First to export to Canada

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Just Avocados was the first New Zealand avocado supply group to have their fruit exported to Canada – a move that showcased yet again Darling Group’s ability to be innovative and agile amid rapidly changing market conditions.

With the Australian market oversupplied and forecast to deliver unsustainable returns for the 2023-24 season, Darling Group sought to ensure value was maximised for Just Avocados suppliers. Canada, a market not previously supplied by New Zealand, presented an opportunity.

Jacob Darling of Darling Group says they were attracted to Canada because of viable air freight rates, limited competition from Peru and Mexico, and the mitigation of quality issues by incorporating air freight.

“Mexico had a small fruit profile and Peru was headed for an early finish. Reading the market, and knowing we needed to pull fruit from Australia, we acted and secured a programme in Canada by the start of the season.”

NZ Avocado Industry Ltd were instrumental in liaising with New Zealand’s Ministry for Primary Industries who negotiated with Canadian government officials to achieve market access.

“NZ Avocado made the process smooth and efficient.”

The programme ran from September to December and was specific to large fruit (18 – 24 CT) that was prepacked in Canada and supplied to retail. Jacob says feedback from the retailer on quality was positive and returns achieved were competitive compared with Asia.

“Our fruit was received well in terms of quality and that is across both sea and air freight shipments. Most importantly, the programme gave a positive injection to the Just Avocados’ pool.

“With transit times below 20 days, Canada is accessible in volume at a commercially viable cost. Competing with the lower dry matter level of Peruvian fruit gives New Zealand fruit a favourable chance and this has been the feedback from retail.”

Jacob says the volume that can be moved in Canada, and especially at retail, is “significant”.

“Going forward, there is an opportunity for New Zealand avocados now that retailers have seen what we can provide from a timing and quality point of view.”

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