Agricultural firm Sasini is scouting for new markets for its avocados and macadamia nuts in China and India, as its fruit exports to the traditional markets in Europe and the US face headwinds while the Middle East crisis escalates.
The company says moving produce through the Suez Canal and the Strait of Hormuz has proved difficult because of the volatile security situation, while navigating around the Cape of Good Hope in South Africa is longer and twice as expensive, making its exports uncompetitive in their final destinations—Europe and the US.
“The one business that has really been affected this year has been our fruit business and understandably so because the product is perishable and so when the Suez Canal was closed in 2024, we tried to go through cape town which doubled the shipment time and that meant that our fruits arrived in Europe with a lot of quality issues,” the group’s managing director Martin Ochien'g told shareholders during the company’s annual general meeting (AGM) which took place virtually on March 5.
“We want to see if we can come back this year, and one of the things that we are doing now is to rely less on Europe and develop the Indian and Chinese markets, specifically, which is looking interesting. China has come to the table, and we have some programmes that we are working with them on for the new season that is going to open in a few weeks. India has some opportunities that, if we can get our timing right, can also give us chances to grow that business as well.”
The Nairobi Securities Exchange-listed firm exports coffee, tea, avocados, and macadamia to markets across Africa, Asia (Japan and Korea), Europe, and North America (Canada and the US).
However, the US-Israeli military attacks on Iran, which began on February 28, have adversely impacted the security situation in the Middle Eastern region, which plays a critical role in the global transportation ecosystem.
This has led to the full closure of both the Strait of Hormuz and the Bab El-Mandeb Strait in the Red Sea, consequently dimming hopes of vessels resuming passage through the Suez Canal, where the Iran-backed Houthis have disrupted shipping activities.
According to the Nordic-based Scan Global Logistics, Yemen’s Houthi rebels have yet to officially declare their intentions following the attacks on Iran by Israel and the US, but container carriers have commenced rerouting around the Cape of Good Hope, for now putting a stop to a return to the Red Sea and Suez Canal.
The Strait of Hormuz is a crucial maritime corridor that handles about 20 percent of global trade.
“Global supplies have been affected by the war in the Middle East, and that war is going to get worse. We think in our estimation this year is a write off in terms of going through the Suez Canal, and the Hormuz trade in Iran is another problem,” said Mr Ochien'g.
“The mitigation is to use routes or pursue markets that don’t rely on the Suez Canal, and that is why you hear us talking about China specifically, and there is a very good demand for macadamia and avocado there, which we want to pursue this year to ensure that we reduce our reliance on Europe.”
Sasini recorded an after-tax profit of Sh188 million in the financial year ended September 30, rebounding from a Sh562.9 million net loss in the previous year, supported by a standout performance in the company’s coffee business, following exceptional price realisations, which offset headwinds inthe avocado, macadamia, and tea segments.
The coffee business, which has underperformed in recent years, had the largest net profit of Sh237.2 million, while avocado and macadamia made losses to weigh down the group’s earnings.
The company’s fruit business has been adversely impacted by the closure of the Suez Canal, with only 22 containers being shipped under tight security in 2025, a steep drop from 71 containers in 2024.
“Unfortunately, especially for the avocado business, Europe remains key market for us,” said Mr Ochien'g.
