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Avocado prices up, quality down
28 Aug 2007
Avocado growers are concerned that while they are producing a record crop that is driving wholesale prices down, retailers are not passing the cost savings on to consumers. According to Avocados Australia the two major supermarket chains are applying a 590% mark up on the average of 50 cents per avocado paid to growers. The supermarkets have been using see-saw pricing where the price in a state is as low as 80 cents one week but it reverts to as much as $2.95 after that and stays there until that state gets another turn in the cycle. Around half of all avocado sales are through the supermarket chains so they effectively control price setting at both wholesale and retail levels. The high prices mean that avocado quality is down as they move more slowly through the supply chain.
Infochoice.com.au, 28/08/2007
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