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Food Business YEAR 7 | NO. 36 | JUNE 2019

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AFRICA’S NO.1 FOOD, BEVERAGE & MILLING INDUSTRY MAGAZINE

EVENT REVIEW AFMASS FOODTECH EASTERN AFRICA 2019 EXECUTIVE INTERVIEW

FAHAD AWADH

BHARAT SHAH Founder & Chairman Kenafric Industries

THE PAST, PRESENT & FUTURE OF OUR COMPANY

Co-Founder - YYTZ Agro Zanzibar

MY CORPORATE JOURNEY

Kemisola Oloriegbe Packaging Technologist, Nigerian Breweries

MILLING:

Importance of mill balance

COUNTRY FOCUS

CASHEW NUTS IN TANZANIA

BAKING:

Replacing sugar functionality in baked goods

UPCOMING AFMASS FOODTECH EVENTS IN AFRICA AFMASS FOODTECH RWANDA EDITION - AUGUST 22-23, 2019 AFRICA FOOD INDUSTRY EXCELLENCE AWARDS - NOV. 29, 2019

FOODTECH CONFERENCES & EXHIBITIONS

W W W. A F M A S S . C O M

AFMASS FOODTECH ZAMBIA EDITION - OCT 10-11, 2019 AFMASS FOODTECH TANZANIA EDITION - MARCH 25-26, 2020 AFMASS FOODTECH UGANDA EDITION - JUNE 24-26, 2020

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AFMASS FOODTECH ETHIOPIA EDITION - NOVEMBER 12-13, 2020

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FOODTECH SOU THERN A FRICA

Z A M B I A

E D I T I O N

Welcome to Zambia’s only & SADC region’s Food, Beverage & Milling Industry Conference & Expo JOIN US AGAIN IN OCTOBER 2019 AT THE SECOND EDITION OF AFMASS SOUTHERN AFRICA EDITION

OCTOBER 10-11, 2019 • RADISSON BLU HOTEL • LUSAKA, ZAMBIA

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ADVERTORIAL | ADM

ADM bets on innovation to drive growth across Africa

From left to right: Erdal Kurban – Sales Director Beverages; Eleen Atetwe – Administration Manager; Mary Ng’ethe – Sales Manager, Eric di Benedetto – MD, Kenya; Cynthia Achieng – Laboratory Manager , Urbanus Mulinge – Sales Manager and Jochen Bitzel - MD Sales, EMEAI showcase their recently developed beverage prototypes at their office near the Jomo Kenyatta International Airport in Nairobi, Kenya. KENYA – ADM, one of the world’s largest food ingredient providers, has said that it is poised to continually invest in Africa as it seeks to expand its foot print across the continent. Through ADM’s WILD Flavors business, ADM has become a major global supplier of natural ingredients serving the food and beverage industries in Africa and across the world. The company provides a wide range of formulations expertise, with innovation being the center piece of its business. As it seeks to tap into the growing African market, the firm opened an office in the capital of East Africa’s leading city, Nairobi, Kenya in 2014 to serve the region and help grow its African operations. The office is located within the Jomo Kenyatta International Airport ( JKIA), which is a perfect location, enabling its customers across Eastern Africa to easily access the office. The facility has a fully functional laboratory that offers a one-stop formulation expertise in the dairy, beverage, bakery and confectionery sectors, which 4

JUNE 2019 | FOOD BUSINESS AFRICA

helps customers to get into business very quickly. Eric Di Benedetto, the Managing Director of ADM’s WILD Flavors Kenya, says that as a globally recognised firm, the company leverages its extensive footprint spanning the world to present innovative product ideas across different sectors in the food and beverage industry in Africa. “ADM WILD is a turnkey solution provider through our quality and innovative products. We are proposing innovative solutions to the local market in Kenya and the whole region through our cost saving approaches. Sustainability and heritage preservation remains a key pillar in our business, especially in the wake of emerging market trends as consumers shift into healthier products,” said Eric in an interview with Food Business Africa. “We not only align our products with the purchasing powers to our consumers but also propose excellent natural products in line with emerging consumer needs. We continue to offer more sophisticated innovative products – based on natural

ingredients – for customers in the food and beverage industry across the dairy, beverage, bakery and confectionery sectors. As part of our commitment to deliver great taste, we are focused in providing the market with quality products that meet the European standards,” he said. ADM WILD works with leading local and international companies in the launch of various products for the African and international markets. Eric says that they have also seen a surge in demand for sugar replacement and dairy-juice blend formulations, for which the company has many years of expertise and knowledge. The company offers flavor systems and ingredient solutions including natural flavors and extracts, mint oils and flavors, colors from natural sources, sweetening systems, seasonings, specialty ingredients, lecithin and soy protein concentrates, taste modifiers, and fermentation technologies across the entire food and beverage industry.

