In the News

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

Graham Watson

5th October 2022

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

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.

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