Avocados grow best in deep, well-drained, fertile soils. The soil should not be prone to waterlogging and have good nutrient retention.

Growing avocados is suited to flat or gently rolling whenua. This is to help with the access and operation of machinery. We recommend slopes that are less than 7 degrees. Erosion becomes a concern as slopes get steeper.

Avocados need a soil depth of at least 1.5m to grow well. They have shallow feeding roots which absorb nutrients and water in the upper soil layers.

For good avocado growth and yields, various nutrients are required. This includes:

• Phosphorus - to stimulate root growth
• Calcium - to help with plant health
• Potassium and sulphur - to contribute to the fruit yield and quality
• Nitrogen - carefully managed to achieve high yields
• Boron, iron, magnesium, and zinc - in smaller quantities to produce premium fruit.

It's important to test your soils before planting your crop. Many companies offer this service. This will help you understand the current fertility of your block and nutrient requirements. An optimal soil has a pH of 6.

Soil safe Aotearoa

Avocados grow best with warm daytime temperatures and very few frosts. They need temperatures averaging 20-24°C in summer, and temperatures greater than 10°C in spring for ideal flowering conditions. They are susceptible to frost at flowering. Northland, East Cape/Gisborne, and some areas of the Bay of Plenty and coastal Wairarapa have low frost risk.

Other North Island coastal areas and a few in the South Island have moderate frost risk, whilst most other areas of New Zealand have high frost risk. There is less than 1% risk at temperatures greater than 0°C, and more than 5% risk at temperatures less than -1°C. Mean annual temperatures of 15–20°С is optimal for avocado.

Modelling the effect of climate change on land suitability for growing perennial crops

Most growing regions of Aotearoa have sufficient rainfall to meet the needs of avocado trees. Too little rain over the summer months can affect fruit size and yield at harvest. Too much rain at any time may cause Phytophthora (root rot) if drainage is poor.

Depending on the location of your whenua and your soil type, irrigation might be necessary.

If you're thinking about growing avocados on your whenua, check your region's rainfall distribution and rain intensity. This is important while your avocados are growing and before harvesting.

See NIWA for more information.

Avocados are a perennial, strongly alternate-bearing crop, meaning you will get a large crop one year and a smaller crop the next year. Avocados are also unique in that they hold one seasons crop on the tree while growing the next seasons crop at the same time.

When planning to plant avocados, you will need to consider your geographic location and the type of rootstock best suited to this location. Different varieties of rootstock will grow better in different situations.

For advice on what types of avocados suit your whenua, talk to New Zealand Avocado.

New Zealand Avocado

Unlike most trees, avocados prefer to be planted into warm soils so will be best planted between September and May.

You may need machinery to prepare your whenua for planting avocados but the planting itself is done by hand.

Plant spacing will depend on your whenua and your management regime. Traditional planting density is 200 trees/ha but higher density planting is becoming more popular.

Avocados will grow for 3 or more years before they're ready to produce a crop.

Learn more about high density planting.

Harvesting avocados can be done by hand using machinery to access the fruit. This is dependent on how mature the trees are (up to 10m high at maturity).

Avocados do not ripen on the tree. Most orchards pick between September and April but this will depend on the location of your whenua and the type of avocado you have grown.

Fruit will be harvested by hand using a hydraulic 'ladder' machine to enable the picker to reach the top of the tree. The bins of harvested fruit are then transported to a packhouse.

After harvesting your avocados, the storage of your crop is very important. This ensures your crop can get to international and domestic markets in the best possible quality.

Packhouse operations play an important role in the presentation and distribution of avocados.

The packhouse will sort, grade, and pack your crop.

Ripening is an important part of the process and is managed by the export company. Some companies specialise in sourcing, marketing, and distributing produce. For example, Primor Produce is a major NZ marketer and exporter of avocado, supplying supermarket chains in Australia, North America, and a range of Asian markets including Japan. They work with growers who supply the domestic market and assist with supermarket supply chains.

Packed boxes of avocados are stored in temperature-controlled ripening rooms until they have ripened to a colour and firmness that will provide the supermarket with the optimal 5-7 day selling window.

