South Africa to resume avocado exports to Japan

South Africa to resume avocado exports to Japan

After a hiatus over aseptic requirements, South Africa is set to resume hass avocado exports to Japan. The go-ahead call came after successful negotiations in November 2023.

The news will bolster South Africa’s chances to expand its Asian market reach following an earlier avocado pact with China in 2023.

Commenting on this new opportunity, Derek Donkin, CEO of South Africa’s Subtrop company said that making the cut in “Japan is exciting.” However, he fell back on the blossoming Chinese market, which he touted as more promising since it is still developing.

South Africa’s Place in China‘s Avocado Market

Before testing the Japanese market, South Africa plans to begin avocado exports to China from February 2024, at the earliest.

The agreement to ship South Africa’s avocados to China in 2023 coincided with a period of stiff global competition.

China’s avocado imports were 32,627 metric tonnes (MT) in 2019, but by January through September 2023 they had reached 57,219 MT.  Of this amount, Peru supplied 84%, Kenya 6%, Chile 6%, and Mexico 3%. 

With the acceptance of avocados from Kenya, volumes by Chile and Mexico fell from the previous shares of 24 and 7% respectively.

In the South African case, Clive Garrett of ZZ2 company foresees geographical advantages. Garrett cites that South Africa has a comparative advantageous geographical position against its Latin America competitors. For instance, South Africa ships its merchandise to China 20 days faster than Peru does due to proximity. 

However, Peru’s avocado season of May to August parallels that of South Africa, and may stifle the distance advantage. 

Enter Japan’s 70,000-ton Market

With a capacity for 70,000 tonnes, Japan is another Asian superpower that can help absorb surplus avocados to China. 

This promise has seen South Africa become keen to seal the loopholes that had led to the earlier ban.  According to spokesperson Reggie Ngcobo, the Department of Agriculture, Land Reform and Rural Development will register all avocado production areas.  

The department will also sanitize orchards and encourage safe pest eradication practices.

These remarks bank on the country’s ability to supply both the Chinese and Japanese markets. Since 2021, South Africa has been averaging 139,400 tonnes of total avocado production per year.

Out of this margin, 45% go into exports, but there is still a home surplus that could turn into further exports. This fraction can come from the 55% margin consumed at home excluding the 10% that goes into local processing.

Ultimately, the reentry into Japan’s avocado market will raise the South African avocado labour force to 23,000 and boost farmers’ income.