Joel's Blog

Avocados So Far: What I know about exporting avocados from Rwanda to Singapore

Sourcing

Avocados are available from a cooperative, a social enterprise, or directly with farmers. In most cases, working with cooperatives is recommended as as it is hard to communicate with multiple farmers and it is also hard to secure a stable supply. Additionally, there’s extra legwork required to ensure to comply with the regulatory quality requirements such as fertiliser content. Examples of suppliers here would be One Acre Fund and Go Green.

Movement

At present, there are two primary options: to move the avocados by truck and take a ship to Dar Es Salaam or Mombasa and the alternative which is to forward by Air.

Air

Air routes to Singapore require at least one stopover with Dubai, India, Ethiopia, Kenya, or Turkey being common stopping points. Cargo quotations are seasonal and depend on type of good but for agricultural goods it is about $1.60-$2/kg to Europe and about $2 to Dubai.

Sea Route

Inland haulage cost is about 3500-4000 USD per reefer container, which makes for a cost of about $3.5/km. While the haulage cost is high, the 0.6USD/kg cost via sea route represents a significant cost reduction.

Client acquisition

You need an export contract from a consignee (client) in Singapore before you can ship out any avocados. 

On the Singapore side you need to either hire a declarant or pass the declarant exam and obtain a license from Singapore Customs Authority

Additional Considerations

In addition, you’ll need to file the following documentation

You need:

  1. A phytosanitary certificate - ensures that you’re not accidentally exporting any pests.  This check is done by a person from the environmental agency, NAEB. This cost about $50 - $100
  2. Certificate of origin -  primarily for coffee / tea and not needed for avocados.
  3. Pallet Cost - $5-10 you can find it
  4. Declaration Cost - $100

There are two common formats: 28-32 avocados in a 5kg try or 55 in a 10kg carton.

You need to determine the appropriate HS code which gives an indication of how much tax one should pay on the good. For avocados this is either 0804.40.00 or 0813.50.40 via the customs search tool. In some cases it’s possible to choose between HS codes if there is ambiguous interpretation but in this case the food authority specifies that we should use 0804.40.00 so we go with that.

Since avocados are classified as fruits / vegetables, you’ll need a license which you can obtain after passing the declarants exam and registering. As an agricultural good, you’ll need to find the exact pesticide requirements. You’ll need to comply with the requirements set out by the food authority. To my understanding, compliance with US FDA standards is usually sufficient.

Options to Reduce Costs

  1. Process the avocados into guacamole or oil

  2. Tricky as you to my understanding you need a plant for this

  3. Look for alternatives to bring down haulage cost.

  4. Food Service customers who may have more flexibility in terms of method of transport.

If you’re interested in collaborating, please reach out via joel[at]joellee.org

References

  1. [RRA Export procedures ](https://www.rra.gov.rw/en/customs-services/exporters/export-procedures](https://www.rra.gov.rw/en/customs-services/exporters/export-procedures)

  2. Duration of shipment from Rwanda to Singapore:  https://www.fluentcargo.com/routes/mombasa-ke/singapore-sg

  3. Rwanda’s market share of avocado exports: https://www.worldstopexports.com/avocados-exports-by-country/

  4. NAEB export requirements:  https://www.naeb.gov.rw/rwanda-fresh/for-exporters

  5. Singapore HS Code: https://www.customs.gov.sg/businesses/harmonized-system-hs-classification-of-goods/find-my-code/

  6. Singapore Food Authority HS Code Classification:  https://www.sfa.gov.sg/docs/default-source/tools-and-resources/product-codes/product-code-for-fresh-fruits-and-vegetables.pdf

  7. SFA license: https://www.gobusiness.gov.sg/browse-all-licences/singapore-food-agency-(sfa)/licence-for-import-transhipment-of-fresh-fruits-and-vegetables

  8. Pesticide requirements: https://www.sfa.gov.sg/tools-and-resources/pesticides-search

  9. Avocado export numbers: https://www.naeb.gov.rw/1/updates/news-detail/itc-enhances-rwandan-avocado-exports

  10. SFA Food requirements: https://www.sfa.gov.sg/food-import-export/commercial-imports/import-requirements-for-food-food-products#fresh-fruits–vegetables-3

  11. Market report on avocados: https://www.sfa.gov.sg/food-import-export/commercial-imports/import-requirements-for-food-food-products#fresh-fruits–vegetables-3