Avocado Value Chain
Avocado Value Chain
Avocado Value Chain
Abstract
This is paper is aimed in reviewing Avocado value chain and major constraints along the chain in Ethiopia It is
known that Tropical and sub-tropical fruit can make a significant direct contribution to the subsistence of
small-scale farmers by providing locally generate nutritious food that is often available when other agricultural
crops have not yet been harvested. Avocado (Persea americana) is a native of Central America; avocado belongs
to the family Lauraceae. Avocados contain many vitamins as well as folic acid and iron, no cholesterol. Ethiopia
is agro-ecologically diverse and has a total area of 1.13 million km2Avocado was first introduced to Ethiopia
in 1938 by private orchardists in Hirna and Wondo-genet and production gradually spread into the countryside. ,the
total cultivated area for Avocado in Ethiopia is 8938.24 hectares and production 256331.64 quintals more area
coverage is expected in the south-western and other parts of the country due to more conducive climatic
and edaphic factors. Sources of avocado planting materials Despite relatively early establishment, the avocado
sub sectors in Ethiopia is in its infancy and has not yet utilized the potential of this crop. Most of the time
Ethiopian farmers did not give attention to good plant management. And improved seed varieties Fruit harvesting
usually commences at fruit drop which is fruit for both fresh and processed have a huge domestic market in
Ethiopia. Major constraints for Avocado marketing Ethiopia:- Low price for product, low bargaining power of
growers and perish ability nature of the product..
Keywords: Avocado , value chain, production constraints
1. INTRODUCTION
1.1 Background
Tropical and sub-tropical fruit can make a significant direct contribution to the subsistence of small-scale
farmers by providing locally generate nutritious food that is often available when other agricultural crops have
not yet been harvested. Fruit are a versatile product that, depending on need, can be consumed within
the household or sold. Marketing fresh and processed fruit products generates income which can act as an
economic buffer and seasonal safety net for poor farm households. Diversification into fruit production can
generate employment and enable small-scale farmers to embark on a range of production, processing and
marketing activities to complement existing income-generating activities (Clarke, et.al, 2011).
The avocado (Persea Americana) is a native of Central America and the West Indies. Accounts of the
fruit date back to the early 1500s when the Spanish conquistadors overran the Aztec and Inca empires and found
the avocado being extensively cultivated. It was introduced into Florida, California and Hawaii in the early 1800s
and is now found worldwide where growing conditions are suitable. The avocado belongs to the family Lauraceae.
Camphor, sassafras, cinnamon and laurels are related species. The tree is evergreen, though heavy leaf fall may
occur during profuse blossoming and when the tree is affected by root rot. The growth habit varies from tall and
upright to well-shaped and spreading. Fruit of the cultivated species vary greatly in size, shape, color, texture and
flavor. The edible part of the fruit-the flesh between the seed and the skin varies in color from cream to yellowish-
green. When ripe the flesh should have the consistency of soft butter. The fruit has one seed. The fruit is unique in
that it will not ripen until harvested and may be left on the tree for some time (depending on variety) after reaching
maturity. Avocados contain from 5 to 40% oil, the percentage varying with the variety, growing area and seasonal
conditions. Only ripe olives have a higher oil content. The therapeutic value of avocado oil is related to its fatty
acid composition. Avocados contain many vitamins, particularly the B complex and vitamins A and E, as well as
folic acid and iron. They contain no cholesterol (Agfact H6.1.1 2003).
Avocado’s global production has now reached more than 3.8 million metric tons (FAOSTAT, 2010).
Ethiopia is agro-ecologically diverse and has a total area of 1.13 million km2. Many parts of the country
are suitable for growing temperate, sub-tropical or tropical fruits. For instant, substantial areas in the southern and
south-western parts of the country receive sufficient rainfall to support fruits adapted to the respective climatic
conditions. In addition, there are also many rivers and streams which could be used to grow various fruits.
Ethiopia has a potential irrigable area of 3.5 million ha with net irrigation area of about 1.61 million ha,
of which currently only 4.6 % is utilized (Amer, 2002). Fruits have significant importance with a potential for
domestic and export markets and industrial processing in Ethiopia. The main fruits produced and exported are
banana, citrus fruits, mango, avocado, papaya and grape fruits (Zeberga, 2010).According to Mauro (2006),
Ethiopia’s international involvement in horticultural trade and production is growing at rate of 7 percent per
year by creating better opportunity to compete on lucrative export market. Owing to these realities, with its shortest
introduction to Ethiopia, These days the crop is produced in several countries where Ethiopia stands the 10th
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leading producer and 6th most important consumer in the world (FAOSTAT, 2010). Avocado was first introduced
to Ethiopia in 1938 by private orchardists in Hirna and Wondo-genet and production gradually spread into the
countryside where the crop was adapted to different agro-ecologies (Edossa, 1997; Woyessa and Berhanu, 2010;
and Zekarias, 2010). Avocados are second in total volume of production, next to banana, in Ethiopia (Joosten,
2007).
