Batian Nuts Ltd, which was incorporated in 2017 as a private limited liability company, is an agro-processing company primarily engaged in processing and exporting of macadamia nuts. The company was started with a view to capture and fill in a gap in the off taking of macadamia nuts, peanuts and cashew nuts produced in the larger Meru region, comprising of Tharaka Nithi and Meru Counties. These crops are grown by small-scale growers and the produce is processed and resulting products largely exported to the United States of America, Europe and Asia. Batian Nuts has a fully-fledged macadamia processing factory located in Nyagene village, Meru County, Kenya.
Batian Nuts is looking to diversify its product portfolio by venturing into processing other edible nuts including peanuts, for which the market is local and less volatile, and further in the future, cashew nuts. The market dynamics for macadamia nuts are likely to change in the coming years due to growing supply and changing consumer behaviour, and this brings uncertainty for Batian Nuts on how to best position itself in the market. On the peanut-side of the business, the production of aflatoxin-free peanuts is notoriously difficult yet critical to achieve for Batian Nuts in order to enter the market. Also raising affordable finances for expansion of capacity is considered a challenge. This challenge is exacerbated due to a COVID-19 triggered slump in macadamia sales, leading to Batian Nuts experiencing cash flow challenges.
This study sets out the key recommendations for Batian Nuts to sustainably scale up its business in line with its growth ambitions and are centered around Batian Nuts:
Securing consistent demand – Batian Nuts will secure consistent demand by positioning itself strategically in the macadamia and peanut markets. We explore the differences between the macadamia and peanuts markets, leading to different approaches respectively:
Expanding processing capacity – Batian Nuts will be able to expand its processing capacity by securing affordable financing:
Securing consistent supply – Batian Nuts will secure consistent quality and quantity of macadamia and peanuts by strategically addressing farmer needs: