Due to the Middle East conflict, Kenyan avocado exporters are experiencing challenges, following a recent recovery from drought conditions. The geopolitical tensions have led to shipping logistical disruptions, affecting the competitiveness of local agribusiness players. The closure of the Suez Canal and disruptions in the Red Sea/Gulf of Aden route to European markets have introduced new risks and security concerns, prompting shipping companies to opt for alternative, longer, and more expensive routes.
For avocados, airfreight is not a viable option due to cost, and extended shipping times compromise fruit quality upon arrival in Europe. The journey involves multiple trans-shipments, from Mombasa to Oman, then around the Cape of Good Hope to Europe, resulting in avocados arriving nearly ripe. This situation does not align with the industry standard of delivering fruits with a two-week ripening window.
Delays in transit can extend the age of fruit reaching European markets to nearly 50 days, compared to 30 days for competitors like Peru, which benefits from shorter routes. Unlike Kenya, South Africa is not affected by the Red Sea issue, maintaining a 30-day transit time to Europe. Alternative markets in China and India present challenges due to oversupply and high import tariffs, respectively.
The situation calls for a national policymakers' dialogue to address the severe impacts on the Kenyan avocado trade, exacerbated by the Middle East conflict.
Source: Capital News