South African avocado farmers are exploring opportunities to expand their exports to China and India after reaping an historic bumper crop. SA Avocado Growers' Association CEO, Derek Donkin, said total avocado production had hit around 170 000 tonnes in 2018, the largest crop the local industry had ever recorded, of which 83 000 tonnes were exported. The reason for the larger crop was partly due to farmers increasing their planting in preparation for obtaining access to the two Asian and other markets. “Around 45% of the crop goes to the local market and to processing for products like avocado oils and puree (guacamole). In 2018, 17 500 tonnes went into processing,” Donkin said. The 2017 crop had been low at approximately 102 000 tonnes on the back of drought and due to normal production cycles in which trees naturally alternate between yielding a big crop one year and then a 15% to 20% smaller crop the next. Some 42 000 tonnes were exported in 2017. “There is a strong export focus but the local market is also there with sales through national fresh produce markets, direct to retailers and to the ripe and ready programmes, as well as the informal sector which is significant although we are not sure of the size,” Donkin said. “Traditionally our export market is the EU, the Baltic states and Russia. Export standards are very high when it comes to cosmetic appearance – there must be very few blemishes, close to being a perfect fruit. The slightly more blemished fruits go into the local market but the eating quality is still good and some export quality also goes into the high end of the local market,” he said. The industry, together with the Department of Agriculture, Forestry and Fisheries (Daff), was currently working hard to access the Chinese and Indian markets where there was potential for strong export growth, he added. “China only handles one commodity at a time when we are looking for new access. They recently focused on SA apples and then pears and we are hoping they will have access soon and after that they will start working on the avocados.” Donkin said local growers over the past number of years were expanding their avocado production to meet growing demand both in traditional and new export markets. China only imported around 45 000 tonnes of avocados last year compared to the traditional EU market’s 600 000-tonne demand for the same period. “China is a huge potential market in terms of consumers and its growing middle class; it has grown rapidly percentage wise from a low base in the past few years. “One of the challenges is that gaining access to a new market takes a long time and that is because we have to work with governments both locally and in the importing country, and anywhere in the world the wheels of government turn slowly. Everybody wants to access China, and that puts pressure on things on the Chinese side,” he said. “Other matters relating to trade between the two countries also play a significant role.”
He said the industry had submitted documentation to Daff which had forwarded the application to China with the expectation that it should be considered soon. Donkin said India was already busy with South Africa’s application for market access. “We have proceeded quite far where India has done pest risk analysis for any diseases they might be concerned about. “We have provided our comments so the process is under way and we are working with Daff to do what we can to ensure that the process moves to completion,” Donkin said. The association’s 340 members account for about 95% of the country’s export volume.
We have proceeded quite far where India has done pest risk analysis for any diseases they might be concerned about. – Derek Donkin
