28 August 2023
By: Jasper Raats
After years of hard work, South Africa has gained access to the Chinese market for the export of avocados.
Thoko Didiza, the Minister of Agriculture, Land Reform and Rural Development, signed an agreement with Wang Yi, the Chinese foreign minister, for the export of avocados from South Africa to China. Wang signed the sanitary requirements agreement on behalf of agriculture minister Tang Renjian.
Didiza said this is an important milestone for the avocado industry. “Gaining access to China is a necessary step to achieve export-driven growth for the South African avocado industry,” she said in a statement.
“It supports the objectives of the government and the agricultural sector as outlined in the master plan for agriculture and agro-processing.”
Didiza believes China could become one of the world’s largest consumers of avocados and sees the agreement as an opportunity to further expand avocado production in South Africa.
The industry employs 15 000 people on farms and in warehouses, and many more work in the service industry within the value chain, Didiza said, adding that export growth will lead to an increase in production.
“This will have a multiplier effect that will contribute to employment growth, skills development and the economy, especially in rural areas where most avocados are produced.”
Exporters are prepared
Shortly after the announcement of the agreement, one of South Africa’s major avocado producers, ZZ2, thanked the South African Subtropical Growers’ Association (Subtrop) and the Department of Agriculture, Land Reform and Rural Development for their work over many years to bring the industry to this point.
ZZ2 said it was excited about the potential the Chinese market holds for South African farmers and the countryside as a whole.
“Until now, the South African avocado industry has been hesitant to expand its production base due to a lack of market options resulting from the oversupply of avocados in Europe, mainly from Peru,” it said in a statement.
“South Africa has the potential to triple its avocado plantations. We have the resources in terms of land, water, people and knowledge to stand as a worthy competitor in the world avocado market.”
ZZ2 operates under the banner of Mission Produce in partnership with the international company Mission Produce Inc and Core Fruit, specialising in the handling and shipping of fresh products worldwide.
This partnership is ideally positioned to benefit from access to the Chinese market. Core Fruit has the experience and expertise in logistics for exporting fruits (apples, pears, and citrus) to China.
The local operation is in a favourable position thanks to Mission Produce Inc’s global distribution network and the fact that its partner, Mr Avocado, has ripening facilities and an established distribution network for avocados in China.
Other well-established exporters of avocados from South Africa include Allesbeste Boerdery, Dole, Halls and The Fruit Farm Group. Mission Produce and Westfalia are considered among the leading international avocado brands, and both operate from South Africa.
Better prospects
The local avocado industry has had good yields this year, exporting 19.5 million 4kg cartons compared to last year’s 16.38 million. While prices were better than in 2022, initially good prices fell significantly when fruits from Peru entered European markets. The large supply of fruits from Peru forced prices down to as low as €6 per carton from €13-€14 earlier in the season. Prices picked up again in June and July.
While Peru also has access to the Chinese market, it is much further away and shipping costs are higher. South Africa’s relative proximity provides local exporters with a competitive advantage.
About half of the South African avocado harvest is sold domestically.
