W3 Avocado Update: Peruvian Avocado Exports Hit $950.3M, Mexican Market Slumps, Tanzania Eyes China, and South Africa Aims for Japan Entry

Peruvian Avocado Expecting Global Expansion, After USD 950.3 Million Exports in 2023

Peruvian fresh avocado exports in 2023 soared to USD 950.3 million, marking a robust 4.4% YoY growth despite challenges like the El Niño phenomenon and social protests. The Netherlands led imports with a remarkable 109% year-on-year (YoY) increase, constituting 30% of purchases, followed by Spain, the United States (US), Chile, and the United Kingdom (UK). Peruvian company Agroindustrias AIB dominated exporters with a 30% total share.

Peruvian avocados aim for eight new markets in 2024. The National Agrarian Health Service (SENASA), in collaboration with the Ministry of Agrarian Development and Irrigation (MIDAGRI), prioritizes products, including avocados to Malaysia and China. Despite pandemic challenges, the focus is on maintaining transparency, meeting requirements, and ensuring continued growth.

Peruvian avocados are set to conquer the Malaysian market, with official phytosanitary requirements established for entry, opening doors to 67 global markets. The Ministry of Agrarian Development notes the staggering growth in avocado exports, making Peru the world's second-largest exporter. Despite challenges, La Libertad emerged as the leading region, contributing 207.38 thousand metric tons (mt). The industry's expansion, surpassing 40 thousand hectares (ha), emphasizes the rising global demand for avocados, driving economic growth and improving the lives of small-scale family farmers, making avocados the "green gold" of Peru's agro-export potential.

Mexican Avocado Market Faces 10% Decline in 2023, Impacting Exports

Mexican avocado exports witnessed a significant downturn in 2023, experiencing a 10% month-on-month (MoM) decline in value, reaching USD 2,929 million between Jan to Nov-23. This marked the lowest performance in 13 years, attributed to an oversupply in the market. Despite the decreased value, the Agricultural Market Consulting Group (GCMA) reported a noteworthy 23.4% YoY increase in annual volume. Unlike other major agri-food exports, avocados were the sole product to witness a decline in value, slipping to the fifth position among Mexico's key agro-industrial exports.

Tanzania Enters New Phase of Unlocking China’s Avocado Market

Tanzanian avocados are poised to enter the Chinese market, with the General Administration of Customs of China (GACC) specifying the first three plantations for compliance inspections. The inspections, covering harvesting, transportation, cold storage, and packaging, coincide with Tanzania's avocado harvest season in March. Following positive results, more farms are expected to qualify for export to China. Africa's third-largest avocado producer, Tanzania anticipates a boost in annual exports to over 33 thousand mt by 2026, aiming for revenue nearing USD 50 million. The industry's optimism is fueled by the shorter transit time compared to Peru, China's main avocado supplier currently.

Kenya Cracks Down on Avocado Smuggling, Upholding Quality Amid Export Ban

Kenya’s Agriculture and Food Authority (AFA) has taken action against avocado smuggling at the Tanzania border, confiscating 32 mt of avocados in violation of Kenya's export ban. Lorries carrying immature avocados were impounded by the Horticulture and Crops Directorate, exposing traders attempting to exploit Tanzanian routes. Initiated in Nov-23, the ban specifically targets varieties like Hass, aiming to ensure maturity. Irregular exports pose risks of penalties and jeopardize Kenya's global reputation for quality. The AFA intends to strengthen regulation enforcement, emphasizing proper transportation methods. This incident highlights the challenges and emphasizes the importance of vigilant measures to protect Kenya's avocado industry and international reputation.

South African Avocado Expecting Entry into Japanese Market

The South African avocado farmers eagerly anticipate entering the Japanese market, with the first shipment planned for Jun-24. The industry hopes that government funding for port improvements will reduce turnaround times. The move diversifies markets beyond the European Union (EU) and the UK, potentially absorbing surplus crops and boosting employment. While Japan is a discerning market with strict quality standards and annual avocado consumption nearing 100 thousand mt, industry leaders believe the new market will positively impact South Africa's avocado industry and contribute to the country's economy.