Tanzania - Avomeru produces organic cold-pressed avocado oil yielded by Tanzanian village farmers

Already collected € 13.750
Searched budget € 55.000
Origin
ST4A Uganda 2021
Location
Tanzania
Theme
Agriculture & Food Industry
Repayment period
2 years

The company 

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 

Requested investment 

An investment of €55.000  for the season ’22 and an equivalent for the year ’23, is required for the expansion of the drying facilities (= preparation of the produce before pressing) and especially the development of the storage capacity. Pressing machine and refining capacity is for now covering the expected production needs ’22-’23.   

 

Repayment period:  

7 % with 3 instalments : 
+/- 15k after12 months 
+/- 20K after 18 months 
+/- 20K after 24 months. 

 

Keywords:  

  • Local production 
  • Reducing waste 
  • More income for farmers 
  • Sustainable  
  • Expansion opportunities 

SDG: 1,2,5,8,9,16,17