Avocado’s origin can be traced to Mexico, where this fruit has been cultivated and consumed as early as 5000 B.C. Historically Mexico has also been the main player in the avocado export market. However, in the past 20 years, multiple emerging economies have been successful in growing avocados for the export industry. At the current moment, about 70% of the exported volumes of avocados at global level are originated in Latin America, where Mexico, Peru and Chile lead the way with respective market shares of 59%, 12% and 9% for brief historical account avocado is perceived assecretive edible plants by many traditions, customs and folkway. Over time, avocado has no longer been considered as an exotic or secretive edible fruit but has become a part of the everyday diet due to the growing demand of people for natural products. That is why the production of avocado and its export in the global market is continuously rising in the last decades.
This fruit, avocado, has got a large market and is sold as a fresh edible plant, processed food like guacamole, frozen, paste, etc. or oil. Since it is high in nutrients, consumers started excluding processed foods such as instant noodles and pizza and started incorporating healthy foods such as avocados.
In recent years, many consumers have been opting for snacks referred to as superfoods, including high levels of mono-saturated fat, potassium, fibre, folate, essential vitamins, and minerals. Hence, manufacturers are innovating existing avocado-based snacks to relaunch them in different flavours for consumers. The new line of avocado appetisers is available in different flavour in West Europe, Middle east and Latin America. Such innovations have provided consumers with options to choose according to their tastes and preferences, which eventually enhance market to grow over the years.
The popularity of fresh avocados among consumers basically attributed to the growing consumption of fresh foods and readily product availability. The high fibre content of fresh form helps with digestion, prevents constipation, maintains the health of the gastrointestinal tract, and reduces the risk of cancer. In addition to this avocado also has an important share in the cosmetics industry and beauty product factory like soaps, face creams and shampoos. Although processed avocados are gaining popularity, avocados are mainly eaten in their fresh form. The expansion of urbanization, the rising disposable income levels and changing lifestyles of people are also among the major factors driving the growth of avocado sector.
According to United Nation Food and Agricultural Organization (FAO) report (2021) the volume of global avocado production was grown from 2.2 million tons in 1994 to 7.4 million tons in 2019. United State is the top producer of Avocado which accounts 71.6% of the Global average annual production. Europe; Asia, Africa and other continents constitute about 2.1%, 12.1% 12.6% and 1.5% respectively.
Production of Avocado in African countries is dramatically rising in recent time. According to same report (FAO, 2021) volume of avocado production in Africa is estimated to be 250,000 tons in 1994 and reached 750,000 tons in 2019. Kenya has by far the highest production of avocado in Africa (almost 365,000 tonnes in 2019). Ethiopia (100,400 tone) Malawi (92,100 tone) and South Africa (92050 tone) have production followed by Cameroon, Democratic Republic of the Congo, Morocco and Cote d’Ivoire less than 80,000 tone.
The largest areas where avocado was harvested in Africa in 2019 were in Kenya with almost 23,300 ha, Ethiopia with almost 21,000 ha, Malawi, South Africa and Cameron with over 15,000 ha, followed by Republic of the Congo with more than 9000 ha. Lesser areas can be found in Cote d’Ivoire, Morocco, Madagascar and Ghana, while Congo, Zimbabwe and Central African Republic have less the 13,000 ha, and the rest even less.
Until 2011 the amount of world avocado imports was increasing steadily, but without large increases, at an average annual rate of 10.7% for the period from 1980 to 2011; however, between 2012 and 2019 imports increased, leaving the average annual yield at 15.3%. Global demand for avocados has exhibited consistent growth. The oobservatory of Economic Complexity, a tool for visualizing international trade data, reported a notable 15.3% increase in the export value of fresh or dried avocados, rising from USD 6.71 billion in 2020 to USD 7.73 billion in 2021.
Europe and Asian countries, led by China, have emerged as prominent markets, prompting African producers, notably Kenya and South Africa, to actively engage in these burgeoning markets, with South Africa, once Africa’s largest exporter, signing an export agreement with China recently.
Based on the latest Food and Agriculture Organisation of United Nations’ (FAO) data, the largest exporter of avocados in Africa is South Africa, followed by Kenya. Lesser exporters are Morocco, United Republic of Tanzania, Zimbabwe and Cote d’Ivoire.
According to the newest International Trade Centre data, Avocados, (fresh or dried) from Africa have currently the biggest market in The Netherlands, followed by France, Spain, United Kingdom, Germany, United Arab Emirates and Saudi Arabia.
The Netherlands, France and United Kingdom are also the markets with the greatest potential for Africa’s exports of avocados. The Netherlands show the largest absolute difference between potential and actual exports in the value terms, leaving room to realize additional exports worth $88.1 mln. Our neighbouring country Kenya has successfully made its avocado exports to Asia, tapping into a promising more than 1.4 billion consumer market.
Kenya has been steadily emerging as a global player in avocado supply, earning recognition from the UN FAO as one of the top 6 leading avocado exporting nations. Asian countries, led by China, have emerged as prominent markets, prompting African producers, notably Kenya and South Africa.
Despite Ethiopia has tremendous potential for exporting of avocado, the country remains behind many African countries in terms of avocado export (14th rank). The cost of transporting avocado to Europe is the main challenge faced by commercial and small growers.
Very recently, effort has been made to assess the feasibility of exporting avocado through sea via Djibouti Port. The Avocado fruit that has been grown in the northern Ethiopia, which amounts 25 tones were shipped via the new Ethiopia-Djibouti-Europe cool logistics corridor both by train to the Port of Djibouti, then shipped to Italy and transported to the UK by truck. The vast majority of the Global GAP-certified fruit has been sold to two leading importers who mainly serve UK retailers, with volumes being offered to customers in Belgium and the Netherlands.
This successful test with avocados creates a whole new perspective for a series of Ethiopian products that qualify for export to Europe. The main market for Ethiopian avocados is expected to be found in the Netherlands, UK, Saudi Arabia, and United Arab Emirates. These countries are expected to be able to absorb a total of 570.507 tons of avocado by 2027 of which the Netherlands has the largest share While the Netherlands’ consumption rates are not among the highest in Europe, the country stands out for the largest market size among the studied countries. The Netherlands is in fact the world’s second largest importer and re-exports about 80% of the product to other European countries (CBS, 2017).
Ethiopia has for the first time Shared National Vision for the protagonist of green economy. If achieved, this ambitious vision will result in a more widely green country with multifunctional carbon-neutral and middle-income economy
Today, the green legacy initiatives produced an unprecedented growth in fruits Agro Forestry system in Ethiopia. Planting avocado of large number of seedlings created green hub in different agro ecological corridor of Ethiopia. Following an extensive period of engagement and consultation about the role of green legacy and avocado plantation in Ethiopia, it is clear that there is a strong farmers’ appetite for more avocado trees planation as well as a very strong appreciation of the positive impact avocado can have in enhancing farmers’ and commercial operators’ incomes through domestic and global trade.
Mekonnen Solomon is a Horticulture Export Coordinator at MoA.
BY MEKONNE N SOLOMON
THE ETHIOPIAN HERALD THURSDAY 23 NOVEMBER 2023