Agricultural company Kakuzi is preparing to establish a facility for extracting macadamia oil in response to the increasing demand for value-added products in its superfood collection.
During the 95th Annual General Meeting of Kakuzi, Chairman Nick Ng’ang’a expressed that the sale of value-added macadamia products within the domestic market will help address challenges arising from an oversupply of macadamia in the global market.
He further emphasized that the company, which specializes in superfood production, is actively concentrating on generating more revenue by diversifying its sales in both local and export markets.
Ng’ang’a stated, “We strongly believe that Kakuzi’s business strategy necessitates a diverse range of products, markets, and distribution channels.”
He continued, “By cultivating avocados, macadamias, and potentially blueberries for export to America, Japan, Europe, China, the Middle East, and the UK, alongside offering valuable domestic products, we are confident that we can minimize risks and maximize returns, particularly in the challenging international market conditions.”
Chris Flowers, the managing director of Kakuzi, shared that the company is currently evaluating and refining its final investment decision for the blueberry venture.
He mentioned that Kakuzi has the potential to develop up to 200 hectares of blueberry production, which could contribute an additional annual turnover of Sh5 billion for the company.
Flowers said, “This presents an exciting opportunity that the Board is thoroughly assessing, as it involves a significant undertaking and an estimated investment cost of approximately Sh4 billion.”
He also noted, “Moreover, the Kakuzi Farmers Market will serve as a retail platform for local smallholder farmers, providing them an opportunity to sell their produce and goods to the captive market along the new road spanning Muranga, Kirinyaga, and Nyeri counties.”
Over the past five years, Kakuzi has expanded its avocado production area by 24 percent, growing from 798 hectares to 987 hectares.
The company has also nearly doubled its macadamia orchards from 621 hectares to 1,128 hectares, while doubling the capacity of its avocado packinghouse from 8 tons to 16 tons per hour, along with enhancing its cold chain solutions.
As part of its commitment to climate-smart agriculture, Kakuzi has further invested in expanding its irrigation capacity, constructing 19 individual earth dams with a total storage capacity of 12 million cubic meters of water. This expanded irrigation system can support a combined area of 1,600 hectares for macadamia, avocado, and blueberry crops.
In the previous financial year, Kakuzi achieved a net profit of Sh845.8 million, marking a substantial growth of 62 percent for the fiscal year ending on December 31st, 2022.