Global avocado prices have been generally on an upward trend in the past 10 years. This is driven mainly by greater demand for the fruit but short supply. New markets such as China are also influencing the price changes.
Prices in the international market tend to drop sharply when there is an oversupply of avocados. But they rebound later when volumes are stable. It is for this reason that avocado exporters in Zimbabwe closely monitor the market so that they know when profit margins will either be high or low. The government of Zimbabwe is encouraging avocado exports because it will increase jobs and bring in higher wages.
Avocado Prices Zimbabwe
Exports of avocado from Zimbabwe were valued at 2.5 million US Dollars in 2021. This is a slight decline from the previous year. It is a similar record high value to the one recorded in 2018.
Here are the total values in export for avocados from Zimbabwe between 2012 and 2021.
Zimbabwe could earn about US4 million dollars annually from avocado exports to Japan, according to a report by the Confederation of Zimbabwe Industries (CZI) in 2019. This will be possible after the Asian country lifts its restrictions on the imports of fruits and vegetables from Africa. The average retail price of avocado in Japan is higher than in Europe.
Zimbabwe is targeting to ship 1,000 tons of avocado to Japan. The ministry of agriculture in both countries have begun negotiations. The National Trade Development and Promotion Organization of Zimbabwe (ZimTrade) even signed an export trade deal with the Japan External Trade Organization (JETRO) to pave the way.
The other market that Zimbabwe is aiming for is the United Arab Emirates (UAE) Zimbabwe secured deals worth almost 2 million US Dollars at the Dubai Expo 2020 for horticultural produce including avocados according to ZimTrade. In 2020, the avocado market in UAE was valued at 34.3 million US Dollars.
Avocado business has become lucrative because of the rising demand for the fruit across the world. But as an avocado exporting country, Zimbabwe is yet to fully reap the benefits. Here are some ways the country can make its avocado prices more competitive on the export market:
- By growing more commercial varieties such as Hass, Fuerte, Pinkerton
- By diversifying into other high value markets like the Middle East and Asia.
- By limiting its supply volume to regional markets like COMESA and SADC. These markets are easier to access but they don’t pay much because of similar seasonal windows and low disposable income.
Opportunities for Avocado Sector in Zimbabwe
Avocado is an important cash crop for Zimbabwe’s economy. Here are some opportunities that can increase the contribution of avocado to the horticultural sector:
- Existence of Beira corridor. The port of Beira in Mozambique is an alternative exit point from where avocados from Zimbabwe can be shipped to overseas markets. The distance between Harare and Beira is 569km which is shorter than the distance to the port of Durban, 1,680km
- Construction of a dry port facility. The Zimbabwe dry port at Walvis Bay in Namibia, that started operations in 2019, is another link between avocado exporters and markets in Europe. Avocados shipped from this port can save almost 10 days in transit time.
- Government support. ZimTrade says five regulatory authorities have begun implementing reforms, under the Rapid Results Initiative, meant to improve the business environment for exporters. The government of Zimbabwe launched the Ease of Doing Export Business project in 2017 to revive the export sector.
- Niche market for organic avocados. Zimbabwe can sell its organic avocados to European markets because the country still produces much of its crop organically.