Derek Donkin, CEO Subtrop:
Positive South African avocado season so far
The volume this season has been a bit lower than expected, and is predicted to come in at about 12.5 million cartons, according to Subtrop CEO, Derek Donkin.
“This is due to a number of factors, one of which being that the local market is quite strong at the moment. There are less costs involved when selling to the domestic markets, and in the late and early season, some growers make a call to support the local market, as the prices are good. It’s a good market alternative.”
Derek also believes that the dry winter, which had a positive effect on quality, has also contributed to the rise in domestic sales.
“We have a high proportion of small fruit due to the conditions. As this can be sold on the domestic market, more has been sold here rather than exporting the smaller sizes.
“However, the EU market volumes have made good returns for growers and exporters, and this market is continuing to grow. The Rand is also at a 14 year low against the British Pound, which makes for favourable exchange rates for us when exporting.”
Despite competition from the increasing amounts of Peruvian avocados, Derek says they were pleasantly surprised to see how the volumes were absorbed by the market.
“It shows that this market is growing and demand is increasing. Europe, however, isn’t our only target market. The production is increasing not just in South Africa, but also in Peru and South America. This is why we are looking at other markets, such as the US, the Far East, Japan and China, which have been accessed by some.
“We are currently trying to access countries like Japan, China, Thailand and Vietnam. These are big growth markets and the current planting is keeping this in mind.”
At the moment South Africa is sending some volumes to the Middle East, but it remains a limited market.
Although it is expected to increase, it will not be a major market like the EU or the Far East.
The main variety is still the prominent Hass avocado, including in the newer markets.