Olivado oil riding a world avocado wave
Since setting up production in Kenya and the overall avocado boom, Kerikeribased avocado oil producer Olivado has grown quickly.
In seven years, the business’ turnover has grown tenfold to US$10.5 million (NZ$14.5m).
General manager Jason Vokes, said the global popularity of avocados and a move into supermarket chains across New Zealand, the United States and the United Kingdom, had boosted sales. Olivado was one of the first producers of avocado oil when it was set up in 2000.
As demand grew, New Zealand’s supply decreased and in 2010 Olivado opened its factory just out of Nairobi in Kenya.
The global avocado industry is worth US$3 billion (NZ$4b).
But doing business in Africa came with its troubles. Shortly after setting up the Kenyan plant, the father of Olivado’s former managing director was murdered. Then in 2008, a former production manager was shot during an attempted mugging and about five years ago a former operations manager was shot in a terrorist attack.
Vokes said: ’’There are lessons out of everything. People are very aware of security. But it all comes down to securing our supply, there weren’t any other options.’’
Olivado considered other countries, but ultimately found Kenya ideal for producing bulk, organic avocado oil because of its complementary growing season to New Zealand.
The production plant in Kenya processes avocados sourced from 1800 farmers. The Kenyan factory produces 350,000 litres of avocado oil, over double that of Kerikeri.
It exports to 33 countries and Vokes said it has been developing its distribution channels in Australia and South Korea. The global avocado industry is worth US$3 billion (NZ$4b).
Vokes said innovation was also a key factor in being the largest producer. Olivado is currently developing technology that can extract maximum oil from early season fruit.