ABSTRACT
The global demand for avocados has surged reshaping consumer habits and transforming the avocado value chain. Known for their nutritional, medicinal and cosmetic applications, avocados have become a high-value crop. Myanmar’s hilly regions, with their favorable tropical climate and fertile soil, have experienced rapid growth in avocado production. However, enhancing production efficiency and expanding into value-added products are critical for avocado growers and small and medium enterprises (SMEs) to increase income and meet international demand. This policy brief examines the current state of avocado production in Myanmar, highlighting key strengths, constraints and the challenges in value-added production. The findings based on a desk review of relevant literature and a value chain report; reveal several barriers, including poor agricultural practices, limited technical expertise, high production costs, and inadequate post-harvest handling. Establishing packing houses near production sites is essential to minimize postharvest losses and improve profitability. While value-added products like avocado oils, sauces, and cosmetics are emerging, as the industry faces immediate challenges such as lack of certification and high operational costs. To fully leverage Myanmar’s avocado potential, strategic interventions are recommended, including the promotion of high-quality varieties, providing training, certification acquisition, expansion of production areas, and investment in technology and systematic processing methods. Addressing these challenges will enable Myanmar's avocado industry to better align with the growing global demand, fostering sustainable economic development within its avocado-growing regions.
Keywords: Avocado, Production, Strengths and Constraints, Value-Added products
INTRODUCTION
Avocados have surged in popularity, becoming a staple in diets worldwide. Due to their medicinal and nutritional value, as well as their application in the cosmetic industry, avocadoes are now recognized as a high value-crop.
One of the export fruits in Myanmar is avocado which was introduced into Myanmar over 70 years ago. The rise in demand has reshaped consumer habits and significantly influenced the avocado value chain (Annabell Okendo, 2024). The country’s hot tropical climate and fertile soil make it highly suitable for avocado cultivation particularly in upland areas such as Chin State, Shan State, and the upper Sagaing region. Myanmar boasts more than 70 local avocado varieties; and has introduced the globally popular Hass varieties from New Zealand and California. As the cultivation of Hass variety expands, production volumes are expected to grow substantially over the next three years. With China’s increasing appetite for avocados Chinese traders are increasingly turning to Myanmar as an appealing and attractive supplier. Recent years have seen notable growth in Myanmar’s avocado industry, marked by rising production and expanding exports. To improve product quality, some farms are working toward achieving Myanmar GAP certification this year, with the goal of obtaining Global GAP certification within two years, reflecting a commitment to better agricultural practices.
The Myanmar Avocado Growers and Exporters Association announced plans to establish an avocado processing plant in Hopong Township, southern Shan State aiming to enhance the sector’s capacity. In the FY2022-2023, Myanmar produced 3,000 tons of avocados, and officials are targeting 5,000 tons in the coming years. Negotiations are also underway to secure export opportunities to Thailand and China (Global new light of Myanmar, 2023). Furthermore, the Myanmar Fruits and Vegetables Producer Association - MFVP has identified 10 local varieties suitable for both domestic and international markets, including Amara Hass, Little Hopong, Aung Moe, Chin Princess, and Upland Queen. Efforts are ongoing to secure official access to the Chinese market as early as possible (Jing Zang, 2018). The Myanmar Avocado Association (MAVO) plays a vital role in advancing the avocado value chain by promoting best agricultural practices, facilitating connections between farmers and traders and helping growers access financing through bank credit arrangements. MAVO has also imported grafted Hass avocado plants from California to meet the rising demand for this variety. On the regional level the Shan State Government Committee, in partnership with MAVO, has invested in a large-scale avocado cultivation zone to boost production.
Despite these developments, Myanmar’s avocado industry face several challenges. One significant issue is the large number of avocado varieties. With over 70 local varieties and additional imported ones, farmers often use seedlings with mixed characteristics, making it difficult to standardize and market produce effectively. To increase export competitiveness, Myanmar may need to increase production of Hass avocados. Although domestic grafting efforts are underway to improve consistency, many growers rely on more affordable Hass grafts imported from Thailand. In addition to varietal inconsistencies, poor production practices hinder both quality and yield. The lack of technical experts in high-value commercial avocado production limits the ability of growers to meet export standards (Aatif Somji and Steve Hartrich, 2019). Addressing these issues requires specialized training and the adoption of improved agricultural techniques. Constructing well-designed facilities (i.e., packinghouses) whereby harvested avocado fruit can be cleaned, graded (sorted), stored and sold in bulk will facilitate the development of domestic and export markets for Myanmar producers. Location of packinghouses near avocado production areas will reduce postharvest losses and potentially enhance returns for local growers (J.H Crane et al., 2015). Therefore, this policy report was conducted to point out the status of avocado production and value added products, benefits and constraints of avocado growers and value added products producers based on the desk review and survey result for the avocado value chain.
