Why is the market potential for tropical fruits huge for Africa?
In line with our tradition on smallstarter.com, it’s important to us that our readers understand the reasons behind every business opportunity we share. Our research has identified three strong reasons why Africa’s future in the tropical fruits business is shining very bright. Here they are…
1. Africa has a strong geographic advantage
More than 70 percent of fruits consumed on earth come from the tropics, which is why they’re called ‘tropical fruits’. A very large portion of our dear continent is located in the tropics – a region that enjoys all-year-round sunlight and has a perfect climate for fruits to thrive and grow abundantly. As a result, Africa remains one of the world’s largest producers of some of the most popular fruits on the planet – citrus, pineapples, bananas and many others.
Despite our continent’s huge potential to produce fruits for the world, a lot of fruits grown in many African countries are consumed locally. Because fruits are highly perishable (spoil very quickly) and many farmers have little access to good storage facilities, Africa currently exports less than 5 percent of the fruits it produces every year. As you will read much later in this article, there are signs of positive change as some entrepreneurs are already making the best of this bad situation.
2. A growing demand for healthier and organic foods
Due to the revelations by modern science about the health benefits of eating fruits and vegetables, millions of people around the world (especially in developed countries) now include some form of fruit in their daily diets. Apart from their rich nutrient, mineral and vitamin content, fruits are now known to lower blood pressure; reduce the risk of heart disease, stroke, and probably some cancers; and help to lower the risk of eye and digestive system problems.
The growing consciousness in Western countries to adopt fruit-rich diets is one of the major drivers of the growing demand for tropical fruits which are abundant in Africa. As a result, countries like Ghana, South Africa, Ivory Coast and Kenya earn millions of dollars every year from fruit exports to Europe, the Middle East and USA.
According to the World Health Organisation, millions of people around the world still die prematurely from diseases associated with low fruit consumption. While this is sad, it signals a promising and lucrative growth in the demand for African tropical fruits now and in the future as more people add fruits to their diets.
3. A rapidly growing fruit juice industry
The global market for fruit and vegetable juices is growing fast and is forecast to exceed 70 billion liters by the year 2017. This rapid growth is driven by a rising preference by customers for healthy drinks (like fruit juices) over soft drinks (such as carbonated drinks – like Coke and Pepsi). There is also a rising demand for organic, super fruit and 100 percent natural fruit juices without any sweeteners and preservatives. This means that in the very near future, producers will require more raw fruits to make a glass of juice.
As more manufacturers shop for fruits to produce more juice to serve the growing demand, Africa will become a huge supplier due to the abundance of fruits that grow on the continent. This added demand from fruit juice manufacturers is allowing farmers across Africa to process their harvested fruits into less perishable concentrates thereby reducing spoilage and earning them more money. In the Mango section of this article, there is an interesting story (and a short video) about a Sierra-Leone based company that buys raw mangoes from the local community and converts it to concentrates used to make fruit juice. Make sure you look out for it…
It’s time to meet the fruits!
Now that we know why the market potential for African tropical fruits is huge and growing, it’s time to meet some of our top-selling exotic fruits that have achieved worldwide celebrity status for their taste, high nutritional content and value. Here they are…
#1 - Pineapples
Photo credit: canelakitchen.blogspot.com; tropicalfloridagardens.com
The pineapple is a very popular and widely consumed fruit in many parts of Africa. It is second only to bananas as the most important harvested fruit. Despite the perfect fit that Africa’s tropical climate and soils have for pineapples, very few countries on the continent are big producers of the fruit. Ghana and Ivory Coast are Africa’s largest exporters making more than $50 million every year from the pineapples it sells to Europe. In some of the other big producers like Nigeria, more than 95 percent of harvested pineapples are eaten locally or wasted (due to a lack of storage facilities ) and very little is exported.
Although a lot of money is made from selling pineapples locally, entrepreneurs can make up to three to five times more money if this fruit is exported. The latest (2011) FAO statistics show that Latin America and South-East Asia currently dominate the international market for pineapples with countries like the Philippines, Brazil, Costa Rica, Thailand and Indonesia among the top five global producers. Ninety percent of the world demand for fresh pineapple originates from twelve countries – USA, France, Japan, Belgium, Italy, Germany, Canada, Spain, England, Korea, Netherlands and Singapore. (source: UNCTAD)
Like all the other tropical fruits discussed in this article, pineapples grow and perform very well in many parts of sub-Saharan Africa where the soil and tropical climate is just perfect for them. They don’t require a lot of water and can survive on very little soil. Pineapples have long and tough leaves which use the power of the sun to provide all the food and water the plant needs. The best part is: Pineapples multiply really fast and only require little care after planting.
