EHPEA

Ecology Corner: Wetland Construction Progress: Florensis Ethiopia Plc

One of the interventions implemented by Ethiopian Horticulture Producer Exporters Association (EHPEA) is focusing on environment conservation through both liquid and solid waste management, wetland system and composting respectively.

In line with this, EHPEA management visited Florensis Ethiopia plc focusing on wetland construction for the treatment of waste water generated from the farm. The wetland construction was initiated by EHPEA in collaboration with Floriculture Sustainability Initiative (FSI) and Sustainable Trade Initiative (IDH) aimed to treat the liquid waste water generate from farms to the highest purified effluent level. Up to date the wetland executed in 30 of EHPEA member farms.

In this regard, Florensis Ethiopia plc has been one of the beneficiary member farms highly committed and engaged in the technology and the construction as shown in the picture below, has accomplished the foundation and gravel bed hydroponics (GBH) with fully concrete material.

The farm progressed around 60% of the construction of wetland in which only the filling of substrates and planting of recommended aquatic plants remain.

PM Abiy launched the Investment and Jobs Creation National committee

PM Abiy launched the Investment and Jobs Creation National committee this morning in the presence of Regional Presidents and Federal Ministers.

Noting that Ethiopia has to unlock the full potential of the private sector with a view to creating sustainable & decent jobs, he reiterated that the importance of putting the country on a path to a virtuous cycle of development.

The committee, Chaired by PM Abiy, comprises the Deputy Prime Minister, Presidents of the 9 Regional Governments; Addis Ababa and Dire Dawa Mayors; 2 PMO representatives and 10 Federal Ministries.

The Ministries include Trade & Industry, Peace, Agriculture, Urban Dev’t & Construction, Labor & Social Affairs Innovation & Technology; Water, Irrigation & Electricity; Mines & Petroleum; Tourism & Culture; and Science & Higher Education.

 

The national committee will ensure the creation of sustainable & decent work by aligning policy and institutional systems. It will also play a leading role in securing & expanding investments closely & ensure implementation of plans to increase investments and job creation.

The committee is also set to coordinate for effective outputs, the work of Federal & Regional entities and other stakeholders in creating a conducive investment environment to accelerate jobs creation.

Every year b/n 2-3mil youth enter the employ ability age range and add to #Ethiopia’s human resource & talent pool. While #Ethiopia’s economic performance is progressive, more work needs to be done to create a conducive investment climate towards job creation.

The Doing Business Initiative and committee led by PM Abiy has marked key milestones towards the goal of creating an enabling business env’t in which the pvt sector can play its critical jobs creation role.

These two committees working in sync are expected to facilitate the goal of creating 3mil jobs by the end of E.C 2012. Key sectors identified and given special focus to accelerate jobs creation nation wide include agriculture, mining, tourism and IT.

The National Committee will meet every two months to evaluate progress and follow-up on issues requiring immediate action to unlock performance. Following the meeting, PM Abiy and the committee members planted seedlings together for a #GreenLegacy.

Herburg Roses CSR Engagements

Herburg is a Netherland origin company operating on flower business for over 40 years.  With its excellent experience in growing roses it opened the first nursery out of Holland in Ziway, Ethiopia located about 163 km east from the capital.

Currently, Herburg Roses has 40 hectares of greenhouse rose production exporting to UK market about 2million stems on weekly bases.As part of its good will to support the surrounding community the company implemented various corporate social activities.

Under the education support program which was started in 2016, Herburg facilitate school materials and uniforms for 150 students every year including for its employees by facilitating school materials for their children’s and to achieve academic excellence.

As Erosion is a major problem in Africa Herburg is involved on planting trees and contributing money for better live environment in being partner with IDH (Sustainable trade Initiative) in reforestation project .

As part of housing project, Herburg constructed houses for internally displaced peoples from Somali region in 2018 which costs ETB 863,000.00.  In addition to this , by contributing 600,000.00 ETB  a new drinking water line have been installed in batu town.