Annual avocado production in Ethiopia is 25633.16 tons. The crop is now produced by 1,149,074.00
farmers countrywide who collectively farm more than 8938.24 ha of land (CSA, 2012/13).
absence of improved varieties, avocado and mango production is exclusively based on distribution
of mixed materials; consequently the local seed system has come out as best-bet arena and is now a common route
for seedling dissemination ( Ayelech , 2011).
According to Mulat (2000) the largest constraints in Ethiopian agricultural markets are the limited
amount of traders that have a scarce amount of capital together with a large amount of farmers, which leaves the
farmers with a weak bargaining power. Furthermore, limited information systems, poor transportation, high
handling costs and an underdeveloped sector are other limitations on the market.
According to W.Garedew (2010) even though avocado has economically and socially play a significant
role its production is confronted by a number of constraints; - this are Degeneration of fruits, Disease problem and
absence of agronomic practices.
According to Susanna and Amanda, 2014 In Ethiopia No value adding activities of avocado take place at
the farmer, broker or wholesaler level in the supply chains and the products are sold unprocessed. The value of the
fruits increases when the products move closer to markets with high demand.
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much attracted. in connection with this lack of access to improved varieties, production is exclusively based
on distribution of mixed materials; consequently the local seed system has come out as best-bet arena and is now
a common route for seedling dissemination ( Ayelech , 2011 ). CSA (2013) indicated Avocado as one of the
second potential fruit crop produced in Ethiopia.
Table 1 Summary of major fruit crops produced in Ethiopia in 2012/2013 cropping season
Crop Area in Ha Production in Quintal Yield (Qt/Ha)
Fruits 61,972.60 4,793,360.64 77.35
Avocados 8,938.24 256,331.64 28.68
Bananas 36,012.19 3,025,022.32 84.00
Guavas 1,492.32 11,730.03 7.86
Lemons 754.23 55,167.50 73.14
Mangoes 8,808.64 697,507.30 79.18
Oranges 2,999.21 357,458.39 119.18
Papayas 2,752.08 386,943.15 140.60
Pineapples 215.69 * *
Source: CSA, 2012/2013, Agricultural Sample Survey Result
According to World Bank Group (2006), lack of concerted public support, scanty information, and lack
of systematically documented knowledge that is readily accessible are the main constraints hampering the
development of this sector. However, avocado is grown in many parts, especially in the western and southwestern
parts of the country. The national research system has developed a number of varieties but is not widely
spread. Experiences from other countries in growing this crop will therefore contribute to the success and
widespread of this fruit.
2.2.1 Avocado Production and Management practices in Ethiopia
The selection of a suitable site is of the utmost importance Avocados are extremely susceptible to the root rot
fungus no avocado rootstock is completely resistant to this disease and Trees of most avocado varieties grow quite
large if the canopy is not managed. If sufficient land is available a wider spacing is preferred. Planting distances
is a much debated subject. A higher planting density gives higher returns in the early years of the planting, but it
can also give more canopy management problems in later years. (Dirou,2003) Most of the time Ethiopian farmers
did not give attention to spacing. Orchards growth are not well spaced, some orchards are nearer to each other
and the others are very far from one orchard to the others, according to the oldness of the trees age most of the
farmers had no knowledge about spacing. Space plays significant role for all activities, absence of proper spacing
create difficulties for production (Seid and Zeru, 2013). Zekarias (2010) indicated in his research that difference
in spacing associated with difference in size and expansion nature of varieties used. in relation to this management
practice starting from seed multiplication up to harvesting are done by farmers indigenous practice. According to
Orwa et al.(2009) planting distances depend on soil type and fertility, current technology, and economic factors.
In commercial groves, trees are planted from 5-7 m in rows and 7-9 m between rows. Pruning during the first 2
years encourages lateral growth and multiple framework branching.
Ayelech (2011) indicated that Farm Yard Manure principally transported from homestead to the field
mostly during the dry season and spread in the bottom of each tree in circular form. The chemical inputs
entirely evaded neither for fertilization nor for pest treatment. Thus, its Farm Yard Manure rate of application is
minimal to improve soil fertility but with positive impact on environment, i.e., reduction of soil pollution and water
pollution. The same study indicated that smallholder farmers in the area intercrop Avocado with maize, taro, ginger,
chat, cabbage and banana at early stage. Another study conducted by Gilliard and Godfroy (1995) intercropping
of avocado with short cycled crops; which is very common in sub-Saharan Africa and most utilizes the empty
space during the first few years.
