@BusinessDaily

Coffee farmers switch to avocado amid global boom

3 months ago, 6 July 09:21

By: Reuters

When Steve Mbugua uprooted more than 500 coffee trees on his half-acre farm in Nyeri county eight years ago, his neighbours thought he was making a mistake.

The farmer replaced them with 500 seedlings of Hass avocados - for which there is now huge export demand - and today makes Sh400,000 (nearly $4,000) a year from his harvest.

That is nearly ten times what he earned from coffee.

“I knew I would make money,” he said, particularly as warmer conditions and worsening drought make it harder to grow coffee in some parts of Kenya where it earlier thrived.

Unlike coffee trees, Mbugua said, avocado trees require little maintenance, and their fruit is a good earner.

Coffee prices, on the other hand, have gone the wrong way: the price on global markets dropped from about $2.80 a pound in 2011 to about $1.12 today.

And with coffee harvests also varying in the face of harsher and less predictable weather, thousands of coffee farmers are switching to avocados, said Joseph Ntere Njau, former chief of nearby Meru county, one of Kenya’s main avocado-growing areas.

Popularity

Avocados’ popularity has soared around the world in recent years, driven by increased awareness of their health benefits, experts say.

In the United States, for instance, per capita consumption of avocado doubled in the decade to 2006, reaching 3.5 pounds (1.6 kg), and doubled again to 7.1 pounds (3.2 kg) in 2016, according to data from the US Department of Agriculture.

Kenyan exports of the fruit have climbed from nearly 39,000 tonnes in 2015 to about 47,000 tonnes in 2016, worth around Sh5.2 billion ($52 million), said James Weru, marketing manager at Fair Trade Enterprises Limited, a fresh produce exporter.

Kenya is now Africa’s second-largest producer of avocados - behind South Africa, Weru said - with 7,500 hectares under cultivation.

Seventy per cent of growers are small-scale farmers.

About one-fifth of the annual harvest is exported, he said, and goes mainly to markets in Europe and the Middle East.

“(That is) due to the high demand ... as avocado is considered to be a very nutritive fruit and has a lot of health benefits,” he told the Thomson Reuters Foundation.

Avocado farmer Mbugua said Kenya has a good climate for the crop, adding that the Hass varietal that he and many grow is tolerant of different rainfall conditions and easy to propagate.

It also requires little labour, is resistant to pests and disease, and has a long growing season, he said.

Caution needed

With demand continuing to climb, Weru’s company said it needs another 10,000 farmers to grow Hass avocados for export.

But some caution against rushing to uproot coffee trees.

Okisegere Ojepat, who heads the Fresh Produce Consortium of Kenya, a trade association representing growers and exporters in the horticulture industry, noted that avocado trees take three years to fruit, and a further two to reach maturity.

“So what will farmers be doing as they wait?” he said. “I cannot advocate cutting down a tree to plant another tree.”

And, he added, coffee demand would likely revive as the government and the private sector have been ...
Read More


Category: business news markets economy corporate opinion lifestyle

Suggested

11 hours ago, 00:03
@TheStar - By: Elizabeth Kivuva ...
Petrol price decreases as kerosene rises in latest ERC review

Households depending on kerosene for cooking and lighting will continue to pay more following a new review on retail pump prices by Energy Regulatory Commission. The price of kerosene increased by Sh0 ...

Category: topnews news business
11 hours ago, 00:00
@StandardMedia - By: Edward Macharia
Fuel prices up weighed by rising crude oil cost

The average cost of imported super petrol went down by about two per cent last month compared to August. ...

Category: business news topnews
16 hours ago, 19:00
@DailyNation - By: Bonface Otieno
No respite as diesel, kerosene prices increase

Super petrol prices have dropped by Sh1.06 per litre while diesel and kerosene went up Sh1.60 and Sh0.43 respectively in the latest review by the ERC. ...

Category: topnews news business
16 hours ago, 19:00
@DailyNation - By: David Mwere
Kenyan envoys pay billions in rent as houses rot in London, US

Diplomats in London and New York have been forced to rent homes as residences built by taxpayers fall apart due to neglect, the Auditor-General reveals. ...

Category: topnews news business
16 hours ago, 19:00
@BusinessDaily - By: Patrick Alushula
WB says NSE bond market cause of high interest rates

The World Bank says Kenya spends three times more to service domestic debt compared to external debt due to lack of transparency in the Nairobi Securities Exchange (NSE) secondary bond market. ...

Category: business news
11 hours ago, 00:00
@StandardMedia - By: Edward Kosut
Desperate farmers sell 90kg bag of maize for between Sh1,000 and Sh1,200

A 90kg bag of maize is currently retailing at between Sh1,000 and Sh1,500. ...

