Fruit growing

Avocado production: Western Cape vs the northern provinces

Avocado production: Western Cape vs the northern provinces

How long have you been involved in the avocado industry and in what capacity?
Avocados have been part of my life since I started at Westfalia in January 1986. I have held various management positions in operations and the commercial environment and served on the board of the South African Avocado Growers’ Association (SAAGA) from 1994 to 2013.

Since 2017, I have been a shareholder and director in three farming operations in the Southern Cape, which produce mainly avocados but also soft citrus and macadamias.

How does the avocado industry differ in the northern provinces compared with the Western Cape?
Western Cape avocados have a later window in the market, as harvesting of the Hass and Gem cultivars starts in late September (mostly young trees) or the beginning of October, and runs until the end of December.

The plantings at Soekmekaar and Magoebaskloof in Limpopo and certain areas in KwaZulu-Natal have marketing windows similar to those of avocados from the Southern Cape.

How do the unique agricultural challenges faced by avocado growers in the Western Cape, such as soil variability and wind, contrast with those in other regions?
From a technical viewpoint, the variation in soil types in the Western Cape is a challenge. Avocados prefer well-drained soil. Soil mapping is important when planning avocado orchards, as irrigation blocks should be determined by soil type. This can complicate irrigation planning and management practices. On a 20ha piece of land in the George area, there can be five to six different types of soil.

In contrast, avocado farms in Limpopo and Mpumalanga have large areas of similar soil that are suitable for avocado production.

Wind is another challenge in the Western Cape and must be managed. There is a move away from beefwood trees and other biological windbreaks, as these compete with orchards for soil and water. In more recent plantings, nets are used as windbreaks and not as covering for the trees.

What are the competitive dynamics and market opportunities for South African avocados?
Most of the avocado plantings in Limpopo and Mpumalanga compete with volumes from Peru on the European market. Peru has become a giant in the avocado world in recent years, with more volumes to come from it.

Avocado volumes from new plantings in the Western Cape and other late-production areas in South Africa will be too large to be absorbed at a reasonable value on the local market in future. Thus, higher volumes of avocados from these production areas will need to be exported.

The window in the European market is from September until November, and the main competition in the short term during this period will be Chile. Avocado expansion in Chile is limited compared with other parts of the world.

Is there a move to more regenerative farming practices in avocado production?
On our Southern Cape farms, we invested in low-flow drip irrigation for better water and energy utilisation. This irrigation system is also a tool for avocado cultivation on more marginal soils. We also recently made a significant investment in solar energy, as electricity is one of our business’s major cost drivers.

Using wood chips as mulch in our orchards forms an important part of our cultivation practices. In this way, we increase the organic matter in our soils to improve the microbiological diversity.

Are large farms and corporations the primary players in South African avocado production, or is there room for new and smaller farmers? If the latter is true, what avenues exist for them to access the market?
There are a few large commercial players who formed export groups/companies where smaller producers can become suppliers. For example, Westfalia Marketing Africa has created an opportunity for smaller growers to become shareholders in the South African marketing company.

Other role players like the Halls Group and Fruit Farm Group handle the avocado exports for smaller and larger farmers. I encourage new avocado growers to become members of an export group and join SAAGA.

What do you see for the future of South African avocado production?
Over the past few years, avocado plantings have seen significant expansion around the world, particularly in countries like Peru, where large-scale production is just beginning. This growth has put pressure on certain markets, contributing to a downward price trend in the European market.

Based on the information presented by Eric Imbert, international agri-economics researcher, at the World Avocado Conference in April 2023, supply over the next few years will exceed growth in most markets around the world. The exception is the US, where generic market development by the Hass Avocado Board plays an important role in boosting avocado consumption.

Recently opened markets for the South African avocado industry (China, Japan and India) will play an important role in the future of the country’s avocado industry. We must also be realistic: Peruvian avocados are already in the Chinese market, and Japan, with its cold sterilisation protocol of 2°, will limit our Hass exports to only very mature fruit later in the season.

I believe that India is a market with a lot of potential for South African avocados. However, their current import tariffs might be a big stumbling block

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