Rising international shipping costs continue to weigh on Kenyan avocado exports this season. However, exporters are managing to keep afloat, thanks to the local processing industry and emerging opportunities in the Indian market, according to Allan Njoroge of Danka Investments.
© Danka Investments
The grower exporter shares that exports are continuing at satisfactory volumes, though at a slower pace than last season. He explains: "We're seeing that demand is there and prices are satisfactory. But disruptions caused by the war and exorbitant shipping costs are making our avocados too expensive in certain markets, such as Europe and the Middle East. In these markets, the situation is truly unpredictable. For example, shipping companies aren't providing us with transit times, and delivery schedules are open. It's difficult to do business under these conditions."
According to Njoroge, Kenyan exporters are finding new markets in Asia: "We are able to export to Gulf countries via the port of Jeddah. We also export to China and India."
The exporter adds that the Indian market presents considerable opportunities, despite the applicable customs duties. "We exported avocados to India for the first time this season. The Indian market is highly promising, but it also presents challenges. For example, we have to bear a 30% customs duty."
© Youness Bensaid | FreshPlaza.com
We currently have less competition in the Indian market. Tanzanian avocados have a stronger presence in the Indian market thanks to a zero customs tariff. With the Tanzanian season now coming to an end, Indian buyers are turning to Kenya for large-sized avocados despite the 30% customs duties," Njoroge continues.
As was the case last season, Kenya's local processing industry is proving to be a vector for the avocado industry. "Demand from processing plants remains strong, and they are absorbing huge volumes for oil production. This supports prices and reassures us that our avocados won't go to waste," the exporter concludes.
For more information:
Allan Njoroge
Danka Investments
Tel: +254 714 777674
Email: [email protected]
www.dankainvestments.co.ke
