New Zealand’s avocado industry is moving to establish foothold in the Indian market, as momentum gathers for a bilateral free trade agreement between the two countries.
Following the opening of market access in February 2013, a New Zealand trade delegation travelled to the South Asian country to meet with potential importers, freight forwarders, retailers and executive chefs.
According to Avocados New Zealand chief executive officer, Jen Scoular, the visit highlighted the potential of an Indian market in economic transition.
“India’s population and middle-class consumer segment will continue to grow steadily in the foreseeable future, so there will be opportunities for both commodity and higher value niche food and beverage products in higher-end retail, and hotels in particular,” Scoular says.
On the back of the delegation, leading New Zealand avocado exporter Avanza has launched a trial programme into India.The pilot will involve five shipments with information able to be analysed to agree best practice cool chain and logistics for avocados.
While Avanza’s Ted Thomas says the programme has been encouraging, it has also exposed the challenges of trading into the sub continent.Until an amicable trade agreement can be reached, a 50 per cent tariff applies to all New Zealand avocados entering India. The logistics of exporting through an efficient supply chain to ensure its offering reaches consumers in premium condition is also proving difficult.
“Avocados are products that have to be managed carefully and consistently,” Thomas says.“One of the biggest challenges in India is the cool chain and the lack of infrastructure surrounding it. It’s something we know will take time and investment to develop but also something we know we have to get right to ensure our avocados taste matches the high expectation of any New Zealand-grown produce.”
Retail trends in India have also been testing for Avanza, who account for close to 90 per cent of New Zealand’s avocado exports outside Australia.With street vendors remaining the predominant avenue for produce across India, Avanza export marketing executive Martin Napper says it is difficult to reinforce messages about best handling practices.
“Organised retail only accounts for a small portion of the Indian market,” Napper explains.“It makes it difficult to educate about things like ripening patterns because the fruit generally goes through two or three hands before it reaches the consumer. The majority of our volumes from the trial went to the food service sector.”
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