Tanzania's Avocado Industry Gains Momentum with China Market Access

Fresh Avocado
South Africa
Published Jan 25, 2024
Tanzania's avocado industry is quickly growing due to new access to the Chinese market. GACC has chosen three Tanzanian avocado farms for compliance audits ranging from harvesting to packaging. Africa's third-largest avocado grower, Tanzania intends to increase exports to over 33,000 mt by 2026, generating an estimated USD 50 million in annual revenue. Tanzania's-China avocado commerce will likely grow, with China becoming its significant market for fresh avocados, along with the Netherlands and the UAE. However, accessing the Chinese market is challenging due to stringent phytosanitary regulations and quarantine pests.

Tanzania's avocado business is expanding rapidly, largely thanks to newfound access to the lucrative Chinese market. This event follows the General Administration of Chinese Customs’ (GACC) selection of three Tanzanian avocado farms for compliance auditing. This auditing process is broad, spanning from harvesting to packaging. The successful completion of this audit will allow more Tanzanian avocado farms to gain access to the Chinese market, ultimately driving the industry's growth.

Tanzania is Africa's third-largest avocado grower. The country's annual exports exceed 20,000 metric tons (mt), worth almost USD 30 million. Tanzania's strategy to reach the Chinese market intends to expand exports to over 33,000 mt by 2026, bringing in an estimated USD 50 million per year. This lofty goal demonstrates the country's determination to leverage its agriculture industry for economic growth.

Figure 1: Export Destinations of Fresh Avocado from Tanzania in 2022

Source: Tridge

Share of export destinations of Tanzania's avocados shows the Netherlands dominating, with 41.7% market share and USD 8.76 million in export value. Nevertheless, the Tanzania-China avocado trade is expected to rise. China is now the world's 11th largest importer of avocados, and with increasing demand, it is poised to become Tanzania's key market for fresh avocados. China purchased 41.31 million kilograms (kg) of avocados in 2022, totaling USD 112.14 million. This trend indicates a bright future for Tanzanian avocados in the Chinese market.

However, gaining access to the Chinese market is challenging. All fresh avocados shipped to China must adhere to the Ministry of Agriculture and Rural Affairs (MARA) and GACC strict phytosanitary laws, regulations, and safety standards and be free of quarantine pests. This requirement emphasizes maintaining high-quality standards in Tanzanian avocado production to ensure market access.

Finally, thanks to increased access to the Chinese market, Tanzania's avocado sector is on the rise. This development is predicted to increase the country's agricultural exports, raise local farmers' incomes, and benefit the national economy considerably. Tanzania is expected to be the third country from Africa allowed to export fresh avocados to China, along with South Africa, and Kenya. Tridge continues to follow up on the African avocado success story. However, the traders and farmers in Tanzania must maintain high production standards to preserve market access and realize its growth potential.

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