Logistics costs challenge Kenyan avocado exports
High freight costs are affecting avocado shipments from Kenya, but the local industry and new markets like India are sustaining demand and prices.
Rising international transport costs continue to impact the competitiveness of Kenyan avocados this season. According to Allan Njoroge , while export volumes remain at acceptable levels, the pace is slower than last year due to logistical uncertainty and increased shipping costs, particularly to Europe and the Middle East.
Volatility in shipping routes has created additional difficulties for exporters, with uncertain delivery times and a lack of predictability in transit times. This situation has increased the price of the product at its destination, limiting its competitiveness in traditional markets. Despite this, demand remains strong and prices have managed to hold at levels considered satisfactory by the sector.
Given this context, Kenyan exporters are diversifying their destinations, with a growing focus on Asia. Markets like China and especially India have gained importance, despite challenges such as tariffs of up to 30%. The reduced presence of competitors like Tanzania at this stage of the season has opened up opportunities for Kenyan avocados, particularly for the larger sizes demanded by Indian buyers.
In parallel, the local processing industry has established itself as a key support for the sector. Strong demand from processing plants focused on avocado oil production is absorbing significant volumes of fruit, helping to support prices and reducing the risk of losses. In a complex global environment, this combination of market diversification and domestic demand is becoming fundamental to the stability of the export business.
Source: freshplaza.es
