Uganda made a big move in the export market by venturing into the production and export of avocado oil to Europe. This will closely help in the expansion of Uganda’s export portfolio and also create exciting opportunities for the country’s avocado farmers and the economy as a whole.
In the year 2022, the Ministry of Agriculture, Animal Industry and Fisheries through NAADS commenced the implementation of an intervention aimed at scaling up the production of Hass avocados to take advantage of the growing, national, regional, and international markets. This type of Avocado “Hass” is right now amongst one of the most highly demanded commodities in the world market with the potential to contribute not only to the growth of the agricultural sector but also increase the country’s foreign exchange earnings and improve household incomes.
Through the farmer model, NAADS has partnered with seven large-scale producers of Hass avocado to enable and enhance access to quality planting materials for smallholder farmers /out-growers
Kenneth Ntegyerize from Balaji Agro Industries says “Currently, we have planted 300 acres of Hass avocado . We plan to plant more as Ugandans are also increasing production so that our factories can have enough raw materials to run.”
The largest market for avocado oil is Europe. Avocado oil is greatly known for numerous nutritional and health benefits and versatile culinary uses. Recognizing this demand, Uganda has seized the opportunity to tap into the European market, offering a sustainable and organic alternative to traditional cooking oils. With this, the NAADS Executive Director Dr. Samuel Mugasi said “I urge our farmers to maintain the good quality that will be acceptable in the export market, but also those who will not quality should not worry because we have the factories to buy the grade two fruits”.
The export of avocado oil to Europe promotes economic growth in Uganda through capitalizing on the country’s natural resources and agricultural potential, this creates employment opportunities along the value chain, from avocado farmers to oil production workers. The government’s intervention to scale up the production of Hass avocado has occasioned the establishment of avocado processing facilities. With this, 5 factories have been established to extract oil from avocados with emphasis on the Hass variety which has more oil content compared to the local varieties. These include Avolio Industries Ltd in Namanve, Njojo Factory in Kyenjojo district, Biosyntec Uganda in Kasese district, Musubi Factory in Buikwe, and Balaji Agro Industries Uganda in Nakaseke District.
Al-Kailani, the Managing Partner with Avolio Industries Ltd stated that all five factories process 63,000 tonnes of fresh avocado every year which translates into 2.5 million kilograms of crude avocado oil which brings in approximately $11.5 million in foreign exchange every year.
The growing of avocados also promotes environmental conservation and biodiversity. By encouraging sustainable farming techniques, Uganda sets an example for responsible agricultural practices that benefit both the economy and the environment.
Furthermore, exporting avocado oil to Europe will help in the expansion and diversification of Uganda’s agricultural exports. It additionally encourages farmers to explore innovative farming techniques and invest in value-addition processes.
Commonly referred to as the ‘Green Gold’, Hass avocado has a high demand globally which was valued at $12.8bn in 2019 and is expected to rise to $17.9bn by 2025.
The government’s initiation of avocado oil exports to Europe is a great milestone for the country’s agricultural sector.
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