Development of an operational plan and international market entry strategy for a macadamia nut agribusiness

macadamia agribusiness
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Situation

After years of investment in establishing a large-scale macadamia nut operation on 1,200 acres of farmland in central Uganda, our client required an actionable operational plan and a “go-to-market” strategy for value-added, healthy, and lifestyle consumer nut products. As part of this, the client's advanced plan to invest in a modern nut cracking facility called for due diligence and detailed evaluation of local, East African region, and international market dynamics and the risk/return trade-offs of different market entry strategies.

Industries
Strategy, Data & Insights
Business Advisory Services
Market Analysis & Opportunity Scoping
Agribusiness & Food Systems
Engagement

ORI leveraged its expertise in the edible nut industry, business strategy formulation, and market research to design a data research framework and analytical model. Our team conducted detailed data research and interviews with a wide range of stakeholders, including international marketing agents, supermarkets and convenience stores across East Africa, transporters and international logistics companies, other macadamia nut agribusinesses in East Africa, industry practitioners, quality standards and food safety agencies and customs agencies for export data, among others. 

We conducted extensive data analysis, generated insights, and made actionable recommendations on investments and capabilities required for successful market entry. In addition, we developed a detailed operating model and plan—from planting materials preparation and plantation establishment, through to growing, harvesting and processing. Further, we assisted the client with product branding, packaging plans, and an international route-to-market strategy, all designed to be practical and effective in supporting market entry.

ORI supported the agribusiness by:

  • Scanning the global macadamia nut market and sizing demand for various nut products, assessment of target markets, import/export overview, and evaluation of primary value drivers.
  • Analyzing competition and benchmarking the client’s macadamia nut quality specifications vs international nut standards to realistically determine new market entry opportunities.
  • Forecasting nut production based on yield modeling for mature and new planting. In addition, sizing client farm production and smallholder outgrower supplies, and determining their respective unit costs of production.
  • Deriving international market intelligence from market actors and framing a competitive route-to-market strategy based on trade requirements, regional and export market analysis, customer segmentation, and pricing plan.
  • Designing an operating model anchored on competitive analysis of each market strategy, building preliminary recommendations, modeling market entry scenarios, developing a detailed work plan, risk log, and Five Forces Analysis.
  • Preparing go-to-market strategies for the East African, American, and European Union markets for nut kernels and macadamia oil products.
  • Managing an international packaging and branding sub-contractor to develop concepts and mockups consistent with global branding and packaging standards and Stock Keeping Units (SKUs). This included building product styles and wholesale and retail packaging designs.
Outcomes
  • The client utilized the results of market sizing to allocate the marketing budget more efficiently.
  • The marketing plan, which included critical dependencies, helped the client proactively navigate risks and market entry hurdles.
  • The client used the recommended acceptance actions, branding, product packaging designs, and SKUs to pilot market different nut flavors in the US and EU markets.
  • Contacts and relationships established during engagement with international marketing agents helped establish long-term trust-based business partnerships.
  • Locally, the client introduced macadamia oil, a new product to the Ugandan market, with planned supplies for the region.
  • Commercially, the client increased nut-in-shell production from c. 47 metric tons in 2015 to >500 metric tons in 2023, and increased exports from zero to 380 metric tons during the same period.