Learn more about ADM’s WILD Flavors ingredients and solutions at www.wildflavors.com

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Your innovative partner for creating products consumers love. ADM is your problem-solving partner. As an industry leader, we offer the most extensive, innovative and on-trend ingredient solutions and systems to help you provide consumer-preferred experiences. Learn more at wildflavors.com and adm.com

Š 2019 Archer Daniels Midland Company

WILD Flavors Kenya Ltd. | J.K.I.A Airport Trade Centre 1st Floor | P.O. Box 35792-00100 | Nairobi, KENYA | Tel. +254-79020-2995


FOODTECH CONFERENCES & EXHIBITIONS

AFRICA HAPPENS AT AFMASS TM

Discover Africa at the region's Largest Food, Beverage & Milling Industry Conferences & Exhibitions DISCOVER • NETWORK • BE INSPIRED The food, beverage and milling manufacturing, retail and food-service industry is truly on an upswing in Africa. And with it, the complexity and the need for more efficiency, productivity, food safety, sustainability, nutrition and compliance to regulatory and customer requirements. With several editions planned across sub-Saharan Africa, AFMASS FoodTech Conferences & Exhibitions bring together industry leaders, Government agencies, suppliers, NGOs/ development agencies, researchers and academicians to shape the future of the food value chain in Africa. AFMASS FoodTech Conferences & Exhibitions, now in the 5th year, have brought together over 6,000 people and more than 180 speakers from over 80 countries in high-impact conference sessions that continue to drive the agenda of change and innovation across the Continent. At the Exhibition Hall, AFMASS FoodTech Conferences & Exhibitions attract some of the world's leading suppliers of milling and processing equipment, packaging, laboratory solutions, engineering and automation, financial and other industry services - offering a one stop shop of the most diversified solutions targeted at Africa's growing industry.

Seeking to discover the pulse of Africa?

Come on. Register today to discover Africa's industry, its people and market trends at an AFMASS FoodTech Conference & Exhibition event near you.

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AFRICA HAPPENS AT AFMASS TM

ETHIOPIA NOV 12-13, 2020

KENYA MAY 26-28, 2021

UGANDA JUNE 28-30, 2020

TANZANIA RWANDA

MARCH 25-26, 2020

AUGUST 22-23, 2019

REGISTRATION OPEN. FOR REGISTRATION & SPONSORSHIP/ EXHIBITION OPPORTUNITIES, CONTACT: INFO@FOODWORLDMEDIA.NET OR CALL: +254 725 34 39 32

ZAMBIA

OCTOBER 10-11, 2019


CONTENTS ON THE COVER

BHARAT SHAH, FOUNDER & CHAIRMAN KENAFRIC INDUSTRIES LTD

COUNTRY FOCUS: Tanzania’s cashewnut industry 51

Bharat takes us through the journey it took to grow the candy manufacturer into a giant. Read this and other issues of this magazine for free on www.foodbusinessafrica.com REGULARS 8 Editorial 10 Events Calendar 12 World in Numbers 16 AFMASS FoodTech Conference & Expo Rwanda / Zambia Preview 18 Food Business Africa News 25 Sustainability Business Africa News 33 AFMASS Conference & Expo Kenya Review/ Pictorials 52 New Products on the Shelf 55 Milling & Baking Africa News 64 My Corporate Journey: Kemisola Oloriegbe 66 Supplier News EXECUTIVE INTERVIEW: Bharat Shah Founder & Chairman,

Kenafric Industries

MILLING TECHNOLOGY: Mill balance 60

TRENDS: Sugar reduction in baking

44

62

EXECUTIVE INTERVIEW: Fahad Awadh, Co-Founder, YYTZ

Agro-Processing, Zanzibar

IN THE NEXT ISSUE MY FACTORY • MY STORY 49

Sayona Food Group, Tanzania

DAIRY BUSINESS AFRICA: Clean label in dairy BEVERAGE TECH AFRICA: Hot filling technology COUNTRY FOCUS: Dairy Industry in Kenya FOOD SAFETY: Listeria monocytogenes PACKAGING: Sustainability in bottle packaging 8

