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.
Nigeria: FrieslandCampina to Increase Local Raw Milk Sourcing in 2023
FrieslandCampina plans to spend 3 billion naira ($6.5 million) to source fresh milk from local farmers in Nigeria in 2023. According to local media reports, the amount should enable the company to exceed the five million litres of fresh milk collected previously.
The move comes as the company wants to rapidly expand its local milk supply to boost production. The company currently purchases raw milk in Oyo, Osun, Ogun, Kwara, and Niger states, where it has been implementing a sustainable development programme called 'Dairy Development' for the benefit of herders since 2010.
Egypt: Edita Food Industries Expands into Frozen Foods
Snack foods producer Edita Food Industries (EFI) has acquired all the assets of Fancy Foods, a local Egyptian company specialising in the production of frozen bakery products. Valued at $12.3 million, the move will allow EFI to diversify its business into the frozen foods segment and consolidate its presence in the local food industry.
Kenya: Tea Processing Plant to Be Built in Kiambu
In Kenya, the Tea Development Agency (KTDA) is planning to set up a tea processing plant in Kiambu County. The factory will cost a total of 130 million shillings ($950,000). It will be KTDA's 16th plant dedicated to specialty tea processing.
This project is part of a national strategy to increase the value generated in the tea sector by focusing on white and purple varieties in order to reduce dependence on black tea leaf exports.
Nigeria: International Breweries Sees Loss in First Quarter 2023
International Breweries Plc, a subsidiary of the giant AB InBev, has posted a loss of ₦2.3 billion naira ($5 million) in the first quarter of its 2023 fiscal year. This is against a net profit of 721 million naira ($1.56 million) in the previous year.
According to the company, revenue was down 5% to ₦54.4 billion naira ($118.4 million), while the cost of sales amounted to ₦44.7 billion. International Breweries is one of the main players in the Nigerian beer market, alongside Nigerian Breweries and Guinness Nigeria.
Senegal: J. Huete International Launches a 20-Hectare Horticultural Project
In Senegal, the Spanish company J. Huete International has just begun a 20-hectare horticultural project. The initiative includes the building of nursery greenhouses, cultivation greenhouses, open-air plantations, a packaging center, and a supermarket where the fruits and vegetables produced will be made available to the local population.
It is expected that eight hectares will be dedicated to the development of greenhouse crops, 11 hectares to outdoor cultivation, 1,000 square metres to nurseries, and 3,000 square metres to the packaging centre. In Senegal, vegetables account for over 80% of horticultural production.
Nigeria: AFEX to Expand into Seven New African Countries
AFEX Commodities Exchange (AFEX), Nigeria's first private exchange for agricultural commodities, is planning to expand into seven new African countries. The targeted countries are Côte d'Ivoire this year and Ghana in 2024, before moving into Benin, Togo, Tanzania, Ethiopia, and Zambia.
With this expansion, the company aims to capitalise on the growth in intra-African trade resulting from the implementation of the African Continental Free Trade Area (AfCFTA). The company already operates in Nigeria, Kenya, and Uganda, where it trades agricultural commodities, including maize, wheat, sorghum, and cocoa.