Among others, Herburg Roses extend in kind supports for the local community members, relevant stakeholders and employees as well such as; donation for East Shoa Zone Higher court as requested, sponsorship for federation, donation for light anti-HIV/AIDS organization, sponsorship for Sher School students for graduation to publish magazine every year, ODA-tombola unity for development donation for lottery, Health insurance coverage for 30 people for the community, supporting water at Bulbula area two kebele’s, Supporting elders 3 times in a year (for Holidays) and financial contribution.

In addition to the above mentioned CSR engagements, Herburg Roses created a partnership with other farms in Ziway cluster and engage in a number of community benefiting projects.

Beles Processing, Export needs active efforts

Ethiopian scientist won award coming up with ways of tapping Beles for producing fuel for cooking food and boiling

The manufacturing and exporting of Beles fruit to the international market needs an active role of stakeholders mainly that of Tigray state Industry Corporation, UNIDO Beles Project, Adigrat Town Administration and Adigrat University Beles Institute, so stated the Adigrat Manufacturing Bureau.

An enterprise, owned by an association of 12 young people, have recently stated to process and export Beles fruit to the international market mainly to Israel aft it received training prepared jointly by Adigrat Unibersity Beles Institute and UNIDO, said Bureau’s One-Stop-Centre Coordinator, Elias Tsegaye.

Beles is a type of cactus which provides a highly nutritious food source that can be processed into a diverse range of food products.

The Tigray State Industry Corporation, the first stakeholder charged with of the manufacturing and exporting process had not readied itself in-terms of budget to support the manufacturing and market chain process this summer harvest season, he added.

Due to the lack of coordinated efforts of stakeholders, through assessors from Kenya had observed the production process, the enterprise has not yet got certification according to the Bureau.

He sated that due to lack of active involvement of the aforementioned stakeholders, the market chain proved tardy in brining significant results.

In its news release on June 2013, UNIDO had announced that it has launched an agribusiness development project to help rural communities in Tigray establish a stable source of income focused on Beles.

“UNIDO and the OPEC Fund for International Development (OFID) sign an agreement on a USD 600,000 grant in support of the Beles-based agribusiness development project in the Tigray state.”

The project was to help establish a modern processing plant which will manufacture a stable – supply of Belese based products, it further stated.

Dr. Zebib Yenus (a researcher ) has become the first Ethiopian Scientist to be awarded FLAIR research project that focuses on synthesizing and prototyping of cost effective selective solar absorber surface based on Cactus pear “Beles” in order to heat water/cook/pasteurized milk in rural areas of Africa where installation of electricity is difficult. The award is, a generously funded by the Royal Society with the support from the UK’s Global Challenge Research Fund (GCRF) in partnership with the African Academy of science for talented African early career researchers who have the potential to become leaders in their field.

She is an associate professor at Adigrt University and also works closely with the experts in the field internationally including Canada, Europe, and South Africa. The award is 300,000 pound which will significantly further her research, training and leadership goals.

The Awardees were selected from a pool of over 700 applicants and they will undertake research projects in the area of renewable energy; food security; water and health as these are the main challenges facing Africans today, couple months ago.

Adigrat University, Institute of Beles Coordiantor Yemane Kahsay, for his part, said that the University is working with governmental and nongovernmental actors to help the society gain benefits from manufacturing of Beles fruits and pads.

Yemane also called for urgent protection measures to restore the Beles affecting weed (cochineal) that attacked 75,000 hectares of Beles in most parts of southern Tigray and some other parts of the state.

Beles is the Amharic name for Opuntia ficusindica (also known as Nopales or prickly pear cactus). It provides highly nutritious food, with low levels of saturated fatty acids and very low levels of cholesterol.

The fruits and pads can be used for the production of numerous processed and fresh products, such as fresh fruits, juices, marmalades, Jelly candies, tea, ice cream and dessert sauces, as well as alcoholic drinks.

Israel eyeing Ethiopia’s agricultural sector

Israeli Ambassador to Ethiopia Raphael Morav said that Israeli investors have been showing a growing desire to invest in Ethiopia’s agriculture sector capitalizing on its huge potential and geographic proximity.

