By Eddah Waithaka
Kakuzi PLC, a leading agribusiness company, has detailed a strategic expansion plan to improve its return on investment metrics and reinforce its established status as a globally integrated business.
Speaking at the company’s 96th Annual General Meeting, Kakuzi PLC Nicholas Ng’ang’a said the agribusiness company, which has a vision to be Africa’s leading producer and exporter of superfoods, would continue to focus on sustainable crop and livestock production to enhance shareholder returns.
“The company is also exploring non-agricultural revenue streams that are in line with our long-term strategies. Ongoing diversification plans were also in full swing to reduce the company’s dependence on two key crops (macadamia and avocado), with the blueberry pilot project showing positive results,” he added.
The diversification strategy also includes a market expansion programme with increased domestic sales and exports to emerging markets such as India and China, beyond the current European base.
“Kakuzi PLC has over the last few years laid a solid corporate governance, business growth and return on investment foundation. We are not just a farm, we are now an integrated, sophisticated agribusiness enterprise with a capacity to be a leading player in the international markets,” Mr Ng’ang’a said.
He added, “We must continue to make good decisions to sustain growth with diversification of crops, developing our markets, both domestically and internationally, and our value-added range being vital pillars of our plans. Still, we must ensure we do this responsibly and responsively to climate action needs.”
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“Our planning is and must remain for long term value rather than short term returns”.
Mr Ng’ang’a emphasized adding that the company has maintained an enviable track record on dividend payments over the last 5 years.
As part of its strategic expansion initiatives, Kakuzi PLC’s Managing Director, Mr Chris Flowers, has confirmed the company’s intention to significantly increase avocado production and exports. The company aims to increase production from 3 million four kilo equivalent cartons to 5 million within the next decade.
“This will be achieved by a combination of young orchards coming online and completing the plantings next year, as we also seek to mitigate market and shipping risks by using different varieties that mature during different periods of the year,” Mr Flowers said.
He added that the production of macadamia nuts will also be increased from 900 tonnes of kernels to 1,500 tonnes over the next ten years.
To facilitate sustainable production, Mr Flowers says Kakuzi is focusing on strategic water harvesting and irrigation to improve yields, while introducing new macadamia varieties from Hawaii and perhaps, in time, the latest Australian varieties.
In the area of environmental stewardship, Kakuzi is working closely with government and commercial stakeholders to expand the use of integrated pest management and technology in agriculture to minimise the use of chemicals.
As part of the company’s agricultural technology (AgTech) ventures, Mr Flowers highlighted investments in artificial intelligence systems for plant breeding and management.
“At Kakuzi, we are clear that artificial intelligence (AI) will undoubtedly have a role to play in our operations, and we plan to invest in AI-linked Ag-tech solutions as part of our commitment to increasing our operating efficiencies,” Mr Flowers said.
In the previous year, Kakuzi reported a pre-tax profit of Ksh 664 million, with a pre-tax loss of Ksh 354 million specifically attributable to its macadamia operations, which impacted the overall financial performance.
The operations of the Kakuzi avocado division performed well and recorded a profit before tax of Ksh 1.4 billion, up from Ksh 0.8 billion recorded in the previous year.
