The avocado oil industry is increasing in importance in South Africa as the leading companies develop closer relationships with growers, who in turn work fruit for processing purposes into their production strategies.

As the processing demand has grown, returns have begun to stabilise and the processing sector now accounts for as much as a third of some growers' income.

Da Gama Avocado Oil Ltd, in White River, is the largest avocado oil producer in the world, with an output of just over 1,000 tonnes. The company also creates dried mangoes, guacamole, pastes, macadamia oil and other assorted products for the supermarket, catering and cosmetic sectors.

Chief executive Daan Jacobs told the Journal: 'Demand has grown in the cosmetic industry (for products such as soaps, shampoos and hand creams), and the returns are good, whereas in the food industry demand has not grown much as yet and it is a battle to get good prices. Once people begin to recognise the products, the prices will come.' Avocado oil prices are equivalent to olive oil prices in South Africa. The avo product is high in unsaturated fats and, said Jacobs, 'just as healthy as olive oil'. Avocado oil has a smoke point of 450°C, which is the highest of any cooking oil and means that not only does it burn less easily than its counterparts, it can also be used far more sparingly.

The major limitation on growth to this point has been volume availability of the raw product.

'It is very dependent on price,' said Jacobs. 'We are trying very hard to establish ourselves in the food market because I believe growth could be exponential. As it is now, it is a tough call for us to compete with the prices in the domestic fresh market.

'There appears to be very little damage to the fruit this year and that makes our job a little harder. Of course we can use any quality of fruit as the oil is extracted. The only demand is that the fruit is not rotten.

'It also makes little difference what variety we use. Hass has the highest oil content because it is generally hung for longer on the tree, but essentially we have no real preference.' Da Gama has a UK representative, who at the moments concentrates on the delicatessen market as the company tries to make a mark with both avocado and macadamia oils. There are bigger plans though.

Jacobs said: 'Avocado oil is not new, but people are used to it being seasonal. We already offer it on a 12-month basis and we are aiming to do that with macadamia oil in the near future -– that is the secret to long-term success.'

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