The avocado exporter who dared go big

‘‘We found ourselves at the right time at the right place because when we were starting out, the avocado hype was just coming up. There was a lot of talk about healthy eating, and good fats so that sold avocados, especially for export,’’ says Ms Njeri, who is now the managing director of Saipei Food in Ruiru.

Consistency was a shield they held onto, and starting out, Ms Njeri reckons they were quite green, unfamiliar with the requirements and nuances of the export industry.

‘‘It has not been easy of course. Every year there are new lessons with every export container. We have experienced both good and bad years,’’ she says.

Read: Kenyan avocado exports to China jump 10 times on demand

The business model

Saipei Foods sources its fruits in two ways; through contracted growers and direct suppliers.

‘‘When there is a lot of fruits in a season, we prefer to buy from the suppliers because it is less headache,’’ she says.

However, most of the farmers grow a wide array of the fruit variety allowing them to select exactly what they need.

Rejected fruits, destined for wooden crates, are repurposed into oil as a value addition, though this is not the company's primary focus.

 After receiving the fruits, Ms Njeri says, ‘‘In the pack house, we begin by washing the fruit, focusing on the cut tip to prevent rotting or disease."

Only the finest produce makes the cut for export.

Initially, the fruits are washed to remove farm dirt. After cleaning, they are then packed according to weight then palletised and put in the cold room. In the cold room, the avocados are cooled for almost eight hours before loading.

‘‘We have to put the fruits at a level where the temperature is maintained until they reach the market so that when put at normal temperature, it starts ripening,’’ Ms Njeri says.

 There are two types of avocados for export; conventional and organic. Conventional avocados are treated with chemicals, either in the farm or in the pack house, to prevent rotting. During processing, fungicide is added to the water to ensure the fruit remains fresh. Organic avocados, however, are processed with only water, without any chemicals.

 ‘‘Given the prolonged transit times due to recent supply chain disruptions, we prefer to export conventional avocados to ensure they remain fresh. For instance, a journey to Holland now takes 40 days instead of the usual 21, so we have to use the anti-fungal treatments to prevent premature ripening and disease,’’ she adds.

The fruit cut

Maturity is a key aspect of knowing what and when to export. If the fruit is not mature, Ms Njeri says you will transport it under the required temperature, but it will not ripen when it reaches the market.

‘‘We have to look at the maturity, the fruit has to have attained certain dry matter and oil content prioritising the post-harvest handling. Every step, from how the fruit is harvested, and transported to how it is handled before it is loaded onto the trucks is crucial. We handle an avocado with the same care like an egg,’’ she says.

 The agripreneur explains that in Kenya, the most predominant sizes are medium to small but larger ones can be found as well.

‘‘We primarily export Hass and Fuerte varieties, avoiding the local kienyeji (indigenous) variety because of its poor travel performance,’’ she adds.

For the preferred export variety, Hass embroils a greasy taste and turns dark purple or almost black when ripe, while Fuerte remains green and has a sweet taste although there is also Pinkerton, which Kenya rarely produces.

Read: Goat meat lovers steadily losing delicacy to export

 ‘‘The countries that mostly buy Fuerte are Turkey, Russia and those in the Middle East. For Hass, it is mostly in Europe. Our main markets are Spain and the Netherlands. We also do a lot of Fuerte to Turkey,’’ she says.

 What are the financial turnovers?

‘‘We are in a good place regarding growth and projections. We can only go higher and get better. Saipei is now a recognised brand. Well, I will not disclose figures but managing almost 100 containers in a season for me is good progress compared to when we started with just 10 containers,’’ says Ms Njeri.

The hiccups

 Like any other business, Saipei has experienced challenges, particularly with the lengthy transit times.

 Additionally, Ms Njeri explains that government regulations an the start and end of the trading season also create a narrower window for operations, especially since their main competitors are in Peru.

 ‘‘When Peru is in the market, our fruit is not very competitive because they have almost the same sizes as ours and their logistics are better and cheaper than ours. So their fruit automatically becomes cheaper given that they also produce in big volumes,’’ she says.

 The government-imposed delays in opening trade dates, not only shrink their window, but also exacerbate deadline issues.

 ‘‘When the vessels depart at the Mombasa port without your goods, it is a risk because these fruits are perishable. We are only making the fruit 'sleep' but not for too long. At some point, the fruit will naturally start ripening, so the biggest challenge is the timelines,’’ Ms Njeri attests.

 Increased documentation restrictions within the Kenyan system have also added to the complexity.

 Fear of failure often stalks the world of entrepreneurs, but that does not threaten Ms Njeri. ‘‘The volatility of the market is our biggest risk but also our biggest opportunity. We are still growing, there are growth challenges, especially with the perishable industry,’’ she says.

The milestones

 What is her sense of pride, given how far Saipei has come?

 ‘‘The little milestones are my sense of pride. We recently opened a branch in Tanzania, which is good progress. We are also in the process of building our own pack house. Additionally, we have also employed several people and collaborated with many farmers, handling significant volumes of avocados,’’ she says.

Having handled the company off the ground with the help of her dedicated employees, Ms Njeri boasts to have mirrored her former employers.

 ‘‘I have been employed before in women-led companies. My two former bosses are my role models and mentors because they made it easier to navigate as a woman. Also, consistency is key even when you have had a very tough season.

Trusting in God as well gives me a sense of purpose.’’

 The lessons

Now successful, one major lesson she has learned is about funding.

‘‘I was sometimes afraid to borrow and be in debt, but it is very hard to grow a business without borrowing. If I had known this earlier, I might have done greater things. Although I do not regret it because this industry has a lot of setbacks even as you invest, it is not always a guaranteed return. You have to keep in mind that not all investments are good but that does not mean you should not invest," she says.

 From two owners, they now have hired five full-time employees and bring in additional casuals when needed.

The biggest lesson, however, that Ms Njeri has picked over the years is not to be afraid to go big and not to lose hope when things go south.

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