Guacamole Lovers, Rejoice: Avocados Are Pretty Darn Cheap Right Now

If you’re the kind of person who runs shouting through the streets for all to hear when you find cheap avocados, pay attention: despite earlier concerns that the growing popularity of the fruit would make it more expensive for shoppers, avocado prices instead have fallen steeply. More guacamole for everyone!

One California-based growing company, Calavo Growers, said it had to battle sharply lower avocado prices in its fourth fiscal quarter. It wasn’t quite predicting that.

“During our fiscal fourth quarter, the industry experienced prolonged and meaningful downward pricing pressure on per-unit avocado prices,” Chief Executive Lee Cole said in the company’s earnings release reported by MarketWatch. “This was a unique situation, reflective of an avocado industry rapidly transitioning to annual consumption well in excess of two billion pounds.”

Calavo packed 22% more fresh avocados in that quarter this year, compared to a year before, and said the company expects the trend to continue into 2016.

The big drop in prices is likely unexpected, especially as California is in the middle of a drought that’s dragged on for three years so far. That state produces more than 80% of the avocados in the country, according to trade group Hass Avocado Board. Elsewhere, Chile and Mexico have also had issues with water, and Mexican growers have faced issues with drug cartels.

In any case, now would be a great time for you to serve an absolutely ginormous bowl of guacamole at your New Year’s Eve party, just because you can.

Avocado prices are falling sharply, not rising [MarketWatch]