South Africa is a well established source of avocados for the UK and this season, growers and exporters are optimistic as supply gets into full swing. So far, the crop has been untroubled by the unusual weather patterns that can affect fruit growth, so both the harvest and fruit quality are forecast to be good.
The South African Avocado Growers’ Association (SAAGA) predicts the 2009 export crop will reach 10 million 4kg cartons (40,000 tonnes), with some 25 per cent earmarked for the UK. This comes after a record bumper crop last year, when 12.8m 4kg cartons (51,200t) were exported overall and the UK promotional campaign achieved record levels of activity.
Derek Donkin, chief executive of the SA Subtropical Growers’ Association (Subtrop), which manages the affairs of SAAGA, claims that growers and exporters are confident as they come up to the main part of the season. “It is normal for us to produce lower volumes than last season, because we have on and off years,” he says. “The figure we will export this year - 10m cartons - is actually very much in line with the average for the last six or seven years.
“We have had reasonable weather and a good amount of rain in most production regions, so we are expecting the quality to be high.”
SAAGA has a voluntary membership that represents some 85 per cent of export production. The aim of the association is to improve the profitability and sustain the viability of avocado production in South Africa. Its activities are funded by its members and include technical research, extension services, generic promotion to develop the local and export market, as well as the provision of marketing information.
“SAAGA supports the South African avocado industry from the ground up,” says Donkin. “We are involved in all links of the chain, from technical research and making sure we have a better yield per hectare and top-quality fruit to making sure that we address any issues through study groups. The research that we carry out on post-harvest problems and logistics is all part of the ways in which we are trying to get the best product to the UK. We are looking at optimum shipping temperatures, thinking about how we can go one or two degrees lower and at the flow of air in containers to keep temperature consistent.
“One of the key things that we do is provide information on the market as a whole so that everyone in the chain can make the best decisions.
“This is on top of the promotional work that we carry out in the UK, France and at home.”
SAAGA chairman Piet Muller, who took on the role in February, will hold the position for a one-year term. He is positive about the next 12 months and is keen for the industry to maintain its stronghold. “We will have to keep working on our efficiency and production to maintain our competitiveness,” he says. “And to make sure that we make the right decisions, we must continue to collect market information. We have been successful in this for the last couple of years.”
The South African avocado industry is based on some 12,500 hectares of commercial orchards, the majority of which are situated in the north-eastern part of the country, in the Limpopo and Mpumalanga provinces, as well as in the KwaZulu-Natal province. The climatic variations between growing regions mean that most of the major cultivars are available over an extended period, from April to October.
The export crop will be split equally between greenskin varieties - particularly Fuerte and Pinkerton for Europe - and the ever-popular Hass, which is still a favourite with UK consumers.
Westfalia Marketing UK Ltd received its first arrivals of Fuerte last week and volumes are set to build until the first Hass follows in mid-May. The firm will account for 5.2m cartons of the total sendings from South Africa, stretching until October.
Simon Curry, marketing manager, expects volumes dealt with by the business to be in line with last year and insists that the UK will remain a key market. “There is no doubt that the weakness of the sterling has made euro markets more attractive in some respects,” he admits. “However, Westfalia is committed to its long-standing UK customer base and will continue to supply programmes as it has for many years.
“In the UK, we focus on Hass and two greenskin varieties, Fuerte and the later-season Ryan, although we have had success with other greenskin varieties in recent years. With our extensive R&D efforts, we are constantly working on new varieties, many of which have been well received by UK supermarkets.
“This year, we are expecting a good season, with good volumes and good quality,” he continues. “We have had good summer rains this season and orchard health in general is excellent. This should allow an even supply of fruit, spread from the early to late production regions.”
Westfalia has a number of promising new early and late varieties that are in the process of commercial release. These varieties will allow South Africa to extend its season through careful placement in selected production areas.
At the same time, there has been steady progress with production techniques. “Westfalia’s growers are making use of new generation rootstocks such as Dusa, which is more productive and has a greater resistance to root rot than the traditional clonal rootstocks,” says Curry. “This decreases the need for chemical control measures. Modern pruning strategies have minimised the alternate bearing cycle, allowing more consistent crops each season. At Westfalia Technological Services, we are looking at softer, more environment-friendly approaches to dealing with pests and diseases.”
But there are a number of challenges facing the South African industry, not least the economic climate. It is still hard to call what the effects of the economic downturn will mean for the South African avocado industry, how it will hit exports and whether it will affect sales. But growers and exporters are prepared to deal with consequences as and when they come up.
“It is a tricky one to call,” says Muller. “The strong euro means that theoretically Europe should be a more attractive market for South African growers and exporters, but we have strong links and a long-standing relationship with the UK - in the past, it has provided a very stable market for us and it is still very important.
“It is difficult to predict the effects of the economic slowdown; it is still an unknown for us at this stage.”
The South African avocado industry is not alone in the market when it comes on stream, with South American sources producing an almost parallel offer. This is something that exporters are conscious of and with increasing volumes coming onto the market, information sharing is vital. “We are talking to exporters in Peru and Chile so that we know what we are putting into the market and everyone can plan their sales programmes,” says Donkin.
“It is difficult to differentiate an avocado,” he admits. “We strive to produce consistently good-quality product and be reliable in terms of logistics - that is our competitive advantage.”
But the category, as a whole, is still showing good potential for growth and this was recognised by the South African industry some time ago, with promising results. The industry has enough trees in its nurseries to plant 200-300ha each year, both to replace old trees or plant new ones, with a move towards Hass. The main nurseries are, however, fully booked, with a waiting list of up to two years for trees. Annual plantings have averaged around 150,000 trees for the last three years, or roughly equivalent to 500ha a year.
UK consumption has edged upwards in recent years, but there is still some way to go before it reaches the same levels as on the continent and further afield.
TNS data confirms this, with figures to the 52 weeks ending March 22 showing that avocado penetration is at 23 per cent, down from 24.4 per cent on the previous 52 weeks.
The best way to continue to increase sales and boost market penetration is to concentrate marketing efforts into a clear-cut campaign, to run alongside the peak periods of production. This year, SAAGA is to continue its UK promotional campaign into its 14th year, named Add An Avo, to encourage consumers to incorporate avocados into everyday meals. The promotions, co-ordinated by Richmond Towers, will be fronted by nutritionist and TV presenter Amanda Ursell, who will carry out a series of national and regional radio interviews.
“This is an integrated campaign,” says Donkin. “We have got retailers and packers on board to support promotions, which will feature the popular Win a Holiday promotion in packs of avocados and in-store tastings, as well as a media relations campaign.
“The aim is to get more consumers to try avocados and get them to buy and eat the product more often.”
The activities, which will build on last year’s coverage worth £2.3m, will cover in-store and out-of-store programmes, including the creation of a new information and recipe booklet, online promotions and targeted advertising.
It is still early to tell how the season will play out, but with co-ordinated promotions in place and a good offer expected to run consistently through to October, South African avocado growers are set for a promising run.
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