Diversified agricultural activities firm Sasini Company wants to invest more than Sh600 million in avocado, macadamia and dairy sub-sectors to strengthen its returns.
According to Naushad Merali, group chairman, the new investments will be spread over three years as it seeks to improve farmers’ profitability.
The company saw a 76 per cent profit decline to Sh261.85 million in 2016 and is establishing a Sh530 million macadamia factory in Ndumberi, Kiambu County and an embryo production centre at Mweiga farm.
Speaking during the 65th Annual General Meeting at Ndumberi, Merali told farmers that the company had set aside Sh50 million as seed capital to fast-track the avocado export business which is still in pilot phase. Next year, the firm is promising to establish a multi-million factory.
“In this model scheme, we are almost shipping the first container of avocado we have bought from the farmers. Farmers should expect prompt payment,” Merali said. He added that the Sh400 million macadamia factory project is progressing well and is expected to be completed by January 2018 and commissioned in February of the same year.
“The company has broken ground for the construction of a macadamia nuts processing factory. The rationalisation of the dairy herd, the embryo programme and the biogass plant are ongoing as planned,” he said. The company has been on aggressive mission to restructure it operations by disposing non-performing assets.
Currently, the company has over 25,000 macadamia seedlings ready for sale to farmers at Sh300 per seedling. “We anticipate to generate a further Sh300,000 per hactare from this project within the coming six years when we shall be at optimal production of macadamia nuts,” he said.