Kenya | Smallholder farmers
A story of empowerment and resilience: Exotic EPZ
Exotic is a processor and an exporter of macadamia nuts whose mission is to sustainably supply high quality macadamia nuts to its international customers whilst empowering smallholder producers and creating jobs for women and youth in Kenya. The company is led by three powerful and enthusiastic women. Although a success story, the road wasn’t easy and there are still hurdles to overcome.
“If I believe I can do it, I do it.”
How it started: planting the seeds
In Kenya, macadamia farming is a key agricultural activity that earns the country significant foreign currency, creates incomes and jobs for hundreds of thousands of people, but at the same time faces many challenges.. First of all, there’s a gap between the Kenyan smallholder farmers and the market. Most farmers don’t get paid fair prices for their produce. Another challenge for the farmers is climate change. Without the right resources and knowledge about new technologies to adapt the way of work to new circumstances, their harvest is likely to fail. Next to these agricultural challenges, social cultural challenges lay ahead as well. Kenya is a country with gender inequality. Most women in rural areas stay at home to take care of the household. They rarely have a job, let alone get the chance to gain a proper piece of land to build their own product.
As a woman who worked for different organizations like the International Labour Organization (‘ILO’), Jane Maigua knows the challenges farmers face. She also studied women development in her Enterprise Program with the UN. She cares for agribusiness and female empowerment. It’s not an easy job, but Jane is strong and determined: “If I believe I can do it, I do it.”
During her work for the ILO, Jane met the other two leading ladies, Charity Ndegwa and Loise Maina. Together, they have more than 30 years of experience in agribusiness. “We clicked right away,” Jane tells. So, after her contract ended, Jane didn’t have to think twice and reached out to both women. “Our plan was to create impact on three different levels, being: social economic empowerment, environmental sustainability and employment. We were looking for a produce that would tick all the boxes. After sourcing and consulting, we found out that macadamia nuts did so.”
About Exotic EPZ
Exotic EPZ Limited is Kenya’s premier macadamia nuts processor and exporter. Their mission is to sustainably provide the world with quality products for healthy and happy living. They work closely with about 10,000 farmers to ensure sustainable production and providing markets for their nuts. This enables the farmers to improve their livelihoods. In addition they create over 100 decent jobs in their own factory and with this ensuring equal pay for work of equal value for people that live in their community.
The first hurdles
The original Exotic that was founded in 2013, was a defunct company. The three women wanted to bring new life into to company, but in order to do so, they needed capital. Experienced as they are, the ladies came up with a solid business plan. But then a problem arose: finding financers. Jane explains: “We went to all banks in Nairobi, but a solid business plan simply wasn’t enough. Financers wanted to see performance, but there wasn’t any yet.” Also, there was the problem of gender inequality they encountered. As women, it was a lot harder to find a bank that would support them. Nevertheless, they persisted and because of their determination they managed to launch Exotic EPZ in 2017. After learning a lot about investors, Rabo Foundation was first introduced to Exotic in 2018.
“It’s their resilience and determination that keeps them going. ”
Growing the trees: Rabo Foundation and Exotic EPZ
The partnership between Rabo Foundation and Exotic started in 2018 by providing loans. Carolyne Segei is Relationship Manager Africa for both the Rabo Foundation and the Rabo Rural Fund. She has been working with Exotic for a while now. When asked what makes Exotic so successful, she replies quickly: their drive. “I’m really impressed by what they achieved. They’re entrepreneurial and grow limits every year. Loans are always paid back on time. Jane, Charity and Loise are pleasant ladies to communicate with. Upfront and candid. Even when things go wrong. We don’t often see that with clients. Exotic faced problems that would make others quit, but it’s their resilience and determination that keeps them going. Their own personal success is linked to the company’s success.” It’s this that makes Exotic so successful that the company outgrew the Rabo Foundation in 2020 and became part of the Rabo Rural Fund.
Trade Finance
Rabo Rural Fund B.V. was founded by the Rabo Foundation in 2011 in order to support organizations that have outgrown the support of Rabo Foundation, but do not yet qualify for a bank loan. Rabo Rural Fund offers the needed financial services to further grow and become more resilient. In the case of Exotic, Rabo Rural Funds works with a Trade Finance that gives them the opportunity to pay the farmers a fair price directly at point of delivering the nuts.
“It’s a heavy weight on our shoulders.”
A fruitful harvest
Ever since 2017, the women are making impact and being role models, especially for women. They create a safe workplace for 131 employees from which 85% are women and 74% are youth. The employees are being taught about leadership. Not only do they provide job opportunities, another goal is reinforcing the value chain. The company works closely with farmers to produce more and better quality nuts. “We are very careful with who we work with,” explains Jane, “because we want to make sure that payment is on time”. Exotic has an agronomy department that provides trainings to farmers to learn more about land optimization, soil and crop management and pest control techniques. All this has led to improved livelihoods for both the employees and the farmers. It brings happiness and satisfaction for Jane, but, she adds: “It’s a heavy weight on our shoulders.”
Exotic’s impact goes beyond that of Kenyan families. Exotic is making environmental impact as well. The production facility uses green/solar energy to complement electricity and they practice waste management by reusing the macadamia shells for fuelling the boilers. This ensures that the emissions from the boilers are not harmful to the environment and workers.
Solid ground for the future
Even though Exotic is creating great impact, it’s not always easy. Last year, there was a great decrease in the demand of macadamia nuts. It was hard to make ends meet, but the women remained calm. “We need to teach the farmers to not lose hope,” explains Jane. “That’s why we want to focus more on flexibility for the future.” This means looking for ways of diversification, such as using the macadamia oil for the beauty industry. Next to adapting to rapid changing environment and remaining resilient, Exotic is ambitious to grow even further. Jane is focussing on branding and marketing. Together, the three women are exploring exciting new options for other countries to export the macadamia nuts. With all the hard work, heart and soul that’s put into Exotic, there’s a bright, sustainable future ahead.