‘Ethiopia – Israel Seminar on Cooperation in Agriculture’ organized to overview the involvement of Israeli companies and insight new opportunities and shortcomings in Ethiopia’s agricultural sector was held here in Addis Ababa. Speaking on the event, Ambassador Morav said that the seminar was a good opportunity to discuss Israeli companies’ engagement in Ethiopia’s agricultural investment and learn about the country’s policy regarding foreign investment in agribusiness.

The Ambassador also stated that the Technical Cooperation Program in Smallholder Horticulture among MASHAV (Israel’s Agency for International Development Cooperation), USAID and Ethiopia’s Ministry of Agriculture have been registering significant success in supplying more than 500,000 high standard varieties of avocado seedlings suitable for export annually.

Awareness creation for the huge potential of avocado export among Ethiopian smallholder farmers and private sector, establishments of farmers’ clusters with a modern solar irrigation system and putting the basis for commercial production thereby helping the export of avocado to the European market are some of the program’s achievements.

Ambassador Morav expressed gratitude for the Ethiopian government for the commitment it has shown to strengthen the good collaboration between the two countries in the field of agriculture. Agriculture Minister Oumer Hussien said on his part that Israeli agricultural investors have come a long way with the Ethiopian government in its effort to strengthen the sector’s contribution to the country’s economic growth. Among many, Israel plays a pivotal role in promoting Ethiopia’s avocado in the global market and soytech’s herb export.

The Minister stated that Ethiopia needs to share Israel’s success of getting enormous yield from small plots of land and learn from its rich experience in irrigated agriculture. The government also gives due consideration to modernizing farming practices and increasing productivity through addressing technological and financial setbacks.

Oumer pointed out that Israel is a country with a high level of agricultural technologies and the coming of Israeli companies will have a great significance to the growth of Ethiopia’s agricultural sector. The Minister expressed optimism that Israel would continue supporting Ethiopia in its journey to becoming one of the middle-income countries by 2025 through productive investment and cooperation. He also assured his Ministry’s commitment to reinforce cooperation and support for the successful operation of Israeli companies.

Representatives of Ministry of Agriculture, Israeli businessmen investing in Ethiopia and representatives of 19 Israeli companies and NGOs’ already active in the country, officials and experts from the Israeli Embassy were in attendance of the seminar.

EHPEA Planted Fruit seedlings Following the National Green Legacy Initiative

In the morning of the 24th of July 2019, the Ethiopian Horticulture Producer Exporters Association (EHPEA) staff, management and partners gathered at Ayertena condominium supporting the tree-planting campaign which was part of the National Green Legacy Initiative. After a brief introduction of the tree planting procedures EHPEA executive director Mr. Tewodros Zewdie stated in his speech that the Association brought seedlings of various fruit plants collected from associations member farms with consideration that the neighbouring community would enjoy the fruits of plants in the future, He all also added a remark that it is the communities’ obligation to take care of the plans up keep.

The country wide event aimed at planting 200 million trees in a single day in 1,000 selected sites across the country; to tackle the effects of deforestation and climate change. Prime Minister Abiy Ahmed congratulated citizens for not only meeting its collective Green Legacy goal but also exceeding the set target.

Minister of Innovation and Technology of Ethiopia Mr. Getahun Mekuria said that more than 350 million trees were planted in 12 hours that broke the world record held by India since 2016.

 

Red Fox Ethiopia Committed to Support the Local Community

Red Fox Ethiopia P.L.C operates under the well-known international company named Dümmen Orange. The company is engaged in producing and exporting business of cuttings Poinsettia and Geranium rooted and un-rooted with over 200 varieties to different parts of Europe and USA.

The farm is located in 90 km from Addis Ababa Oromya Regional Sate, East Showa Zone, Lume Woreda, about 1.8 km from Koka town.

Red Fox Ethiopia is implementing lots of corporate social responsibility (CSR) projects extended for the local community in many aspects as education being one of the primary focuses.

Education:

The company has renovated the existing old classrooms at the Koka Primary School and built new classrooms as well as one Administration block. In collaboration with neighbouring cutting farms-Florensis Ethiopia P.L.C and Syngenta built secondary school, having 24 class rooms and fully equipped with library and laboratory materials, with a cost of 4.5 million birr.

It also support many of its staffs to attend university studies for higher education which makes it one of a preferred employer in the region. The company received special awards and certifications for the good deeds from East Showa Education Bureau, Lome Woreda Administration, school community, students and other stakeholders.

Health Care:

As there is no national health care benefit for people in the country, especially those in rural areas have no access to health care. Accordingly, Red Fox Ethiopia established a fully functional medium level clinic and provide medical care service to all its temporary and permanent employees free of charge. The company also hired one health officer, two nurses, a laboratory technician, pharmacist and an administrator to manage the clinic and treat patients based on the requirement of the Ministry of Health in Ethiopia. The clinic is able to dispense medication including antibiotics, malaria treatment and many other primary health care treatments.

 

Anti-HIV Club


This project started in 2012 as HIV Prevention Club having a wider objective to support workers leaving with HIV and creating awareness on prevention.

Some of the supports are

  1. HIV/ADIS awareness through health care program.

► Education program like peer education, mini-media, coffee ceremony programs etc. In addition to this, there is a monthly training sessions held with the staff. Training in the community clinics has also started this year.

► Material support: During holidays material supports such as chicken, eggs and butter is provided to the patients. The Club has its own committee leaders who are looking over the implementation of the small project. This committee was established from managements and workers leaving with HIV. The club has its own bank account.


When the club was established in 2012, the financial source was monthly contribution from the company, workers and lottery sales and due to lack of sustainable financial source and lack of commitment from the committee members, the club tends to perform less than expected. However, in 2016 the club was re-established with the effort of the new management. These club members are now highly motivated and come up with innovative plans that are believed to approve the sustainability of the club and the support given to HIV patients.

The committee follows some strategies as a Source of Income; Contribution from the company  for the running cost of 15,000 birr.  Establishment of Poultry House to produce egg for the sustainable income source to support the project. The poultry farm was established in Nov, 2016 having an objective to support the income for anti HIV club that will help to sustain the project as a revolving fund from sales of egg. Currently, 120 layer chickens are kept in the poultry house and egg sales was started since February 2019.

The committee also looking for new support opportunities to the people leaving with HIV such as;  Nutritional supports for workers leaving with HIV/Aids whose CD4 count is lower, these are currently 30 workers in number. Some of the supports provided for these employees are: Holyday Support: by providing mainly chicken meat, egg, edible oil and butter,  Medical Health coverage, Sanitation materials and other support like 500ml power milk is also provided every 3 months.

Prime Minister Abiy Ahmed (PhD) has formed a new national steering committee to oversee and reform the investment climate and employment regime

To be chaired by Prime Minister Abiy, the steering committee will have high-level government officials and regional state heads as members and is expected to be operational in the coming weeks. A representative from the Ethiopian Investment Commission will be the secretariat of the new committee.

The committee will consolidate the existing National Ease of Doing Business Steering Committee as a subcommittee under it. After the formation of the new National Investment & Employment Steering Committee, the Ease of Doing Business Subcommittee will be jointly led by the ministries of Trade & Industry and Innovation & Technology.

Six months ago, the Office of the Prime Minister formed the National Ease of Doing Business Steering Committee in a bid to relax the regulations involved in running businesses in the country to make it more suitable for investment. It also aims at bringing informal businesses on board the formal system.

The National Ease of Doing Business Committee has representatives from eight ministries and agencies including the Investment Commission; the ministries of Finance, Innovation & Technology and Trade & Industry; the National Bank of Ethiopia; and the offices of the Prime Minister and Attorney General, among others.

Prime Minister Abiy Ahmed (PhD) has formed a new national steering committee to oversee and reform the investment climate and employment regime. The initiative also envisions placing Ethiopia among the top 100 countries in the Ease of Doing Business Index by 2021. The World Bank’s 2019 Ease of Doing Business Index places Ethiopia at the rank of 159 among 190 countries.

The Investment Commission is the coordinator of the reforms, while the Office of the Prime Minister is the initiator. The other government institutions will implement the reforms by forming task forces.

The Committee has been holding a monthly meeting for updates, while the Investment Commission has been meeting with implementing agencies on a bimonthly basis. Implementing agencies and ministries have also been sending weekly updates to the Committee.

Since becoming functional, the Committee managed to recommend the reform of eight proclamations and regulations along with 40 procedural and administrative legal frameworks.

The registry of a movable asset as collateral for credits, a value-added tax refund system and the registry of microfinance institutions and leasing companies into the National Bank of Ethiopia credit system are among the laws that followed the reform. The mandatory requirement to obtain a business license, which includes newspaper publication of trade names and lease or rental agreements, was also lifted.

Introduction of an electronic single window system, issuance of an online construction permit and tax payment through banks were also introduced as part of the reforms over the past couple of months. In the past six months, the government has digitised title deed records in Addis Abeba and added commercial benches at the Federal High Court as part of the reforms.

Though all of the reforms were reported to the World Bank, the upcoming Ease of Doing Business Index to be released in October will not consider most of them, since the Bank counts reports until the end of last April, according to Abebe Abebayehu, commissioner of the Ethiopian Investment Commission. “Most of the reforms were implemented after April,” said Abebe.

Launching online business registration; reducing the number of days to obtain a business license from 11 to five and cutting the procedures from 32 to four; and fully implementing one-stop-shop services at all levels are the medium-term plans of the Committee to be achieved by December of this year. Replacing cash register machines with software for Value Added Tax (VAT) invoices; automating tax payment systems; fully automating court processes; the legislation of the amended commercial code; implementation of e-payment, national ID and e-signature are among the long-term plans to be achieved by May 2020. Cutting the number of days to obtain a business license from five to two and the procedures to one from four are also targets of the long-term plan.

“The performances of this year enable us to conduct impact outcome studies of the reforms,” said Prime Minister Abiy, adding that the outcome of the reforms would attract more investment that could help create three million jobs. “Therefore, we’ll upgrade our focus to employment and investment.”

In the past 10 months of the just-ended fiscal year, the country was able to attract 2.8 billion dollars worth of foreign direct investment (FDI). During the just-ended fiscal year, the country has created 1.4 million jobs.

Zereyaqob Belete, the managing partner of Nexus Investment Solution, a decade-old investment consultancy firm, says the undergoing reforms will have a significant impact in attracting more FDI from Western countries. “The reform will break the bureaucratic chains and reduce the level of corruption,” said Zereyaqob, “which will end up cutting the unforeseen expenses of the investors, encouraging them to invest in Ethiopia.”

Zereyaqob also suggests the government give attention to the stability and security of the country, another major factor for the improvement of the investment climate.

Ethiopia Earned 230 Million USD from Horticulture Export

Ethiopia has earned 230 million USD from export of horticulture products in only ten months of the current fiscal year, the Ethiopian Investment Commission said.

Flower took the leading share by generating 188.5 million USD followed by vegetables and fruits which bagged 41.24 million USD.The income has shown 14% growth as compared to the same period last year.

Netherlands, Germany, Saudi Arabia, Norway, Belgium, UAE, France, Japan, U.S. and Djibouti were the main destinations of the products.

More than 130 companies are being engaged in the production and export business of horticultural products, the commission noted.

The budding industry has also created job opportunities for thousands of youth in different corners of the country.

Ethiopia has a great potential to expand the industry to more areas with its favourable climate and hospitable weather and people. It also has encouraging investment policies and packages that are attracting investors from many areas of the globe.

With its consecutive economic leap since the last couple of decades, Ethiopia is becoming the preferred destination in Africa for investors interested both in horticulture and other sectors.

OVERVIEW GLOBAL AVOCADO MARKET

The avocado market has changed a lot in Europe. While it is normally quieter in the summer, this is not the case now due to a shortage of the fruit. The lack of avocados on the European market is a consequence of the situation in the United States. Due to the favourable prices, a lot of the exports from Peru and Mexico are going to the US instead of to Europe. Currently, Peru, Mexico and South Africa are the countries in production. Colombia is also producing, but it has smaller volumes which are primarily intended for the domestic market and Europe. The production in Chile is expected to arrive in a month.

