Date: April 14, 2024
Geoffrey Kirenga, CEO of the Southern Agricultural Growth Corridor of Tanzania (SAGCOT) Centre, has brought attention to the striking price of Tanzanian avocados in international markets. On April 13, 2024, Middle Eastern (ME) avocados weighing 0.66 kg were sold for £2.00 at Marks & Spencer in the UK, approximately TShs 990/- per fruit. This revelation on social media has sparked an intriguing dialogue on how these prices compare with those in the European Union, India, China, and the United States.
Financial insights from Robert Wambura, responding to Kirenga’s post, calculate the price to be about TZS 9696 per kilogram. After deductions for transport, handling, and profit, which Wambura estimates at 40%, the ideal selling price for farmers should be around TZS 5800 per kilogram. However, he notes with concern that the local selling price often falls significantly below this figure, highlighting a significant disparity between local and international markets.
This pricing situation raises critical questions about the equity of profit distribution within the avocado supply chain. While Tanzanian avocados command high prices abroad, the local farmers appear to receive a far smaller share of the revenue. Kirenga’s post has not only thrown light on this discrepancy but also encouraged a broader conversation, asking others to report on the presence of Tanzanian produce in their local markets.
The global interest in Tanzanian avocados not only underscores the region’s agricultural potential but also spotlights the economic challenges that local producers face in effectively leveraging international markets. As the debate unfolds, there is a growing call for reevaluating profit-sharing mechanisms to ensure a more equitable distribution that benefits the hardworking local farmers at the core of this thriving export sector.