $ 276 $ 661 $ 8.1 2013/14 48,715 8,857,217 $ 313 $ 297 $ 668 $ 5.6 2014/15 57,595 10,471,887 $ 356 $ 331 $ 750 $ 6.4 2015/16 66,716 12,130,207 $ 438 $ 412 $ 899 $ 9.2 2016/17 65,992 11,998,467 $ 398 $ 374 $ 755 $ 12.5 Avocado production and value Sources: Infocado, IHS Global Trade Atlas, and Avocados Australia analysis using Ausmarket Consultants data and Freshlogic assumptions Australia produced almost 66,000 tonnes of avocados in 2016/17, which was slightly less (1%) than the previous year. The gross value of production (GVP) for Australian avocados was estimated at $398 million. Australian annual avocado production and value http://www.avocado.org.au/
  • 20. http://www.avocado.org.au/ 4 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Queensland continues to produce the majority of Australian avocados, with 69% of production. Western Australia produced the next largest share at 18%. Avocado production by state (tonnes) Year Qld NSW Vic/Tas SA WA/NT Total 2007/08 31,416 4,385 55 484 3,053 39,394 2008/09 33,179 5,456 120 248 7,443 46,446 2009/10 32,484 3,203 62 167 3,724 39,641 2010/11 40,654 4,009 77 210 4,661 49,612 2011/12 40,665 4,012 186 1,931 4,319 51,113 2012/13 29,294 3,116 119 956 21,392 54,877 2013/14 35,602 5,601 770 719 6,024 48,715 2014/15 28,703 4,286 1,106 913 22,587 57,595
  • 21. 2015/16 32,374 8,305 1,646 1,429 22,961 66,716 2016/17 45,608 6,108 1,296 1,105 11,875 65,992 Avocado production by state http://www.avocado.org.au/ http://www.avocado.org.au/ 5 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Avocado regions in Australia Australia’s avocado production is divided into regions which have similar growing conditions and seasons. Some regions cross state boundaries. On average across 2015/16 and 2016/17, production has mostly come from the Queensland regions (59%) and Western Australia (26%). Annual tonnes produced in each region averaged over two years*: 2015/16 and 2016/17 * A two-year average is used to compare production by region, because some regions have irregular bearing years, meaning crop load may vary significantly from year to year. State/s Region Queensland
  • 22. North Queensland (NQ) Central Queensland (CQ) Sunshine Coast (SC) South Queensland (SQ) Queensland & New South Wales Tamborine / Northern Rivers (TNR) New South Wales Central New South Wales (CNSW) New South Wales, Victoria, South Australia & Tasmania Tristate (Tri) Western Australia & Northern Territory Western Australia & Northern Territory (WA/NT) http://www.avocado.org.au/ http://www.avocado.org.au/ 6 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Avocado production by region http://www.avocado.org.au/ http://www.avocado.org.au/
  • 23. 7 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Avocado production by region Australian avocado production by growing region (tonnes) Year North Qld Central Qld Sunshine Coast South Qld Tamborine Northern Rivers Central NSW Tristate Western Australia Total 2007/08 6,205 14,757 4,082 4,841 1,509 3,309 1,180 3,510 39,394
  • 24. 2008/09 6,227 14,783 3,160 7,456 2,567 4,475 710 7,069 46,446 2009/10 6,667 17,105 2,766 4,779 1,220 2,914 394 3,797 39,642 2010/11 6,211 20,210 3,000 4,864 890 3,748 974 9,715 49,612 2011/12 6,378 20,870 3,337 6,738 1,743 3,462 4,668 3,917 51,113 2012/13 10,399 13,164 2,603 4,027 533 2,843 2,734 18,575 54,877 2013/14 10,859 13,668 2,131 7,243 1,586 4,208 2,857 6,163 48,715 2014/15 12,310 10,054 1,782 3,848 781 3,815 3,182 21,824 57,595 2015/16 12,285 13,857 1,421 5,301 1,737 4,752 3,592 23,771 66,716 2016/17 17,599 15,882 1,401 6,964 1,500 5,645 3,517 13,483 65,992 2016/17 % by region 27 % 24 % 2 % 11 % 2 % 9 % 5 % 20 % Past 2yr average % by region 23 % 22 % 2 % 9 % 2 % 8 % 5 % 28 % Production in Central