AVOCADO PRODUCTION STATUS IN THE STUDY AREAS
The demand of global avocado market is growing yearly. In Myanmar, the pragmatic implementations will be undertaken for the development of new avocado varieties adapted to soil and climatic condition, and there are ongoing researches on regional compatibility, use of modern farming techniques and production of high quality avocados (Mitv,2023)1. On a national scale, Myanmar produced about 100,000 tons of avocados in 2021-2022. Efforts are being made to commercially produce avocados that contain more than 20 vitamins and minerals which contribute to the good health of the people. Myanmar mainly exported about 2,400 tons in 2021 and more than 700 tons in 2022 to Thailand, Cambodia, Hong Kong, Malaysia, China and the United Kingdom. Avocados were mainly cultivated in various regions and states of Myanmar such as Shan, Chin, Sagaing, Mandalay and Pyin Oo Lwin since about 75 years ago (Mitv, 2023) During 2022-23 avocado harvest season, over 24,000 tons of avocados were produced including 4,000 tons to export and over 20,000 tons for local consumption. The significant yield difference between exported and non-exported avocados in Myanmar can be attributed to several factors such as international demend quality appearance (size, ripeness, color, taste), limited processing and storage structure, market demand and price. The majority of non-exported avocados are consumed locally which sold in domestic markets or consumed directly by farmers and local communities. Due to limited storage and handling facilities, a significant portion of the fruit is lost before reaching the consumer. In Myanmar, the avocado season begins from November to February. Myanmar avocado volumes are exported mainly to Thailand and to Malaysia. Currently, 90%of exported avocados is exported to Thailand. Spain, Dubai, Middle East countries, Singapore, India also place the orders (Mitv, 2023).
Based on the findings of avocado value chain report (DAE,2023), the selected avocado growers in the study area cultivated several types of avocado varieties. Especially, three main types of avocado varieties grown by the growers in Southern Shan State were Hass, Buccaneer, and local varieties (eg-Methee, Yaykayar and Amara). The average yield of avocado cultivation in a hectarewas904.8 kg. Most of the farmers sold the avocados as fruit and their profits depended on the harvesting time and ripeness of the avocados. The market price of avocado in Southern Shan State was US$1.28 /kg. Concerning the advantages of avocado production, one of the major advantages was high profits. It has been observed that most avocado farmers sell their avocados without producing value-added products. When purchasing avocados from growers, various patterns in purchasing behavior have been observed. Among the majority of avocados, 73%, are bought by brokers. The second largest group of buyers is the wholesale market, accounting for 13%, followed by avocado processors at 10%, and avocado traders at 3%. Major marketplaces of avocado growers in the study areas included Tachileik (24%), Yangon (21%), Aung Pan (17%), and Pin Ta Ya (14%). Other marketplaces include Taunggyi, Kalaw, Mandalay, and Ha-Hoe Township
Myanmar has diverse topography and geography, therefore, a range of avocado clones is needed to specific ecological and climatic niches. The Avocado Sector of the Myanmar Fruit, Flower, and Vegetable Producers and Exporters Association (MFFVPEA) along with international and national collaborators has the potential to make significant progress in developing avocado culture within Myanmar. Based on planting clonally identical avocado trees, tree growth and fruit characteristics are harvested during a defined time-period (e.g., fruit of a particular clone are all at a harvestable stage at about the same time). High quality, productive, and pest-resistant avocado cultivars are essential for the development of a vibrant domestic and export avocado industry (J.H. Crane et al., 2015).
BENEFITS AND CONSTRAINTS IN AVOCADO PRODUCTION
According to the avocado value chain report (DAE, 2023), the surveyed results highlight several strengths of avocado production in the study areas. A significant majority (76.47%) of respondents reported that avocado cultivation is highly profitable, while 35.29% indicated it provides a steady source of income and requires minimal care. Additionally, 20.59% noted that avocado production contributes to environmental sustainability by promoting greener landscapes and improving climate and weather conditions. Furthermore, 8.82% emphasized that avocado farming creates employment opportunities within the community.
The farmers surveyed also provided key recommendations for expanding avocado production. The most frequent suggestion (36%) was the need for education on farming technologies and techniques to prevent over-harvesting. Other recommendations included promoting avocado cultivation for its profitability (20%), supporting access to high-yield varieties (20%), and establishing a stable market (16%). Additionally, 4% of respondents highlighted the need for loans, and 4% underscored the importance of skilled labor for planting and harvesting stages.
According to the report of MK and Associate EIA consulting Ltd (2022), related to the country survey report, data and analysis of the value chain of the country’s five fruits such as mango, avocado, citrus (pomelo), guava, and banana were studied. Major constraints and challenges are lack of capital to purchase inputs and invest in farm for long term, bad weather condition problems, the widespread use of traditional technologies, lack of knowledge in using fertilizers and pesticides. Moreover, growers face lack of storage facilities, no power in the market, labor shortage problem, higher transportation cost and access to low interest credit. They are popular fresh fruit for the export market. But fresh tropical fruits are also inherently prone to deterioration due to the country’s hot and humid climate. Therefore, preprocessing and processing steps play important roles in the value chain system.
Smallholder farmers and large-scale producers alike face various challenges, from climate change to market fluctuations and market regulations. Thoughtful approaches to cultivation, including sustainable farming practices and technological innovations, can enhance productivity while minimizing environmental impact. Effective water management techniques, maintenance of good soil health, responsible agrochemical use (using less synthetic pesticides and fertilizers) and adherence to certification standards like GlobalGAP are some of the fundamentally sound agricultural practices. Additionally, empowering farmers through training and access to resources – particularly financial resources – fosters resilience and promotes economic development within avocado-growing regions (Annabell Okendo, 2024).