2.2.1.1 Input Sources
Agricultural inputs are important elements for production and productivity. As a result the typical inputs utilized
for production of the Avocado were seed/seedling, labor, land, and compost/manure. The major sources of inputs
for Avocado production in Ethiopia are farmers by, own endeavors, agricultural offices and markets. In general
the sources of inputs for Avocado production are agricultural development offices, markets, agricultural research
institutes, own stocks, IPMS, and other farmers (Ayelech, 2011).
Woreda Agricultural offices, local planting materials purchased from unknown market sources. The
Agricultural research center and self-production by farmers and sources of avocado planting materials Local seed
production is the major source of seedlings for distribution (Berhanu, 2013). in addition Avocado production is
characterized by low inputs with Farm Yard Manure (FYM) the major amendment made to soil to boost
productivity and chemical inputs are not used for fertilization or pest treatment.
2.2.2 Constraints of Avocado Production in Ethiopia
The fruit sector promises high potential, but yet it is characterized by low yields and income for farmers.
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The fruit sector in Ethiopia has high value products as compared to other crops and promises high returns on
relatively small investments (Timoteos and Tigist,2012). According to Bezabih and Hadera ,(2007) horticulture
production is based on tradition, which is poorly supported by scientific recommendations. Although one can
associate this constraint to institutional factors, it is apparent that inadequate farmer skills and knowledge of
production and product management affects the supply. Farmers attempt to select varieties and practice traditional
crop management Farmers’ know-how of product sorting, grading, packing and transporting is traditional, which
severely affects the quality of horticultural products supplied to the market. According to Birhanu (2013)
Constraints hindering the development of avocados are found in all stages of the production chain. At the farm-
level, lack of clean disease-free seedlings and grafted seedlings has compelled farmers to use inferior and low
yielding varieties. Storage facilities are scarce all along the chain and absence of collective bargaining power has
forced individual farmers to accept unfavorable deals.
According to Zekarias (2010) Major productions constraints are:-Vegetative growth: Most of the farmers
reported that their avocado trees show only vegetative growth rather than giving yield at their fruit bearing stage
Falling down of fruits before they are mature, Pest problem There are no improved agronomic practices
Longetivity: Farmers are very much disappointed by the longer time avocado takes to bear fruit and Inadequate
extension activities undertaken on avocado. W.Garedew,(2010) also indicated that even though avocado has
economically and socially play a significant role its production is confronted by a number of constraints ;- this are
Degeneration of fruits ,Disease problem and absence of good agronomic practices.
2.2.3 Harvesting of Avocado /Fruits Collection
According to Birhanu,(2013) Fruit harvesting usually commences at fruit drop which is the principal maturity
index used by farmers and Fruit harvesting is largely executed by child laborers who use picking hooks, shaking
of trees, and knocking down fruit. However, the later practice has the potential to cause physical injury.
Harvesting is largely executed by child labor by climbing on the tree. But use of picking hooks, shaking
of trees and knocking down fruits with wooden sticks are also exercised. The later practices cause fruit droppings
that may cause physical injury at any time (Ayelech,2011).
Study conducted by FAO (2005) which showed cuts, punctures and bruises to avocados increased
ethylene production and hastened fruit softening and ultimately decays. In order to decide when to harvest the
avocado it is important to find the minimum maturity, in other words; how early the harvest can be conducted and
still be sure that the fruit will ripen to an acceptable eating stage (Hofman et al., 2013).
2.2.3.1 Post Harvest losses of Avocado
Post-harvest losses can be measured both by quality and quantity losses. The losses can appear in any stage of the
supply chain during activities such as harvesting, transportation, packing and at market places (Hodges et al., 2011;
Kader, 2009). According to Humble and Reneby (2014) the largest losses of avocado in Ethiopia occur at:-
Harvest, mainly due to poor harvesting techniques Transport; mainly due to loading and unloading and
Storage; mainly due to over ripening.
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a lower price and sells them in the market at higher price (Zekarias, 2010).
According to Birhanu (2013) the avocado industry operated under an unregulated environment. Prices
were exclusively determined by traders negotiating with farmers at time of procurement. Over supply of fruit is
the principal reason for price declines which affect farmers.
