Why Avocado Farms Thrive in Tanzania

It wasn’t long ago that avocados were a luxury crop, but the fruit’s popularity has soared lately. Avocado is one of the foods that is getting more buzz than others, bringing in profits and shaping the daily eating habits of many people around the world. The avocado is so famous with the generation of Millennials that it has made a mark on social media with hundreds of pictures and recipes.

People, mostly those in their 20s and 30s have recently sent demand for avocados skyrocketing. The International Trade Centre (ITC) says global avocado imports hit US4.8 billion dollars in 2016 with imports growing by 21% between 2012 and 2016. The biggest reason driving consumption of avocados is its delicious taste and multiple health benefits.

How Profitable is Avocado Farming in Tanzania?

The number of avocado farms in Tanzania has increased since 2009. More farmers want to enter the insatiable avocado export market. Exporting is more profitable for avocado farmers in Tanzania.

Here is a breakdown of the cost of planting one acre of an avocado farm in Tanzania:

  1. With the spacing of 7m by 7m, a farmer needs to buy 82 avocado seedlings from a nursery certified by the Tanzania Official Seed Certification. (TOSCI) the cost of one seedling is TZS3,000. The total cost of 82 seedlings is TZS246,000.
  2. The cost of ploughing, measuring planting holes (2ft by 2ft by 2ft), digging, mixing manure and planting per hole is TZS1,000. The total cost for 82 planting holes is TZS82,000.
  3. One acre needs seven tons of well decomposed manure which costs TZS210,000 including transportation to the farm. The cost of a 50kg bag of organic phosphate fertilizer is TZS38,000. Each planting hole needs three debes (buckets) of the top soil-manure-fertilizer mix.
  4. The total cost of fertilizer use for five years is TZS380,000.
  5. The total cost of pesticide use for five years is TZS175,000.
  6. The average cost of hiring laborers to do weeding, pruning, pest and disease control for one year is TZS100,000. The total cost for five years is TZS500,000.
  7. Therefore the total investment needed for one acre is TZS1,631,000.

After three years, a farmer can expect the first harvest. One avocado tree can yield 50-300 fruits. This means one acre can yield 4,100-24,600 fruits from 82 trees.

Let us take into account the least number of fruits (4,100). Let us also calculate the price of each fruit at a minimum price of TZS300. The total expected return from one acre after three years is TZS1,230,000. The first harvest is always a loss because the trees are not yet fully developed.

But after five years, the following harvests make profits since the avocado farm has mature trees. A tree can yield 700-1200 fruits. This means one acre can yield 57,400-98,400 fruits from 82 trees.

Let us take into account the least number of fruits (57,400) and calculate at a minimum price of TZS300. The total expected return from one acre after five years is TZS17,220,000. After deducting the total cost (TZS1,631,000) from the total revenue (TZS17,220,000) the net profit is TZS15,589,000.

Avocado Yield per Acre in Tanzania

One acre can produce 4,100-24,600 fruits after the third year. After the fifth year, one acre can produce 57,400-98,400 fruits.

Benefits of Avocado Farming

The best time to plant an avocado farm in Tanzania is during the onset of the rainy season from late November to early December. Here are some benefits of avocado farming:

  • Various kinds of avocado trees are hardy and don’t require intensive care during their growing period.
  • Avocados contains oils which are used as cooking oil and in the cosmetics and pharmaceutical industries.

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