Growth in consumption is anticipated in China with the introduction of avocados from South Africa
The South African avocado industry is poised to enter the Chinese market, and logistical advantages could provide a significant edge. Clive Garrett, marketing manager at ZZ2, points out that shipping time from South Africa to China is 20 days shorter than shipping from Peru, which could create a crucial competitive advantage for South African avocados in the Chinese market.
The International Fresh Produce Association hosted a webinar that brought together representatives from the avocado industry in South Africa and China. Discussions covered a range of topics, from the dynamics of the global avocado trade to an overview of the South African industry and an exploration of the Chinese market for imported avocados.
According to Garrett, the global avocado trade has experienced rapid growth over the past decade, with global exports reaching 2.5 million metric tons and $6.9 billion in the 2021/22 season. South Africa, with approximately 19,091 hectares of avocado cultivation, is preparing to expand its exports, taking advantage of the new opening in the Chinese market.
As for China, avocado imports increased significantly, with IFPA data indicating a rise from 32,627 metric tons in 2019 to 57,219 metric tons in the first nine months of 2023. The entry of South African avocados could change the landscape, as Kenya has proven to be a relevant player with a 6% share of the Chinese market.
South African companies like Fruit Farm Group and Halls are poised to capitalize on the opportunity to export avocados to China. Trevor Dukes, CEO of Fruit Farm Group, expects the company to gradually gain a positive reputation in China by improving its supply chain and meeting Chinese quality standards.
From a retail perspective, the entry of South African avocados into the Chinese market is viewed positively. Lynn Yang, South African product manager at Yonghui Superstores, anticipates increased sales due to growing consumer awareness and demand for ready-to-eat avocados.