Kenya’s avocado exports to China have seen a sharp 80% decline this year, as exporters increasingly turn to more profitable markets in Europe and North America.
Despite the recent reopening of the Chinese market, higher demand and better pricing opportunities in these regions have driven the shift in export priorities.
According to theeastafrican.co.ke, Chinese customs data shows the volume of avocado imports from Kenya shrunk to just 742,934 kilogrammes in the first seven months of the year.
This is a sharp decline from the 3,674,463 kilogrammes that the Asian giant imported during a similar period last year.
As a result, earnings of Kenyan avocado exporters from the Chinese market sunk to $1,232,149 down from $6,830,140 in the seven months last year.
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While China forms only a tiny proportion of Kenya’s avocado market, local exporters have been betting on its big population to grow sales and ease their reliance on the European Union.
Kenya started exporting avocados to China in August 2022, opening up the country’s vast population of more than 1.4 billion people to Kenya’s fresh produce exporters.
The government had long sought clearance to start exporting avocados to the Chinese market but there was a requirement that Kenya would only be allowed to ship frozen fruits as opposed to fresh ones.
Nairobi Securities Exchange-listed firm Kakuzi Plc, a leading avocado exporter, recently said the decline in volumes from South American avocado heavyweights such as Peru and Mexico had opened a door for Kenyan avocados.
“While China, India, and the Middle East offer long-term growth possibilities, they currently lack the scale to substitute Europe. However, exploring these markets could provide a buffer against future market disruptions,” said Kakuzi Chairman Nicholas Ng’ang’a.