ECON2002: Analysis of Avocado Prices in Australia: A Presentation

This presentation analyzes the economics of avocado prices in Australia, focusing on the factors that influence their cost. It begins with an introduction that sets the stage for the analysis, followed by an examination of the supply of avocados, highlighting the law of supply and its impact on prices. The presentation then delves into how demand affects prices, exploring the inverse relationship between them and discussing global market trends. It further examines consumption patterns, production processes, harvesting periods, and import/export dynamics, providing a comprehensive overview of the avocado market. The analysis includes graphical representations and economic principles, supported by references to relevant economic theories and literature. The presentation concludes by summarizing the key economic concepts and their application to the Australian avocado market, demonstrating an understanding of supply, demand, and international trade.

ECONOMICS
Cost of avocadoes in Australia unlikely to rise
amid global price hike

INTRODUCTION
 The aim of the presentation is the reflect
upon the cost of avocadoes in Australia
unlikely to amid global price hike.
 The economic concepts related to the article
are presented in this presentation.
 The graphs and illustration of the article are
explained with the economics principles.

SUPPLY OF PRODUCT
 In economics, the law of
supply is a fundamental
principle of the economic
theory which majorly
presents the other factors
that are constant, an rise in
the results of price with an
rise in the quantity that is
supplied.
 The rise in the supply of the
product has direct
relationship with price which
means that price of the
product will rise.

CONTINUE…
 In Australia, there is implementation of the
law of supply economic concept as the
customers of Australia says that there are no
shortages of avocadoes and price of the
product is $3. This has been found that there
is no shortage of the fruit.
 This shows that the rise in the supply of the
avocadoes leads to the rise in price and vice-
versa in Australia.

DEMAND AFFECTS PRICE
 In the article, this has been
found that there is not going
to be any shortage in
Australia. However, there is
shortage in California,
Mexico and peru due to
drought, strike and flooding
respectively.
 Along with this, there is rise
in the demand of avocado in
countries like US and china.
 This means that rise in
demand affects the price as
there is inverse proposition

CONTINUE…
 The rise in the demand of the products will
bring the decline in the price of the product
will fall and vice-versa.
 The rise in the price of avocado is visible
across the world due to decline in the
demand by some countries facing issues.
 This is witnessed that Australia will be
untouched by reduced crop and lead to rise
in demand among foreign country.

CONSUMPTION
 Consumption is refers to as the spending for
acquisition of utility.
 In the article, US per capita consumption
enlarged from 1.6Kg in 2006 to 3.1Kg in the
year 2015.

PRODUCTION
 In economics, the manufacturing is the
procedure of joining diverse material inputs.
The graph shows the production of Australia
avocado and New Zealand imports. The
consumption of the people is clear with 3.2
kg each in 2015-2016.

HARVESTING PERIODS
 The production of the products is possible in
certain climate. However, in the article this
has been found that Australia can crop the
avocados entire year because of varied
variety of rising weathers.
 The graph shows major seasons February to
April, and Hass variety from April to February
and also growing areas in Australia.

IMPORTS AND EXPORTS
 The Asian nations are generally relying on
imports of avocado from Americas due to
which they might experience a shortage with
the rise in the demand of the Australian.
 Australia exports 5% of its crop to Asian
nations which include Singapore, Hong Kong,
Malaysia and Indonesia. In addition, they also
exports the small amount in Kuwait and
United Arab Emirates.

CONTINUE…
 New Zealand exports approximately 80% of
its crop to Australia in the year 2016 which is
delivered 4 million trays. In Australia, there
are two places where the produce of Avocado
is high that is Queensland and Western
Australia.

REFERENCES
 Mankiw, N. G. (2020). Principles of
economics. Cengage Learning.
 Welch, P. J., & Welch, G. F. (2016). Economics:
Theory and practice. John Wiley & Sons.
 Ehrenberg, R. G., & Smith, R. S.
(2016). Modern labor economics: Theory and
public policy. Routledge.
 Rates, E., & Market, E. (2018). International
economics: theory and policy.