The ‘Pineapple Story’ featured in the 4-minute video you’re about to watch features Blue Skies Products Limited, one of a few businesses in sub-Saharan Africa that make money from harvesting and processing locally-farmed pineapples. Blue Skies, based in Ghana, purchases harvested pineapples from local communities and a large proportion of these fruits are processed into fresh pineapple chunks, juices and concentrates. These products are exported to Europe where the taste and demand for fresh exotic tropical fruits like pineapples is huge.
The video shows the chain of activities that take pineapples from the farms where they are grown and harvested, to packaging houses and then to the export terminal for its journey to Europe.
It is important to note that there are more than 100 different varieties of pineapple but only about six varieties are popular in commercial production. These commercial varieties are preferred because they ripen faster, contain more sugar and vitamins, and often have a longer shelf life (which is very important because pineapples are a highly perishable commodity).
If you’re interested in farming pineapples, we found these interesting resources on the internet that will help to further your knowledge on the subject:
- Market Trends for Pineapple (An international market survey) by USAID
- Commodity Profile for Pineapple by the UN Conference on Trade and Development (UNCTAD)
- Growing Pineapples by Tropical Permaculture
- Pineapple Production Manual for Organic Farmers.
#2 - Mangoes
Photo credit: hdwallpaperbest.com
Although grown in over 90 countries around the world, mangoes which are really native to Asia, grow very well in many parts of tropical Africa. Apart from bananas, mangoes are the most consumed tropical fruit in the world and one of the most cultivated fruits in the tropics. Because they are highly nutritious and rich in minerals, fibre and vitamins, mangoes are used in a wide variety of juices, sauces, salads and desserts around the world.
There are over 100 different varieties of mangoes and several of these are grown and harvested across many African countries. Although Nigeria remains Africa’s top producer of the fruit (followed by Kenya, Egypt and Madagascar), almost all of its yearly harvests are consumed locally or rot away as waste. India, which has the mango as its national fruit, is the world’s largest producer and exporter. Other major exporters include China, Mexico, Thailand and the Philippines.
Like with most overlooked opportunities scattered across Africa, some entrepreneurs have started doing something about Africa’s huge potential as a mango producer. Africa Felix Juice is a Sierra Leone-based company that produces juice concentrates from mangoes farmed and harvested across that country. The company buys mangoes from more than 1,000 small farmers in Sierra Leone for $250 to $300 per tree harvest, which is much higher than the $15 these farmers would have received if they sold the same fruits on the local market.
Africa Felix Juice collects these mangoes and takes them to its processing facility where they are processed (sorted, washed and crushed) into juice concentrates, the main ingredient for making fruit juices. By buying fruits from small farmers, the company is creating value from millions of mangoes that otherwise rot away and go to waste every year.
CNN featured the company in the short video below. The mango juice concentrates produced by Africa Felix Juice is mainly exported to Europe. These concentrates are the first major export from Sierra Leone since it came out from a very devastating civil war nearly ten years ago. Watch and learn…
A huge challenge in the mango business is that they are seasonal fruits and the surplus in the markets during harvest time tends to bring down prices. African mango producers experience several other problems including: pests and diseases, poor orchard management, post-harvest losses and limited access to hybrids and quality planting materials. In fact, the fruit fly, which has become the biggest danger to mango production in West, Central and East Africa, has led to recent ban on certain fruits (including mangoes) exports to the USA and European Union. (source: Daily Graphic).
If you’re interested in farming mangoes, we found these interesting resources on the internet that will help to further your knowledge on the subject:
- Mango Production Training Manual by the Research Institute of Organic Agriculture.
- Manual for Mango Producers by the Philippine Department of Agriculture.
