The purpose of the project is to add value to avocados in the
Kilimanjaro region of Tanzania by up-scaling a pilot outgrower scheme
and constructing a packhouse with oil press facilities. It will enable
Africado and its outgrowers to market their products on the
international market, aiming at EU export sales, containerized via
Mombasa.
Until now, Tanzanian
horticultural exports have been confined to airfreight. This
project would add to a growing number of exporters exploring the
cheaper and less emissions-intensive option of seafreight.
The EU market has a particular preference for 'hass' avocados, and
has experienced exceptional growth figures in the last 10 years. The
global market for avocado oil is significant and demand continues to
grow. Africado is ideally located on Kilimanjaro in Tanzania to seize
off-peak market opportunities before the Chilean season and at the end
of the South African and Peruvian seasons, when EU prices are high.
Africado's
proximity to the port of Mombasa and the availability of labour in the
area make the production, processing and export logistics of avocados a
profitable endeavour. In the first phase, Africado established its
nursery and nucleus orchard at Africado, and began a pilot outgrower
scheme.
Africado planted 90 ha
orchard of clonal avocado trees on its own nucleus orchard and a
diverse group of outgrowers planted 19 ha of trees from the nursery of
Africado since 2007. Small harvests from the first trees were exported
in 2010 and 2011 via a third party pack-house in Nairobi.
During
the second phase of the project, with funding from AECF, Africado will
increase the capacity of its nursery from 10,000 plants to 80,000
plants, irrigation facilities will be expanded and water secured with
the installation of a bore hole and reservoir. 100% of grafted plants
for the outgrower scheme will come from the nursery on the nucleus
farm.
Together with a contracted NGO partner Tanzania Agricultural Productivity Program (TAPP), the company will form farmer groups for the micro outgrowers (mostly via existing coffee cooperatives structures), provide technical advice and training, subsidized avocado plants from the orchard, transportation and guarantee all off-take of avocados at or above prevailing market prices for local varieties.
Together with a contracted NGO partner Tanzania Agricultural Productivity Program (TAPP), the company will form farmer groups for the micro outgrowers (mostly via existing coffee cooperatives structures), provide technical advice and training, subsidized avocado plants from the orchard, transportation and guarantee all off-take of avocados at or above prevailing market prices for local varieties.
For produce that is up to export quality standard, the growers receive a premium of more than 100% 3 months after delivery.
The Project is suitable for AECF funding because:
The Project is suitable for AECF funding because:
- Together with Rungwe (another recipient of AECF funding), Africado will create a cluster within the AECF portfolio of avocado producers, amplifying the M&E + learning function of the Fund.
- This project will demonstrate the mutual advantages and synergies of such (effective) joint ventures between smallholders and commercial farmers by adding a substantial outgrower component to an existing plantation-based commercial unit.
- It will introduce a new variety of tree crop to the intensive mixed agriculture practiced by smallholders on the slopes of Kilimanjaro.
- The Avo Oil component is unique to this project and a significant addition, because it gives outgrowers an outlet for their whole production.(not just the high quality fraction).
