Tanzania's avocado farmers eye China market bonanza

China, whose avocado imports have skyrocketed by 4,359 percent over the past decade, opened its doors wider to Tanzanian-grown avocados last month.

The Agriculture ministry has formally notified the Tanzania Horticultural Association (Taha) that Tanzanian avocados have unfettered access to the Chinese market with effect from August 14.

Taha chief executive Jacqueline Mkindi hailed the development as a monumental step forward for the nation's avocado farmers.

"This milestone grants Tanzanian farmers access to one of the world's rapidly expanding avocado markets. It's a significant boost to our horticultural industry," she noted.

Ms Mkindi expressed appreciation for the Agriculture ministry's leadership and efforts, highlighting its role in the success.

She also thanked the Food and Agriculture Organisation (FAO) for its support which played a crucial role in achieving the milestone.

Agriculture minister Hussein Bashe had been a force behind the government's efforts to finalise procedures for market access.

The new export channel is anticipated to significantly enhance Tanzania's export volumes and agricultural revenue streams.

Tanzania's entry into the Chinese market aligns seamlessly with the country's strategic objectives to amplify the value of its horticultural exports, generate employment opportunities especially for women and youth and strengthen trade relations with China.

This game-changing market access is expected to revitalise Tanzania’s avocado production ecosystem, solidifying its position as a formidable player in the global fruit trade.

Industry experts predict that this development will herald a new era of agricultural prosperity and international influence for Tanzania, positioning it on the global stage as a key exporter of high-quality avocados.

“As local farmers gear up to meet the anticipated surge in demand, the benefits of this agreement are expected to ripple through Tanzania’s economy, bolstering both agricultural and economic growth” Ms Mkindi said.

China's increasing demand for avocados, driven by a health-conscious middle class, has turned the once obscure "butter fruit" into a star in the imported fruit market.

Although Tanzania ranks as Africa's third-largest avocado producer, behind South Africa and Kenya, it has faced challenges accessing export markets due to the lack of a sanitary and phytosanitary (SPS) agreement.

With a population exceeding 1.4 billion, China is currently the 10th largest importer of avocados globally and could become a key market for Tanzanian avocados, traditionally exported to Europe and the Middle East.

This opportunity was solidified during President Samia Suluhu Hassan’s visit to Beijing, where a protocol on SPS requirements was signed.

Ms Mkindi praised President Hassan's diplomatic efforts, which have opened the lucrative Chinese market after six years of Taha's efforts.

She noted that this aligns with Tanzania’s strategy to increase horticultural export value to $2 billion annually, up from $420 million, and could create significant employment opportunities for youth and women by 2030.

The avocado industry in Tanzania is set for rapid growth from 2023 to 2033.

In 2023, avocado exports reached 26,826.3 metric tons, generating about $73 million in revenue.

The International Trade Centre’s projections indicate that by 2033, production could surge to 393,669 metric tons, with exports reaching 236,201.5 metric tons and potentially generating $449 million.

This growth will most likely increase farmers' incomes, encouraging for investments in advanced farming techniques and technologies, thus reducing post-harvest losses.

The industry expansion is also expected to drive job creation and stimulate the local economy.

To maximize these benefits, improvements in post-harvest handling, market expansion, price stabilization, and sustainable agricultural practices are essential.

Ms Mkindi emphasized that these measures will ensure the sustainable growth of Tanzania's avocado industry and its long-term prosperity.

China’s avocado import value has seen an explosive increase of 4,359 percent over the past decade, growing from $3.4 million to $151 million by 2023, ITC data shows.

This rapid growth, with an annual rate of 71.5 percent, highlights the rising demand and the expanding market for avocados.

Before 2014, China's avocado imports were minimal, but by 2018, they surpassed 40,000 metric tons.

The growth from 2022 to 2023 was notable, with imports rising from 41,000 metric tons to 66,000 metric tons, a 61 percent increase.

Peru currently leads as China’s largest avocado supplier, with a 76 percent market share, followed by Chile and Kenya.

Tanzania’s logistical advantage due to direct shipping routes could be crucial in meeting China's growing demand, offering a significant opportunity to boost avocado and horticultural exports.

Ms Mkindi anticipates that the opening of the Chinese market will stimulate production, benefiting both smallholder and large-scale farmers and attracting further investment in agro-processing.

Taha recently deployed a high-profile delegation to Hong Kong for the Asian Fruit Logistica fair, aiming to establish connections with Chinese counterparts and expand their export market.