The Importance of Agrologistics for Global Agricultural Trade – Insights from Rwanda’s Reefer Container Trial Shipments of Avocado

1 Oct 2024

Global agricultural markets remain elusive to many farmers due to inadequate infrastructure and poor agrologistics systems. According to the FAO, approximately 13% of all food produced globally is lost between the farm and retail stagesAdd to that food wasted by consumers, leads to: roughly 1/3 of the edible parts of food produced for human consumption is lost or wasted. In sub-Saharan Africa, this percentage is even higher—up to 50% of crop production is wasted before it reaches consumers.

This is more than a logistical failure, it represents  a waste of resources- labor,  investments and dedication of farmers, their suppliers and financiers, in producing good food and agricultural products. It works against an efficient use of valuable water, scarce nutrients and expensive fuel. Food loss contributes to 8-10% of global greenhouse gas emissions, while demand continues to grow, driven by population growth and evolving dietary preferences. Last but not least, wasting food and agricultural products is to some extent the result of failures in the system to account for negative externalities. But all-in-all: it is an economic loss, for farmers and actors in the value chain. Money that could have been spent to better renumerate farmers and to lower prices for consumers. With food insecurity and hunger persisting in many parts of the world, this waste is both economically and morally troubling

The global mandate is clear: to halve global food waste at the retail and consumer level, and reduce food losses along supply chains, including post-harvest losses, by 2030, as laid down in (Sustainable Development Goals target 12.3).

Connecting Farmers to Markets: The Agrologistics Solution

An important part of the solution to address food losses is to fully improve market access for farmers by strengthening agrologists systems. Without efficient market connectivity, the continuing grand efforts to enhance agricultural productivity and increase global agricultural output may be undermined. It is also a matter of making full use of trade agreements, policies and measures that open up markets and global trade.

For the efficient marketing of perishable agricultural goods like fruits and vegetables, robust agrologistics and infrastructure are essential. We need to tackle the lack of good infrastructure and poor storage facilities. For fresh products, cold change management will bring good returns on investments. And investments are needed. In state-of-the-art technologies, adapted to local circumstances; in capacity to best use technologies; and in getting organized and in cooperation, sectoral and along supply chains, crossing international borders.

The Case of Rwanda: Reefer Container Shipments of Avocados

A particularly inspiring case of agrologistics innovation comes from Rwanda, where trial shipments of avocados in reefer containers have showcased the potential for reducing food waste and creating new market opportunities. This case was recently presented to the World Trade Organization’s Committee on Agriculture in Geneva on September 24, 2024. The trial shipment provide a cost-effective alternative to air freight, opening the door for Rwanda to access international markets.  Sea freight logistics is a solution for cheaper and sufficient competitive transport. It established long-term business partnerships between producers, logistical service providers and international buyers. In the first trial in 2022, over 23 metric tonnes of avocados from eight Rwandan avocado export companies were exported through Mombasa Port to Dubai. In 2023, the second trial took place, this time with 22.4 metric tonnes of avocados (being 124,000 pieces of fresh fruit) exported by sea freight to the Netherlands via the Port of Rotterdam.

Both shipments are the result of a collaborative effort between the Rwandan government and partners including IDH, Flying Swans, Maersk, and leading export companies SOUK and Garden Fresh. Financial support was provided by IDH, and by the Dutch government aiming to further develop Rwanda’s horticulture sector.

Leveraging Technology for Success

Using advanced cooling technologies was key to make the trials a success. Better cooling systems were introduced, including with an active controlled atmosphere cooling technology, which controls the levels of CO2, oxygen and temperature to regulate conditions in the consignments for a period of not less than 30 days of transport, while maintaining quality of the fruits.  It also involved using superior packaging materials, designed to withstand moisture effect during transport and enhancing product quality

In terms of capacity building, relevant staff from the exporters were trained and coached to various important requirements necessary for the success of the trials, including:

  • Using Near Infrared (NIR) technology to assess avocado maturity and dry matter content.  Fruit sanitization using environmentally safe sanitizers before export; and fruit grading
  • A controlled atmosphere curtain, which is a special sealing of the container truck.
  • Tracking technology through GPS, allowing to monitor locations, status, and functionality of the controlled atmosphere system. This so-called Captain Peter, is used by shipping companies to allow monitoring and data collection along the consignment’s journey and address any potential challenges.
Key Insights and Future Directions

The trials underscored the need for a more robust cold chain management from the farm to extend shelf life of the avocado. Currently, the cold chain only begins once the produce arrives at the  packhouse, often  hours after harvesting. Another key learning is that targeted technical management for smallholder farmers is required, especially around feeding programs and irrigation. This will ensure ripening uniformity, which is a key quality criterion with clients.

Clearly, the benefits of the shift to sea freight have been highlighted. The trials have led to lower transportation costs, better margins for traders and higher farmgate prices for the over 1,200 smallholder farmers involved. The initiative has brought economic empowerment and greater stability, allowing farmers to improve their livelihoods. It improved the environmental impact by reducing the carbon footprint with more than 90% in the avocado export business. Moreover, it extended market access beyond Europe and the Middle East.

Conclusion: The Future of Agrologistics

Rwanda’s avocado shipment illustrate the transformative potential of investing in agrologistics. The trials have increased the competitiveness of Rwanda’s horticulture products, allowing the sector to remain relevant in the international market by supplying larger volumes of high-quality product. We believe this is an inspirational case also for other countries to invest in agrologistics and make optimal use of technologies, as adapted to local needs and opportunities. It is possible to align economic growth with sustainability, benefiting both producers and consumers.

Marcel Vernooij, Director Public Sector Engagement, IDH
Sylvie Nirere, heading the IDH team in Rwanda and
Seun Rasheed, CEO SOUK Farms Rwanda

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