The respondents identified several constraints in avocado production. Over 50% reported issues with poor fruit quality, while 37.21% faced challenges related to small-scale production. Additionally, 34.88% highlighted weaknesses in avocado production technology, and 30.13% experienced low yields. Crop damage and post-harvest losses were reported by 27.91% of respondents, while 9.30% cited weak cooperation among avocado farmers.
The key challenges in the surveyed areas included limited access to post-harvest technology training (55.81%). Weather conditions, such as low temperatures and insufficient rainfall, were significant hurdles, with 37.21% of respondents highlighting these as obstacles. Lack of market stability (37.21%) and limited access to credit (23.26%) were also prominent concerns. Additionally, 20.93% of respondents mentioned that avocado exports are primarily limited to cross-border trade, while 16.28% pointed to weak connections between farmers and producers of value-added products. The rising cost of land, which hinders the expansion of growing areas, was identified as a contributing challenge by 13.95% of the respondents.
Knowledge sharing, training and partner linkages between stakeholders contribute to improving the skills and knowledge of value chain actors and service providers. MFFVPEA carried out rapid market assessments which are helpful in identifying potential markets. Sophisticated postharvest handling, market arrangements and better linkages will be required for Myanmar. Changing the market-oriented policy and foreign investments law in Myanmar, and development of contract farming for fruit production will also be encouraged.
PRODUCTION STATUS FOR AVOCADO VALUE-ADDED PRODUCTS
In Shan State, the foremost avocado value-added production industry was Shan orchard which is the majority of its avocados directly from smallholder farmers in Southern Shan State, bypassing brokers and guaranteeing the farmers higher income. It will be beneficial for the development of domestic market if avocado value-added products can be produced from the avocado paste, seeds and raw materials for the production of cosmetics and medicines according to the market demand (Mitv, 2023) . The avocado waste pulp, skins, and stones become green waste and are turned into compost for fertilizer (ACDI/VOCA, 2022). In the study areas, some sample companies in the study areas are producing the value-added production by using the modern machinery such as virgin oil, vegetable oil, sauces for curry with good packaging. Additionally, avocado cosmetics such as facial foam, cream, shampoo, scrub, shower, soap are also being produced by using avocado seed and fruit. The majority of avocado value added products producers lack both the GAP Certificate of Good Agricultural Practices and the Global GAP Certificate of Good Agricultural Practices. Their products are primarily sold through local representatives to different places in local areas and also order by the merchants from different townships (DAE, 2023).
MAJOR CONSTRAINTS IN PRIDUCINGV VALUE-ADDED PRODUCTS
The journey from tree to table involves careful handling to maintain the quality and freshness of avocados. Efficient harvesting techniques and proper post-harvest handling are crucial steps in preserving flavor and extending the fruit’s shelf life. Determining the correct harvest time for avocados is critical because it directly affects the fruit quality and market life. It is important to pick the fruit when it is mature, as immature fruits will shrivel and not ripen properly. Careful handling should be practiced as well during harvesting since mechanical damage can spoil the appearance of the fruit and lead to decay. Innovations in packaging and storage solutions play a vital role in minimizing waste and ensuring that consumers receive premium avocados. Packaging and storage processes such as cleaning, waxing, post-harvest temperature management, and humidity management should be carefully considered (Annabell Okendo, 2024). While Myanmar has suitable conditions to grow export-quality fruit and produce cold-pressed oil, the local avocado industry still faces many challenges including the lack of research, limited technical expertise, poor harvesting practices, and low investment in post-harvest capabilities. The last challenge particularly impacts smallholder farmers, as they typically sell their fruit to traders or collection hubs without playing a role in downstream processing (ACDI/VOCA, 2022).
The result of the research findings by the authors J.H. Crane et al., (2015) pointed out for the requirement to reduce the postharvest loss, constructing well-designed facilities (i.e., packinghouses) whereby harvested avocado fruit can be cleaned, graded (sorted), stored and sold in bulk need to facilitate the development of domestic and export markets for Myanmar producers. Location of packinghouses near avocado production areas can reduce postharvest losses and potentially enhance returns for local growers.
Due to high electricity consumption during processing, some of the fireplace machinery is insufficiently equipped. The use of generators to supplement electricity further escalates operational costs. Additionally, importing necessary manufacturing equipment from other countries adds to the overall expenses for producing the products. Another case is that ripeness issues which is based on ripeness levels vary among selectively purchased avocado. The producers make the testing for maturity level because of the mixing of various avocado varieties. Normally, Hass and Amara varieties exhibit ripeness when they transition from yellow to pink, while other varieties display small yellow dots indicating maturity. Myanmar avocado processors face significant challenges in sorting fruit quality, determining ripeness, and ensuring proper storage. Value added products industries in the study areas are dedicated to organizing machinery, technologies, trainings for storage processes to ensure the production of quality products. The selected industries are committed to implementing a meticulous manufacturing process aimed at producing healthy products (DAE, 2023).
According to the report of ACDI/VOCA (2022), in addition to establish avocado oil production capability; AFDA also helped Shan Orchard become the first avocado producer in Myanmar to receive Global Good Agricultural Practices (GLOBALG.A.P.) certification, the gold standard for food safety globally. As part of its contract farming program, Shan Orchard provided free training to 68 farmers in 2021 to facilitate improvements in the local avocado supply chain. The Activity also helped Shan establish the first-ever avocado laboratory in Myanmar, conducting research on proper harvest time as well as the oil content of local avocado varieties. This milestone is a major objective of the Myanmar Avocado Oil Production project, a partnership between Shan Orchard and the USAID-supported Agriculture and Food Systems Development Activity (AFDA). Structured as a co-investment partnership between public and private enterprises, this two-year project was designed to support Shan Orchard’s pioneering efforts in producing cold-pressed avocado oil on a commercial scale for the first time in Myanmar.