Primor Produce

Avocados are very susceptible to Phytophthora fungal root rot and can be affected by pests like stink bugs, mites, and thrips. You will need to consider using disease and pest management methods, such as:

• counting the number and species of pests weekly
• monitoring crops to assess plant health
• making the environment attractive to insects that can eat pests
• targeted use of fungicides and pesticides.
• soil and drainage management

New Zealand Avocado

NZ Avocado is made up of two entities:

• NZ Avocado Industry Limited
• NZ Avocado Growers Association

New Zealand Avocado

NZ Avocado Industry Limited (NZAIL)

Is a limited liability company that is recognised by the government as representing New Zealand avocados. Any exporter of avocados from New Zealand must be licenced with the NZ Horticulture Export Authority (HEA). NZ Avocado Industry Ltd manages contractual arrangements under the NZHEA Act 1987 and implements quality standards, export grade standards, and rules and procedures that must be followed by growers, pack houses, and exporters.

There are 1,400 growers registered in New Zealand.

NZ Avocado Growers Association (NZAGA)

The NZAGA promotes the sale and consumption of avocados, manages a research and development programme, and supports grower's information needs. NZAGA lobby and liaise with the government on behalf of growers.

Export market

The New Zealand avocado sector has grown from a cottage industry valued at $82m in 2011 to a significant sector valued at $234m in 2021. The final volume packed in 2022-23 was 6,906,000 trays, being 3,002,000 exported and 3,903,000 sold domestically. There are 10 registered exporters and 11 export markets (including Australia, India, South Korea, Thailand, Japan, Singapore and China). Australia is the largest export market taking around 80% of exported avocados. While the bulk of avocado production has come from the Bay of Plenty, Northland now accounts for just over 40% of total production.

Horticulture Export Authority (HEA)

The HEA Act’s primary function is “to promote the effective export marketing of horticultural products”.

Learn more about the HEA Act.

New Zealand Avocado Grower

Scale

Avocados can be commercially viable when the orchard is at least 25 hectares in size unless the orchard can be run by an owner-operator using existing infrastructure. An economically sustainable orchard should be producing at least 12 but ideally 15 or more tonnes per hectare. Turning a profit from growing avocados depends on several factors, like:

• your location - access to the market, or infrastructure, or to a packhouse
• your climate and soil
• your production practices - modern machinery and equipment or smaller scale efficiencies
• the market demand and access to the market
• your operational efficiencies - larger farms may benefit from economies of scale.

After 5 years the trees will be producing 50% of their full potential and full production will be reached after 10 years.

Equipment and infrastructure

There are various tools and equipment needed for growing and harvesting avocados. These include:

• infrastructure around shelter,
• irrigation
• fertigation (not essential but may be desirable)
• pruning equipment
• picking equipment (including bins)
• transport
• pack house
• horticultural sprayer.

It's estimated that you'll need to grow at least 25 hectares of avocados to offset the costs of investing in machinery and equipment. Growers can either self-manage or contract orchard management services to take care of their orchard. All growers are advised to utilise industry consultants for on-orchard services including canopy management and a spray and fertiliser programme.

Once picked the avocados are transported to a pack house. Here they are washed, polished, sorted, and labeled before packaging. Every season a grower must contract with a packer and exporter to pack and market their avocados on their behalf. There are just 14 registered pack houses in New Zealand.

Jobs and people

Your people and labour requirements are seasonal, based on key milestones, like harvesting. You'll need a mixture of unskilled labour, as well as specialists. The specialists will help you with:

• managing the crop cycle,
• pest management techniques,
• harvesting and,
• post-harvest management.

The peak demand for labour and specialists by avocado producers is during planting, pruning, and harvesting times.

It is estimated that orchards greater than 40 hectares will require a full-time manager. Most orchards are picked twice during the main September to March harvest period. Pruning takes place at other times of the year. Generally, 2 people will be required for the harvest period from a 10-hectare orchard.

Case study - Bay of Plenty avocado orchard

Here is an example of an avocado orchard in the Bay of Plenty, let's imagine it had 20 hectares of avocados produced last year.

It yielded 248 tonnes of avocados, bringing in a revenue (orchard gate return OGR) of $920,000.

