- Tanzania’s avocado export volume up 74% to 26,826 tonnes in 2023.
- Exports of the super-fruit earned Tanzania $77.3 million in 2023 and projections show the country realized even more last year.
- Analysts say increased demand of the fruit is due to growing number of health conscious consumers.
The appeal of Tanzania’s avocado in key export markets globally is increasing as global demand for the super-fruit grows amid growing number of health conscious consumers. Health benefits of avocado consumption include improving digestion, lowering the risk of depression, and preventing bone loss, experts report and it is this knowledge that is driving global demand.
“Avocado exports from Tanzania have experienced a 74 per cent increase, rising from 15,432 tonnes in 2021 to 26,826 tonnes in 2023,” the latest report from the head of Tanzania Horticultural Association (TAHA), Dr. Jacqueline Mkindi.
Dr. Mkindi made the remarks at the avocado stakeholders’ conference recently in Dar es Salaam where she said that TAHA is compiling industry data for last year. The conference, which was organized by TAHA and the Ministry of Agriculture through COPRA, underscored the need for strategic investments and global demand positioning for Tanzania’s avocado industry to reap optimally.
According to the TAHA, Tanzania avocado exports generated $44.3 million in 2021, before increasing to $77.3 million in 2023 and the returns are expected to be higher for 2024. “TAHA anticipates avocado production to reach 31,950 tonnes for the 2023/2024 season,” noted Dr. Mkindi.
Globally avocado market has registered a considerable increase, shooting up from $2.39 billion in 2013 to $7.3 billion in 2023. “Tanzania’s avocado production has been increasing annually by 20 per cent for over the span of the last five years,” Dr. Mkindi added.
Primary markets for Tanzania’s avocado
She said Europe, India, and the Middle East are the primary markets for Tanzanian avocados, with China, South Africa, and even neighbouring Kenya comprising a significant part of key destinations. Other markets for Tanzania’s avocados in European markets include Denmark, France, the Netherlands, Norway, Spain, and the UK.
Dr. Mkindi said this expansion is attributable to strategic industry initiatives, including farmer training, market access facilitation, and logistics have been pivotal to the increased production and export of Tanzania avocados.
Among other projects, she said, TAHA conducts the Horticultural Exports Acceleration Program (HEAP) which targets the UK and Europe in general. “We have opened new offices in Europe to streamline market access,” she detailed.
By 2030, TAHA projects the horticultural sector could exceed $2 billion in export value, with avocados potentially contributing $714 million by 2030/31.
Further still, according to the press communique, investments in new value chains and partnerships with entities such as Westphalia and HL Hall & Sons aim to capture market shares in India and China and to enhance market access for Tanzania avocados further.
In her comments, Dr. Irine Madeje of COPRA attributed production increases to new markets and infrastructure enhancements, including avocado oil factories and packaging facilities, as well as farmer’s knowledge and access to farm inputs. “All these serve to boost yields significantly,” she said.
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Avocado fruit gaining popularity across India
Avocados from Tanzania are gaining popularity among consumers in India, but the Kenyan varieties, which are smaller and more affordable still dominates the market.
In a recent report that quotes Ashish Banerjee, the Commercial & Market Development Head for Agrify Fresh, an Indian produce importer, data shows that, avocados from Tanzania are proliferating the Indian market.
“The Indian avocado market is growing steadily, driven by rising health consciousness and demand from urban consumers,” notes Banerjee.
He said, while niche global markets persist, it is retail chains, quick service restaurants such as Subway, Starbucks, and gourmet stores that are the key demand drivers. “Demand has increased by about 20 to 25 percent compared to last year, granted the increase is from a small base,” he explained.
He added; “Factors like expanded retail availability, foodservice adoption and imports filling seasonal gaps are to thank for this increase.”
According to Banerjee, there are two main sources of this superfood. “Looking at the origins of avocadoes, there are two origins most popular among the consumers in India.” The first source, he said, are the avocados from Kenya; “which are preferred for their taste and smaller, more affordable sizes.”
The second origin for avocados that is gaining popularity is Tanzania; “avocados from Tanzania are emerging as a key player in this market, despite facing strong competition on price consistency,” the market expert details.
The prices for avocados are currently at a historic low, which has to do with a sudden oversupply of Tanzanian avocados, he revealed. “Avocados from Tanzania are very much up and coming in the Indian market. These avocados are priced competitively, have a good shelf life, and supply is more reliable,” he stated.
“There were lots of arrivals during a time when demand was rather sluggish. Prices might stabilize by mid-April if arrivals slow down or demand picks up during the summer season,” he projected.
India market: Tanzanian versus Kenyan avocados
Banerjee, the Indian avocado market expert, says there are clear differences and preferences when it comes to Kenyan and Tanzanian avocados. “For the consumers in India, the Tanzanian avocados are often seen as a value option compared to the premium avocados that are imported from Kenya.”
Despite this preference of Kenyan higher quality avocados; “The Tanzanian avocados can be marketed in India with their unique qualities in mind, such as its buttery texture, to differentiate itself from the Kenyan avocado.”
“Logistics matter for the import of avocados. For example, the air-shipped avocados from Kenya cater to buyers that focus on the freshness of the product,” he added.
On the flip side, he said; “Avocados transported via sea, such as the avocados from Peru and Tanzania, suit the cost-conscious markets. Currently, Indian states like Kerala are experimenting with small-scale avocado farming, but imports will dominate for years to come.”
