Avocados are big news in the UK. Often described as a superfood, it seems that the fruit’s fatty image has finally been shed and consumers are keen to tuck in.
South Africa is one of the major suppliers of avocados to the UK and exporters are on course to ship approximately 12,500 tonnes this year, according to Derek Donkin, general manager of the South African Avocado Growers’ Association (SAAGA).
Exports to the UK reached 14,000t in 2005 but these figures must be seen in context of the total size of the export crop, Donkin tells FPJ. “In 2005, exports totalled 47,500t, of which 30 per cent was shipped to the UK,” he says. “This year, we expect shipments to the UK to be around 33 per cent of our estimated 38,000t export crop.”
The challenges South African avocado growers and exporters endured at the beginning of the season have been extensively reported (FPJ June 23). Volumes supplied to the UK since the end of April, however, have been steady and quality has been good, Donkin says, adding that prices have also been fairly stable.
The nutritional benefits of avocados continue to play a major role in this year’s SAAGA promotional and PR campaign and the fruit is being marketed as a ‘Summer Superfood’.
Summer Avocado month was held in July and Nicky Hambleton-Jones, star of the TV series 10 Years Younger, was hired to conduct radio interviews and promotions. She also compiled the introduction for a new promotional booklet.
For the first time, SAAGA’s avocado campaign has focused on using avocados as a beauty product. “The response to the Avo-Spa promotion has been very positive and good coverage is appearing in beauty news pages,” Donkin says. The UK consumer website - www.summeravocados.com - has undergone a transformation this season.
In recent years, both Fairtrade and organic avocados have been attracting greater attention. Westfalia UK is the largest importer of both Fairtrade and organic South African avocados. While organic production is unlikely to scale dizzying heights, it is a different story for Fairtrade output.
“Unfortunately, growth in organics is probably limited by supply,” says Simon Curry, Westfalia’s UK marketing manager. “Westfalia devotes a large part of its farms to organics, but the yields from organic avocado orchards are poor compared to conventional orchards and this limits availability.
“The situation is reversed on Fairtrade and Westfalia has the potential to take on considerably larger programmes. We have started to see the benefits of Fairtrade to employees on our farms in South Africa (the recent opening of a crèche on our farm, being an example), and we are keen to see further development.”
This year’s smaller South African crop will not affect Westfalia’s supplies, Curry says, adding that the company’s farms enjoy a good geographical spread so not all are in the same on-off seasonal cycle. “Pruning strategies developed by Westfalia are also specifically aimed at reducing the seasonal swings,” he says.
In addition, while the majority of its exports are supplied by its own farms, Westfalia also has sufficient back-up. “We have an increasing number of specifically chosen outside growers,” Curry says. “These growers are selected on the basis that they subscribe to the same values as Westfalia, and are complementary to our own supply (late and early season fruit for instance).
“Before the season we were approached by a number of growers wanting to supply into the Westfalia brand, and we have selected those that we believe are the best to augment our supply.”
As well as its South African volumes, Westfalia works with supply partners throughout South America. Of these, Peru and Chile are the most prominent, and the firm expects both sources to grow in volume and importance in the years ahead.
“These countries will certainly gain market share in the years to come, but this does not have to be at the expense of more traditional sources like South Africa,” says Curry.
“The UK market continues to change and develop and this lays down a continuous series of challenges for our company,” Curry says. “We are fortunate in having the majority of our crop under our own management and this enables us to respond quicker to developments in the marketplace.”
The weakening of the South African rand against sterling has helped producers in recent months. However, Curry says that increased costs in South Africa, together with price pressure in the UK, will negate any advantages. Donkin also acknowledges that some major costs in the export chain are paid in US dollars, so shipping costs in rand terms are higher.
“The pressure to be efficient in all aspects of the farming and logistic chain remains and in fact intensifies,” Curry says.
There are still another nine weeks to go before the South African season ends but importers have reported favourable market conditions to date. “We’re seeing very nice prices so far this season and quality has been excellent on greenskin volumes,” says Paul Devlin, HL Hall’s export director.
HL Hall imports avocados from its South African farms as well as from around the world. There is a world trend to sell more Hass but greenskin varieties are currently achieving higher returns, according to Devlin.
“We’ve seen steady, constant volumes, good quality and greenskin sizes have been fairly consistent,” he says. “Hass quality is also good, but sizes are smaller than last year so the bigger counts are attracting attention.”
Elsewhere, a number of South American suppliers are hoping to make gains in the UK this season. The Chilean avocado crop is expected to reach 195,000t in 2006-07. “Of that volume, we estimate that we will export around 150,000t to our international markets and 45,000t will be sold in Chile,” says Adolfo Ochagavía, general manager of the Chilean Hass Avocado Committee (CHAC).
Ochagavía has reported very good growing conditions this season and believes that overall exports will rise by 42 per cent compared to 2005-06 levels.
Some 6,100t of Chilean avocados were shipped to the UK last season and volumes are set to rise to a significant 9,000t in 2006-07.
Ochagavía acknowledges it is a long journey for Chilean Hass to reach the UK. “A shorter trip is always better but in the case of this fruit, we have a very good traveller,” he says.
According to the CHAC, the penetration of Hass avocados in the UK remains low, with only 24 per cent of the population purchasing an avocado last year.
However, Ochagavía believes that consumers are beginning to become more aware of the fruit and appreciate its nutritional benefits.