SUGGESTIONS TO DEVELOP AVOCADO PRODUCTION AND VALUE-ADDED PRODUCTS
Overall, as the global appetite for avocados continues to grow, stakeholders across the value chain must embrace innovation, collaboration, and sustainability to unlock the full potential of this vibrant market. Enhancing sustainability entails adopting improved farming practices, implementing policies that support smallholder farmers, raising consumer awareness and fostering investment in the value chain. By understanding the complexities of the avocado value chain and aligning strategies with evolving consumer trends and sustainability priorities, businesses can navigate challenges and seize opportunities for growth and impact (Annabell Okendo, 2024).
According to the suggestions of surveyed results of Avocado value chain report (DAE, 2023), there would need to implement for enhancing avocado production and the production of value-added products, suggestions include:
- Supporting the adoption of high-quality and registered avocado varieties and technologies.
- Providing training on locally adapted fruit harvesting techniques, efficient storage, and packaging methods.
- Obtaining GAP and other international agricultural certifications to ensure high-quality production standards.
- Collaborating with relevant departments and organizations to procure supplies at competitive prices and maintain product quality.
- Expanding avocado production acreage and investing in technology and systematic processing methods to meet international demand and produce high-quality, healthy value-added products.
CONCLUSION
Myanmar’s avocado industry faces several challenges, particularly the large number of varieties, which complicates effective marketing. Efforts to standardize quality include importing affordable Hass grafts from Thailand and improving production practices. However, the lack of technical expertise limits the production of export-quality fruit. Establishing post-harvest processing facilities near production areas would reduce losses and increase returns for farmers. Other industry constraints include poor agricultural practices, insufficient expertise, and high production and equipment costs. Despite these challenges, avocado cultivation offers multiple benefits, such as high profitability, steady income, low maintenance requirements, positive environmental contributions, and job creation. However, growers face issues related to inconsistent fruit quality, small-scale production, outdated farming technology, and low yields. Additional obstacles include crop damage, limited collaboration among farmers, insufficient post-harvest training, unfavorable weather conditions, unstable markets, and restricted access to credit. On the value-added production side, companies struggle with obtaining essential certifications, such as the Certificate of Good Agricultural Practices (GAP), and face operational challenges, including high electricity consumption, equipment maintenance issues, and inconsistent fruit ripeness. While Myanmar produces avocado oils, sauces, and cosmetics, the sector faces hurdles such as a lack of certification, high operational costs, and quality control issues.Shan State, in particular, presents significant opportunities for profitable avocado production and economic growth. To fully unlock this potential, several strategic actions are recommended: promoting high-quality varieties, offering technical training, obtaining relevant certifications, and expanding cultivation areas. Efforts to enhance value-added production include establishing avocado oil production capabilities, improving the supply chain, and adopting sustainable farming practices.
To develop Myanmar’s avocado industry, stakeholders must collaborate to ensure competitive supply chains, invest in technology and systematic processing, and adopt sustainable agricultural practices. By addressing these challenges and implementing strategic improvements, farmers and producers can tap into the growing global demand for avocados and value-added products, fostering both local and international market success.
RECOMMENDATIONS
The policy recommendations for avocado industry in Myanmar are as follows:
- Optimize Avocado Varieties: Conduct a systematic assessment of existing avocado varieties, considering diversity and quality potential across different geographical areas.
- Assess Quality and Nutritional Content: Evaluate the quality, nutrient composition, and oil content of identified avocado varieties to enhance cultivation practices and market appeal.
- Improve Post-Harvest Technologies: Identify factors influencing post-harvest losses in the avocado value chain and implement technologies to minimize losses, thereby increasing profitability.
- Analyze Avocado Consumption and Market Demand: Conduct market research to understand consumption patterns and international demand for different avocado varieties, aligning production with market preferences.
- Promote GAP Certification: Educate and assist avocado growers in obtaining Good Agricultural Practices (GAP) certification to ensure high-quality production standards, potentially increasing product value and market access.
These recommendations aim to enhance avocado production, quality, strengths and constraints through strategic variety selection, quality assessment, technology adoption, market analysis, and certification compliance that looking forwards improved mountainous regions in Myanmar.
REFERENCES
AatifSomji and Steve Hartrich, 2019. Sowing the seeds for inclusive growth in Myanmar’s horticulture sector: a comparative analysis of the ginger and avocado markets in southern Shan State, Myanmar. ISBN: 978-92-2-133699-0, https://webapps.ilo.org/wcmsp5/groups/public/---ed_emp/documents/publication/wcms_ 715084.pdf.
ACDI/VOCA, 2022. Feed the Future Activity Supports Avocado Farmers & Agribusiness in Myanmar, Retrieved from https://www.acdivoca.org/2022/02/feed-the-future-activity-supports-avocado-farmers-agribusiness-in-myanmar/
AnnabellOkendo, 2024. Navigating the Export Avocado Value Chain: A Blueprint for Sustainable Growth, Retrieved from https://www.agrifrontier.com/case-study/navigating-the-export-avocado-va...
