Smashed by avos: Australia's biggest fruit and veggie producer loses $900 million after demand for avocados plunges
- Australians hunger for avocado seems to be fading as biggest supplier takes a hit
- Costa Holding Group saw its stock plummet by as much as 40 per cent Thursday
- Experts are now questioning whether punters are opting against avocado toast
Australians love for avocado appears to be slipping as the country's biggest fruit and vegetable producer sees its share prices plunge.
Costa Holding Group has taken a $900 million hit with the fruit and vegetable grower's stock plummeting by as much as 40 per cent at Thursday's open.
This comes shortly after the company cut its half-year forecast following a weaker demand for tomatoes, berries and avocados over the Christmas period.
Australians love for avocado appears to be slipping as the countries biggest fruit and vegetable producer sees its share prices plunge
The results were surprising as avocados have arguably been Australia's top choice for produce for a number of years, despite their often steep price tag.
The pricey fruit has been used as a symbol for housing affordability and inter-generational tension ever since prominent demographer Bernard Salt wrote a column conflating millenial's inability to enter the housing market with their penchant for expensive breakfasts.
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Experts are now questioning whether punters have been opting against paying $18 for avocado toast.
An earlier than expected finish to the citrus 'off season' also contributed, with the share price falling from $7.37 at Wednesday's close to as low as $4.47.
Costa was trading 34.12 per cent lower at $4.85 at 1155 AEDT.
The pricey fruit has been blamed for millennial lackluster bank accounts and Australia's housing crisis as millennials opt to enjoy the luxury of smashed avo and feta on toast, instead of saving for property
The company said it is expecting a largely flat profit growth for the twelve months to July 2019.
They said a continuation of current conditions, together with short term slippage of the commissioning of the Monarto mushroom facility upgrade in South Australia.
Weather conditions have also contributed to the challenges facing produce suppliers across the country.
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