AVOMERU purchases low-value avocados from farmers to transform them into highly-demanded avocado oil.
The business project
Avomeru organizes farmers into cooperatives and establish village-based processing facilities shared between multiple farmer cooperatives. They then purchase the processed oil directly from farmers at rates five times higher than the local market price for fresh avocados.
They also also connect with avocado exporters to ensure their second grade supply gets turned into quality oil instead of going to waste.
After the oil collection from the farmer cooperatives, the company processes it collectively, packages it and sell it in bulk to cosmetics producers as raw material to their products.
Why OVO believes in this project
Back in 2017 Jesse Oljange started Avomeru ltd in order to create a solution for a important issue of local avocado – which grows in abundance but is wasted - by producing avocado oil.
Step-by-step he has developed his experience, his organisation and his company; now dealing with +8000 SHF, especially in the Northern Highlands of Tz, but also expanding to other regions.
Developing this business the company is turning break even in 2021 and creating a positive cash flow on its own.
Taking into account the capacity building programs, developed together with the farmer groups, and the (re)planting of improved varieties of indigenous avocado species, this professionalisation creates a strong base for the future development. This project also brings a very important contribution to the improvement of the livelihood of thousands of SHF and workers by giving them a stable and secured income.
Dealing with on one hand a still underserved (international) market of avocado oil and on the other hand a huge production potential by the local SHF.
Lastly, the step-by-step development of the past years has given the company a strong economical and financial base and the organisation is now ready for further development, and professional and international expansion