Why Avocado Farming is Ghana’s Next Goldmine

Avocado fruit open

Accra, Ghana, May 28, 2019//-Market researchers say the best performing investment for some time to come is agricultural investment.

According to Jim Rogers, a famous investor, “This is because; the average age of farmers in the western world is over 55 and the rising population is dependent on industrial farms, artificial seeds, pesticides and fertilisers. It seems we are at peak yield and the world needs more food”.

One area in the agricultural sector that looks attractive and promising for investment is avocado production.  The Avocado tree has many health benefits, a whole array of vitamins, minerals and healthy fats

Among the reasons for investing in avocados are: population around the world is increasing and food demand will mirror that; global demand for this superfood is increasing; and there are possibilities to intercrop the avocado trees with coffee and plantains.

Another factor is that the demand for avocado has never been higher. The avocado market worldwide is booming and demand is increasing at a consistent but a fast rate.

Since its introduction to the commercial market in the 90s, the fruit that was once called ‘exotic’ has now become the one of the most highly demanded fruit in the world.

Analysts say though the avocado supply continues to grow worldwide, the high demand and the fact that the fruit is becoming a basic product ensure that prices remain profitable.

According to market report in 2016, the global avocado market registered sales revenue of about $12 billion and this is expected to grow to $23 billion by the end of 2027. Imports of fresh avocados to the European market have doubled since 2012, driven by the consumer demand for ready-to-eat and healthy food.

Avocado thrives best in relatively high humidity and warm temperatures. It requires a well distributed annual rainfall of not less than 1000mm. However a pronounced dry season is needed to induce effective flowering. The forest areas of Ghana are most suited for production.

 The crop can be grown on a range of soil types and requires good drainage, since it is very sensitive to water-logging and saline conditions. The wood is soft brittle and liable to wind damage therefore avoid windy areas.

In Ghana efforts to popularise the business of avocado farming is slowly but surely picking up. In 2018 the Ghana Export Promotion Authority (GEPA) announced that it was seeking an initial funding of $3 million to start work on its avocado fruits project for export.

The funding would allow the Authority to support the development of 500 hectares as a pilot to enable Ghana to become an exporter of avocado fruits to boost revenue towards the attainment of the $10 billion revenue target.

The Authority said assessment of the potential markets for avocados across the globe showed that Ghana would enormously benefit from the export of the fruits and had therefore signed a Memorandum of Understanding with Vegpro to facilitate the development of the project.

Again at the 20th International Agricultural Exhibition and Conference – “Agritech Israel 2018” in Tel Aviv, Israel, Dr Owusu Afriyie Akoto, Minister of Food and Agriculture, urged the Israeli business community to take advantage of the favourable business environment in Ghana and invest in the county’s agricultural sector, particularly avocado production.

The Food and Agriculture Minister was hopeful that the presence of Israeli farmers in the country would be of great benefit because not only would they bring their expertise to bear on production, but there would also be the transfer of knowledge to local farmers interested in the cultivation of avocado.

The Agritech Israel 2018 focused on the unique challenges the world was facing in the face of global warming, climate change, water scarcity and other factors that are contributing to increased desertification.

Historically, avocado production in Ghana reached an all time high of 9,073 tonnes in 2016 and an all time low of 3,759 tonnes in 1967.

By Oppong Baah, African Eye Report

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