  • 25. Queensland shows continued signs of recovery from the flooding events of 2011 and 2013, producing 24% of the nation’s avocados in 2016/2017. Western Australian production has continued to increase significantly, albeit with some ‘off years’. North Queensland production continues to grow steadily. http://www.avocado.org.au/ http://www.avocado.org.au/ 8 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Avocado supply periods by region Australian avocado supply periods by region and variety Region Variety Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec North Queensland Hass Shepard
  • 26. Hass Central Queensland Shepard Sunshine Coast Hass South Queensland Hass Tamborine/Northern Rivers Hass Central New South Wales Hass Tristate Hass Western Australia Hass New Zealand Hass http://www.avocado.org.au/ http://www.avocado.org.au/ 9 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. In Australia, avocados are produced almost all year round due to the range of climates and conditions in our eight major avocado growing regions. Hass
  • 27. is the main avocado variety, and is produced almost all year round. In 2016/17 Hass represented 87% of production. Shepard, which is grown in Queensland through late Summer and Autumn, made up 10% of production, and at that time of year, is the dominant Australian variety on the market. Avocado production by variety http://www.avocado.org.au/ http://www.avocado.org.au/ 10 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Production by Variety (tonnes) Year Hass Shepard Other Total 2007/08 31,578 5,933 1,883 39,394 2008/09 36,669 7,450 2,327 46,446 2009/10 29,790 8,353 1,498 39,641 2010/11 39,913 6,418 3,280 49,612
  • 28. 2011/12 43,155 4,923 3,035 51,113 2012/13 41,398 9,923 3,556 54,877 2013/14 37,513 8,882 2,320 48,715 2014/15 46,540 9,090 1,966 57,595 2015/16 53,965 10,281 2,470 66,716 2016/17 52,962 10,860 2,169 65,992 Avocado production by variety Production by variety in 2016-2017 Variety Production (%) Hass 87.270% Shepard 10.499% Lamb Hass 0.678% Reed 0.638% Sharwil 0.244% Gwen 0.220% Wurtz 0.201% Fuerte 0.123% Unnamed 0.098% Pinkerton 0.013% Gem 0.012% Bacon 0.004% Edrinol 0.001%
  • 29. http://www.avocado.org.au/ http://www.avocado.org.au/ 11 Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. Australian consumption of avocado Australian production is forecast to increase strongly over the next few years, with 100,000 tonne per annum expected to be produced by 2025. Australians’ love of avocados grows steadily each year. Consumption in 2016/17 reached just over 3.5kg per person. Imported New Zealand fruit supplements Australian supply during their harvest season during Spring and Summer. Australian annual domestic avocado supply, NZ imports and Australian per capita consumption Sources: Infocado, IHS Global Trade Atlas (2017) and population based on ABS data Sources: Infocado, Avocados Australia analysis http://www.avocado.org.au/ http://www.avocado.org.au/ 12
  • 30. Facts at a Glance for the Australian avocado industry—2016/17 www.avocado.org.au Compiled by Avocados Australia. Data source is Infocado unless otherwise stated. In both production and exports, Australia is currently a small player in the world avocado market. Ongoing activity is underway targeting Australia’s growth in export markets with Malaysia and Singapore currently Australia’s main avocado export markets. In 2016/17 Australia exported over 2,300 tonnes of avocados, a one-third increase on the previous year, approaching the highest exports previously recorded in 2011/12. Australian avocado export markets Australian annual avocado export volumes in tonnes by country and AU$/kg FOB (blue line) http://www.avocado.org.au/ http://www.avocado.org.au/