Scaling processing and export of macadamia oil and nuts (Exotic) from smallholder farmers

Exotic EPZ Limited (‘Exotic’) is a women- owned agribusiness based in Kenya that processes and exports macadamia nuts and oils to the European market. The company sources unprocessed macadamia nuts in shell directly from more than 1,300 smallholder farmers, with plans to expand this network to approximately 5,000 farmers through continued annual growth. The nuts are aggregated through more than 10 collection points distributed across over 10 counties in Kenya. At its factory in Nairobi, the nuts are dried, processed, and prepared for export. The company’s main customer is Red River Foods, a leading U.S. supplier of premium and ethically sourced nuts and specialty snacks. 

Kenya is currently the world’s third-largest producer of macadamia nuts, after South Africa and Australia. Growing global demand for macadamia nuts stems from their versatility, as they are used in a wide range of food products such as cakes and confectionery. Macadamia nuts can also be processed into oil for use in food, pharmaceutical, and cosmetic products. Exotic was acquired by its current three female owners in mid-2017 and is the only women-owned processor and exporter of macadamia nuts in Kenya, operating in a sector that has traditionally been male-dominated. The company’s mission is to source, produce, and supply high-quality products within the nuts and oils value chains while empowering small-scale producers, particularly rural women farmers. This commitment is reflected in its highly inclusive business model, with approxi mately 85% of supplying farmers and 90% of employees being women. 

The CFC approved a total of USD 1.1 million in loan financing for Exotic. In February 2022, a USD 600,000 trade finance loan agreement was signed with Exotic for the purpose of pre-financing macadamia nuts for selected buyers, including Red River Foods. The remaining USD 500,000 in CFC financing has not yet been signed and is intended to support the expansion of production capacity at Exotic’s processing facility in Nairobi. The investment was made with the expectation of driving significant income growth for participating farmers, with annual earnings projected to increase from approximately USD 3,000 to more than USD 7,000 within five years. In addition, the project is expected to contribute to environmental sustainability through the planting of approximately 100,000 trees by smallholder farmers.

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