Peru: Lower production than last year

Peru is currently the largest exporter of avocados in South America, even though the country's volume is smaller than last year's. The total volume has fallen from 351,000 tons to an expected 305,000 tons. This is mainly due to the record figures achieved in 2018 and the fact that avocado trees can yield more one year and less in the following year (Alternate bearing). 27-30% of the production is intended for export to the United States, while 55-57% goes to Europe, 9% to Asia and the rest goes to South America and Canada. The harvest in Peru lasts until the end of September / beginning of October. An important development in avocado cultivation in Peru is the extension of the season through new technology and new plantations in the north of the country. Thanks to those new areas in the north, the season started a month earlier this year.

Mexico: Record prices for avocados

Last week, the price for Mexican avocados stood at 650 pesos ($ 33.80) per 10 kilo box; a record price. This price increase is due to a lower yield of avocados, which has been driving up prices since the end of April. At the end of July, the supply and the demand are expected to be in balance again. The Association of Avocado Growers in Mexico expects more than 1 million tons of avocados to be exported to the US in the 2019/2020 season; an increase of 5.23% compared to the previous campaign. 188,513 tons of avocados will be available for export to other markets.

Chile: Not yet in production

It will take another two to four weeks for the Chilean avocado season to start. There is a good chance that the country will first focus on exporting avocados to the United States. This is due to the favorable prices there. Exports to Europe will start after that.

Kenya: Avocado exports boosted by trade agreement with China.

Kenya's avocado production has been reduced by the weather. This has mainly had an impact on the Fuerte variety. It has actually been the worst season ever for this variety.The prospect is that things will go better in the next season. For a given trader, the export of avocados has fallen by 20%.

The most important development on the export market of Kenyan avocados is the future trade agreement with China. As soon as this agreement is fully active, 40% of the avocados are expected to go to the Chinese market. Currently, Kenyan avocados are mainly intended for Europe and the United States.
In 2017, Kenya accounted for 38.9% of Africa's total avocado exports and for 1.3% of the fruit's global trade.
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South Africa: A supplier for the European market

South African avocado growers had to reduce their production estimates down to 14.5 million 4 kilo boxes. That is a million less than originally expected and 30% less than last year's record harvest. The prices are good; around € 14-15 / 4 kg for the Hass. The most important destination for South African avocados is Europe. At the moment, some buyers want avocados flown in from South Africa, which is very unusual for the time of the year. The prices are high due to the situation on the world market. The good prices paid for South African avocados on the European market will likely remain stable until the season kicks off in Chile, followed by Spain and Israel.

The Netherlands: Avocado market changing completely in one and a half months

Although the avocado market is usually a bit slower in the summer, this is not the case this year. Dutch importers say that the market has completely changed in a month and a half. The main reason is that Mexico has been supplying fewer avocados than expected and the United States has been attracting a lot of traders with its good prices. Almost all Mexican avocados are now going directly to the United States. What remains is the production from Peru, Colombia and South Africa, supplemented with some small shipments from Kenya, but Colombia is in the off-season and South Africa also has a smaller production. In May, there was a big price dip in Europe, so marketers there have been somewhat cautious with the volumes. In the meantime, not enough avocados are available to meet the demand. Importers expect this situation to continue until mid-August, when more countries will come into production.

Belgium: Avocados sold before they reach the market

Too few avocados are currently on the market in Belgium. An importer says that the few avocados available are sold even before he has received them. There is simply too little available to meet the market demand and the prices are therefore high.

Germany: Hardly any volume available

The German avocado market is currently at an impasse: Until recently, there was enough available to meet the demand, but the situation has changed in recent weeks. “At the moment, there is hardly any volume available and we have to be happy with every batch that comes in,” reports an importer from Hamburg. The prices are therefore extremely high and fluctuate around 20 Euro per 4 kg package. The main supplier of summer avocados is currently Peru, supplemented with some small volumes from Kenya and other countries. Partly due to the shortage on the market, there is currently no demand for alternative varieties and only the Hass is being sold.

France: Prices will not fall until November

In general, the season has been completely different to last year's. This time, the Peruvian production volume has fallen by 12%. California has grown little, so the US market is demanding a lot from production countries in Latin America with high prices. This is resulting in fewer avocados being shipped to the European market. The prices are therefore high and amount to around € 15-17 / 4 kg in France. Prices will only fall around November with the arrival of Spanish and Israeli avocados. The demand is still growing, especially for the Hass, while the “greenskins” are not as popular.

