Uganda’s Hass Avocado Market Expands with Avotein Farms’ Sea Exports and Cold-Chain Investments
World Business Journal talks to Hani Dahlan, founder and CEO of Avotein Farms, about the company’s strategic operations in avocado farming, its successful sea exports of Hass avocados to Europe, substantial investments in cold chain logistics, and the growing investment opportunities in Uganda’s Hass avocado cultivation, fuelled by increasing global demand.
What are the key operations and focus areas of Avotein Farms?
Established in 2022, we specialise in Hass avocado cultivation. We manage 130 acres in Mityana, with 80 acres planted (12,800 trees). Our operations include a district avocado collection centre, an export packhouse, and 2 nurseries with a capacity of 10,000 Hass seedlings.
We also created the Hass Avocado Fund, offering investors a chance to tap into Uganda’s agri-sector. With a 20-year agreement, investors pay $140 per acre monthly for the first 3 years and receive $1,500 annually from years 4 to 20, yielding a total ROI of $25,000 per acre, and they can choose to invest in one acre or more.
The fund, which has 26 international investors and is growing, establishes Uganda as a business hub by focusing on Hass avocados, which are set to become the country’s major crop after coffee.
How has the logistics process been for exporting avocados to Europe by sea?
In 2024, we became the pioneers in exporting Hass avocados to Spain by sea. The 40-day journey demands precise packing to ensure the avocados maintain their quality. Ensuring proper harvesting is critical, so we only select avocados with a minimum maturity of 21%. We’ve encountered various challenges, but each shipment has offered valuable insights into the local economy and our farm’s capabilities. To date, we’ve exported 4 containers worth $160,000. We’re currently shipping 1 container weekly and plan to increase to 4 containers weekly next season due to rising demand.
To improve logistics for fruits and vegetables, we’re launching AgriMove with a $10M investment. This includes building 40 collection hubs and deploying 20 refrigerated 13-tonne trucks to transport produce efficiently. Partnering with Maersk and Love Fruits, our buyer in Spain, we aim to reduce the 20%-30% loss due to inadequate transport methods by using crates instead of plastic sacks and maintaining a cold-chain logistics. The initiative kicks off in July, with a focus on growing Hass avocado exports.
Currently, 2 trucks and 2 hubs—in Ntungamo and Mayuge—are under preparation. Each hub will feature cold storage to keep produce fresh right after harvest, ensuring quality for both local and export markets.
What are your company’s future projections, and how can Uganda contribute to the increasing demand for Hass avocados?
We anticipate significant growth in the demand for Hass avocados. Thanks to government support, including 50% subsidised seedlings, Uganda’s production capacity is expected to reach 56,000 tonnes in the next two years. This will enable the export of about 2,300 containers annually, potentially generating $70M, helping to meet global demand and support our growth strategy.