JUNE 2019 | FOOD BUSINESS AFRICA

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FOODTECH

FREE ENTRY

CONFERENCE & EXPO

RWANDA EDITION

Great Lakes Region's first Food, Beverage & Milling Industry Conference & Expo

AUGUST 22-23, 2019 KIGALI SERENA HOTEL - KIGALI, RWANDA WELCOME TO RWANDA - THE LAND OF A THOUSAND HILLS The food, beverage and milling industry in the Great Lakes Region - Rwanda, Burundi, eastern DRC, western Uganda and northwestern Tanzania is growing aggressively with a rising need for the right technologies to improve value addition, post-harvest management, processing, storage and supply chain management in order to boost local manufacturing for domestic and export markets. Join us at the first AFMASS FoodTech Rwanda edition to meet the key decision makers in the region and discover what the Great Lakes region of Africa has to offer!

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EDITORIAL | PERSPECTIVES

Beware of fake followers and bots online former Unilever Marketing Chief When it comes to influencer relationships, it’s complicated. How can food companies utilize influencer marketing and the huge opportunity offered by online advertising platforms, while retaining their values? Unilever’s former Chief Marketing and Communications Officer, Keith Weed calls time on fake followers and bots. He published this message in 2018.

I

n just a few short years, influencer marketing has grown from a nascent, test-and-learn approach to an established way for marketers to create authentic relationships with consumers. As with any new channel, while we’ve been busy unlocking the opportunities and the benefits of a broader digital ecosystem, bad habits have sprung up and it’s all become a little complicated. It’s this state of flux where an eruption of poor practices such as fake followers, bots, fraud or dishonest business models have developed; practices which are eroding trust in the whole system. For brands and companies across the world, the idea of endorsement isn’t new. Building a network of advocates for our brands who enrich them with ideas, content and buzz is still part of how we create better experiences for consumers. However, now, with the rise of creators on social media, we’ve placed that endorsement in the context of online platforms. At Unilever, we believe working with creators is an important way to generate engaging content to reach and build trust with our audiences, and so we strive to establish mutually beneficial partnerships. In this sense, influencer marketing is so much more than just paying people or groups to post content with #ad or #spon. Fundamentally, it’s always been about building and nurturing authentic and credible relationships with people who understand and are close to the brand. It’s this authenticity and credibility that is under threat from bad practices. That’s why, at the Cannes Lions Festival of Creativity in June 2018, I announced three commitments to increase visibility and transparency within influencer marketing: Transparency from Influencers: We will not work with influencers who buy followers. Transparency from Brands: Our brands will never buy followers.

Transparency from Platforms: We will prioritize partners who increase transparency and help eradicate bad practices throughout the whole ecosystem. Fake followers and bots have been a silent issue on the minds of many in the industry – the elephant in the room. Having an artificially-inflated follower count made up of bots and redundant accounts is at best deceiving and at worst, fraud. It serves no one and undermines trust in the entire system. We now have an opportunity to reset. And the good news is, I’m already seeing progress. Just this week, Twitter committed to cleaning up the digital space by removing fake and redundant accounts from its platform globally. This is a big step for the industry and shows the market is moving in the right direction. Greater transparency leads to greater authenticity, which in turn builds trust. Only through working collectively to push for greater transparency and collaboration across the digital supply chain will we deliver better results for brands – and ultimately better serve the needs of our consumers. So, we’re not breaking up with influencer marketing, and we don’t intend to. Instead, we are looking forward to continuing to work with our partners over the coming months to ensure that collectively we rebuild trust before it’s lost forever. This blog post was originally published on LinkedIn in mid 2018. Keith Weed was the Chief Marketing and Communications Officer, Unilever. He was a member of the Unilever Executive and responsible for Marketing, Communications and Sustainable Business. He held the role from 2010-2019.

