South African Avocados: A Growing Force in International Trade

The South African avocado business has expanded significantly, becoming a strong force in international trade. The country's excellent climate and innovative farming practices enabled it to become a prominent exporter of avocados, meeting the growing global demand for this healthy fruit. The South African Avocado Growers' Association (SAAGA) reports a three-year average production of 139,400 metric tons (mt), with around 45% exported as fresh avocados and 10% going to value-added products like avocado oil, while the remaining quantities are consumed locally.

One of the factors contributing to increased avocado production in South Africa is the farmers' adaptability. Fruit growers in South Africa's Southern and Western Cape areas are diversifying their farming operations as avocado demand rises locally and internationally. The Cape areas have planted 1,000 hectares (ha) of avocados, accounting for around 5% of the national crop. Climate change and new categories are driving this increase, such as apple types that require less chilling and ripen earlier than traditional varieties. The Cape has always been the primary blueberry region, but substantial avocado expansion has occurred in the north, allowing the business to supply export markets for extended periods. Aside from blueberry plantation, avocado production will diversify export opportunities for traders and boost the local economy. Given the high demand for both products, it is expected further growth of both blueberry and avocado significance. Avocado production is increasingly expanding into the Southern and Western Cape regions, allowing growers to retail their fruit later than in the past. Avocado orchards have been built in the Helderberg Basin at Somerset West and Riebeek Kasteel near the Berg River in the Western Cape. This rise increases supplies during the usual off-season and allows for exports at the end of the year, making South Africa self-sufficient in avocados for the domestic market.

Figure 1: South Africa Export Value of Fresh Avocados 2019-2023

Source: Tridge

According to the International Trade Centre Trade Map database, the Netherlands is the top export destination for South African avocados, accounting for 69% of the total export value in 2023. The United Kingdom (16%), Germany (4%), Russia (3%), and Spain (3%) make up the top five markets for South African fresh avocados.

Importance of New Free Trade Agreements

Tridge closely follows global avocado markets and developments regarding free trade agreements (FTAs) in South Africa. Recently, India has authorized access to South African avocados, which will benefit the country's avocado industry significantly. The announcement is the industry's second breakthrough in the last 12 months, following access to China in 2023. The Chinese Plant Health Authorities have yet to sign off on the final list of approved South African packing firms. Leading South African exporters are ready to move forward but are upset that the process has not yet been completed. The South African Department of Agriculture (DALLRAD) is said to have finished its packhouse inspection process, which now needs to be validated and accepted by Chinese officials.

The first shipments to China are expected to be dispatched on June 24. Once approved, access to China and India will significantly boost the South African sector, allowing the country to expand its Asian markets. Also, negotiations are underway with the Japanese government to grant access to avocados from South Africa, which will considerably improve options for traders looking far east.

Avocado output in South Africa is expected to triple by 2030 according to SAAGA, with a potential transition from sugar cane to avocado growing due to increased profitability and global demand for avocados. This expansion creates both possibilities and challenges, as the industry must navigate the intricacies of expanding while remaining committed to quality and sustainability.

Tridge points out the South African avocado industry's climb to prominence in worldwide trade as a success story of strategic growth, quality assurance, and support from government trade agreements. South Africa is well-positioned to increase its impact in the global avocado market through sustained innovation and an emphasis on diversifying exports, which will benefit the country's economy and worldwide trade.