Category: business news

@BusinessDaily

Coffee farmers switch to avocado amid global boom

3 months ago, 6 July 09:21

By: Reuters

When Steve Mbugua uprooted more than 500 coffee trees on his half-acre farm in Nyeri county eight years ago, his neighbours thought he was making a mistake.

The farmer replaced them with 500 seedlings of Hass avocados - for which there is now huge export demand - and today makes Sh400,000 (nearly $4,000) a year from his harvest.

That is nearly ten times what he earned from coffee.

“I knew I would make money,” he said, particularly as warmer conditions and worsening drought make it harder to grow coffee in some parts of Kenya where it earlier thrived.

Unlike coffee trees, Mbugua said, avocado trees require little maintenance, and their fruit is a good earner.

Coffee prices, on the other hand, have gone the wrong way: the price on global markets dropped from about $2.80 a pound in 2011 to about $1.12 today.

And with coffee harvests also varying in the face of harsher and less predictable weather, thousands of coffee farmers are switching to avocados, said Joseph Ntere Njau, former chief of nearby Meru county, one of Kenya’s main avocado-growing areas.

Popularity

Avocados’ popularity has soared around the world in recent years, driven by increased awareness of their health benefits, experts say.

In the United States, for instance, per capita consumption of avocado doubled in the decade to 2006, reaching 3.5 pounds (1.6 kg), and doubled again to 7.1 pounds (3.2 kg) in 2016, according to data from the US Department of Agriculture.

Kenyan exports of the fruit have climbed from nearly 39,000 tonnes in 2015 to about 47,000 tonnes in 2016, worth around Sh5.2 billion ($52 million), said James Weru, marketing manager at Fair Trade Enterprises Limited, a fresh produce exporter.

Kenya is now Africa’s second-largest producer of avocados - behind South Africa, Weru said - with 7,500 hectares under cultivation.

Seventy per cent of growers are small-scale farmers.

About one-fifth of the annual harvest is exported, he said, and goes mainly to markets in Europe and the Middle East.

“(That is) due to the high demand ... as avocado is considered to be a very nutritive fruit and has a lot of health benefits,” he told the Thomson Reuters Foundation.

Avocado farmer Mbugua said Kenya has a good climate for the crop, adding that the Hass varietal that he and many grow is tolerant of different rainfall conditions and easy to propagate.

It also requires little labour, is resistant to pests and disease, and has a long growing season, he said.

Caution needed

With demand continuing to climb, Weru’s company said it needs another 10,000 farmers to grow Hass avocados for export.

But some caution against rushing to uproot coffee trees.

Okisegere Ojepat, who heads the Fresh Produce Consortium of Kenya, a trade association representing growers and exporters in the horticulture industry, noted that avocado trees take three years to fruit, and a further two to reach maturity.

“So what will farmers be doing as they wait?” he said. “I cannot advocate cutting down a tree to plant another tree.”

And, he added, coffee demand would likely revive as the government and the private sector have been ...
Read More

Category: business news markets economy corporate opinion lifestyle

Suggested

11 hours ago, 00:03
@TheStar - By: Elizabeth Kivuva ...
Petrol price decreases as kerosene rises in latest ERC review

Households depending on kerosene for cooking and lighting will continue to pay more following a new review on retail pump prices by Energy Regulatory Commission. The price of kerosene increased by Sh0 ...

Category: topnews news business
11 hours ago, 00:00
@StandardMedia - By: Edward Macharia
Fuel prices up weighed by rising crude oil cost

The average cost of imported super petrol went down by about two per cent last month compared to August. ...

Category: business news topnews
16 hours ago, 19:00
@DailyNation - By: Bonface Otieno
No respite as diesel, kerosene prices increase

Super petrol prices have dropped by Sh1.06 per litre while diesel and kerosene went up Sh1.60 and Sh0.43 respectively in the latest review by the ERC. ...

Category: topnews news business
16 hours ago, 19:00
@DailyNation - By: David Mwere
Kenyan envoys pay billions in rent as houses rot in London, US

Diplomats in London and New York have been forced to rent homes as residences built by taxpayers fall apart due to neglect, the Auditor-General reveals. ...

Category: topnews news business
16 hours ago, 19:00
@BusinessDaily - By: Patrick Alushula
WB says NSE bond market cause of high interest rates

The World Bank says Kenya spends three times more to service domestic debt compared to external debt due to lack of transparency in the Nairobi Securities Exchange (NSE) secondary bond market. ...

Category: business news
11 hours ago, 00:00
@StandardMedia - By: Edward Kosut
Desperate farmers sell 90kg bag of maize for between Sh1,000 and Sh1,200

A 90kg bag of maize is currently retailing at between Sh1,000 and Sh1,500. ...

Category: business news
Our App