It had $580,000 in expenses, and the farm made a profit of $340,000.

It took 3 years until first harvest, and 10 years for full production.

Operational costs

The estimated operational costs to produce avocados are around $30,000 per hectare per year. This depends on factors, like:

• scale of the operation
• level of mechanisation
• specific farming practices
• regional and locational factors
• market conditions.

Labour costs can be significant, especially when you're first setting up your orchard. Some other examples of costs that you'll need to consider are:

• rootstock
• fertilisers
• pesticides and herbicides
• pollination
• skilled and unskilled labour
• permits, licenses, or certifications
• compliance with regulations and food safety standards.

Development costs range from $50,000-$70,000 per hectare (excluding land) and include preparing the ground and planting the trees.

Costs

There are some costs you will need to consider, and these will change with the amount produced. Here are some examples:

Yield (and time to profit)

It typically takes several years to establish a sustainable and profitable operation.

Maximising the amount of good quality avocados produced will increase the profits you earn. Factors that can contribute to higher avocado yields include:

• crop management (including pollination and pruning)
• variety selection
• planting density
• nutrient management
• weed control
• harvesting at the right time.

Revenue

Returns from avocado production are influenced by a variety of factors, including:

• market conditions
• yield
• quality
• production costs
• pricing strategies
• events beyond your control, for example weather conditions or market fluctuations.

Things we can do to create better returns include:

• efficient practices to maximise yield and production.
• market demand and pricing
• quality and grading
• Cost management
• Storage and post-harvest handling
• Value-added opportunities.

To help you make informed decisions and maximise returns, it's important for you to:

• stay informed about market trends through research.
• maintain good relationships with buyers.
• regularly assess your orchard's production and financial performance through tracking costs.

Operating profit

To estimate your operating profit, you'll need to look at the amount of money generated from selling your avocados, minus your production costs. There are factors that may affect your revenue and influence your orchard's operating profit. These include:

• orchard size
• yield - the quantity of avocados sold
• market conditions and fluctuations
• production costs and efficient horticultural practices
• pricing strategies
• weather conditions.

You will need to consider your production costs, which can include:

• labour
• rootstock
• fertilisers
• irrigation
• pest and disease management
• machinery maintenance
• storage
• packaging
• marketing costs.

These costs can be affected by having efficient horticultural practices and effective cost management.

Each orchard will have factors specific to them and different market dynamics. Keeping accurate records of your production and financial records can help you see where improvements could be made and increase your operating profit.

There are 10 registered exporters in New Zealand for avocados and there are 11 export markets (including Australia, India, South Korea, Thailand, Japan, Singapore, and China). The authorities can provide information on what's needed to export avocados, including:

• procedures
• documentation
• fees or licences
• packaging standards
• biosecurity requirements.

To export avocados, you need to follow legislative requirements, including:

• any exporter of avocados from New Zealand must be licenced with the NZ Horticulture Export Authority (HEA).
• meeting export requirements, like documentation and packaging standards
• every season a grower must have a supply agreement with a packhouse and if exporting, a contract with a registered exporter. There are just 14 registered pack houses in New Zealand and 10 registered exporters.
• ensuring food is grown so it can be sold under the Food Act 2014
• meeting regulations around risks to freshwater.

You must comply with National Programme 1 requirements under the Food Act 2014. This includes:

• following safe food practices, like checking for pests and using clean water
• registering your business with either your local council or MPI
• getting your business verified.

Learn more about National Programme 1.

You will need a freshwater farm plan, either now or by 2025 if your whenua will have:

• 20 hectares or more of arable and/or pastoral use, or
• 5 hectares or more of horticultural use, or
• 20 hectares or more of combined uses.

These plans identify actions to manage and mitigate risks of on-farm activity to freshwater. They must be certified and audited, then recertified every 5 years.

Learn more about freshwater farm plans.

Some additional certifications and registrations may make your avocados more appealing to buyers.

You can choose to get certified with New Zealand Good Agricultural Practice (NZGAP) for a yearly fee. Some retailers and wholesalers only take crops from an NZGAP-certified supply channel.

Learn more about NZGAP.