Colombia Aims to Lead the Asian Avocado Market

After six months of being under inspection, the Colombian Ministry of Agriculture announced in mid-March that Korea’s admissibility was achieved and will add to the rest of the countries where Colombia can ship avocados. With this approval, Colombian avocados have reached 26 markets where they can be exported and will be an important market for Colombian exports to Asia, adding to already existing Japanese and Chinese markets.

Exponential Growth for Colombian Avocado Exports

According to figures from the Ministry of Agriculture, in just four years (2016-2020), avocado exports to Asia grew more than 250%. However, the growth over the last years for Colombian avocados has been in the European market since 2020. From January to November, the Colombian avocado exports increased 50% from the previous year reaching USD 124 million, where the E.U. represents 80% of those sales.

According to data presented from The French Agricultural Research Centre for International Development (CIRAD), Colombian avocados are positioned as the leading supplier of avocado in Europe by surpassing the trade numbers of traditional suppliers such as; Mexico, Chile, and Spain within the first weeks of 2021. By 2020, Colombia reached USD 144 million in export value, which represented a record high with an increase of 39% from the previous year. The largest Colombian avocado buyer was the Netherlands, with USD 83.5 million, almost the same amount as total exports in 2019 (USD 89 million). Other important buyers include; the U.K with 12.7%, Spain with 12%, and the U.S with 3.4%.

As for the Asian markets, Colombian avocados are a recent development. It just started to be imported in 2016 except Japan, the biggest importer of Colombian Avocados in Asia. Japan imported USD 563 thousand in 2020, with a 130% increase rate from the previous year. The Japanese market was mainly responsible for the growth of Colombian produce in Asian markets; however, China and Korea present a promising opportunity.

Efforts to Target Increasing Asian Demand

According to the World Avocado Organization (WAO), avocado consumption reached a new high in 2020 as it was estimated that the world now consumes around 750 million kilos of avocado a year. Europe’s consumption is forecasted to rise a further 12% while U.S. demand will grow by 7% over the next two years. As for Asia, Japan recorded an all-time high of USD 240 million on imports and positioned as the seventh-largest importer in the world and number one in Asia, where other countries expect to follow the increasing trend.

China

In February of 2021, the General Administration of Customs of the People's Republic of China expanded the net of authorized Hass avocado packing plants to export the fruit to the Chinese market by 2021 as a result of an audit carried out with the Colombian phytosanitary system. With this, China authorized eight more properties within the districts of Antioquia, Valle del Cauca, Risaralda, and Quindio to produce, pack and ship Hass avocado for the Chinese market. China made the first import of Colombian Hass avocados by importing 23 tonnes in July of 2020.

The demand for avocados has been increasing in China for the last years, as can be noticed over its increase in imports. In 2018, China imported USD 133.3 million, which was 27% more than the previous year. By 2019, avocado imports decreased due to Covid restrictions to USD 92 million. China’s major supplier of avocados is Peru covering 40% of the total imports, followed by Chile with 32%, and then Mexico with 27%.

      Source: ITC Trade Map, Tridge

However, according to the WAO, the market in China has great potential to grow, requiring considerable specific promotion into the retail market and a comprehensive phytosanitary track system to fill all Chinese requirements.

South Korea

South Korea has increased its imports in the last years, following the increasing global trend for avocado. In 2018 the country imported USD 47.3 million, which was its highest import year, followed by a decrease in 2019 imports where USD 32 were imported. Despite the decline in 2019, South Korea had a 169% increase rate in its imports from 2016 to 2019, which makes it a very attractive market for avocados.

Source: ITC Trade Map, Tridge

The leading supplier of avocados for South Korea in 2019 was Mexico with 45% of the import share, followed by the U.S. with 42%, and New Zealand with 12%. It is important to note that Peru started exporting avocados to South Korea in 2020 and is estimated to have reached USD 11.8 million in its first year, replacing New Zealand as the third larger supplier, which is a good example to follow for Colombian avocados.

Sources:

• Agro Negocios. "Con la Entrada a corea del Sur, el Aguacate Hass con Sello Colombiano ya Llega a 26 Países".
• Agro Negocios. "Colombia Logro Ampliación de las Areas para Exportación de Aguacate Hass a China".
• Fresh Fruit Portal. "Avocado consumption "off the charts- WAO."
• Infobae. "Colombia exportará aguacate Hass a Corea del Sur".
• Infobae. "Histórico, Colombia es ahora el mayor exportador mundial de aguacate a Europa".