With grocery items spiking up about 13% in the past few months one bright spot is the cost of avocados.
The fruit, which has become more popular in menus from fast food to fast casual environments, is now costing 35% less on the wholesale front, according to a CNN report, compared to the first half of this year.
At the start of 2022 the price of avocados surged. Now the cost is down 67% compared to a peak point at the start of summer. The primary reason is that there is no scarcity of the fruit, according to one industry consultant. In the first half of the year shipments from Mexico, which is the dominant supplier of avocados to the US, were down 25%.
“It’s one of those odd situations where this extreme oversupply of avocados is only possible because of a perfect storm of Black Swan events,” Richard Kottmeyer, managing director of food, agriculture and beverage with FTI Consulting, told CNN. “For consumers, avocados right now are the green lining to the storm clouds of food inflation.”
It’s good news for the restaurant industry as avocados are increasingly gaining popularity with diners.
“Demand for avocados is certainly not decreasing,” Kottmeyer told the news outlet. “The Super Bowl is the biggest consumption event for avocado, but we’re certainly seeing many more eating occasions for it.”
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