Avocado exports banned as price rises

PUBLISHED ON January 22nd, 2018

Avocado exports banned as price rises

The Directorate of Horticulture has banned all avocado exports following a severe shortage that has raised prices of the fruit to a three-and-a-half-year high.

The average price of a 90-kilogramme bag of avocado shot up to Sh2,560 in December, making it the highest cost of the commodity since May 2014, when a bag was selling for slightly above Sh2,700.

A single avocado is currently selling for between Sh50 and Sh80 in Nairobi’s retail markets, up from between Sh10 and Sh20 each during high season.

The Agriculture and Food Authority (AFA), under which the Directorate of Horticulture falls, attributes the increase in the price of the fruit to the biting shortage of popular varieties, Fuerte and Hass, which are off-season.

Avocado contributes seven per cent of Kenya’s total fruit export to the global market but production has been static over the years. Farm production stood at 230,948 tonnes in 2015, rising slightly to 246,057 tonnes in 2016.

About 387.2 tonnes worth Sh5.4 billion was exported in 2016, compared to 461.1 tonnes worth Sh7.1 billion last year as per AFA data. Foreign investors have been keen on financing the avocado sub-sector in Kenya because of its low-risk investment environment, wide market access, and improved infrastructure.

The Netherlands Trust Fund launched a $1 million project in 2016 to enhance the export competitiveness of the avocado sector in Kenya.

The project’s strategy includes updating the commodity business plan for the avocado sub-sector and increasing the export capacity of exporting SMEs and farmer groups linking them to international buyers.

The horticulture sector is one of the largest sources of foreign exchange earnings in Kenya, bringing in Sh101 billion in 2016.

Source: Business Daily

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