NAIROBI, April 15 (Xinhua) -- Kenya's avocado value chain, spanning growers, aggregators, processors, and exporters, is upbeat that China's zero-tariff policy, set to take effect on May 1, will unlock significant opportunities for the sector.
Kenya, a leading exporter of Hass avocados, is among 53 African countries expected to benefit from duty-free access to the Chinese market, a move likely to enhance the competitiveness and volume of its exports.
Ernest Muthomi, chief executive officer of the Avocado Society of Kenya, welcomed the tariff exemption, saying it would spur exports to China and generate spillover benefits for local farmers and aggregators.
"We are happy because without tariffs, we will be able to export avocados to China in huge volumes, unlike previously when import taxes on agricultural produce were in place," Muthomi told Xinhua in a recent interview.
He added that several Chinese firms have already established processing facilities in Kenya to produce avocado oil for export to China, creating jobs and boosting value addition in the sector.
Richard Ndung'u, chairman of the Kenya-China (Asian) Trade and Investment Promotion Initiative under the Kenya National Chamber of Commerce and Industry, said the tax waiver will revitalize Sino-Kenyan bilateral trade, with agricultural value chains set to benefit the most.
"We are urging our exporters to seize the opportunity presented by the zero tariff to penetrate the Chinese market," Ndung'u said.
He noted that Kenya, as one of the world's leading avocado producers, is well positioned to enhance product quality and strengthen its competitiveness in China.
Hasit Shah, managing director of Sunripe Limited, a local firm involved in the cultivation, processing, and export of avocados, said the policy would be a major boost for indigenous companies engaged in value addition and seeking to expand their presence in the Chinese market.
"The incentive will motivate us to invest further along the value chain. We can scale up production of cashew nuts and vanilla for export to the more than one billion consumers in the Chinese market," he added.
Shah also called for stronger partnerships between Chinese and Kenyan companies to expand investment in value addition, unlock growth, and create jobs.
Muhammad Khan, operations manager at Sanmark Limited, an avocado oil processing company based at the Athi River Export Processing Zone on the outskirts of Nairobi, said the policy is a positive gesture that will boost exports and stimulate local industries.
"It is encouraging to see these tariffs eliminated by China, and we look forward to exporting more avocado oil and boosting incomes for local farmers," Khan said. "I also believe Chinese investors will be encouraged to enter the Kenyan market and set up factories for manufacturing avocado oil." ■