Working Capital Kenya
Olivado (EPZ) limited (“Olivado”) is among the world’s leading producers of organic certified extra virgin avocado oil. From its processing facility based in Kenya, Murang’a county, it operates a vertically integrated farmer-to-market model under the Olivado brand. The avocado oil is sold for export to traders and retailers in over 30 countries. Alongside its primary activity of avocado oil production, Olivado has installed a biogas plant in 2019 to produce biogas and fertilizer from the avocado waste generated through the oil processing.
Olivado works directly with its 2,200 smallholder farmers to reliably trace the quality and source of the avocados under its organic and fairtrade scheme. The CFC loan is used to provide advances and timely payments to the farmers at the beginning of the avocado harvest season. Olivado guarantees to buy at least 95% of each farmer’s yearly avocado crop thus providing them secure income. Every farmer selling organic avocados to Olivado joins the certified organic and fair trade program, gaining access to extensive agronomic training programs, rigorous farm monitoring procedures and tools, and centralized avocado oil processing facilities.
More than 3,000 farmers are expected to benefit from Olivado’s inclusive avocado sourcing model, increasing their income levels by around 200% over the next 5 years.
The CFC has extended a trade finance loan to Olivado to accommodate the increasing international demand for organic certified avocado oil. The funds are used to buy more avocados from existing farmers, and to integrate some 160 new farmers into Olivado’s value chain each year.
Project overview CFC-2019-14-0027
|Project type:||Regular project||Organization:||OLIVADO EPZ Limited|
|Commodity:||Fruits||CFC Financing:||EURO 500,000 trade loan|
|Country:||Kenya||Cofinanciers:||Local banks and/or impact lenders: Euro 1,000,000|
|Form of finance:||Loan||Target Impact indicators:||Number of smallholder farmers impacted: 3,000 avocado farmers Additional annual income per farmer: USD 250 (+200%) Jobs created: 26 jobs (from 75 to 101 jobs, of which 44% women).|