In a significant development for the global avocado trade, South African avocado growers are about to penetrate the lucrative Chinese market. The journey to secure this market access has been marked by orchard inspections and regulatory approvals earlier in Spring this year.
As early as March, the news emerged that South African avocados were on the brink of being granted access to the Chinese market. In April, Chinese authorities conducted thorough on-the-ground inspections of orchards and farms, including at a few key players like Halls.
Avocado sorting line
Halls fresh avocadoes and product branding
Lifan Yu represents Halls in China. The company is one of the world’s largest avocado growers and shippers. The inspections encompassed video assessments and evaluations for regulatory registration, all of which were scrutinized by the Chinese Customs Authorities. A number of South African avocado growers and shippers were inspected. After the inspection is completed, the company names will be added to an approved list for exports to China. This list is expected to become publicly available soon. In total, there will be two lists available: one detailing approved growers on the Chinese Customs Authority website and the other that includes verified exporters.
Lifan remarks that the company has experience shipping African avocados to China: “The journey to access the Chinese market started when last year Kenya led to the first shipment of Kenyan avocados to China. Armed with this experience, South African avocado exporters were informed about the particularities of the Chinese market”
The Chinese avocado market is not a mature market yet. “The current season poses a unique challenge for the Chinese avocado market”, says Lifan: “Primarily due to an influx of both Kenyan and Peruvian avocados. This unprecedented supply has caused market prices to fluctuate, impacting not only established players like South Africa but also newer entrants like Kenya. The differences between Kenyan and Peruvian avocados, coupled with various supply chain issues, have influenced market dynamics, which are still very volatile. Prices have come down, which is making it more attractive for smaller traders on the market to add avocadoes to their product portfolio. This will eventually only grow the size of the market”.
Avocado seedlings in the nursery
Taking care of the young avocado seedlings
Despite these challenges, the global demand for avocados is steadfastly growing, presenting ample opportunities. “Eventually, we expect the following to happen in China as well: as competition intensifies, prices are expected to adjust, making avocados more accessible to consumers across the spectrum, from individuals to smaller businesses”, says Lifan.
The expansion of the avocado trade beyond borders is not limited to China. South Africa is engaged in negotiations with other Asian nations such as South Korea, Japan, and Malaysia. China's phytosanitary requirements set an example for other Asian countries, with Malaysia recently opening its doors to Kenyan avocados based on a protocol inspired by the Kenya-China agreement. This is often the case.
This collective momentum shows the potential for increased avocado trade across the Asian continent.
Avocado sorting line
“Infrastructure development is another important aspect in the current phase of the avocado trade. The establishment of ripening facilities is expanding beyond major cities like Shanghai and Guangzhou to Tier 2 and 3 cities, amplifying opportunities for ready-to-eat avocado consumption. As consumer preferences evolve, the focus is shifting from outward appearances to the delectable qualities that lie within. This is also where opportunities lie. Now we have received market to China we are actively engaging with customers to introduce the distinctive attributes of South African avocados compared to their Kenyan and Peruvian counterparts. While challenges in supply and competition are on the horizon, a balance in pricing is anticipated, aligning with European standards,” Lifan concludes.
Avocado trees in the orchard
For more information:
Halls will be present at Asia Fruit Logistica: Hall No.5 5A26
Lifan Yu
Halls Fresh Produce Co., Ltd.
Tel.: +86 186 8089 2300
Email: [email protected]
www.hallschina.com