In a breakthrough for the avocado industry, South African producers are preparing to send their produce off to China following a memorandum of understanding during the Brics (Brazil, Russia, India, China and South Africa) Summit.
While the agreement has been hailed as a success, local growers said there is a lot of work to be done as the Chinese are not really big on avocado consumption.
Jannie Lombard, an avocado farmer from Tzaneen in Limpopo, told Food For Mzansi that it would take at least 10 years for the South African growers to see the fruits of exporting to China.
More work to be done
He said any new market access is exciting because the South African market is under tremendous pressure as there is competition from Latin America, so any new market that opens up helps to ease the pressure.
“At the moment the majority of our produce goes to Europe and the region is oversupplied now, so every possible market that opens up helps,” he said.
Lombard added that there is a lot of homework to be done in China before growers can celebrate.
“Chinese citizens are not traditionally avocado consumers, so I cannot see results in the near future. [It would take] at least a decade to really establish ourselves in the Chinese market,” he said.
According to Lombard, until the market is sustainable job creation will likely take a bit longer as South African growers need to introduce and sell their avocados to the Chinese market.
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A needed substitute
Derek Donkin, the chief executive officer of Subtrop manages the SA Avocado Growers Association, said he is positive about the agreement, however, local infrastructure needs to be addressed.
“China has the potential to become one of the world’s major consumers of avocados. Having access to China provides South Africa [with the opportunity] to increase its avocado production.
“It also provides an alternative export market to Europe and the United Kingdom, which currently absorb 95% of current South African avocado exports,” he added.
Donkin said the poor productivity of South African ports is a major challenge when it comes to exports, while on the production front, increasing input costs remains a major challenge.
He said South African growers should not sit on their laurels and look at other alternative markets like Japan, India, and the United States of America.
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A step in the right direction
Paulina Criticos, CEO of the Middle East and Africa (Emea) at the Westfalia Fruit Group, said South African growers are set to benefit from the agreement greatly.
“The recent announcement of South African avocados gaining access to the vibrant Chinese market is not only a triumph for the avocado industry but also a testament to the vision and dedication of the South African government.
“The breakthrough access to the Chinese market marks a monumental leap forward for the South African avocado industry. We are not only opening doors to a nation with immense culinary and dietary diversity but also paving the way for unprecedented growth and economic enhancement for our avocado growers for the long term,” she said.
Criticos explained that the new market was important for local growers as there was a demand for an alternative which was necessitated by the low consumption in South Africa.
“This creates an exciting springboard for Westfalia Fruit to supply South African avocados into China strategically, complementing our shipments from its Latin American operations.
‘There is no time to waste’
“China’s emergence as a potential leading consumer market for avocados presents us with an opportunity to showcase the exceptional quality and flavour profile of South African avocados,” she said.
Criticos added that there is no time to waste and quality produce would be critical in ensuring that the new market gets sustained.
“By securing access to the Chinese market, the avocado industry is poised to make a lasting impact on both local economies and the global stage,” she said.
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