The world of avocados

As a leading producer and exporter, South Africa expects an uptick in avocado exports this season, mainly due to momentum in the world economy. Global production and demand influence the local industry. The healthy nature and multiple uses of avocados result in strong consumer demand for avocados.

South Africa is a leading producer and exporter of avocados. In addition, South Africa supplies avocados to many global markets across the world. Over the last five years, the South African avocado sector harvested approximately 125 000 tons of avocados per annum. The area under commercial avocado orchards stands around 14 700 hectares, with new plantings of about 900 hectares added per annum. The avocado sector contributes to at least 11 500 jobs on farms and packhouses. South Africa expects an uptick in avocado exports this season of 66 000 tons compared to 60 000 tons in the previous season. During the past year, there has been a lot happening globally that influenced the industry in South Africa. According to a recent report by the US Department of Agriculture (USDA), Mexican avocado production for the marketing year 2021/22 is forecasted to be 8% lower than the previous marketing year's record production.

While production will remain strong, growers expect trees will need to recover for a season. In addition, high international demand and attractive global prices have encouraged producers to export products for higher returns. And while Michoacán is the only state with phytosanitary certification to export to the United States, exports to other global markets are expected to increase in the coming years.

According to the USDA’s report, Mexico is the largest avocado producer in the world, accounting for 30% of global production. Planted area is steadily increasing year over year, at an annual growth rate of 3%, mainly due to high profit-

TO PAGE 14

The world of avocados

FROM PAGE 12

ability and increased international demand. Mexico produces three varieties of avocado, with Hass accounting for 97% of total production and Criollo and Fuerte accounting for the remaining 3%.

The global avocado market is poised to register optimistic growth rates throughout 2021 and 2022 as positive momentum builds in the world economy, though some differences remain among geographies. The pace of change will accelerate in the avocado industry, and companies quickly re-aligning their strategies will emerge stronger from the unprecedented changes. However, the COVID-19 pandemic remains a major threat for most avocado market outlook in addition to concerns of inflation, supply-chain disruptions and weak consumer demand.

The growing of avocado in Peru takes place on the country’s coast, with La Libertad being the main producing region. However, in an organised and sustainable manner, international supply has been incorporated with high-quality avocado in regions in the centre and south of the country. According to the Peruvian Hass Avocado Producers Association (ProHass), Peru expects to export 473 000 tons of Hass avocado in the 2021 season, representing an increase of 29,2% compared to

The difference between ordinary and extraordinary is that little extra.

Control 18.6 kg*

Kelpak - 3 x 0.3% 20.1 kg* Kelpak - 5 x 0.2% 21.4 kg*

TREE YIELD *

Better nut set and nut retention means more harvestable nuts with a higher kernel weight. Kelpak natural seaweed biostimulant is scientifically proven to benefit lateral rooting, soil and tree health, as well as abiotic stress tolerance. The result is significantly increased yields and, ultimately, an improved profit margin for the grower. the 366 000 tons shipped the previous season, as reported by Gestion. Avocado was the main product of non-traditional Peruvian agro-export supplies in the first half of 2021. In 2020, the Netherlands was the main destination for Peruvian shipments, followed by the USA and Spain. The recent Spanish avocado season showed an increase of around 20% this year thanks to good growing conditions.

According to the ministry of foreign affairs in the Netherlands, there is still much room for growth. They state that the supply of avocados is increasing fast, but the European market still has room for growth and can absorb the higher volumes. The healthy nature and multiple uses of avocados result in strong consumer demand for avocados. Fruit businesses can free-ride on the promotion of avocados, but to join the success in trade, the supply must be consistent and of high quality.

According to them, compared to other high-demand regions, European consumption is still underdeveloped. The average consumption in Europe is 1,16 kg per capita. In the United States, this is 3,5 kg and in Canada, 2,5 kg. Mexico even consumes 6,5 -7 kg per capita.

The consumption of avocados in Europe has grown on average by 8% in the years 2017-2019, and the consumption in 2019-20 was 73% higher compared to 2015-2016. Scandinavia has the highest consumption rate per capita, but the recent growth is most notable in countries where consumption is still relatively low, such as Germany, Italy and Eastern Europe.

The differences in consumption within Europe and the gap with developed consumer countries such as the United States and Canada, show that there is much potential for growth. However, market maturity could be reached within five to eight years, and consumption will become more stable with current growth rates. According to the World Avocado Organisation (WAO), the avocado consumption in Europe can reach the same level as in the United States in the next eight years.

European countries that are currently showing the biggest increase in consumption is France and the United Kingdom. They are the leading end markets for avocados, while Scandinavian countries have the highest consumption per capita. Although the growth in these leading consuming countries is slowing down, Germany, Italy and Eastern European countries still have lots of potential in the coming years.

According to the African research bulletin, Kenya farmers are switching coffee and tea for avocados to profit from increasing European demand. Farmers are paid the equivalent of just over 10 euro cents per fruit. In European supermarkets, they easily fetch ten times that amount, if not more. Kenya’s temperate climate is well-suited to avocado cultivation, especially around the high-altitude town of Thika, north of Nairobi. Avocados account for more than 9% of agricultural exports. The strong demand from European countries allows companies like Kimutai’s to export throughout the year.

This all results in a lot of opportunities for South African producers.