DAE, 2023.TheingiMyint, ThiThiSoe, HtetMarlar Aye, Yin Nyein Aye (2023) (DAE-YAU Research Team), “Study on Avocado value chain and value added products, Shan State, Myanmar”(in Myanmar version), collaboration with Department of Agricultural Research and Yezin Agricultural University.
Global new light of Myanmar, 2023. Avocados export to meet foreign market demand, Retrived from https://www.gnlm.com.mm/avocados-export-to-meet-foreign-market-demand/
J.H Crane, U Soe Than Min Din, Win Aung Kyaw, R.C. Ploetz, A. ThandaKyaw, Y.Y.Thant, SoeNyut, T.T. Sein. 2015. Myanmar’s Emerging Tobadee (Avocado) Industry. USAID Farmer-to-Farmer Program, Winrock International, and University of Florida/IFAS, https://www.cabidigitallibrary.org/ doi/pdf/10.5555/20193451347.
Jing Zang.2018. Produce report website, News: Myanmar Avocados Aim to Enter China for Next Season, 2018, Retrieved from https://www.producereport.com/article/myanmar-avocados-aim-enter-china-next-season)
Mitv, 20231. Avocado Export: Efforts to increase Myanmar’s avocado export, Retrieved from https://www.myanmaritv.com/news/avocado-export-efforts-increase-myanmar%E2%80%99s-avocado-export
Mitv, 20232.Avocado production: Over 4,000 tons of avocados exported in this FY, Retrieved from https://www.myanmaritv.com/news/avocado-production-over-4000-tons-avocados-exported-fy
Advancing Mountainous Region Development through the Avocado Industry in Myanmar
ABSTRACT
The global demand for avocados has surged reshaping consumer habits and transforming the avocado value chain. Known for their nutritional, medicinal and cosmetic applications, avocados have become a high-value crop. Myanmar’s hilly regions, with their favorable tropical climate and fertile soil, have experienced rapid growth in avocado production. However, enhancing production efficiency and expanding into value-added products are critical for avocado growers and small and medium enterprises (SMEs) to increase income and meet international demand. This policy brief examines the current state of avocado production in Myanmar, highlighting key strengths, constraints and the challenges in value-added production. The findings based on a desk review of relevant literature and a value chain report; reveal several barriers, including poor agricultural practices, limited technical expertise, high production costs, and inadequate post-harvest handling. Establishing packing houses near production sites is essential to minimize postharvest losses and improve profitability. While value-added products like avocado oils, sauces, and cosmetics are emerging, as the industry faces immediate challenges such as lack of certification and high operational costs. To fully leverage Myanmar’s avocado potential, strategic interventions are recommended, including the promotion of high-quality varieties, providing training, certification acquisition, expansion of production areas, and investment in technology and systematic processing methods. Addressing these challenges will enable Myanmar's avocado industry to better align with the growing global demand, fostering sustainable economic development within its avocado-growing regions.
Keywords: Avocado, Production, Strengths and Constraints, Value-Added products
INTRODUCTION
Avocados have surged in popularity, becoming a staple in diets worldwide. Due to their medicinal and nutritional value, as well as their application in the cosmetic industry, avocadoes are now recognized as a high value-crop.
One of the export fruits in Myanmar is avocado which was introduced into Myanmar over 70 years ago. The rise in demand has reshaped consumer habits and significantly influenced the avocado value chain (Annabell Okendo, 2024). The country’s hot tropical climate and fertile soil make it highly suitable for avocado cultivation particularly in upland areas such as Chin State, Shan State, and the upper Sagaing region. Myanmar boasts more than 70 local avocado varieties; and has introduced the globally popular Hass varieties from New Zealand and California. As the cultivation of Hass variety expands, production volumes are expected to grow substantially over the next three years. With China’s increasing appetite for avocados Chinese traders are increasingly turning to Myanmar as an appealing and attractive supplier. Recent years have seen notable growth in Myanmar’s avocado industry, marked by rising production and expanding exports. To improve product quality, some farms are working toward achieving Myanmar GAP certification this year, with the goal of obtaining Global GAP certification within two years, reflecting a commitment to better agricultural practices.
The Myanmar Avocado Growers and Exporters Association announced plans to establish an avocado processing plant in Hopong Township, southern Shan State aiming to enhance the sector’s capacity. In the FY2022-2023, Myanmar produced 3,000 tons of avocados, and officials are targeting 5,000 tons in the coming years. Negotiations are also underway to secure export opportunities to Thailand and China (Global new light of Myanmar, 2023). Furthermore, the Myanmar Fruits and Vegetables Producer Association - MFVP has identified 10 local varieties suitable for both domestic and international markets, including Amara Hass, Little Hopong, Aung Moe, Chin Princess, and Upland Queen. Efforts are ongoing to secure official access to the Chinese market as early as possible (Jing Zang, 2018). The Myanmar Avocado Association (MAVO) plays a vital role in advancing the avocado value chain by promoting best agricultural practices, facilitating connections between farmers and traders and helping growers access financing through bank credit arrangements. MAVO has also imported grafted Hass avocado plants from California to meet the rising demand for this variety. On the regional level the Shan State Government Committee, in partnership with MAVO, has invested in a large-scale avocado cultivation zone to boost production.
