Commercial Farmers' Union of Zimbabwe

Commercial Farmers' Union of Zimbabwe

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Time to revisit avocado exports

Time to revisit avocado exports

Time to revisit avocado exports

Trade Focus
Allan Majuru

THE world’s ongoing struggle against the coronavirus has generated an unprecedented rush for superfoods, which are being touted as having immune boosting properties.

For countries like Zimbabwe, that already enjoy favourable climatic conditions, which is essential for increased agricultural production, there has never been a better time to maximise on this opportunity.

The market for avocados, for example, has been performing remarkably well and there is scope for increasing and maximising exports.

In addition to increasing exports to existing markets, avocados are a key that could be used to unlock new and emerging markets such as the United Arab Emirates and the entire Middle East region.

Europe is currently the largest export market for Zimbabwe-grown avocados.

During a recent Zimbabwe Outward Seller Mission to Dubai organised by ZimTrade – the national trade development and promotion organisation – buyers from that country indicated interest in avocados and other superfoods from local farmers.

In declaring this interest, buyers from Dubai indicated that Zimbabwean products are preferred in their market on account of their better taste and quality, compared to competing products from other African markets.

Buyers from Hong Kong have also expressed interest in locally-produced avocados for distribution in Asia.

What is now important in order to maximise on this demand is increasing production so that we have adequate quantities to satisfy the market.

While local production for export is mainly being done by corporate entities, there is scope for small-scale farmers to contribute significantly to this sub-sector as what is happening in countries such as Kenya.

It is encouraging that farmers, particularly in the Eastern Highlands, have already started increasing production to meet the anticipated rise in demand.

This means that exports will start to grow as new crops start bearing fruits.

Looking at markets

The diverse uses and health benefits of avocados are driving demand for the product worldwide.

Avocados have many culinary uses, from sandwich toppings to making guacamole dip.

Additionally, avocados can be value added to produce cooking oil, cosmetics and some soaps.

The fruit also has a high mono-unsaturated (healthy) fat content, which makes it a good substitute for vegetarians or people without access to meat and dairy products.

Globally, consumers are increasingly becoming health conscious, and avocados are considered a superfood with a high vitamin E, iron, potassium and niacin content.

Looking at product specifics, there are two main varieties of avocados produced and consumed across the world, which are Hass and green-skinned avocados such as Fuerte, Bacon, Gwen, MacArthur, Pinkerton, Reed, and Zutano.

Hass account for around 80 percent of the avocados produced and consumed worldwide.

This variety also happens to be the main one grown for export in Zimbabwe.

Current Hass avocado production capacity cannot meet global demand owing to new Asian markets that include Japan and China which have significantly increased consumption of the same.

According to Trade Map, the global import value of avocados doubled in the five years between 2015 and 2019, from around US$3,8 billion to around US$7,1 billion.

The top importers for avocados in 2019 were United States of America (US$2.9 billion), Netherlands (US818 million), France (US$520 million), Germany (US$349 million), United Kingdom (US$342 million), and Spain (US$341 million).

Indications are that Zimbabwean avocado exports will grow in the coming years.

According to Trade Map’s mirrored data, Zimbabwe avocado exports in 2019 were US$14,1 million and major importers were the Netherlands (US$6,6 million), United Kingdom (US$2 million), and Germany (US$588 000).

Based on this data, local producers can increase exports by targeting already performing markets for Zimbabwean horticultural products, as well as unlocking new markets such as the Middle East and Asia.

Unlocking Zimbabwe’s potential

One of the key factors that will push Zimbabwe’s exports of avocados is its production competitiveness.

Although other African countries are increasing production of avocados, which will impact on supply and sales, Zimbabwean farmers are tipped to be producers of the highest quality fruit.

This is because climatic conditions alone promote the production of a better quality avocados while the vast available arable land is a promising starting point for new growers.

In addition, Zimbabwean farmers have put in place systems and have adopted international standards that make it easy for their production, harvesting and post harvesting techniques to contribute towards a better and competitive final product.

According to an analysis of avocado production in Africa by Deutsche Welle (DW), a German international broadcaster, farmers in East Africa and some parts of West Africa such as Nigeria are eager to increase production.

However, DW notes that concerns abound over water shortages which might impact production in the region, which will force producers to find alternative ways to grow the product.

For Zimbabwe, which enjoys good rainfall patterns and water supply, avocado farming promises a better result both in terms of export earnings and improved livelihoods for farmers.

To drive increased production, ZimTrade is working with partners such as Farmgate World Zimbabwe (Farmgate), to help uplift the Zimbabwean economy through robust export-centric activities.

A pilot project is already underway where there are small scale commercial farmers in Chipinge who are planning to export their Hass avocadoes to Middle East and Europe.

The pilot project intends to increase the current avocado production by smallholder farmers from below 100 hectares to over 400 hectares over the next four years.

If the target growth is achieved, Zimbabwe will become one of the largest producers and exporters when that project is replicated all over.

As part of the pilot project, ZimTrade and Farmgate are assisting smallholder farmers with compliance to Global GAP certification, which will help them penetrate international markets.

The objective of the project is to increase the number of farmers compliant to Global GAP certification, and in so doing increase the country’s exports through implementing good agricultural practices.

This emphasis on smallholder farmers and their ultimate integration into the export business will help Zimbabwe grow its share of the international avocado market.

Allan Majuru is ZimTrade’s chief executive.

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