SUBSCRIPTION

Email: info@foodworldmedia.net

www.foodbusinessafrica.com Year 7 | Issue 3 | No.36 • ISSN 2307-3535

FOUNDER & PUBLISHER Francis Juma EDITORIAL Godfrey Anunda | Clement Muriuki I Ronald Onsare ADVERTISING & SUBSCRIPTION Jonah Sambai | Lavender Atieno | Hellen Mucheru CONTRIBUTORS Virginia Nyoro | Ronald Onsare | Ronald Sebastian DESIGN & LAYOUT Frank Bett 10 JUNE 2019 | FOOD BUSINESS AFRICA

FoodWorld Media

P.O Box 1874-00621, Nairobi Kenya Tel: +254 20 8155022, +254 725 343932 Email: info@foodworldmedia.net Website: www.foodworldmedia.net RELATED PUBLICATION

Food Business Africa (ISSN 2307-3535) is published 6 times a year by FoodWorld Media Ltd. The magazine is distributed for free to food, beverage, milling and foodservice companies and Government regulatory agencies in Africa. The magazine is available through paid subscription for the other stakeholders in the food chain, including suppliers to the sector. Copyright 2019. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.

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POWERED BY

FOODEX AFRICA FOOD INDUSTRY EXCELLENCE AWARDS

GALA DINNER

NOVEMBER 29, 2019 SAFARI PARK HOTEL NAIROBI, KENYA

ENTRIES OPEN JULY 1, 2019 SUBMIT YOUR LATEST NEW PRODUCTS, NEW PLANTS, ADVERTISING AND SUSTAINABILITY INITIATIVES. STAND A CHANCE OF WINNING THE MOST PRESTIGIOUS FOOD INDUSTRY AWARDS IN AFRICA! Send Sponsorship, entry and attendance queries to: TEL: +254 725 343 932; INFO@FOODWORLDMEDIA.NET

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CONFIRMED SPONSORS

2019 AWARDS CATEGORIES NEW PLANTS OF THE YEAR 1. Dairy 2. Milling, Cereals & Pulses 3. Animal Feed Plant of the Year 4. Alcoholic Beverage 5. Soft Beverage 6. Tea, Coffee & other Hot Beverages 7. Bakery & Snack 8. Frozen, Chilled & Fresh 9. Sugar & Confectionery 10. Culinary & Condiments 11. Food Safety Champion Plant of the Year 12. Plant Design Champion of the Year NEW PRODUCTS OF THE YEAR 1. Dairy 2. Milling, Cereals & Pulses 3. Bakery & Snack 4. Alcoholic Beverage 5. Soft Beverage 6. Tea, Coffee & Other Hot Beverages 7. Frozen, Chilled & Fresh 8. Sugar & Confectionery 9. Culinary & Condiments 10. New Product – Packaging Innovation 11. New Product - Ingredients Innovation 12. New Product - Nutrition Innovation ADVERTISING CAMPAIGN OF THE YEAR 1. Advertising Campaign 2. Digital/Social Media Advertising SUSTAINABLILITY INITIATIVE OF THE YEAR 1. Sustainable Energy Management 2. Sustainable Water Management 3. Sustainable Waste Management 4. Sustainable Community Initiative RETAIL OUTLET OF THE YEAR 1. Bakery 2. Grocer (Fruits & Veg) 3. Meat, Poultry & Fish 4. Hot Meals


EVENTS CALENDAR EVENT HIGHLIGHT:

AFMASS FOODTECH RWANDA EDITION

Introducing AFMASS FoodTech Conference & Exhibition Rwanda edition - Rwanda and the Great Lakes region's first food, beverage and milling industry conference and expo. Set to be held at the the magnificent Kigali Serena Hotel in the centre of Kigali on August 22-23, 2019, the event is targeted at boosting processing, packaging and food safety in the growing industry in the Great Lakes Region of Africa - covering Rwanda, eastern DRC, Burundi, north-western Tanzania and western Uganda. Sign up today to be part of the network of industry leaders, Government regulators, NGOs and suppliers to the industry who will shape the growth of the manufacturing, retail and HORECA industry in the region Register today at www.afmass.com June 27-28, 2019

Focus: Food & Beverage www.anuga.com

SnackEx Barcelona, Spain Focus: Savory Snacks www.snackex.com

October 8-11, 2019

July 17-19, 2019 Specialty & Fine Food Asia Singapore Focus: Foodservice & Hospitality www.speciality-asia.com

August 1-3, 2019 Food Agro Africa Nairobi, Kenya Focus: Food & Agriculture www.expogr.com

AFMASS FoodTech Rwanda edition Kigali, Rwanda Focus: Food, Beverage & Milling www.afmass.com

September 4-7, 2019 World Food Istanbul Istanbul, Turkey Focus: Food Processing technologies www.gulfood.com

Fi (Food ingredients) Asia Bangkok, Thailand Focus: Food ingredients www.figlobal.com

