Tanzania's avocados hit international markets
Tanzania has already secured permits to access India and South African markets and now, Tanzania Horticultural Association and the government are working to open the China avocado market. David Nyange, Professor of International Development at Michigan State University joins CNBC Africa for more.
Tue, 25 Jan 2022 10:14:18 GMT
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AI Generated Summary
- Tanzania secures permits for Indian and South African avocado markets, with plans to enter China market
- Private sector collaboration and government support drive industry growth
- Infrastructure investments and market diversification strategies propel Tanzania's avocado sector forward
Tanzania has made significant strides in the avocado industry, securing permits to access markets in India and South Africa, with efforts underway to open the lucrative China market. The country's avocado exports have already begun, with the first consignment sent to India recently. This accomplishment marks a pivotal moment for Tanzania, showcasing its potential in the avocado sector. Professor David Nyange, an expert in international development at Michigan State University, highlights the importance of private sector involvement in driving the industry forward, supported by a conducive environment created by the government. With ample land, water resources, and favorable ecological conditions, Tanzania is poised to become a key player in the global avocado market. The country's early seasonal production gives it a competitive edge, allowing it to fill market gaps before other avocado-producing regions. Despite current export levels being lower than some competitors, Tanzania's history of successful tree crop production, such as cashew nuts, positions it well to scale up avocado production. The government's focus on promoting green growth and facilitating farmer access to markets further boosts the industry's potential. In 2018, Tanzania exported over 7,000 tonnes of avocados, generating significant revenue. With projections indicating robust demand for avocados globally, Tanzania aims to capitalize on this trend, targeting increased export volumes and market diversification. The government's investment in infrastructure, including improved airports and roads, underscores its commitment to enhancing the agricultural supply chain. The establishment of a common user facility to consolidate avocado shipments from various regions demonstrates a proactive approach to streamlining operations. Furthermore, partnerships with development organizations and industry associations are instrumental in supporting smallholder farmers and expanding market access. Tanzania's strategic move to tap into Indian and Asian markets reflects a shift from traditional European trade routes, opening up new avenues for growth. By leveraging competitive pricing strategies and direct flights to key markets, Tanzania aims to capture a larger share of the global avocado trade. While global fertilizer price fluctuations may impact production costs, Tanzania's emphasis on organic farming methods helps mitigate potential challenges. The country's focus on sustainable agriculture practices ensures resilience in the face of market uncertainties. As Tanzania navigates the evolving avocado landscape, coordination among stakeholders and ongoing infrastructure investments will be crucial in sustaining the industry's growth trajectory. With a bright future ahead, Tanzania's avocado sector is poised for success on the international stage.