Ongoing promotions should further bolster demand. Ochagavía says: “Last year we organised an extensive promotional and public relations campaign in the UK. We held promotions in Tesco, Waitrose and Sainsbury’s and delivered a total of 1.9 million booklets about Hass avocados. These consisted of recipes, nutritional information and some tips on how to handle avocados.”
Another promotional campaign will begin in October and will run through until the end of the year.
At the beginning of last month, the CHAC downplayed Chilean press reports that its growers were heading for over-production in an already over-supplied world market.
Meanwhile, according to recent reports, Peru’s agricultural industry is growing quickly and key exporters of Hass avocados are hoping to establish a strong foothold in the UK market.
A combination of favourable weather conditions, high productivity and good fruit quality is pushing growers to plant more area and extend their season, says Ricardo Polis of Consorcio de Productores de Fruta (CPF).
“The market is demanding our product and I believe Peru will have a greater presence in high-quality markets,” he says.
UK importers are also confident Peru will enjoy a larger following. “We don’t do Peruvian avocados in great volumes but recently, there’s certainly been a bigger programme in the UK,” says Devlin. “They’re a major supplier of the Hass variety and significant volumes are also going into Spain and France.”
Devlin adds that as exporters spread fruit across different markets, they’re able to keep prices fairly constant. “The Peruvian deal is smaller than Chile but it’s moving forward and will be a major exporter within the next five years,” he predicts.
In the northern hemisphere, Israel and California are gearing up for the new season. Israel is set to recover from last year’s off-bearing avocado crop in style, with early reports indicating that 2006 export volumes could be as high as 55,000-60,000t.
Agrexco handles some 70-75 per cent of exports and hopes that shipments to the UK will reach 9,000-10,000t. “Weather conditions have been very good and we enjoyed good fruit setting in late spring,” says Amos Orr, general manager of Agrexco UK.
He adds that the UK has become a very important market for Israeli avocados. “Ten years ago, France was the main importer and for every one avocado sold in England, 10 were sold in France,” Orr says. “However, consumption is growing very rapidly in England and that ratio is now one to two.”
Mehadrin Tnuport Export (MTEX) says it will handle 20-25 per cent of the total Israeli crop and intends to export around 3,000-5,000t to the UK market.
“We’re going to double last year’s sendings and as Hass volumes are also set to increase, that will be good news for the UK,” says Dror Eigerman of MTEX.
“The Israeli avocado crop is expected to be much bigger this year, as it’s an on-peak year and new plantings are coming on line,” Eigerman says. “Quality looks very good and we’re encouraged by prospects this season.”
He believes that there are many advantages to shipping to the UK market as it is receptive to high quality fruit, and importers and retailers know how to handle and look after avocados. MTEX supplies Tesco and Waitrose in the UK.
“The UK is well known for its fixed programmes and steady prices,” says Eigerman. “Sometimes steady prices can also be a disadvantage. France, for example, is more volatile and when prices are up, they are crazy up, but of course they can also crash.”
MTEX is keen to stress the advantages of Israeli avocados. Eigerman says: “We offer the UK top-quality fruit which has been grown and cared for by highly professional growers and packers. Fruit safety is a key priority. We are also very reliable; if we undertake a programme we will stand by our commitment.”
Harvesting of the smooth-skinned Ettinger variety will begin in October and the season runs through to late-April to early-May.
Meanwhile, California is a major avocado producer but the UK is one market that has yet to see the full force of shipments. Exporters sent 24,000 cartons to the UK during the 2005/06 season, according to Guy Witney, director of industry affairs for the Californian Avocado Commission (CAC).
The association says that the UK consumer is a sophisticated animal, which generally recognises avocados, knows how to use them and values the fruit. However, the number of growing and handling practice requirements that exporters have to adhere to poses a challenge for some shippers.
California is enjoying favourable weather conditions to date. “We have had a warm summer so far and the new crop is sizing up fast, so while we expect a smaller crop than 2006, we will have a higher percentage of good sizes,” Witney says.
Whatever the source, observers agree that there is still some way to go before the UK appetite for avocados is sated.
FRUTAS MONTOSA EYES NON-RETAIL OPPORTUNITIES
Spanish avocado producer Frutas Montosa is hoping to capture new UK customers this year. The firm has been supplying UK supermarkets through Mack Multiples for more than 15 years and plans to increase its presence in the UK by diversifying into the wholesale and catering sectors, says Segismundo Palma Trigo, marketing manager.
“With a view to these sectors, we have developed a range of pre-prepared products for healthy, busy people who don´t have time to cook and don’t want to eat fast food,” Trigo explains. The company’s chilled line, which has a 15-day shelf life, consists of two products - Guacamole and Dices and Slices. Its frozen range is more extensive and offerings are Guacamole, Pulp, Chunks, Slices, Halves and Skinned Halves.
By specialising in avocados Frutas Montosa believes it has a clear advantage over its competitors. “No-one can control the life-cycle of avocados like we can, because others handle too many other fruits,” Trigo claims. “We know avocados perfectly.”
Frutas Montosa anticipates a good Spanish avocado season. Although harvesting of Fuerte and Hass is still a few months away, Trigo notes that trees haven’t suffered as much stress compared to last season when frosts hit plantings. “We’ve had better flowering this year,” he says.
When questioned about fruit sizing, Trigo says Frutas Montosa produces a range of sizes, although large counts predominate.
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