As global demand for avocados continues to rise, China has emerged as a key market for the nutritious superfood. South Africa, leveraging its robust agricultural sector, is now poised to expand its trade horizons by exporting avocados to China.
This strategic development follows a recent agreement at the Brics summit, highlighting South Africa’s ongoing efforts to diversify its export portfolio and strengthen its economic ties with China.
A fruitful agreement
The deal to export avocados to China, forged during the Brics summit in Johannesburg last year, marks a significant milestone for South Africa. The country has become the third African nation, following Kenya and Tanzania, to meet China’s stringent sanitary and phytosanitary standards, allowing it to export fresh avocados to the Asian giant. This agreement is a part of a larger trend where China is increasing its food imports from Africa, aiming to modernize agriculture across the continent as affirmed by Chinese President Xi Jinping.
South Africa is a significant producer of the fruit, growing just over 130,000 tons a year, according to Wandile Sihlobo, chief economist at the Agricultural Business Chamber of South Africa (Agbiz). He said roughly half of this is for export markets.
Currently, it exports its avocados to Europe, the Middle East and the African continent, as reported by the South China Morning Post. “China is a new and exciting market,” Sihlobo said. “The South African farmers will benefit from the access to [China’s] growing market.”
Expanding market opportunities
The South African avocado industry has shown remarkable growth, with an expansion of over 4,750 hectares in recent years. This growth underscores the sector’s readiness to tap into new markets, particularly in Asia. According to Derek Donkin, CEO of the South African Subtropical Growers’ Association (Subtrop), preparations for the first shipments are underway, with several major exporters establishing necessary business connections in China, “A number of South Africa’s major exporters have already set up the necessary business contacts in China to be able to export as soon as the official requirements are met,” Donkin said according to reporting by the South China Post.
This initiative is not just a trade opportunity but also a chance to showcase South Africa’s agricultural capabilities on a global stage.
Economic and social impacts
The new trade route is expected to have a profound economic and social impact in South Africa. Thoko Didiza, South African Minister of Agriculture, Land Reform and Rural Development, highlighted that accessing the Chinese market is crucial for driving export-led growth during the Brics summit. The focus on avocados, which are primarily grown in rural areas, is anticipated to boost employment, develop skills, and promote economic development, thus improving the livelihoods of local communities.
Strategic trade and bilateral relations
China is not only a major consumer of avocados but South Africa is China’s largest trading partner in Africa. The bilateral trade between the two countries was valued at approximately USD 55.62 billion last year. By adding avocados to its export list, South Africa diversifies its trade portfolio which already includes minerals and other fruits. This strategic move enhances its economic ties with China, providing a stable market for its products and contributing to the country’s overall trade balance.
As quoted by the South China Morning Post, Lauren Johnston, an associate professor at the University of Sydney’s China Studies Centre, said avocado demand in China is growing due to a new health-conscious middle class. “There is presumably plenty of demand, avocados being a superfood,” she said, while noting that as the trees have intensive water requirements, it would be a relatively poor choice of crop for China to grow. Fortunately, avocados are easy to export because they carry few risks of pests and are already being exported to Western markets, she said.
The initiation of avocado exports to China represents a significant stride in South Africa’s trade strategy. It not only aligns with China’s agricultural modernization plans, but also opens up a vast market for South African avocados. As the industry prepares for its first shipments, the potential for growth and development in this sector is immense, promising benefits for the economy and the people of South Africa. This venture into the Chinese market sets a precedent for other agricultural products, paving the way for a more diversified and robust export economy.
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