Global Courant
Benin President Talon’s recent visit to China did not make many international headlines. However, it was of particular interest to Africans because during the visit he managed to conclude a new agreement granting permission to export the West African country’s fresh pineapples to China. In addition to Kenyan, South African and Tanzanian avocados, Rwandan chili peppers, South African citrus fruits and Tanzanian soybeans, Beninese pineapples join a rapidly growing list of fresh products that can finally be exported to the Chinese market.
While this is a huge success on paper, there are still many challenges that need to be overcome if Benin is to truly benefit from this deal. This is why.
First, history shows that negotiating these types of deals does not necessarily result in large export volumes. Benin is not the first African country to export pineapples to China. Tanzania, Kenya and South Africa all exported small quantities of preserved pineapple to China for a few years before exports disappeared completely.
Why? Because China already has a wealth of options to choose from. The Asia-Pacific region is the world’s largest producer of pineapple. In 2021, the Asia-Pacific region produced 13 million tons of pineapple, which accounted for 41% of global production. Within Asia, the two largest pineapple producers, Indonesia and the Philippines, are close neighbors to China, making them an attractive source of imports for China.
In contrast, Africa produced less than half the pineapple volumes compared to Asia-Pacific in 2021, with only 5.2 million tons of fresh pineapple. Even China itself produces pineapple, although this is highly seasonal and not enough to meet demand, hence China’s dependence on imports.
This has helped China become the world’s second largest pineapple importer after the US. China imports most of its pineapples from Indonesia, the Philippines and Thailand. China mainly imports fresh or dried pineapple (82%), preserved pineapple (15%) and a small amount of pineapple juice (3%) – the latter mainly from Costa Rica. Competition could become even fiercer in the Asia-Pacific region as Malaysia has also expressed its desire to become a major exporter to China and started exporting its fresh pineapple to China in 2017.
Second, the deal itself had some limitations. Exporting fresh produce can be good for country promotion and some revenue, but African governments are also increasingly focusing on agro-processing, manufactured products and therefore value-added exports.
Although Chinese consumers prefer fresh fruit, especially compared to canned pineapples popular in African countries and Europe, China does produce a number of value-added pineapple products, such as pineapple syrups and powders, which are used in the infamous bubble tea of China. and other drinks.
This should make it attractive for Chinese and other investors in Benin to not only focus on building capacity to export a consistent supply of fresh pineapple to China, but also invest in the production of these types of pineapple products for China, Europe and other African countries. countries, which is in line with the African Continental Free Trade Area (AfCFTA). Diversifying Benin’s production capacity and trading partners in this way will be beneficial to Benin’s development.
So what’s next? How can Benin make the most of the current deal and plan for the future?
Benin has one major advantage: its pineapples are significantly cheaper to import than those in the Asia-Pacific, and have always been that way. From 2018 to 2021, the primary value of Benin pineapples per kilogram averaged US$1.4, compared to US$14.7 in Indonesia, US$2.4 in Thailand and US$4.7 from the Philippines. Benin can certainly use this to conquer the market.
Benin can also benefit from the difference in pineapple variety. Benin mainly produces the Sugar Loaf variety and the Asia-Pacific Smooth Cayenne, the Honey Malang and the Singapore Spanish. An advantage of the Sugar Loaf is that it does have that virtually no acidity compared to Asian pineapple, which is preferred by most consumers for taste and health reasons. In the refrigerator, the Sugar Loaf can also last a few days longer than Asian varieties, which is also a nice selling point.
Another factor that may weigh in Benin’s favor is that Chinese trade agreements and import patterns in the Asia-Pacific region have been somewhat volatile recently. For example, China banned the import of pineapple from Taiwan in 2021, and Vietnamese fruit was also just banned from entering China. These kinds of shifts can create opportunities for Benin, even if they are not necessarily long-lasting.
In addition, African leaders have encouraged China to do more to support African industrialization by financing manufacturing and value addition programs, and China appears to be gearing up to better respond to these demands. Benin should therefore continue to push for Chinese investment in the processing of canned pineapples, pineapple juice and pineapple syrup and powder, whether these are subsequently exported to China or other destinations.
Last but not least, to properly implement these strategies, the government of Benin and, more importantly, pineapple exporters must also have a good understanding of the Chinese market, including consumer preferences, effective marketing strategies and potential sales channels – something we are supporting through our Africa Reimagined program. .
The news that the super sweet Beninois pineapple will soon be in China is positive. But it will certainly also take more work from all sides to make a real difference for Benin’s pineapple farmers, who should be the ultimate beneficiaries of all these changes.
Article by Rosie Wigmore. Wigmore is the project manager of the Global Trade team at Development Reimagined. She focuses on researching developments in the trade relationship between Africa and China and supporting high-quality African brands in entering the Chinese market.
