Tanzania’s grand plan to export Sunflower Meal and Avocados to China

By Juma Musafiri

Tanzanian sunflower farmers and avocado growers are celebrating a monumental breakthrough in the Chinese market thanks to a Memorandum of Understanding (MoU) signed on August 14, 2024. This landmark agreement between Tanzania and China unlocks new export avenues for sunflower meal and avocados, promising substantial revenue growth and strengthening the agricultural value chains across the nation.

The MoU also empowers nine Tanzanian companies to directly export avocados to China, eliminating the need for intermediaries and streamlining the entire export process. This development is anticipated to ignite growth throughout the avocado value chain, benefiting everyone from small-scale farmers to large-scale exporters.

In addition to these gains, ongoing negotiations aim to secure market access for Tanzanian chili peppers and tobacco, further diversifying the country’s agricultural exports to China. These efforts reflect Tanzania’s strategic push to expand its footprint in international markets.

This expanded market access is a testament to the Tanzanian government’s proactive diplomacy and commitment to securing international markets for its agricultural products. The benefits of this agreement are expected to ripple through various value chains, from production and processing to export, leading to increased income for farmers and traders alike.

Tanzania’s avocado production and exports have seen remarkable growth in recent years, making the country a significant player in the global avocado market. As of 2023, Tanzania is the third-largest avocado producer in Africa, following South Africa and Kenya. The country’s avocado exports have surged from 17,711 metric tons worth $51 million in 2020/2021 to 26,826 metric tons in 2022/2023, generating a revenue of $77 million.

This rapid expansion is attributed to strategic government policies, such as tax relief on agricultural equipment and successful diplomatic efforts that have opened up new markets in China, India, and South Africa. The bulk of Tanzania’s avocado exports are destined for European markets, with the Netherlands and France being the top importers. However, recent agreements have enabled Tanzania to tap into the lucrative Chinese market, further boosting its export potential.

The primary regions for avocado production in Tanzania include Mbeya, Njombe, Songwe, Iringa, Kilimanjaro, Arusha, and Tanga, where smallholder farmers and large commercial operations cultivate varieties like Hass, Fuerte, and Pinkerton. Despite the success, challenges such as post-harvest losses and market organization remain, which the government and private sector are actively working to address.

According to recent estimates, Tanzania produces over 350,000 metric tons of sunflower seeds annually. Sunflower meal, a by-product of oil extraction, has become increasingly important for domestic consumption and export. Sunflower oil is a key product in Tanzania, contributing significantly to the local edible oil industry, which aims to reduce the country’s dependency on imported vegetable oils.

The export market for sunflower products, particularly sunflower meal, has been expanding. With Ukraine and Russia traditionally being the primary suppliers to China, the ongoing geopolitical tensions have created opportunities for other countries, including Tanzania, to fill the gap. Tanzania’s potential to export sunflower meal to China and other markets is becoming increasingly recognized as the country enhances its processing capacity and quality standards.

The success of the sunflower and avocado value chains, alongside others, underscores the impact of initiatives like SAGCOT in propelling Tanzania’s agricultural exports to new heights. This momentum positions Tanzania as a rising player in global agricultural markets, poised for continued growth and prosperity.

The sunflower meal and avocados market in China is experiencing significant growth, offering valuable opportunities for Tanzanian exporters.

Sunflower Meal: As of 2023, China’s sunflower meal imports have risen sharply, reaching approximately 2.33 million tons, with Ukraine being the primary supplier. The demand for sunflower meal in China is influenced by its cost-effectiveness compared to other feed ingredients like soybean meal. While the market is price-sensitive, China’s reliance on imports, particularly from Ukraine, has grown due to domestic production constraints. This creates a promising environment for new suppliers like Tanzania to enter the market.

Avocados: The Chinese avocado market is also expanding rapidly. In 2022, the import value of avocados reached approximately $110 million, with Peru dominating the market, followed by Chile and Mexico. The demand for high-quality fresh avocados continues rising, especially in first-tier cities where younger consumers drive consumption. China’s avocado imports have consistently increased, making it an attractive destination for Tanzanian avocados, especially with the new direct export agreements.

These growing markets present significant export opportunities for Tanzania, especially with the recent agreements to increase the direct export of sunflower meal and avocados to China. By tapping into these expanding markets, Tanzanian producers and exporters can enhance their revenues and strengthen their agricultural value chain.

With its growing demand for sunflower meal, China presents a promising market for Tanzania. Ukraine and Russia have largely supplied the Chinese market, but Tanzania is well-positioned to increase its share due to the favourable growing conditions and expanding production capacity. SAGCOT initiative, among others, has worked to boost the quality and quantity of sunflower production in Tanzania to meet international standards and take advantage of these emerging opportunities.