Connecting Investment Migration Consultancy to the Kenyan Avocado Supply Chain
Author: Maryam Jamal
One of the most exciting and interesting aspects of being an investment consultant is providing tailor-made investments and solutions for our clients who are looking for personalized investment solutions that meet their unique needs and preferences. Recently, one of our investment migration clients found out that I am Kenyan and was wondering if we could find a supply chain in the Kenyan market for avocados as it is one of the most sought-after fruits globally. Of course, it knocked my socks off and I had to research it. We have managed to create a supply chain from Kenya for our client by identifying suppliers in Kenya and considering factors such as quality, cost, reliability, and proximity.
Key Highlights of Avocado Industry of Kenya
Kenya is one of the world's leading producers of avocados, with Hass avocado being the most popular type in demand globally. Avocado is a major cash crop for the country and its farming in Kenya is mainly practiced by small-scale farmers, who contribute substantially to the economy in Kenya. The avocado industry in Kenya has experienced tremendous growth in recent years, with the demand for avocados increasing globally. Kenya is now among the leading exporters of avocados to other countries across the globe. The avocado industry has become a key driver of economic growth in Kenya, with exports increasing by over 30% annually. It is expected to continue growing in the coming years.
Kenyan avocados are mainly exported to Europe, especially the United Kingdom, Netherlands, France, Spain, and Germany. Other emerging markets for Kenyan avocados include the United States, Canada, and the Middle East. Kenya is also exploring new markets in Asia, particularly Japan and South Korea. One of the reasons why Kenyan avocados are highly sought after in the international market is their quality. Kenyan avocados are known for their rich flavor, high oil content, and long shelf life. I could not agree more as I have traveled to several countries and consumed the fruit but it was nothing like what it was back home. The country's unique tropical climate and fertile soils provide the perfect conditions for avocado farming, resulting in high-quality fruit that is in high demand in the global market.
Kenya's avocado industry is mainly dominated by small-scale farmers who grow the fruit on their land. The farmers sell their produce to middlemen who then sell to exporters. The avocado supply chain in Kenya is well established, and it involves various players, including farmers, middlemen, exporters, and importers. The supply chain is highly regulated, with strict quality control measures to ensure that only high-quality avocados are exported.
Kenyan Government Policy on Avocado Industry
The Kenyan government has also been playing a critical role in promoting the avocado industry. In recent years, the government has implemented various policies and programs aimed at boosting avocado production and exports. One of these programs is the Horticulture Crop Directorate, which provides technical assistance and support to farmers to improve their avocado production. The government has also signed various trade agreements with importing countries to facilitate the export of Kenyan avocados. The avocado export market in Kenya is regulated by the Kenyan government through the Horticultural Crops Directorate (HCD), which oversees the licensing and inspection of avocado farms and exporters. To export avocados, growers and exporters must meet strict quality standards set by the HCD, including certification by GlobalGAP, HACCP, and other international standards.
Challenges of the Market
Despite the significant growth in the Kenyan avocado industry, there are still some challenges that need to be addressed. One of the main challenges is the need for more access to finance for small-scale farmers. Most farmers do not have the financial resources to invest in modern farming technologies and equipment, which would improve their yields and increase their income. The government and other stakeholders need to come up with innovative solutions to address this challenge, such as providing loans and grants to farmers.
Another challenge facing the Kenyan avocado industry is the high cost of production. Avocado farming requires a lot of inputs, including fertilizers, pesticides, and labor, which can be expensive. The high cost of production makes it difficult for small-scale farmers to compete with larger commercial farms. The government needs to provide support to small-scale farmers to help them reduce their production costs.
Conclusion
In conclusion, the Kenyan avocado industry has become a key driver of economic growth in the country, with exports increasing significantly in recent years. Kenyan avocados are highly sought after in the international market due to their high quality and long shelf life. The government and other stakeholders need to address the challenges facing the industry, such as the lack of access to finance for small-scale farmers and the high cost of production. By addressing these challenges, the Kenyan avocado industry will continue to grow and contribute significantly to the country's economy. Overall, the avocado export market in Kenya is a growing and lucrative sector for farmers and exporters, with significant potential for further growth and expansion into new markets.
After conducting extensive research and executing our plan, we successfully developed a supply chain for our client in Kenya. This involved identifying local suppliers based on factors like quality, cost, reliability, and proximity, and collaborating with them to negotiate favorable terms such as pricing, lead time, and delivery options. To formalize the relationship, we established a contract with the supplier.
Furthermore, we evaluated transportation options to move the products from the supplier to the customer while considering cost, lead time, and the nature of the product. We ensured that the clearance and transit process of the shipments were smooth in various destinations. Our team continues to monitor the supply chain's performance, including delivery times, inventory levels, and costs, to meet our client's needs.
In addition to creating the supply chain, we provided business consultancy by identifying areas for improvement and implementing corrective actions when necessary. Overall, this was an exciting and rewarding experience that required careful planning, negotiation, and execution. We are pleased to have established a reliable and efficient supply chain that meets our client's requirements.
