Listed agricultural firm, Kakuzi has joined the retail space with a farmers’ market as part of a diversification strategy to increase domestic sales and cushion itself from global market headwinds.
The firm said it is ‘gearing up to make its pioneer property development investment in the retail sector’ that will anchor Kakuzi Farmers Market.
The retail outlet will be located opposite the firm’s headquarters on the Nairobi-Nyeri highway, with the firm targeting to provide a decent place for up-country travellers to stop and refresh.
A farmers’ market allows local farmers and growers to sell their produce directly to the public, hence will see Kakuzi sell its produce of Hass avocados, frozen and fresh blueberries, value-added macadamia products, beef and goat meat, honey, hay and fruit tree seedlings.
It will also provide stalls for the local community to retail vegetables, cereals, and fruits including mangoes, oranges and bananas as well as community items like clay pots and baskets.
The farmers market will feature a coffee shop to be outsourced and operated by a local restaurant retail chain.
Cushion earnings
The Nairobi Securities Exchange-listed grower and exporter has diversified into the local market to cushion its earnings from global market challenges such as price falls and stiff competition coinciding with a prevailing macadamia glut.
“In addition, the Kakuzi Farmers Market will also provide a retail opportunity for a section of the local smallholder farmers as we plan to provide an opportunity for them also to sell their produce and wares to the captive market on this new road that traverses through Murang’a, Kirinyaga and Nyeri counties,” said Kakuzi chairman Nick Ng’ang’a.
The firm is also set to commission a macadamia oil extraction plant to meet the growing demand for value-added products within its superfoods portfolio.
“Having the combination of avocados, macadamias and hopefully blueberry as export crops to America, Japan, Europe, China, the Middle East and the UK, as well as a strong domestic value addition range, we believe, gives us the greatest opportunities to minimize risk and maximize returns in these difficult international market conditions,” Kakuzi managing director Chris Flowers added.
The diversification strategy includes the production of macadamia and blueberries, the rearing of goats for meat and agroforestry.
It plans to start export of blueberries, adding that it is in the final stages of a commercial appraisal process for a full-scale Blueberries production venture at Sh4 billion estimated cost. BY DAILY NATION