Despite these developments, Myanmar’s avocado industry face several challenges. One significant issue is the large number of avocado varieties. With over 70 local varieties and additional imported ones, farmers often use seedlings with mixed characteristics, making it difficult to standardize and market produce effectively. To increase export competitiveness, Myanmar may need to increase production of Hass avocados. Although domestic grafting efforts are underway to improve consistency, many growers rely on more affordable Hass grafts imported from Thailand. In addition to varietal inconsistencies, poor production practices hinder both quality and yield. The lack of technical experts in high-value commercial avocado production limits the ability of growers to meet export standards (Aatif Somji and Steve Hartrich, 2019). Addressing these issues requires specialized training and the adoption of improved agricultural techniques. Constructing well-designed facilities (i.e., packinghouses) whereby harvested avocado fruit can be cleaned, graded (sorted), stored and sold in bulk will facilitate the development of domestic and export markets for Myanmar producers. Location of packinghouses near avocado production areas will reduce postharvest losses and potentially enhance returns for local growers (J.H Crane et al., 2015). Therefore, this policy report was conducted to point out the status of avocado production and value added products, benefits and constraints of avocado growers and value added products producers based on the desk review and survey result for the avocado value chain.
AVOCADO PRODUCTION STATUS IN THE STUDY AREAS
The demand of global avocado market is growing yearly. In Myanmar, the pragmatic implementations will be undertaken for the development of new avocado varieties adapted to soil and climatic condition, and there are ongoing researches on regional compatibility, use of modern farming techniques and production of high quality avocados (Mitv,2023)1. On a national scale, Myanmar produced about 100,000 tons of avocados in 2021-2022. Efforts are being made to commercially produce avocados that contain more than 20 vitamins and minerals which contribute to the good health of the people. Myanmar mainly exported about 2,400 tons in 2021 and more than 700 tons in 2022 to Thailand, Cambodia, Hong Kong, Malaysia, China and the United Kingdom. Avocados were mainly cultivated in various regions and states of Myanmar such as Shan, Chin, Sagaing, Mandalay and Pyin Oo Lwin since about 75 years ago (Mitv, 2023) During 2022-23 avocado harvest season, over 24,000 tons of avocados were produced including 4,000 tons to export and over 20,000 tons for local consumption. The significant yield difference between exported and non-exported avocados in Myanmar can be attributed to several factors such as international demend quality appearance (size, ripeness, color, taste), limited processing and storage structure, market demand and price. The majority of non-exported avocados are consumed locally which sold in domestic markets or consumed directly by farmers and local communities. Due to limited storage and handling facilities, a significant portion of the fruit is lost before reaching the consumer. In Myanmar, the avocado season begins from November to February. Myanmar avocado volumes are exported mainly to Thailand and to Malaysia. Currently, 90%of exported avocados is exported to Thailand. Spain, Dubai, Middle East countries, Singapore, India also place the orders (Mitv, 2023).
Based on the findings of avocado value chain report (DAE,2023), the selected avocado growers in the study area cultivated several types of avocado varieties. Especially, three main types of avocado varieties grown by the growers in Southern Shan State were Hass, Buccaneer, and local varieties (eg-Methee, Yaykayar and Amara). The average yield of avocado cultivation in a hectarewas904.8 kg. Most of the farmers sold the avocados as fruit and their profits depended on the harvesting time and ripeness of the avocados. The market price of avocado in Southern Shan State was US$1.28 /kg. Concerning the advantages of avocado production, one of the major advantages was high profits. It has been observed that most avocado farmers sell their avocados without producing value-added products. When purchasing avocados from growers, various patterns in purchasing behavior have been observed. Among the majority of avocados, 73%, are bought by brokers. The second largest group of buyers is the wholesale market, accounting for 13%, followed by avocado processors at 10%, and avocado traders at 3%. Major marketplaces of avocado growers in the study areas included Tachileik (24%), Yangon (21%), Aung Pan (17%), and Pin Ta Ya (14%). Other marketplaces include Taunggyi, Kalaw, Mandalay, and Ha-Hoe Township
Myanmar has diverse topography and geography, therefore, a range of avocado clones is needed to specific ecological and climatic niches. The Avocado Sector of the Myanmar Fruit, Flower, and Vegetable Producers and Exporters Association (MFFVPEA) along with international and national collaborators has the potential to make significant progress in developing avocado culture within Myanmar. Based on planting clonally identical avocado trees, tree growth and fruit characteristics are harvested during a defined time-period (e.g., fruit of a particular clone are all at a harvestable stage at about the same time). High quality, productive, and pest-resistant avocado cultivars are essential for the development of a vibrant domestic and export avocado industry (J.H. Crane et al., 2015).
BENEFITS AND CONSTRAINTS IN AVOCADO PRODUCTION
According to the avocado value chain report (DAE, 2023), the surveyed results highlight several strengths of avocado production in the study areas. A significant majority (76.47%) of respondents reported that avocado cultivation is highly profitable, while 35.29% indicated it provides a steady source of income and requires minimal care. Additionally, 20.59% noted that avocado production contributes to environmental sustainability by promoting greener landscapes and improving climate and weather conditions. Furthermore, 8.82% emphasized that avocado farming creates employment opportunities within the community.
