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source from : ft
https://www.ft.com/content/97340c8a-2652-11e7-8691-d5f7e0cd0a16
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Avocado imports soar as China develops taste for ‘butter fruit’
Yum China, which operates 5,000 KFC stores in the country, launched an ‘avocado series’ of chicken burgers to help upgrade the image of its chain © Dreamstime
YESTERDAY by: Tom Hancock in Shanghai
China’s soaring appetite for avocados, driven by demand from its burgeoning health-conscious middle-class, has made the “butter fruit” — unheard of a few years ago — the country’s star performer in the imported fruit market.
Exports from Latin American nations such as Mexico and Chile are growing by about 250 per cent a year, leaping from just 154 tonnes in 2012 to more than 25,000 tonnes in 2016.
“More people are paying attention to healthy lifestyles and avocados meet that need,” said Zhang Hui, a sales manager at Fruitday, an online food delivery company.
Even western fast food brands such as KFC and McDonald’s are being forced to address the changing tastes of their affluent consumers. Yum China, which operates 5,000 KFC stores in the country, last month launched an “avocado series” of chicken burgers and wraps slathered with guacamole to help upgrade the image of its fried chicken chain, sourcing the fruit from Mexico.
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“It’s viewed as something quite premium and healthy,” said Joey Wat, Yum China’s chief operations officer. A planned three-week avocado promotion ended early due to high demand.
China has almost no experience in commercial avocado cultivation, meaning imports are likely to dominate the market for years. Mexico began exports to China in 2011, with increased supply lowering prices from more than Rmb20 a fruit then to about Rmb15 today.
“It was a very rare fruit [in China],” said Alejandro Salas, a Mexican trade commissioner in Shanghai, who predicts that Chinese demand can help his country diversify away from the US, its top market. “This market will be the second largest, in terms of the middle class and people’s acceptance of avocado,” he added.
Mexican officials have held glitzy events to promote the fruit, teaching chefs about avocado and tofu smoothies — but last year the country was overtaken by Chile as the dominant exporter to China. Chile has the advantage of a free-trade agreement with China, while Mexico faces a 10 per cent tariff on fruit imports.
Peru also has a free-trade agreement with China and Chinese companies are expanding sourcing there — Fruitday this month flew in China’s first batch of Peruvian “Big Mac” avocados — so called because they are heavier than the average variety.
There are signs that Chinese companies are searching overseas for production assets. Animal feed conglomerate Shenzhen Kondarl told the Shenzhen stock exchange last month it was close to finalising the purchase of Australia’s biggest avocado farm for as much as Rmb1bn ($192m).
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