Kenya is looking to diversify its macadamia export destinations as it seeks to safeguard the industry from overdependence on a handful of established markets.
The Agriculture and Food Authority has revealed plans to intensify its presence in India, aiming to stabilise income for farmers and processors while reducing vulnerability to international price swings.
The authority explained that a targeted strategy for India is under development.
“The strategy will provide a specific, accurate, and clearer path that the Kenyan macadamia industry ought to take. The strategy will include, but not be limited to, business-to-consumer (B2C) and business-to -business (B2B) activities and will be guided by indepth research of the macadamia market in India,” AFA said, adding that a consultant has been recruited to guide this expansion.
India is emerging as a high-potential market due to its growing population of health-conscious consumers and improved affordability following reductions in import duties. This growth presents a promising opportunity for Kenyan producers, who currently ship 95 percent of their macadamia output abroad.
Most of Kenya’s macadamia exports go to the US, Germany, Japan, the Netherlands and China, primarily serving the confectionery and snack food sectors. Yet the industry faces challenges, including fluctuating global prices, inconsistent yields, premature harvesting, and pest damage.
Although Kenya is the world’s third-largest producer of macadamia, AFA warned that relying heavily on just a few markets exposes farmers to economic risks. In 2024, more than 70 percent of Kenya’s 20 tonnes of macadamia kernels and nuts in shell were purchased by these five countries.
“The over-reliance on these five markets results in high vulnerability of Kenyan macadamia prices to emerging market challenges. Further, Kenya’s macadamias are largely used as a raw material in manufacturing. As a result, it fetches lower prices, resulting ultimately in diminished revenue to farmers and processors, and a low foreign exchange income for the country,” the regulator said.
The authority noted that even with multiple trade missions to other macadamia-consuming countries, global awareness of Kenya’s quality nuts remains limited.
“To counter the stated negative effects, Kenya needs to develop and implement a research-based market expansion strategy for high-potential, non-traditional markets that will result in a reduction of over-reliance, thereby reducing the vulnerability of Kenyan macadamia prices. The strategy will provide a specific, accurate, and clearer path that the Kenyan macadamia industry ought to take,” AFA said.
The plan to focus on India aims to create new demand channels, improve profitability for farmers and processors, and strengthen foreign exchange inflows by reducing dependence on a few traditional buyers.