The farmers surveyed also provided key recommendations for expanding avocado production. The most frequent suggestion (36%) was the need for education on farming technologies and techniques to prevent over-harvesting. Other recommendations included promoting avocado cultivation for its profitability (20%), supporting access to high-yield varieties (20%), and establishing a stable market (16%). Additionally, 4% of respondents highlighted the need for loans, and 4% underscored the importance of skilled labor for planting and harvesting stages.
According to the report of MK and Associate EIA consulting Ltd (2022), related to the country survey report, data and analysis of the value chain of the country’s five fruits such as mango, avocado, citrus (pomelo), guava, and banana were studied. Major constraints and challenges are lack of capital to purchase inputs and invest in farm for long term, bad weather condition problems, the widespread use of traditional technologies, lack of knowledge in using fertilizers and pesticides. Moreover, growers face lack of storage facilities, no power in the market, labor shortage problem, higher transportation cost and access to low interest credit. They are popular fresh fruit for the export market. But fresh tropical fruits are also inherently prone to deterioration due to the country’s hot and humid climate. Therefore, preprocessing and processing steps play important roles in the value chain system.
Smallholder farmers and large-scale producers alike face various challenges, from climate change to market fluctuations and market regulations. Thoughtful approaches to cultivation, including sustainable farming practices and technological innovations, can enhance productivity while minimizing environmental impact. Effective water management techniques, maintenance of good soil health, responsible agrochemical use (using less synthetic pesticides and fertilizers) and adherence to certification standards like GlobalGAP are some of the fundamentally sound agricultural practices. Additionally, empowering farmers through training and access to resources – particularly financial resources – fosters resilience and promotes economic development within avocado-growing regions (Annabell Okendo, 2024).
The respondents identified several constraints in avocado production. Over 50% reported issues with poor fruit quality, while 37.21% faced challenges related to small-scale production. Additionally, 34.88% highlighted weaknesses in avocado production technology, and 30.13% experienced low yields. Crop damage and post-harvest losses were reported by 27.91% of respondents, while 9.30% cited weak cooperation among avocado farmers.
The key challenges in the surveyed areas included limited access to post-harvest technology training (55.81%). Weather conditions, such as low temperatures and insufficient rainfall, were significant hurdles, with 37.21% of respondents highlighting these as obstacles. Lack of market stability (37.21%) and limited access to credit (23.26%) were also prominent concerns. Additionally, 20.93% of respondents mentioned that avocado exports are primarily limited to cross-border trade, while 16.28% pointed to weak connections between farmers and producers of value-added products. The rising cost of land, which hinders the expansion of growing areas, was identified as a contributing challenge by 13.95% of the respondents.
Knowledge sharing, training and partner linkages between stakeholders contribute to improving the skills and knowledge of value chain actors and service providers. MFFVPEA carried out rapid market assessments which are helpful in identifying potential markets. Sophisticated postharvest handling, market arrangements and better linkages will be required for Myanmar. Changing the market-oriented policy and foreign investments law in Myanmar, and development of contract farming for fruit production will also be encouraged.
PRODUCTION STATUS FOR AVOCADO VALUE-ADDED PRODUCTS
In Shan State, the foremost avocado value-added production industry was Shan orchard which is the majority of its avocados directly from smallholder farmers in Southern Shan State, bypassing brokers and guaranteeing the farmers higher income. It will be beneficial for the development of domestic market if avocado value-added products can be produced from the avocado paste, seeds and raw materials for the production of cosmetics and medicines according to the market demand (Mitv, 2023) . The avocado waste pulp, skins, and stones become green waste and are turned into compost for fertilizer (ACDI/VOCA, 2022). In the study areas, some sample companies in the study areas are producing the value-added production by using the modern machinery such as virgin oil, vegetable oil, sauces for curry with good packaging. Additionally, avocado cosmetics such as facial foam, cream, shampoo, scrub, shower, soap are also being produced by using avocado seed and fruit. The majority of avocado value added products producers lack both the GAP Certificate of Good Agricultural Practices and the Global GAP Certificate of Good Agricultural Practices. Their products are primarily sold through local representatives to different places in local areas and also order by the merchants from different townships (DAE, 2023).
MAJOR CONSTRAINTS IN PRIDUCINGV VALUE-ADDED PRODUCTS
The journey from tree to table involves careful handling to maintain the quality and freshness of avocados. Efficient harvesting techniques and proper post-harvest handling are crucial steps in preserving flavor and extending the fruit’s shelf life. Determining the correct harvest time for avocados is critical because it directly affects the fruit quality and market life. It is important to pick the fruit when it is mature, as immature fruits will shrivel and not ripen properly. Careful handling should be practiced as well during harvesting since mechanical damage can spoil the appearance of the fruit and lead to decay. Innovations in packaging and storage solutions play a vital role in minimizing waste and ensuring that consumers receive premium avocados. Packaging and storage processes such as cleaning, waxing, post-harvest temperature management, and humidity management should be carefully considered (Annabell Okendo, 2024). While Myanmar has suitable conditions to grow export-quality fruit and produce cold-pressed oil, the local avocado industry still faces many challenges including the lack of research, limited technical expertise, poor harvesting practices, and low investment in post-harvest capabilities. The last challenge particularly impacts smallholder farmers, as they typically sell their fruit to traders or collection hubs without playing a role in downstream processing (ACDI/VOCA, 2022).