2. 3.1 Marketing Constraints
Marketing constraints are related to prices and demand for the products, market information, communication,
storage and perish ability of the products. According to Mulat (2000) the largest constraints in Ethiopian
agricultural markets are the limited amount of traders that have a scarce amount of capital together with a large
amount of farmers, which leaves the farmers with a weak bargaining power. The horticulture products in Ethiopia
are mainly produced by smallholder farms, and a small amount of state-owned farms (Emana & Gebremedhin,
2007). Lack of market to absorb the production; large number of middlemen in the marketing system; absence
(weakness) of marketing institutions safeguarding farmers' interest and rights over their marketable produces (e.g.
cooperatives); lack of coordination among producers to increase their bargaining power; imperfect pricing system
of traders was a major problem to producers.
Traders charge low price at peak supply periods which is not based on the real demand and supply
interaction .this implies, the middlemen decide on the price of fruit products. Producers cannot negotiate since
they may be denied even a low price and their products could be liable to rotting, since it is perishable, and lack
of semi-processing industries (yimer, 2015).
According to Ayelech, (2011) Absence of organized institution and system group marketing has made
traders in a better position to dominate the pricing. Changing the attitudes of farmers is a crucial factor in improving
the marketing performance of households. According to Zekarias (2010) major constraints for Avocado marketing
Low price for product, low bargaining power to influence their due to poor economy and perish ability nature of
the product.
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According to Humble and Reneby (2014) No value adding activities of avocado take place at the farmer,
broker or wholesaler level in the supply chains and the products are sold unprocessed. The value of the fruits
increases when the products move closer to markets with high demand.
2.4.1 .1 Sorting, Grading and Packaging:
These functions are principally carried out at the farm gate and at primary procurement centers via the efforts of
local collectors. Thus fruit is sorted according to consignment needs of collectors where under-grades (i.e., culls)
such as: shrunken, smaller sizes, with splits and punctures are removed. But unsellable under-grades are not wasted
as they are commonly consumed in farming households. There is a shortage of standardized packaging materials
for avocado fruit, and synthetic fiber sacks “madaberiya” are a popular packaging material to transport fruits from
farm gate to primary procurement centers (Birhanu, 2013).
Avocado packaging is an open sector for large private investment and introduction of modern technology
and entry for investors. Wiersinga and Jager (2009) state that most available packing material in Ethiopia doesn’t
meet required standards for avocados.
Consequently, exporters in Ethiopia import packing materials from the Netherlands and Israel. Efforts
were recently launched by several new companies to produce fruit packing material in Ethiopia.
2.4.1 .2 Processing
In Ethiopia, the number of fruits and processing industries is limited. Currently, there are only few fruits processing
plants in the country (Rolien and André,2009).
Avocado processing is apparently limited to juice making where cafés, restaurants and juice houses takes
the leads in cuisine preparation.
Thus there is only few agro-processing plant that underpin on avocado, and it has already ceased its
endeavor of blending avocado to produce pasta and macaroni. But some Cosmetic Industry has launched producing
of hair pomade by using avocado as raw material (Ayelech, 2011).
2.4.2 Consumption of Avocado in Ethiopia
Consumers are those purchasing the products for consumption Most of the fruits produced in Ethiopia are
consumed locally and are produced by smallholder farmers. After harvest, they are transported to rural market
centers for local consumers or are bought at the farm by neighbors. Others are transported to bigger market centers
where many producers utilize the open-air markets that are patronized occasionally, once or twice a week. Limited
post harvest improvement is done for locally consumed fruits and vegetables (Habte, 2001). However, Fruits like
Banana, Orange, Lemon, pineapples and avocadoes exported to Europe and Middle East are graded and packaged
appropriately.
Figure 1 Overview of Avocado value chain map
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4.2 Recommendation
Based on review undertaken the following recommendations are made:-
A number of actions need to be undertaken in order to promote the development of avocados. This includes,
capacity building, post harvest technology, improved extension and, plant breeding and protection activities.
Implementing improved varieties that are grafted, New harvesting tools and growers should establish their own
marketing cooperative for better bargaining power in determining their price for avocado.
Government and non government Organization should Promote;-
Standardized packaging and Introduction of cold chain management, Establishment of local processing industry
for better benefits of growers ,Investments on avocado production and processing and Post Harvest reduction of
Avocado.
The Ethiopian Commodity Exchange should develop marketing services for avocados, if so, avocado prices will
be stabilized and maintained at better condition.
Research institute should work towards generating improved variety and agronomic practices.
Plant Protection Organization should work on avocado disease and pest control.
Agricultural office should work on accessibility of improved avocado varieties.
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