Nairobi — Agricultural firm Kakuzi is set to commission a macadamia oil extraction plant to meet the growing demand for value-added products within its superfood portfolio.
Speaking during the firm’s 95th Annual General Meeting, Kakuzi Chairman Nick Ng’ang’a said that domestic sales of value-added macadamia products will help mitigate challenges in the international arena due to a prevailing macadamia glut in the global market.
He added that the superfood grower is actively focusing on enhanced revenue generation from diversified local and export markets.
“We believe that the diversity of products, markets and routes to market are essential elements of Kakuzi’s business strategy,” Ng’ang’a said.
“Having the combination of avocados, macadamias and hopefully blueberry as export crops to America, Japan, Europe, China, the Middle East and the UK, as well as a strong domestic value addition range,” he added.
“We believe it will give us the greatest opportunities to minimize risk and maximize returns in these difficult international market conditions.”
Chris Flowers, the managing director of Kakuzi, said the firm is reviewing and refining the final investment decision for the firm’s blueberry venture.
He added that Kakuzi has the potential to develop up to 200 hectares of blueberry production, which can generate an additional Sh5 billion in turnover per annum for the company.
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“This is an exciting opportunity that the Board is appraising keenly as it is a major undertaking with an estimated investment cost of around sh4 Billion,’ Flowers said.
“In addition, the Kakuzi Farmers Market will also provide a retail opportunity for a section of the local smallholder farmers as we plan to provide an opportunity for them also to sell their produce and wares to the captive market on this new road that traverses through Muranga, Kirinyaga and Nyeri counties.”
In the last five years, Kakuzi has increased by 24 percent the areas under avocado production from 798 ha to 987 hectares.
The firm has also nearly doubled its macadamia orchards from 621 ha to 1,128 ha and doubled the avocado packinghouse from a capacity of 8 tons to 16 tons per hour with expanded cold chain solutions.
As part of its climate-smart agriculture commitments, Kakuzi has also further invested in expanded irrigation capacity with the construction of 19 separate earth dams holding 12 million cubic meters of water with the capacity to irrigate a total of 1,600 ha of macadamia, avocado, and blueberry crops.
In the last financial year, Kakuzi posted a Sh845.8 million net profit for the financial year ending December 31st, 2022, representing 62 percent growth.
