Indicative revenue projections
from Hass Avocado farmingThe following figures are provided as an indication of potential returns only. The actual on-farm production results may vary and are dependent on many factors including quality of seedlings planted, tree care, feeding and watering, weather, pest and diseases infestation and control, pollination success, weather etc.
Grafted Hass trees start producing fruit around the third year. They get to peak production in about 7-10 years of age when the tree could reach production of up to 1,000 fruits annually if sufficiently looked after.
We have assumed that a fruit sells at a minimum price of Ksh10, (prices could get to as high as Ksh18 depending on demand and supply conditions). A farmer with a mature one-acre Hass orchard (150 trees) could realise total gross revenue of around Kshs1m annually. Note these numbers only represent the revenue side. They should be considered concurrently with a farmer’s estimate of their production costs to properly assess the venture’s overall return and profitability.
The table below provides an indication of potential returns from a one-acre Hass avocado orchard based on average fruit output and a price of Kshs8 per fruit.
| Year of Growth | Average Harvest (Number of fruits per tree) | Total Number of Fruits (1 Acre) (Number) | Price per Fruit (Kshs) | Total Gross Revenue (Kshs) |
| 1-2 | Growth Stage | |||
| 3 | 50 | 7,500 | 8 | 60,000 |
| 4 | 200 | 30,000 | 8 | 240,000 |
| 5 | 400 | 60,000 | 8 | 480,000 |
| 6 | 600 | 90,000 | 8 | 720,000 |
| 7 | 800 | 120,000 | 8 | 960,000 |
| 8 | 900 | 135,000 | 8 | 1,080.000 |
Avocado trees reach full productivity at 7-10 years of age and continue to be viable for over 30 years if properly looked after.
Production Costs
The benefits above must be balanced and weighed against the production costs. Farmers should note that like any agricultural venture, avocado farming requires investment. There are costs including the substantial amount of waiting time for the avocado tree to reach full production when a farmer must consider that there will be requirements for inputs and labour without any income.
There are substantial orchard and setup establishment costs including:
- Land acquisition
- Land preparation (tilling, digging up the holes and applying manure is the other cost)
- Developing water infrastructure
- Installing irrigation infrastructure and systems
- Seedlings purchase
- Planting
- Care of seedlings until first harvest (3-4 years)
- Opportunity costs – The lost revenue that the land would have yielded in the 3-4 years when avocados are in the growth phase and not producing income
Ongoing farm maintenance costs
This refers to on-going farm operating costs including labor: planting, weeding, pest control, pruning, fertilising, irrigation, security, and harvesting.
