Addressing the Avocado Avalanche and Other Sudden Fresh Food Surges in Demand

Avocados are crazy popular right now. They can be found on toast, guacamole, and tacos, but even in ice cream, smoothies, hummus and pasta sauce–consumers can’t get enough of the green fruit. If you’re like me, you’ve been eating more avocados lately than you ever have before (and brussels sprouts but that’s an entirely different issue!)

And they are legitimately healthy. “Avocados are a fruit and one of the few fruits that are high in fat and low in sugar,” said Dr. Donald Hensrud, medical director of the Mayo Clinic Healthy Living Program in Rochester, Minnesota, and a specialist in nutrition and preventive medicine. “Along with nuts, olive oil and canola oil, the fat content in avocados are predominantly monounsaturated fat, which is responsible for many…health benefits,” he said. “Avocados also contain other nutrients including B vitamins, vitamin E, vitamin C, copper and fiber, which add to their health benefits. They have a higher potassium content than bananas.”

According to the American Restaurant Association, the wholesale price of avocados went up 125% since the beginning of 2017 in what has been called the avocado avalanche. Food Processing Technology explains that the dramatic 2017 price hike is because avocados are an  ‘alternate bearing crop’ – meaning one year there’s a large quantity of small avocados and the next year there’s a small quantity of large avocados. A weak harvest in 2016 was blamed for the avocado shortage that resulted in 2017’s higher price.

The article further explains:

Prices peaked in July, and in December Bloomberg reported that the price surge was over. Largely due to good weather and improved pest control, the US Department of Agriculture reported at the end of November that Mexican Hass avocado production was expected to receive a boost. That boost should ensure a larger crop that prevents costs reaching similar peaks again, with wholesale prices fairly rapidly dropping after the highs of the summer. However, by its very nature as an alternate bearing crop, are we not, particularly with the surging demand for avocado, near certain to encounter the same harvest problem in the future?

All this is to say nothing of the demand that an avocado farm places on the farmers and the land around it. For the farmers, they must struggle with the fact that an avocado sapling can take three years to grow into a fruit-bearing tree, meaning that said farmers are three years without an income crop if purely reliant on avocado. In addition, avocados are particularly susceptible to disease and drought, especially when taking into consideration the massive amounts of water that the fruit requires to grow. Everywhere you look, the avocado is a fruit with a high production cost.

Manage Surges in Demand with Microsoft Dynamics 365 + LINKFRESH

When the challenges that hit avocado growers and distributors hits your business, a modern, agile, cloud based solution can help. Fresh food producers and distributors are constantly striving to maintain a supply of quality raw produce in the face of constantly changing demand and ever more stringent quality criteria. Changes in any part of the chain – from supply and demand, through production, quality control and logistics – can be spotted and adapted to with Microsoft Dynamics software and LINKFRESH.

LINKFRESH™ is a powerful fresh produce software solution for fresh food growers, packers, and shippers to manage production, distribution and marketing through to the point of sale. Our suite of easy to use, add-on modules and applications seamlessly integrate with Microsoft Dynamics™ to allow you to gather data and see robust transaction details when and where they happen – all in real time.

Providing an accessible, single point of reference for your operations, our supply chain management software solutions meet food safety and traceability requirements. These solutions provide clarity from field harvest through shipment to customer with efficiency and productivity – minimizing spoilage and increasing speed to market.

Velosio’s Modern Fresh Produce Software is About Time, Compliance and Improving the Bottom Line.

Microsoft Dynamics 365 + LINKFRESH is a complete solution for your operations, including:

  • Get Audit Ready data to remain compliant with legislation and standards.
  • Ensure food safety and QA with real-time data capture and retrieval.
  • Optimize warehouse and production operation to avoid order shortfalls and missed deliveries.
  • Identify, track, and reduce costs to maintain your profit margins

Best regards,

Todd Waterman
Industry Manager, Agribusiness, Velosio

About Todd
Todd Waterman has spent over 17 years in IT for Agribusiness, including at his own consulting firm, and as Chief Administration Officer for EuroAmerican Propogators in California. From start-ups to enterprise-class organizations, his knowledge of the agribusiness ecosystem and products helps Velosio customers Todd Watermanmaximize ROI on technology investments.

Today, Todd serves Velosio customers in his role as Industry Manager for Agribusiness. Todd is based in sunny California, and received his BA from San Diego State University in San Diego, California.

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