Kenyan avocados face tough European market as shipping crisis drags on

KENYA – Kenyan avocado exporters are facing significant trade difficulties this season, even as demand in Europe increases following the end of the Mediterranean supply period.

According to Paul Kyalo, CEO of Konza Tropicals, the seasonal transition has created market opportunities, but logistical problems are holding Kenya back.

The CEO of Konza Tropicals, said Kenya is now supplying the European market as Mediterranean and winter producers wrap up their seasons. He noted that this shift has led to higher demand and better prices for Kenyan avocados.

However, despite the improved market conditions, he explained that exporters have not gained much due to serious challenges on the logistics front.

At the center of the issue is the ongoing crisis in the Red Sea, which has forced freight to avoid the Suez Canal. This change has added nearly two extra weeks to the usual shipping time.

“We’re still living with the crisis in the Red Sea. As everyone knows, due to security concerns in the Red Sea, most sea freight is now rerouted around the Cape of Good Hope. This has extended shipping durations to key European markets to over 32 days,” Kyalo explained.

While airfreight seems like a quick alternative, it’s no easy fix. Several European retailers have taken a strong stand against airfreighted produce due to environmental concerns. On top of that, high demand from the flower and vegetable sectors has pushed up airfreight costs.

Additionally, he said that airfreight costs have risen sharply because of increased demand from flower, herb, and vegetable exporters. This surge has made it hard for avocado exporters to find available space, and the high rates have pushed prices beyond reach in European markets.

Processing industry steps in

As fresh fruit exports slow down, processors are seeing a rise in activity. Many exporters are turning to value-added products like avocado oil.

“We are witnessing a marked decline in export volumes to Europe, with some exporters choosing to temporarily suspend shipments until there is greater clarity or a substantial improvement in the logistics situation,” said Kyalo.

In the meantime, he explained that the industry is expanding into value-added products. Over the past year, about ten new avocado oil extraction facilities have opened, bringing the total number of processors in Kenya to nearly thirty. He said this shift toward processing has helped reduce the risks tied to fresh fruit exports.

This redirection has created a cushion for farmers and exporters, who are now less dependent on unpredictable export routes.

Tougher competition ahead

However, longer transit times have created another concern. Kyalo said that fruit picked and shipped from Kenya in mid-March is only expected to arrive in Europe by late April. This timing coincides with the arrival of early-season fruit from Peru, South Africa, and other producers, creating a flood of supply in the market.

He added that Spain and Morocco have also extended their seasons, which has made the competition even tougher. The increased overlap, he warned, may push prices down and weaken demand for Kenyan avocados arriving later.

Still, there’s some hope. “Kenya remains well-positioned, particularly in the early part of the season. Kenyan avocados have this season an excellent internal quality, higher dry matter content, and a favorable proportion of large to medium calibers—attributes that European buyers greatly value,” he said.

Kyalo concluded by saying that the industry remains cautiously optimistic. He believes that global focus on resolving the Red Sea situation, along with growing interest in both fresh and processed avocado products, could help steady the market in the coming months.

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