September 24-27, 2019 WorldFood Moscow Moscow, Russia Focus: Food & Drink www.world-food.ru

October 5-9, 2019 Anuga Food Fair Cologne, Germany

October 10-12, 2019 AFMASS Southern Africa Lusaka, Zambia Focus: Food, Beverage & Milling www.afmass.com

October 29-31, 2019

August 22-23, 2019

September 11-13, 2019

Process Expo Chicago, USA Focus: Food & Beverage technologies www.myprocessexpo.com

Gulfood Manufacturing Dubai, UAE Focus: Food, Beverage www.gulfoodmanufacturing.com

October 30 – November 1, 2019 China Fisheries & Seafood Expo China Focus: Seafood & Aquaculture http://chinaseafoodexpo.com

November 3-6, 2019 IAOM Middle East & Africa Dubai, UAE Focus: Milling www.iaom-mea.com

November 11-14, 2019 Foodex Saudi Saudi Arabia Focus: Food & Drink www.foodexsaudi.com

November 13-16, 2019 Vietnam Food Expo Vietnam Focus: Food & Beverage https://foodexpo.vn

November 19-21 Agrofood West Africa Accra, Ghana Focus: Food & Agriculture www.agrofood-westafrica.com

November 27-29, 2019 Drink Japan Japan Focus: Beverages www.drinkjapan.jp

December 3-5, 2019 Fi Europe & Ni Paris, France Focus: Food & Beverage ingredients www.figlobal.com

February 2-5, 2020 ISM Cologne Germany Focus: Confectionery & Snacks www.ism-cologne.com

February 16-20, 2020 Gulfood Dubai, UAE Focus: Food & Beverages www.gulfood.com

March 3-5, 2020 Pack Expo East Philadelphia, USA Focus: Packaging technologies www.packexpoeast.com

March 30 – April 1, 2020 FoodEx UK Birmingham, UK Focus: Food & Beverage www.foodex.co.uk

For event listings, contact us at info@foodworldmedia.net for consideration. Terms and conditions apply


800+ ATTENDEES

DUBAI WORLD TRADE CENTER

3-6 NOVEMBER

“I sincerely wish that this conference be pivotal for the prosperity and longevity of our industry and future generations.”

H.E. ESSA AL GHURAIR WELCOMES YOU TO

Join us for MEA’s largest and longest running Grain Commodities, Flour and Feed Milling Event!

th

Special discounts exclusively for Millers! 10% off for 3 - 5 persons from the same company / group 15% off for 6 - 9 persons from the same company / group 20% off for 10 or more persons from the same company / group

Anniversary

C O N TA C T U S AT - E V E N T S . C O O R D I N AT O R @ I A O M - M E A . C O M


WORLD

CANADA

2.138B

Total grain in tons produced globally in 2018/19

US$48.3M

UK

US$997.8M

Amount offered by a consortium to acquire Wessanen UK

Amount to be invested by Burcon NutraScience in a new protein facility

UK

US$575M

Amount raised by Deliveroo in Series G funding led by Amazon

USA USA

US$100M

Amount JBS USA will invest in expanding Nebraska beef facility

US$10M

Amount Hart Dairy raised in seed funding led by Alium Capital

4

USA

US$30M

Amount Sun Basket raised in funding coled by Unilever

USA USA

US$60M

Amount Milo’s Tea Company is investing in a new facility

US$12.8M

Amount to be invested by Oisix in acquiring Purple Carrot

USA

MOROCCO

US$2.4M

Investments in a waste management agreement between North Africa Bottling and Suez SA

