Kakuzi targets US market for avocado exports

Business
By Esther Dianah | Apr 04, 2025
Kakuzi Plc Packhouse Manager Ms Monica Nyambura (left) explains the quality features of an export-grade avocado fruit to Kenya Defense Forces (KDF) Joint Command and Staff College (JCSC) Commandant Major General Eric Kinuthia (right) at the Kakuzi Packhouse. [Boniface Gikandi, Standard]

Kakuzi PLC has implored regulatory and related government agencies to prioritise market access dialogue for the benefit of local agribusiness players.

It has reiterated the need to reduce the national dependency on European markets for agribusiness trade by exploring avocado exports to the United States of America.

Speaking when he addressed delegates at the Perishable Logistics Africa 2025 conference at a Nairobi hotel, Kakuzi PLC Managing Director Mr Chris Flowers underscored the need for policy, regulatory and trade partners to consider diversifying into the North American market, particularly for perishable produce such as avocado fruits.

To ensure market sustainability and better returns on investment, Mr Flowers noted that both public and private stakeholders in Kenya's avocado sector must explore high-value new markets in North America and beyond.

This even as the US government slaps Kenya's exports with a 10 per cent reciprocal tariff.

He said Kakuzi PLC is already mapping its route to the lucrative North American market to ensure its production, processing, and logistical system readiness if and when market access rights are secured.

"While China and India hold a latent potential, their current demand is still relatively low compared to the European market. As the largest consumer of avocados globally, the North American region must be considered a future target for Kenya's exports. By working together, public and private sector stakeholders can ensure that Kenyan avocados reach new heights in the global market," he said.

He noted that in 2024, the USA consumed 1.3 million metric tonnes of avocados, compared to 0.9 million metric tonnes in Europe. Over 80 per cent of its avocados were sourced from Mexico. Therefore, he said, the North American market presents a significant opportunity for Kenya.

Mr Flowers said, "as Kenyan avocado production continues to grow, commercial companies must collaborate with Kenyan government agencies to gain access to this lucrative market. A common strategy, focusing on compliance with regulations, market research, and strategic partnerships, will pave the way for successful market entry."

Government and regulatory agencies such as the Kenya Plant Health Inspectorate Service (KEPHIS), he said, will need to sustain their agribusiness trade diplomacy focus to gain the necessary phytosanitary and related trade market access rights in North America.

The USA is already one of Kakuzi's leading market destinations for edible macadamia kernels, alongside Japan and European markets. The recovery of the macadamia markets last year allowed Kakuzi to increase its sales in the USA, Japan and Europe markets to 971 tonnes of edible kernel, up from 563 tonnes in 2023.

Share this story
Legal battle brews over new tea levy, directorship
Tea sector players have moved to court challenging the new Tea Board of Kenya levies and regulations.
For Africa to move forward, Africans must be allowed to cross borders
An argument that Africa’s economic growth depends on freer cross-border labour mobility, noting that most migration is already regional but remains constrained by restrictive and outdated policies.
Global housing crisis deepens despite policy gains - UN warns
The UN-Habitat has warned that the global housing crisis is worsening despite policy progress, citing rapid urbanisation, inadequate implementation, and millions living in slums.
Families feel the pinch as war-hit diaspora remittances shrink
A decline in diaspora remittances, driven by Middle East conflict and rising living costs abroad, is deepening financial pressure on Kenyan households.
Mbadi names Adan Mohamed as new KRA chief
Treasury Cabinet Secretary John Mbadi has appointed former Industrialisation Cabinet Secretary Adan Abdulla Mohamed as Commissioner General of the Kenya Revenue Authority for a three-year term.
.
RECOMMENDED NEWS