Tanzania records significant increase in avocado exports to China, India, South Africa
What you need to know:
- Players attributes success of the crop to President Hassan for generous tax relief on sorting, grading and packing technology for fruits and vegetables
Arusha. Tanzania has achieved a significant surge in avocado exports, available data show.
Avocado, dubbed ‘the green gold', has featured prominently in the latest data compiled by the ministry of Agriculture that feature cash crops that performed incredibly well in export markets during the past three years.
The official statistics indicate that the butter fruit exports have soared from 17,711 metric tonnes worth $51 million in 2020/2021 to 26,826 metric tonnes in 2022/2023, earning the economy a staggering $77 million.
According to the Tanzania Horticultural Association (Taha), the rise in avocado exports and yields also stands as a testament to the power of effective policy and collaborative efforts between the government and private sector.
The Taha CEO, Ms Jacqueline Mkindi, said here at the weekend that during the past three years, President Samia Suluhu Hassan’s administration has successfully managed to create a conducive environment and unlock international markets, thus turning the avocado value chain into a green gold rush occupation.
“Through diplomatic efforts and trade agreements, she has opened up new markets for Tanzanian produce, allowing thousands of local farmers and businesses to benefit from a broader consumer base and increased export opportunities,” Ms Mkindi explained.
President Hassan’s state visits opened new markets for green gold, namely China, India, the United Arab Emirates (UAE), South Africa and, of late, the Nordic countries for Tanzanian-grown avocado, as the country seeks to boost local farmers’ net returns from the butter fruit.
“With a strategic and forward-thinking approach, President Hassan’s diplomatic virtues have propelled avocado exports to new heights, ushering in a wave of prosperity for growers, exporters, and the broader horticulture community,” said Ms Mkindi.
President Hassan’s state visit to Indonesia has unlocked a lucrative avocado market in a burgeoning economic powerhouse with a 279 million population.
Indonesia is the top consumer of avocados in the Asia-Oceania region.
In 2020, Indonesia alone accounted for about half of the approximately 2.6 billion pounds of avocados consumed in Asia-Oceania, data from the Food and Agriculture Organisation shows.
Indonesia relies heavily on avocado imports to meet local demand, as available data shows that imports of avocado in Indonesia were valued at $501,530 in 2021, even though it’s a slight drop from the previous years.
The sharpest climb was from 2017 to 2018, when the import value ballooned from about $152,000 to around $668,000 per year.
Ms Mkindi also said that during President Hassan’s three years at the helm, the industry has also witnessed a series of strategic policy reforms as part of the government’s broad plan to unleash the full potential of Tanzania’s horticultural sub-sector.
“It is through meticulous planning and collaboration with industry experts that President Hassan has implemented policies that streamlined processes, removed bottlenecks, and created an enabling environment for horticultural businesses to flourish,” the TAHA chief explained.
The multi-million-dollar industry captain expresses her heartfelt gratitude to the sixth-phase regime for granting exemptions on cold rooms, a move that has notably amplified the storage capacity of horticultural crops per square metre.
“The significant development marked a crucial shift in enhancing the efficiency of crop storage and preservation within the industry,” she added.
Ms Mkindi extends tribute to the government led by President Hassan for its commendable initiative in providing generous tax relief on sorting, grading, and packing technology for fruits and vegetables.
This strategic support, she said, has effectively catapulted the packaging capacity by over tenfold per day, thereby bolstering the productivity of the sub-sector and ensuring the preservation of produce at an unprecedented rate.
“The combined impact of these initiatives not only augments storage capabilities but also lays a robust foundation for the sustained growth of the horticultural industry, positioning it as a key player in driving economic development and ensuring food security,” she noted.
Ms Mkindi further identified agriculture inputs that enjoy VAT relief as seeds, seedlings, cuttings, fertilisers, pesticides, insecticides, fungicides, plant growth regulators, biological control agents, and packaging materials.
“President Hassan’s strategic vision, commitment to sustainability, and dedication to uplifting smallholder farmers have not only revitalised the horticultural industry but have also positioned Tanzania as a beacon of success in the global agricultural landscape,” Ms Mkindi said.
She said it was in an effort to complement the government’s effort that Taha, through the $24 million USAID-supported Tuhifadhi Chakula Project, was working to address port harvest losses as part of the broader strategy to maximise production and returns.
