The current avocado market has seen the wholesale price of a box of 48 avocados increase by 143%.
US$34.45 in September 2016
US$83.75 in September 2017
The reasons can be explained by simple Supply and Demand.
There have been droughts, storms, wildfires and strikes in various growing areas including California, Chile and Mexico
California – production down 44%
Mexico – production down by 20%
This has a huge impact on supply with the supply curve shifting to the left – S1 – S2 therefore increasing scarcity and putting up the price.
Annual consumption in the US has increase from about 0.5 kg in 1989 to 3.5 kg in 2016.
In 2016 total consumption was 1.15 billion kg. Demand curve shifts to the right – D1 – D2 therefore increasing the price.
A lot of demand has been driven by trends like avocado toast and the growth of fast-casual Mexican chains like Chipotle. There has also been higher avocado consumption in China and Europe as health-conscious consumers in the world’s most populous nations show an interest in the “heart-healthy” avocados.