Spain: Domestic consumption needs to grow

At the end of May, the yield from the avocado harvest in Spain was 55,000 tons, with prices at origin oscillating between € 2.50 and € 3 per kilo. The crop's cultivation is expanding in Spain, just like in the rest of the world, and the demand for avocados continues to grow. Spain currently has more than 15,000 hectares devoted to avocados, half of which are in Malaga; however, it is difficult for avocado cultivation to expand in this region due to water management, so new areas are being planted in other regions, such as Huelva, Cadiz, Valencia, Alicante and also Portugal. The consumption of avocados in Spain is lower than in other countries (1 kilo per capita). It is about 50% lower than in France and the UK and three times lower than in Scandinavia. The sector is trying to stimulate avocado consumption in Spain in order to reach France's level. A good harvest is expected next year, with a 10% higher volume compared to this season.

Italy: Production of Sicilian avocados is increasing

South African and South American avocados are currently being sold on the Italian wholesale market. The avocado season has just ended in Sicily with positive results. The demand for avocados has recently fallen somewhat in favor of summer fruits, but when looking at the entire year, the figures show an upward trend. The demand is currently higher than the supply.

Sicilian avocado cultivation is not yet in full production and this year it is at 50% of its capacity. This season, 700,000 tons of avocados were grown, mainly Hass, but also Fuerte, to a lesser extent. The sizes of the Italian fruits are average. The new season is currently delayed by a month due to the cold spring.

South African avocado prices are currently rising on the wholesale market, while the price of the Peruvian Hass avocado is more stable. At the moment, the price of Peruvian Hass avocados on the market in Rimini amounts to around € 21 / 4 kg.

China relies on import markets

Avocados are gaining popularity in the Chinese market, especially among the younger generations, as young people have more health-oriented lifestyles and avocados are a nutrient-rich fruit. Older generations will need a little longer to get used to consuming avocados.

China is fast becoming a local producer of the fruit, even though the country still largely relies on imports from Mexico, Peru and Chile. The price fell sharply in May because companies were importing large volumes from Chile at the same time. Last year in May, the price was right, and that attracted many investors for this year, so there has been too much supply in a short time. Currently, the price is going up again. The import season of Peruvian avocados is almost over and the Mexican avocados are arriving in small numbers. This naturally pushes up the price, which is now even higher than in the same period last year.

Japan: New import market in Indonesia

The demand for avocados in Japan is steadily increasing and has grown to 74,000 tons in the last five years. Japan does not grow avocados itself, so the market depends on imports from the United States, Mexico, New Zealand, Vietnam, Peru and Chile. The country is currently negotiating with Indonesia in order to also have import avocados from that country. The requirements that Japan imposes on the import of fresh fruit and vegetables are strict; however, for the export in avocados, the rules are not so strict, due to the country's demand.

United States: Market supply on the rise

The harvest in California has been significantly smaller this season. A yield of over 77,000 tons of avocados was estimated, compared to 170,000 to 181,000 tons a year earlier. The price for half a kilo of avocados was $ 1.70 in April, after which prices dropped to $ 1.30-1.40 and then rose sharply to $ 2.30. Then it dropped again a bit, down to $ 2 – 1.85.

Besides California, the US imports avocados from Mexico and Peru. The price of Mexican avocados has risen sharply, and due to price developments on the US market, Peru has shipped a large part of its production to the US, instead of Europe. The old Mexican harvest is ending in 2 weeks and the “Flora Loca” harvest started on July 1. Mexican growers are not used to the high prices currently paid for avocados (100 Pesos / kg, instead of the 20-30 Pesos / kilo that used to be paid). When California and Peru are out of production, a strong price increase is expected again. This will take place between August and September, when most avocados will come from Mexico.

Contact Info

Location : Micky Leyland Avenue on the Road to Atlas Hotel, NB Business Center; 6th floor; Room # 603

Phone : +251 11 6636750

P.O.Box: 22241 Code 1000

Email: info@ehpea.org

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