The paper "Avocado Shortage in Australia" is a perfect example of a micro and macroeconomic case study. The objective of this report is to describe the main issue associated with the Avocado shortage in Australia. The report will identify key stakeholders in the Avocado industry and how this shortage has affected the stakeholders. Economic theories/concepts will be used to explain the shortage and alternative recommendations will be provided on how future shortage can be mitigated. Information in this report has been gathered mainly through new articles in The Sydney Morning Herald. The result in this report shows that there is a shortage of Avocado in Australia, and this has affected Australia’ s economic growth from this issue as well as the federal government budget.
In conclusion, the avocado industry needs to continue to innovate and look for opportunities that will improve profitability, productivity and global competitiveness for the industry. 2.0 Introduction A shortage of avocados combined with increasing demand for the commodity has seen the prices for the fruit soar this season. Over the past 5 to 10 years, the demand for avocados in Australia has increased rapidly as the fruit has become more popular.
The supply of Avocado has also increased in the same period but not fast enough (Olivia, 2016). Generally, the demand for avocados is slightly ahead of supply, which has led to a shortage of avocados and higher prices (Geoff, W. 2016). This report will describe the main issue associated with the Avocado shortage in Australia; identify the stakeholders in the Avocado industry and how they are impacted (Whiley, 2016). In addition, discuss economic theories or concepts related and recommend alternative solutions to mitigate the shortage issue in Australia. 3.0 Description of the Main Issue In Australia, the demand for avocados has been fast increasing while supply has been struggling to keep up; this has created a situation where there is a shortage of avocados in the country (Camilla, 2016).
Camilla D. January 24, 2016. “Australians Aghast At National Avocado Shortage” The two-way
Retrieved from http://www.npr.org/sections/thetwo-
Geoff, W. 2016. “How The Avocado Shortage Is Affecting Chipotle, Grocers And You”. Forbes
retrieved from http://www.forbes.com/sites/geoffwilliams/2016/10/31/how-the-avocado-
Olivia, L. January 27, 2016. “Farmers blamed for avocado shortage” News. Com Retrieved from
Whiley, A.W. 2016. ‘Avocado Production in Australia’. In:PAPADEMTRIOU, M.K. (ed.)
Avocado Production in Asia and the Pacific. Food and Agriculture Organization of the
United Nations, Regional Office for Asia and the Pacific, Bangkok.