The result of the research findings by the authors J.H. Crane et al., (2015) pointed out for the requirement to reduce the postharvest loss, constructing well-designed facilities (i.e., packinghouses) whereby harvested avocado fruit can be cleaned, graded (sorted), stored and sold in bulk need to facilitate the development of domestic and export markets for Myanmar producers. Location of packinghouses near avocado production areas can reduce postharvest losses and potentially enhance returns for local growers.
Due to high electricity consumption during processing, some of the fireplace machinery is insufficiently equipped. The use of generators to supplement electricity further escalates operational costs. Additionally, importing necessary manufacturing equipment from other countries adds to the overall expenses for producing the products. Another case is that ripeness issues which is based on ripeness levels vary among selectively purchased avocado. The producers make the testing for maturity level because of the mixing of various avocado varieties. Normally, Hass and Amara varieties exhibit ripeness when they transition from yellow to pink, while other varieties display small yellow dots indicating maturity. Myanmar avocado processors face significant challenges in sorting fruit quality, determining ripeness, and ensuring proper storage. Value added products industries in the study areas are dedicated to organizing machinery, technologies, trainings for storage processes to ensure the production of quality products. The selected industries are committed to implementing a meticulous manufacturing process aimed at producing healthy products (DAE, 2023).
According to the report of ACDI/VOCA (2022), in addition to establish avocado oil production capability; AFDA also helped Shan Orchard become the first avocado producer in Myanmar to receive Global Good Agricultural Practices (GLOBALG.A.P.) certification, the gold standard for food safety globally. As part of its contract farming program, Shan Orchard provided free training to 68 farmers in 2021 to facilitate improvements in the local avocado supply chain. The Activity also helped Shan establish the first-ever avocado laboratory in Myanmar, conducting research on proper harvest time as well as the oil content of local avocado varieties. This milestone is a major objective of the Myanmar Avocado Oil Production project, a partnership between Shan Orchard and the USAID-supported Agriculture and Food Systems Development Activity (AFDA). Structured as a co-investment partnership between public and private enterprises, this two-year project was designed to support Shan Orchard’s pioneering efforts in producing cold-pressed avocado oil on a commercial scale for the first time in Myanmar.
SUGGESTIONS TO DEVELOP AVOCADO PRODUCTION AND VALUE-ADDED PRODUCTS
Overall, as the global appetite for avocados continues to grow, stakeholders across the value chain must embrace innovation, collaboration, and sustainability to unlock the full potential of this vibrant market. Enhancing sustainability entails adopting improved farming practices, implementing policies that support smallholder farmers, raising consumer awareness and fostering investment in the value chain. By understanding the complexities of the avocado value chain and aligning strategies with evolving consumer trends and sustainability priorities, businesses can navigate challenges and seize opportunities for growth and impact (Annabell Okendo, 2024).
According to the suggestions of surveyed results of Avocado value chain report (DAE, 2023), there would need to implement for enhancing avocado production and the production of value-added products, suggestions include:
CONCLUSION
Myanmar’s avocado industry faces several challenges, particularly the large number of varieties, which complicates effective marketing. Efforts to standardize quality include importing affordable Hass grafts from Thailand and improving production practices. However, the lack of technical expertise limits the production of export-quality fruit. Establishing post-harvest processing facilities near production areas would reduce losses and increase returns for farmers. Other industry constraints include poor agricultural practices, insufficient expertise, and high production and equipment costs. Despite these challenges, avocado cultivation offers multiple benefits, such as high profitability, steady income, low maintenance requirements, positive environmental contributions, and job creation. However, growers face issues related to inconsistent fruit quality, small-scale production, outdated farming technology, and low yields. Additional obstacles include crop damage, limited collaboration among farmers, insufficient post-harvest training, unfavorable weather conditions, unstable markets, and restricted access to credit. On the value-added production side, companies struggle with obtaining essential certifications, such as the Certificate of Good Agricultural Practices (GAP), and face operational challenges, including high electricity consumption, equipment maintenance issues, and inconsistent fruit ripeness. While Myanmar produces avocado oils, sauces, and cosmetics, the sector faces hurdles such as a lack of certification, high operational costs, and quality control issues.Shan State, in particular, presents significant opportunities for profitable avocado production and economic growth. To fully unlock this potential, several strategic actions are recommended: promoting high-quality varieties, offering technical training, obtaining relevant certifications, and expanding cultivation areas. Efforts to enhance value-added production include establishing avocado oil production capabilities, improving the supply chain, and adopting sustainable farming practices.
To develop Myanmar’s avocado industry, stakeholders must collaborate to ensure competitive supply chains, invest in technology and systematic processing, and adopt sustainable agricultural practices. By addressing these challenges and implementing strategic improvements, farmers and producers can tap into the growing global demand for avocados and value-added products, fostering both local and international market success.
RECOMMENDATIONS
The policy recommendations for avocado industry in Myanmar are as follows:
These recommendations aim to enhance avocado production, quality, strengths and constraints through strategic variety selection, quality assessment, technology adoption, market analysis, and certification compliance that looking forwards improved mountainous regions in Myanmar.
REFERENCES
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Mitv, 20232.Avocado production: Over 4,000 tons of avocados exported in this FY, Retrieved from https://www.myanmaritv.com/news/avocado-production-over-4000-tons-avocados-exported-fy