Kenyan entrepreneurs are finding new ways to add value to the country’s agricultural produce, with avocado oil emerging as an opportunity to expand food processing and exports. Crofts Ltd, co-founded by former investment banker Miraj Shah and his cousin Mitul, has developed a business exporting Kenyan-made avocado oil to more than a dozen international markets.

Kenya is Africa’s largest avocado producer, giving the company access to a substantial supply of raw materials. Rather than focusing solely on selling fresh fruit, the founders identified an opportunity to process surplus avocados into oil for international customers.

The business demonstrates how agricultural processing can help producers and entrepreneurs capture more value from locally grown commodities while developing products for markets beyond Africa.

Turning surplus avocados into an export opportunity

The idea behind Crofts Ltd was to make use of Kenya’s avocado supply by converting the fruit into a processed product with international commercial potential.

Avocado oil is used in food products and other applications, creating opportunities for businesses that can produce consistent quality and meet the requirements of overseas buyers.

For Kenya, expanding avocado processing could also help diversify agricultural exports beyond fresh produce. Processing offers another route to market for fruit that may not be suitable for premium fresh-fruit sales, provided it meets the relevant quality and processing standards.

Building a business around smallholder farmers

Sourcing sufficient raw materials is an important part of developing an agricultural processing operation. Crofts Ltd has worked with smallholder farmers to obtain avocados, linking local agricultural production with export markets.

Such relationships can create additional commercial opportunities for farmers while helping processors secure the supplies needed to serve international customers.

However, building a sustainable supply chain requires coordination between farmers and processors, including reliable volumes, consistent quality and effective handling of harvested fruit.

Overcoming challenges in international markets

Co-founder Miraj Shah discussed the company’s entrepreneurial journey in an interview with How we made it in Africa editor-in-chief Jaco Maritz. The discussion covered identifying the avocado oil opportunity, overcoming early setbacks, sourcing fruit from smallholder farmers and developing an international customer base.

Crofts Ltd’s expansion into more than a dozen markets illustrates the potential for African agribusinesses to build export-oriented businesses around locally available agricultural resources.

The experience also highlights the importance of identifying a clear market opportunity, developing dependable supply chains and establishing relationships with international buyers.

For Kenya’s agricultural sector, the broader opportunity lies in moving beyond the export of raw commodities towards more processing, product development and value addition. Businesses that successfully connect farmers to these markets could help expand export earnings and create new opportunities across the agricultural value chain.