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Why Kakuzi Ltd is abandoning Pineaple and venturing into hass avocado farming

Kakuzi ltd which is listed in Nairobi exchange and deals in farming is planning an exit on pineapple farming. After growing pineapples for over two decades now, it is signaling a shift in its products. Kakuzi Ltd is increasing acreage under avocados whose demand has skyrocketed globally.

Read: Basic Characteristics of an agri-preneur

Avocados Has Better Profits

Kakuzi Ltd while announcing that decision in March 2018, they also announce a 5.2% increase in net profit to Sh561.6 million for the year ended December 2017. The profit increase according to the company is attributed to the higher international avocado and macadamia prices.

Although the company which owns more than 25,000 acres of land has been growing tea, forestry, livestock , pineapples and other fruits, it has now decided to focus its efforts on growing hass avocado whose returns per-acre are much higher than that of pineapples.

In a statement produced by Kakuzi, the decision was reached to discontinue with fresh pineapple operation in favor of planting pinkerton, hass and fuerte avocado varieties.

The  major pineapple producers in Kenya include Kakuzi, Del Monte’s in Thika and Ndemo farm in Kilgoris. For the years now, Kakuzi has become synonymous with the crop.

While some of its harvest is exported to countries such as France, Germany, Italy, Belgium and the Netherlands – mostly in canned form – Kakuzi has always sold its produce in the local market. The fruit is also used to make concentrate for juice products.

Read: How to make Silage for your Dairy Cows in Kenya

Hass Avocados and Macadmia Nuts

Over the past several years, macadamia and avocado have become choice crops for agricultural firma in Kenya with Kakuzi, Sasini and other major players reaping heavily.

In 2017, according to their statement, the company closed with 1,500 acres of land under avocado from which it harvested 7,282 tonnes of fruit. At its peak, Kakuzi had over 120 acres of its own land under pineapple and another 1,100 acres under a joint venture with juice maker Del Monte.

However, in 2017, the company closed with just 60 acres of its land under pineapple and the partnership between Delmonte is set to be terminated in future years.

According to Kakuzi, the increase in profit is as a result of continued market demand for avocado and macadamia throughout the year. The company also attributed profitability within the Tea operations has continued to reflect the difficult trading conditions and significant inflationary pressure on labor and other production costs.

Read: Why You should shift gears to Hass avocado and Macadamia farming

Now you know why we have continually advised you to plant hass avocados and macadamia. If the big boys are shifting, why do you sit there claiming that there is no market, or it will flood.

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Earn more than 10 million per acre with 40k investment.

HASS AVOCADO FARMING – OXFARM’S CONTRACT

Here at oxfarm we have old hass trees {request for a visit at our demo farm} that have consistently given us income like in the case of real estate, its called passive income. Once you set it up you do not have to worry, why because hass avocado farming require least form of management but be present during harvesting time for inspection and counting, why? ask me later.

We faced challenges during planting and even later when we thought all could be well another big issue came up. We were tricked and bought varieties which were not hass avocado. We had to top work our trees, we wasted two years due to what we say negligence. Please if you have to buy any type of seedling request to see whether they are certified with concerned authorities. This will not only save you money but most importantly Time, 2-3 years waiting then it turns to be otherwise is so demotivating.

Enough about us, we came up with the package few years back where we save our clients hard time during planting which require one to have knowledge on basic planting technique and if you have ever tried to plant hass seedlings then you do understand what we mean. Some of our clients who enrolled in this package have harvested severally and in this year most of them will sell their fruits at an average of Ksh 12-25 depending with fruit sizes. Some sell to us while others to other major exporting companies for exports.

Below entails what you expect from the package.

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THE PACKAGE

Earn more than 10 million per acre with 40k investment.

Project: Hass avocado, contract farming
Cost: 40,500

What’s in 40.5k?

  • soil Testing
  • 150 hass avocado seedlings at a spacing of 17*17ft,
  • Digging of holes 2ft by 2ft,
  • Soil Treatment with organic manure (earthree) with water retainer (Absober)
  • delivery of seedlings and planting,
  • Market connection.

We start by first coming to your farm location to monitor and doing soil analysis to ensure that the project will be successful. The best time to do the project is during the rainy season either short or long rain, but in case you have an irrigation system you can do it any time. The best time to engage us is now to plan for the coming rain season. We do not charge anything for consultation the only cost is for transport to your farm at Ksh 20 per km from Nairobi for field visitation.

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Hass Avocado Package

The least Forecaster returns for the first 10 years in a one acre land is as follows.

Return for an acre with 150 trees. (prices of hass fruit range between Ksh 8 – 30 in local market depending on size.

HERE IS THE ESTIMATE RETURN FROM AN ACRE

True to type Hass Avocado Fruit


• The first two years –growth stage
• 2nd year (harvest of 50 fruits per tree) – 60k
• 3rd year (harvest 200-250 fruits) – 240k
• 4th year – (400 fruits) – 480k
• 5th year – (800 fruits)- 900k
• 6th year – (1000 fruits) – 1.08m
• 7th year –(1100 fruits) – 1.3m
• 8th year –(more than 1300 fruits) – 1.5m
• 9th year – (more than 1500 fruits) – 1.8m
• 10th year – (more than 1750 fruits) – 2m

Total cumulative returns Ksh 10 million

by 20th year you expect?
• 20th year – (3500 fruits) – 4m

Note that:

We have calculated the prices of each fruit at a minimum price of Ksh 8 as of lowest in the local market, The prices go up to even Ksh35 per fruit (REF KAKUZI).


The life span of a hass avocado tree is more than 50 years, let your idle land become profitable by investing Ksh 40,000 in it and we will do the work for you or you can buy the seedlings from us each at Ksh 150. The good thing about hass avocado is that its market is growing each day and big companies like kakuzi and sasini have embraced this opportunity by planting thousands of their acres under hass avocado due to stability of the hass market and high returns. Rumors has it that our Vice President has planted acres due to the good opportunity the industry present. Then why not me?

The hass avocado is the least stressful form of farming because it’s a tree with least form of management you just have to visit your shamba when harvesting. Once you enroll in our package we will give you detailed information on our market, management practices, what you can inter crop with and recover your investment within some month’s.

Don’t miss this opportunity this short and long rain season we already have many acres under this project ongoing in Kenya.

Our contacts 0706222888 / 07236662773

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OTHER COST INVOLVED

Contact us or fill out the booking form we will contact you  CLICK HERE.

PACKAGE FORM
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