- Kakuzi Plc to double Avocado exports to China following an engagement with Dalian Yidu Group, a major Chinese importer of fresh fruits and vegetables
- The firm said it is set to enhance its exports to China once the harvest season opens late next month
- Kakuzi has also expanded its Avocado orchards by a further 60 hectares, up from 927 hectares at a KSh120 million investment cost, to expand production
- The firm posted KSh 341.3 million in net profit in the six months that ended June 2022, thanks to increased sales, particularly against the firm’s strategic Avocado and Macadamia crops
Kakuzi Plc has confirmed plans to double Avocado exports to China following an engagement with Dalian Yidu Group, a major Chinese importer of fresh fruits and vegetables.
Kakuzi Plc Managing Director Chris Flowers said the firm is set to enhance its exports to China once the harvest season opens late next month.
He said Kakuzi had invested heavily to ensure compliance with the stringent Chinese market demands, including tree-to-plate traceability protocols.
Kenyan avocado exports to China
He added that the firm has also expanded its Avocado orchards by a further 60 hectares, up from 927 hectares at a KSh120 million investment cost, to expand production to meet the ever-growing demand for quality superfoods globally.
“Kakuzi Plc is strategically positioned to provide quality superfoods for the local and export markets. The visit by the team from Dalian Yidu underscores the importance of quality management systems as such buyers undertake rigorous evaluations to enable them to deliver nothing but the best to their discerning customers,” Flowers said.
Flowers spoke when Kakuzi hosted a high-powered delegation from the Dalian Yidu Group at its Makuyu, Murang’a County, orchards and packhouse, who were in the country on a three-day familiarization visit.
During the visit, Dalian Yidu Group Business Executive Laura Xu said the firm is looking forward to interacting with Kakuzi. She confirmed that the Dalian Yidu delegation had been impressed by Kakuzi’s production and quality management processes aligned with the Chinese firm’s supply chain standards.
“Dalian Yidu is proud to be associated with a quality-conscious Kenyan grower such as Kakuzi, producing quality Hass Avocados which are in very high demand in China,” Xu said.
She explained that Dalian Yidu has been in the Chinese fresh fruit and vegetables import business since 1988 and has developed formidable international sourcing, cold-chain and related logistical management structure for its fruit and vegetable business.
Within an operating hub in the northeastern part of China, the Dalian Yidu Group has been importing fresh fruit since 1988. It has established good relationships with leading fruit suppliers worldwide, predominantly from Chile, the U.S., South Africa, Australia, New Zealand, Europe, and South Asia.
Kakuzi profit rises amid increased avocado sales
The new development comes when the company recently announced that it had posted KSh 341.3 million in net profit in 2022 half-year results. The amount marked a 75% rise, buoyed by increased sales, particularly against the firm’s strategic Avocado and Macadamia crops. The performance was also supported by steadily growing revenues from its market and product diversification efforts.
“The performance as of the June 30th, 2022 trading period was inspired by increased sales which topped the KSh 1.02 billion markup from KSh 888.95 million booked within the same period last year,” the company said at the time.
As part of the firm’s revenue, product and market diversification strategy, the domestic sales for macadamia and blueberries have been stepped up while avocado exports to China have just started.
Commenting on the half-year results, Kakuzi Chairman, Nicholas Ng’ang’a, noted that the complex international markets, an increasing cost base for many of the firm’s key inputs, and a worldwide consumer spend squeeze may affect the full-year results, necessitating the diversification strategy rollout.
“Diversification of income streams remains a key strategic goal for the Company. We have embarked on this for the international and domestic market with a range of new and value-added products. Currently, we have two main export products, avocados and macadamia, but through strategic investments, we believe that blueberry production will become the third pillar,” Ng’ang’a said.
