• Friday, 13 September 2024
High demand boosts Kakuzi’s macadamia nuts earnings

High demand boosts Kakuzi’s macadamia nuts earnings

Kakuzi’s macadamia nuts business posted a profit of Sh32 million in the half-year ended June this year, an improvement from a Sh328 million loss recorded during a similar period last year.

The agricultural firm’s managing director, Chris Flowers, said that the international demand for macadamia returned to pre-COVID levels in the first six months of 2024.

However, nuts prices fell behind the 2021 levels despite growing steadily.

“In line with our expectations, the global macadamia industry has taken a positive turn, with all markets recording a return to near normal (pre-COVID pandemic) demand levels.  Global stock levels from 2023 have largely been consumed, and 2024’s production, which is currently being harvested and processed, is well-committed to the market,” Flowers said.

Overall, the company pre-tax profit stood at Sh507 million, buoyed by avocado and macadamia earnings.

“Despite the challenges posed by reduced avocado production in Peru and Mexico, Kakuzi has shown resilience in the face of a tight supply situation in Europe and the USA,” the MD said.

“The impact of climate change on agriculture, including our own, has been significant, with the rainfall last April nearly double the normal amount, negatively affecting avocado production. However, we remain steadfast in our commitment to overcoming these challenges.

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