The Kenyan avocado season has come to an end for the majority of volumes. Exporters have drawn up a mixed assessment, between satisfaction with production performance and disappointing commercial results due to persistent difficulties brought on by the Red Sea crisis.
Khalidh Khan, CEO of Fenesi Growers, shares, "The bulk of Kenya's avocado volumes are available between March and October. The campaign just ended and saw a large production nationwide, but we faced major challenges in both our export markets, the Middle East and Europe."
The exporter continues, "The Red Sea crisis is at the root of these challenges. In Europe, our avocados are taking much longer to reach their destination, which is causing a considerable rise in transport costs and lower exported volumes throughout the season."
The difficulty of reaching the European market is forcing exporters to turn to the other main market for Kenyan avocados, the Middle East, resulting in an abundance of supply. Khalidh says, "Repeatedly during the season, the Middle East market was flooded with avocados. The normal dynamics of supply and demand lead to lower prices."
"All in all, I'm not entirely satisfied with last season's sales. At a time when export volumes are decreasing, and prices are decreasing, our costs, especially freight, are not easing," the exporter adds.
On the bright side, Kenyan exporters continue to enjoy calm competition. Khalidh says: "There is production in East Africa, in Rwanda or Tanzania for example, but the volumes are not on our scale and we can't really talk about competition. In other countries where volumes are higher, such as Morocco, the season is too short and doesn't overlap much with ours. Only the Latin American origins are in direct competition with us, but we're doing well."
The only thorn in the side of Kenyan avocado exporters at present remains the Red Sea crisis, Khalidh concludes, "We can only hope for a rapid resolution of the crisis. In the meantime, the season is unfolding with both positive and negative aspects."
For more information:
Khalidh Khan
Fenesi Growers
Tel: +254725222777
Email: [email protected]
www.fenesigrowers.com