Tanzanian Avocado Farmers Set for Financial Boom as China Opens $150 Million Market

By Adonis Byemelwa

Tanzania’s avocado farmers are set for a financial windfall as China, the world’s second-largest economy, has authorized direct imports of the fruit from Tanzania. This opens the door to China’s vast $150 million avocado market, a development expected to boost Tanzania's agricultural fortunes.

The Ministry of Agriculture confirmed that, as of August 14, 2024, China has officially greenlit avocado imports from Tanzania. This milestone follows years of efforts, dating back to 2018 when the Tanzania Horticultural Association (TAHA) first identified the potential of the Chinese market and urged the government to pursue it through diplomatic channels.

"We deeply appreciate the Ministry's leadership and persistence," said TAHA CEO Dr. Jacqueline Mkindi. "Their proactive approach has been key in unlocking this vital market." She also praised the Food and Agriculture Organization (FAO) for its role, highlighting how cooperation between organizations has helped Tanzania secure this victory.

Agriculture Minister Hussein Bashe had assured TAHA members the government was working tirelessly to finalize the deal with China. The outcome is expected to be a financial bonanza for Tanzanian avocado growers and exporters, capitalizing on China's growing demand for avocados, driven by a health-conscious middle class.

Tanzania, Africa’s third-largest avocado producer after South Africa and Kenya, has long struggled to penetrate international markets due to a lack of sanitary and phytosanitary (SPS) agreements. However, that barrier was overcome during President Samia Suluhu Hassan’s state visit to Beijing, where she secured an SPS protocol allowing Tanzanian avocados into China.

Dr. Mkindi praised President Hassan’s diplomatic efforts, noting that TAHA’s previous attempts to enter the Chinese market had been unsuccessful. "The President’s initiative aligns perfectly with Tanzania’s goal to increase horticultural export value to $2 billion annually, up from the current $420 million," she said. The industry expansion is also expected to create jobs for youth and women in the value chain by 2030.

Tanzania’s avocado industry is poised for explosive growth. In 2023, the country exported 26,826.3 metric tons of avocados, generating $73 million. Projections by the International Trade Center (ITC) suggest that by 2033, production could skyrocket to 393,669 metric tons, with exports reaching 236,201.5 metric tons and generating $449 million.

"This surge in production underscores the massive revenue potential and opens up enormous economic opportunities," Dr. Mkindi emphasized. She added that the growth will likely lead to increased incomes for local farmers, enabling them to invest in advanced farming techniques and technologies, which will reduce post-harvest losses and improve overall productivity.

The avocado boom is expected to spur broader economic development, driving job creation and stimulating local economies as consumer spending increases. "To maximize the benefits, we need to improve post-harvest handling, stabilize prices, expand market access, and adopt sustainable farming practices," Dr. Mkindi stressed.

China’s avocado market has been on a meteoric rise, with imports increasing by a staggering 4,359 percent over the past decade, from $3.4 million to $151 million in 2023, according to ITC data. The country is now the 10th largest importer of avocados globally, with annual import growth averaging 71.5 percent.

Peru currently dominates the Chinese avocado market, supplying 50,000 metric tons in 2023, a 79 percent increase from the previous year. However, Tanzania’s geographical advantage could allow it to challenge established players like Peru, Chile, and Kenya. With shorter shipping routes, Tanzania is better positioned to meet China’s growing avocado demand.

“The direct shipping routes between Tanzania and China are a game-changer,” said Dr. Mkindi. "Tanzania has a logistical advantage over competitors in South America, which could expedite our exports and meet China's growing demand."

This breakthrough is set to benefit both smallholder and large-scale farmers, driving increased production and boosting household incomes. "It’s a win-win," Dr. Mkindi explained. "We supply avocados to China's supermarket shelves while bringing foreign currency into our economy, creating jobs, and offering security for investors."

The deal with China is expected to trigger a surge in investment in Tanzania’s avocado industry, including agro-processing, which will further cement the sector's role in the nation's economic development.

In short, the opening of the Chinese market represents a new dawn for Tanzania's avocado farmers, offering them a lucrative opportunity to tap into one of the world’s fastest-growing fruit markets and significantly boosting the country’s agricultural export revenue.