- Growing Mangoes by Tropical Permaculture
- Commodity Profile for Mango by the UN Conference on Trade and Development (UNCTAD)
#3 - Bananas
Photo credit: nutritionexpert.com; astrocounsel.us
Bananas are definitely the most popular of all tropical and exotic fruits. According to a recent article in the New Scientist, bananas have become the fourth most important food crop in the world, after rice, wheat and maize. It is also the world’s most harvested and eaten fruit with more than 1,000 different varieties growing in over 150 countries across the world. In many parts of Africa, especially in West, Central and East Africa, bananas are widely eaten and have significant cultural and medicinal values. In fact, countries like Uganda, Burundi, and Rwanda consume up to 45 kilograms per person per year; the highest banana consumption rate anywhere in the world!
Bananas are most popularly eaten as ripe fruits (table bananas) with varieties such as Cavendish, Red Bananas, Apple bananas and Gros Michel used in desserts and juices. Other types such as the cooking bananas (also known as plantains) are cooked, roasted and eaten as food. Banana wine/beer is also a common product of this world-famous fruit. Bananas, especially the cooking and dessert (table) bananas are widely consumed in Africa and are a source of livelihood for many people.
According to UNCTAD, the international trade in bananas has tripled between the 1970s and today. However, the banana export market is still dominated by countries in Latin America, the Caribbean and South East Asia. In Africa, more than 90 percent of harvested bananas are consumed locally and exports are not very common.
This article’s banana success story is about Deus Mulinde, a Ugandan banana plantation owner who arguably owns the largest banana plantation in all of East Africa. Unable to get a job after studying Botany and Zoology at the Makerere University, Deus returned to his home town to join his mother’s small banana business. Today, his farm harvests up to 50 banana bunches (or Matooke as they’re popularly called in East Africa) every day which sells for nearly $40 at the local markets. On Saturdays, which are major market days, Deus usually sells up to $1,000 worth of bananas! The short (4-minute) video shows Deus on the farm and makes for an interesting view. You should take the time to watch it…
If you’re interested in farming bananas, we found these interesting resources on the internet that will help to further your knowledge on the subject:
- Banana Production Training Manual by the Research Institute of Organic Agriculture.
- Banana Production by the Institute for Tropical and Subtropical crops
- Growing Bananas by Tropical Permaculture
#4 - Citrus
Photo credit: commons.wikimedia.org
Citrus generally refers to a group of popular fruits which include sweet oranges, limes, grapefruits, lemons and mandarins (also known as tangerines). These fruits are widely cultivated in tropical as well as subtropical African countries. While fresh citrus for the market is produced preferably in subtropical climates (like South Africa) and Mediterranean climates (e.g. Tunisia, Egypt, Morocco, Libya), citrus used in juice production is predominant in tropical climates because of the possibility for higher sugar content.
African countries like South Africa make up to 6 billion Rand (nearly $600 million) every year from fresh citrus fruits exported to the USA and Europe. In most other parts of our continent, citrus fruits (especially oranges) are used to produce concentrates for making fruit juice. Because these fruits are also a very rich source of vitamin C, they are also used in pharmaceutical industries to make dietary supplements.
As with other fruits discussed in this article, most of the oranges produced in many parts of Africa are consumed locally or left to waste with very little, if any, exported to earn higher income. If you would like to know how to farm citrus fruits, this Citrus Production Manual provides a lot of detailed information that will guide you through all the processes from planting and orchard management to harvests and marketing of your citrus.
We’re not done yet…
This article would have taken you several hours to read if we included other top hot-selling tropical fruits like Papayas (also known as ‘pawpaw’), Guavas, Avocado and Cashews (both fruit and nuts). Lesser known fruits such as passion fruits (popularly grown in many parts of East Africa) are starting to attract wider demand and attain a global profile.
The goal of this article is to open your eyes to the colourful and juicy diamonds that may be hanging in your own backyard. Africa’s potential in fruit production is relatively untapped when compared to other regions in Latin America and Asia that currently dominate the international tropical fruits market. It is very important that you start to look out for ways to exploit the growing demand and lucrative market for tropical fruits both locally and internationally.
We really hope you found this article informative. If you have any experience in farming any tropical fruits or know a little more about it, we’re sure a lot of people reading this would love to learn from you.
If you are confident that the fruit business will work for you, it’s important that you start taking action as soon as possible. You could also choose from many more amazing business ideas in the Browse ideas section of this website.
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To your financial success!