Notes From Africa: Arla Foods, Shoprite, Soufflet, Maphlix Trust, Delta Corporation
Here's the latest in ESM's regular series, Notes From Africa, which brings you the latest retail, consumer goods and food and beverage stories from across the African continent. Past editions can be found here.
In this week's report:
Nigeria: Arla Foods To Establish New Dairy Farm
Arla Foods is to build a dairy farm in Kaduna, in northern Nigeria. Covering 200 hectares, the facility will house 400 dairy cows as well as modern milking parlours. The company plans to open the farm by 2022, and it is expected to produce 10,000 litres of milk per day. Arla also plans to train and support up to 1,000 local dairy farmers to improve milk yield and quality, animal welfare and farm profitability. In Nigeria, demand for milk products continues to grow, due to population growth, increased urbanisation and rising per capita income.
Kenya: Kitui County Establishes Fruit Processing Unit
In Kenya, Kitui County has launched a €155,000 fruit processing unit that will help reduce post-harvest losses. It has a daily processing capacity of 40 tonnes of fruit and will produce and package tomato sauces, ketchup and fruit juices. The plant is expected to create employment opportunities and a market for farmers’ harvests.
Ethiopia: Soufflet Launches First African Malt Factory
French group Soufflet has unveiled a new malting plant in Ethiopia, Soufflet Malt Ethiopia. The unit, which is its first in Africa, sits on a site of 10 hectares in the capital, Addis Ababa. With an initial production capacity of 60,000 tonnes, the plant will be supplied with 80,000 tonnes of barley from a network of 40,000 farmers. According to the group, the plant will reduce malt imports for beer production, which currently account for 70% of supply, and will provide 300 jobs. It is also expected to take advantage of an Ethiopian brewing market that is growing at 15% per year, well above the continental average of 5% per year.
Ghana: Maphlix Trust Receives Support For Expansion
In Ghana, food producer Maphlix Trust has received $700,000 (€587,000) in funding from AV Ventures, the financial arm of ACDI/VOCA. The funding will enable the company to acquire new equipment for irrigation as well as production. The company intends to mechanise its operations in order to strengthen production and boost exports. Founded in 2013, Maphlix Trust produces and exports crops such as yam, cassava, potatoes and other fresh fruit and vegetables.
Zimbabwe: Delta Corporation Sees 39% Increase In Revenue
Delta Corporation, Zimbabwe's leading brewer, has posted a 39% rise in sales, to $111.7 million (€94 million), for the year ended 31 March. Despite the COVID-19 pandemic, which disrupted the consumption of alcoholic beverages, the company registered growth in most operating segments. While lager beer volume was up 17% on the previous year, sparkling beverages volume grew by 33%. Thanks to this positive performance, Delta's earnings before interest and tax increased by 37% year-on-year and its earnings per share increased by 47%. Delta Corporation is the biggest brewer in Zimbabwe, producing brands such as Castle Lager, Golden Pilsener and Zambezi Lager.
Zambia: Retailer Shoprite Opens 40th Store
South Africa’s Shoprite Holdings has opened a new outlet in Zambia. The store, the company's 40th in the country, is located at Jacaranda Mall in Ndola. More than 90% of the products it offers are locally sourced. Despite a challenging year, Shoprite saw sales up by 15.8% in Zambia during its most recent half year. The retailer employs 7,800 people in the southern African country.