Commodity chain : Avocado
- Country :
- Kenya
- Production area :
- Maragua, Thika, Embu, Kirinyaga, Kiambu, Nyeri, North of Murang’a
- Start date of the Organic Fair Trade program :
- 2008
- Number of recipients :
- 802 producers located in various regions North of Nairobi.
- Crop :
- Avocado
- Surface area :
- 1,375 tons of avocado produced each year.
Background History of the Project
This project of transforming avocado oil in Kenya started in 2008 under the leadership of Olivado EPZ. It mainly covers producers owners of small farms (often previously held by intermediaries). Huilerie Emile Noël, the second most important buyer of this chain has committed itself to the buying of this production as of 2010.
Local Partners
-Olivado EPZ Ltd (a company specialising in the transformation of avocado oil, located 85 km North of Nairobi and 3 km away from the Thika-Sanaga road, employing 5 permanent employees and 10 to 15 part time employees, according to the peaks in production).
-802 producers
Context/Stakes
Most farmers own farms with an area of 0.6 to 2 ha (1.5 to 5 acres), but there exists some "big" farmers. Mixed farming exists, combining commercial crops such as coffee with food-producing crops such as corn and beans. Most farms also own a cow for the production of milk. The production processes are labor intensive ( mostly family workforce with part time employees during peak times of production) and do not use fertilisers or chemical products. Commercialisation of the various productions is achieved through farmers co-ops or through shopkeepers who get their supplies directly from the farm.
Prices of avocados are usually set by the laws of offer and demand: in a bad year such as 2008, prices are very high and, during a good season, they fall drastically. When the crops are good, many fruits are not sold for their value, which has led to farmers uprooting their plantations as they were not lucrative any more.
Program Description
Olivado signs a contract with each producer who, due to their wide geographical coverage and to previous projects which did not succeed, are not organised as a group. Olivado fosters them to do so.
Meetings with producers are scheduled between September and November.
To ensure a stable supply of avocado, Olivado has set a price which is independent of volumes. Biological premiums, premiums on fair trade, social premiums and commitment premiums add up to the stable market price. Producers are paid within 4 days of the weighing of their production at the company, which carries the ripe fruits from the farm to the factory. Producers committing 100% of their crop may get advance payments.
Olivado implemented a quality and productivity enhancement program to which all producers are given encouragement to join, without any obligation. Producers representatives can be appointed.
The company assists the producers who wish to convert their farm to biological agriculture with a technical support which enables for a better consistency throughout the farm.
Company engaged in this Commodity Chain
