Aug 24, 2022 - Business

Price of avocados in decline

Avocados for sale.
We prefer to buy hard, greenish avocados — we keep them in our fridge until we're almost ready to eat them, and then let them finish ripening on the kitchen counter. Photo: Jeenah Moon/Bloomberg via Getty Images

Per our informal economic-mood-of-the-world tracker, small avocados are down to a manageable 68 cents apiece at our local Austin supermarket.

  • In other words: If you bought a truckload of avocados in June at $1.08 eachup from 91 cents in January — and hoarded them in your super-cold warehouse in the hopes you'd make a late summer killing, you might be crying right now into your guacamole.
  • Yes, but: Avocados still cost more than in early 2021, when they were priced at 52 cents each.

BTW: Avocados are a fruit, not a vegetable.

Zoom out: In late July, avocado growers in the Mexican state of Jalisco began exporting avocados to the U.S.

  • For 25 years, neighboring Michoacan had been the only Mexican state authorized to send avocados to the U.S. market.

What they're saying: "When we were talking about very high prices a month ago, it was because the market wasn't getting enough supply," Javier Medina Villanueva, president of the Jalisco Avocado Export Association, told the Associated Press late last month. "So we believe that the entry of Jalisco will close that supply shortage. … I think prices will stabilize."

Worth noting: Seasonal availability also plays into the pricing, Kimberly Mercer at the U.S. Department of Agriculture's Agricultural Marketing Service tells Axios.

  • The overall pattern is "low prices in winter lasting up to around the Super Bowl, then higher spring through early summer, dipping by late summer into fall, going along with the harvest patterns for Mexico, California and to a lesser degree Peru," Mercer said. 
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