In: Economics
Article – Avocado Industry: How have farmers responded to the growing demand for avocados? How has it affected them positively and negatively?
Avocado has become an inseparable part of human diet due to its innumerable health benefits. With the increased rate of life threatening diseases, people prefer to add avocados in their meals to avoid obesity, diabetes, cholesterol and high blood pressure. The demand for avocados are increasing day by days which make farmers to grow their production capacity in their farmland where this 'green gold' is grown. As Avocados are grown mostly in some particular parts of the world, its price goes up very high due to the higher costs of import and exports. Generally Avocado is a season fruit which grows in March and ends in June. That means the fruit needs to be preserved for a longer time during the odd season. As the fruit is a high value crop with a higher returns of annual revenue, farmers generally consider growing the fruit in their farmlands all over the world. Mainly subtropical parts of the world mainly Mexico, California of USA, Sri Lanka, Malaysia, Southern Part of India, Australia, Central America, Indonesia etc are the top producers of Avocados.
Positive impact of growing Avocado business on farmers:- As Avocado is considered as ' green gold' by people due to its higher prices, farmers generally get the incentive to grow more and more avocados in their farmland in order to earn higher revenues. The returning price is higher than cost of production, the avocado business seems to be a lucrative one. Farmers need not to sow the seedlings every year as it is a one year investments. The avocado plants start giving fruits after two and half tears of its sowing and keep giving fruits for innumerable years depending on the maintenance by the farmers. Besides the avocado growing industry does not require large numbers of labours through out the year as there is not any sowing period for it. Only matures trees give fruits which require labours during the plucking seasons for 2-3 months only. So there is comparatively little investments in this farming business than other crops which attract more and more farmers to this business.
Negative impact of growing avocado business on farmers:- Though farmers have the higher opportunities to earn more from Avocado industry, there are negative sides also. Avocado requires high maintenance in order to sell the product in the market. It is a sub tropical fruit which requires frost free, less windy and no rain during its pollination period. So if all the required system gets disturbed, huge losses occur to farmers as the fruit fails to reach to the market due to its undergrowth or failing to meet the market demands. Besides there has been increasing legislation and regulations from government sides to the farmers to follow the food safety norms. Increasing demand for Avocados by in the world market has made farmers to clear more and more lands for the fruits plantation which is leading to deforestation, air pollution due to increased use of fertilisers etc. Farmers failing comply the govt. rules are bound to pay heavy penalty. Increasing number of farmers associated with avocado industry sometimes fail to gain their production costs due to larger supply of the fruit in the markets. Besides exporting the food also requires them to preserve the fruit for a longer period, incurring heavy transportation costs, export duties etc which bring sometimes uncertainity to their returns till the fruit reach to the market in its original condition. Slight damage to the fruit makes it unsellable as people would not like to buy rotten or damaged product whose costs are very high.