Agris, the agriculture and forestry division of Maris and Israeli avocado producer Granot International have established a joint venture to develop a 390-hectare avocado plantation at Agris’ flagship Ndabibi Farm in Naivasha, Kenya.
To facilitate this development, impact investor AgDevCo has provided a USD 8mn mezzanine loan to support new avocado orchards and adds to its existing avocado investments in Tanzania and Mozambique, which now has a total of more than 1,250 hectares of production.
Avocado demand in Europe and Asia is on the rise and the sector continues to attract investment from local and international investors. And Kenya –Africa’s largest exporter of the fruit – has not been left out with the government keen on establishing new markets outside of the European market. Last year, it began exporting avocado produce to China and is seeking opportunities in Malaysia.
Our partnership with Agris and AgDevCo allows us to harness Kenya’s potential as one of the best places in the world to grow avocados,” says Giyora Merom, CEO of Granot. “With a professional value chain we can produce a superior product to other major producing regions. In this partnership we’ve found the East African experience and presence we need.”
Advisers on the deal are Herbert Smith Freehills (London), Prolegis LLC (Singapore), Anajarwhalla & Khanna (Kenya) and Ady Kaplan & Co. (Israel).
About Ndabibi
Ndabibi will serve as Agris’ production hub and agricultural centre. And will increase the production of high-value crops primarily for export alongside short-cycle crops for the local market. The farm expects to employ 2,000 people at its peak.
About Granot International
The Israeli company produces a third of the country’s total avocado yield and has a revenue of more than USD 1.5bn. It is owned by 43 Kibbutzim and Moshavim in the centre of Israel and has twenty factories and corporations, which are mainly focused on agriculture.