Avocado exporters are facing significant challenges due to the ongoing Red Sea crisis, which has disrupted traditional shipping routes to Europe.
The closure of the Suez Canal has forced exporters to reroute shipments around the Cape of Good Hope, extending transit times from approximately 30 days to over 50 days. This prolonged journey compromises fruit quality, leading to increased spoilage and financial losses for exporters
The extended shipping duration has resulted in higher freight costs and reduced profit margins. Controlled Atmosphere containers, designed to preserve fruit freshness, are now being pushed to their limits, with some shipments arriving overripe or spoiled.
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Kakuzi PLC, a major Kenyan avocado exporter, reported a projected 25 percent drop in 2024 profits due to these logistical challenges.
In response, Kenyan exporters are exploring alternative markets in the Gulf, North Africa, and Southern Africa, which offer shorter transit times and more predictable logistics.
Additionally, there is a shift towards value-added products such as avocado oil and frozen pulp, which have longer shelf lives and are less susceptible to shipping delays
Despite these efforts, challenges remain. Competing exporters from countries like Peru and South Africa, which are not affected by the Red Sea disruptions, continue to supply European markets with fresher produce due to shorter shipping routes
Furthermore, alternative markets like China and India present hurdles, including high import tariffs and lower consumption rates.
Industry leaders emphasize the need for improved cold chain infrastructure and diversification of export markets to enhance resilience against such disruptions. Without strategic adjustments, Kenya’s position in the global avocado market may be at risk
