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
KPRL: The trump card for Kenya Pipeline in post-stake sale era
The Changamwe-based refinery holds much potential due to its existing oil and gas infrastructure. Oil storage tankers at the KPRL, Changamwe in Mombasa County. [File, Standard]
AfDB Backs Kenya's geothermal expansion with Sh2.6b loan
Geothermal energy, generated from heat deep within the earth, provides a critical source of "baseload" power for Kenya.
Public officers' vehicle financing scheme crucial for service delivery
Motor vehicle ownership remains an important aspect of both personal welfare and professional effectiveness for many public officers.
Long-stay cargo at Mombasa Port to be moved to ease congestion
Cargo that has stayed at Mombasa Port for over 21 days, or earmarked for auction or destruction, to be transferred to container freight stations, move aimed at easing congestion, KRA says.
State reforms accreditation system to boost trade, market access
The government has launched reforms of the accreditation system to strengthen compliance with standards and boost trade
.
RECOMMENDED NEWS