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Price Mechanism in Action - Kenyan farmers turn to avocados as demand soars

Graham Watson

5th October 2022

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Markets in action - marvel as the invisible hand has prompted farmers in Western Kenya have switched from maize to avocado production, in response to rising levels of demand for the fruit - yes, it's a fruit.

In short, avocados offer a greater return, so it's rational for farmers to shift to their production. This is a super clip to use when introducing the price mechanism to year 12 students.

Background (source: OEC:)

  • In 2020, Avocados, fresh or dried were the world's 439th most traded product, with a total trade of $6.69 billion
  • In 2020 the top exporters of Avocados, fresh or dried were Mexico ($2.81B), Netherlands ($877M), Peru ($846M), Spain ($450M), and Chile ($299M)
  • In 2020 the top importers of Avocados, fresh or dried were United States ($2.35B), Netherlands ($770M), France ($493M), Spain ($356M), and Germany ($332M).
Price Mechanism in Action - Kenyan farmers turn to avocados as demand soars
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Graham Watson

Graham Watson has taught Economics for over twenty years. He contributes to tutor2u, reads voraciously and is interested in all aspects of Teaching and Learning.