Organic avocados show price sensitivity

As the avocado market in the United States continues to expand, there are also terminal market prices for organic avocados, which often top prices for conventionally grown fruit.

 

Organic avocado prices are more sensitive to short supply. In 2015, organic prices were higher than conventional from June to September, reaching a price of $4.92 per kilogram, 89 percent higher than conventional avocado pricing.

In 2016, as supply decreased and pushed both conventional and organic prices up, organics hit an average monthly price of $6.01 per kilogram, which was 61 percent higher than conventional.

The next year, 2017, saw organic prices higher than both of the previous two years, climbing to $8.48 per kilogram as an average monthly price for September, 56 percent higher than conventional avocados.

This is an excerpt from the most recent Produce Blueprints quarterly journal. Click here to read the full article.

Monica Gallo Riofrio earned an MBA from INCAE in Costa Rica and previously served as a price analyst. She is an agribusiness consultant and contributes her expertise to executive education programs.