US$9.8M

Amount Nespresso is investing to revive coffee in different countries MEXICO

NIGERIA

US$4B

Amount PepsiCo plans to invest in Mexico in 2 years

SIERRA LEONE

US$2.25M

Amount to be invested by German in Nigeria’s rice sector

US$3M

AgDevCo’s investment in Tradin Organic to boost cocoa sourcing

RW GHANA

Am ne

US$100M

Amount the Produce Buying Company seeks to raise in operations boost

NIGERIA

US$95M

Amount secured to boost NIGERIA agriculture sector in Kano State

SOUTH AFRICA

54.5%

Percentage stake retained by Coca-Cola in Africa business SOUTH AFRICA

11.9M

Number of tonnes of corn South Africa expects in 2018/19

14 JUNE 2019 | FOOD BUSINESS AFRICA

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WORLD IN NUMBERS

NETHERLANDS

US$750M

Facility acquired by Louis Dreyfus to boost sustainability efforts DENMARRK

1B%

CHINA

Number of sustainably packaged pieces made by Arla across Europe GERMANY

US$19.6M

US$630M

INDIA

Value of merger between Zydus Wellness and Heinz India

Amount Multivac will invest in a new meat equipment facility

ISRAEL

US$100M

INDIA

Amount Finistere Ventures will be investing in foodtech start-ups

WANDA

ETHIOPIA

1.4M

KENYA

US$1.32M

US$11M

Amount raised by fresh fish and meat delivery startup FreshToHome

ETHIOPIA

Amount of wheat in metric tonnes supplied through contract tenders

mount to be invested in ew maize milling plant

0.3M

Capacity of a new aquafeed by Louis Dreyfus JV

US$30M

AUSTRALIA

Amount KWAL will invest in a new plant in Tatu City

UGANDA

US$300M

Coca-Cola's planned invests in Ethiopia in the coming five years, including a new plant

US$10M

KENYA

US$80M

Amount to be raised by Export Trading Group in African expansion

US$27.9M

Amount offered by private equity for Coca-Cola’s SPC fruit and vegetable biz

Amount Coca-Cola invested in a new bottled water line TANZANIA

US$117.8M

Amount IFAD will inject to support agriculture in Tanzania ZIMBABWE

0.7M

Number of tonnes of maize to be purchased from Tanzania SOUTH AFRICA

US$130M

Amount Boulstead Beef will invest in Cold Storage Company

FOODBUSINESSAFRICA.COM

JUNE 2019 | FOOD BUSINESS AFRICA

15


UPDATES INNOVATIONS

Muller launches low-sugar variants of its yoghurts UK – British dairy giant Muller has launched new recipes for its Müllerlight and Müller Corner yoghurt brands that it says contains 9% less sugar, more protein with thicker and creamier texture. The new variants were developed following the discovery of a new yogurt culture last year, which combines two yogurt strains: Streptococcus thermophilus and Lactobacillus bulgaricus species. The new strain helps to reduce sugar content in its yoghurt range and this, together with removing all added sugar from its core Müllerlight range helps the company in reducing the total sugar content by up to 28%. The new Mullerlight recipe is fat-free, has a thicker and creamier texture, 0% added sugar, high in protein and is said to be suitable for vegetarians. The launch is part of the company’s £100 million (US$129 million) investment programme that aims to develop “a new generation of yogurt and dessert products” over the next three years to keep pace with changing consumer demands. FOOD SAFETY

INVESTMENTS

Tunisian dairy Land’Or to invest US$11.3m in new Moroccan plant MOROCCO – Land’Or, the Tunisian dairy manufacturer has unveiled plans of investing US$11.3 million in setting up a new plant in Morocco. The company will build the 3,300 square meter plant in a 1.3 hectare plot in Kenitra, near Rabat for local production of canned cheese, melting cheese, and fresh cheese. According to a Morocco News report, Land’Or said it be commissioning operations of the facility in the first quarter of 2021. It seeks to sell most of the products in the Moroccan market as part of its strategy to grow its footprint in the country, which already represents 28% of its turnover. “The company’s objective is to “consolidate its position in Morocco and conquer West Africa,” the company revealed. Land’Or is said to have already secured the US$11.3 million funding for the project, of which US$6.78 million will be financed by Tunisia’s Central Bank. The company’s chief executive, Hatem Denguezli, said that the launch of the construction is expected

in December and has scheduled to start ordering the industrial equipment in 2020, at a cost of around US$5.87 million. Meanwhile, the North African country is also seeking collaboration with Spain to boost the fishing industry. Aziz Akhannouch, Minister of Agriculture, Fisheries, Rural Development, Water and Forestry in Morocco recently met with Spanish Minister of Agriculture, Fisheries and Nutrition, Luis Planas to discuss the new 4-year fishing agreement between Morocco and the European Union. The agreement allocates fishing opportunities for the EU in exchange for US$234.91 million funding. It is expected to be approved by the Moroccan Parliament after being accepted by the Ministerial Council on June 4. Part of this contribution is to be used to promote the sustainable development of the fisheries economy in Morocco and Western Sahara by enabling the EU and Morocco to work more closely in promoting a sustainable fisheries policy and the responsible use of fishing.

M&A

Delta Corporation takes majority shareholding in African Distillers Ltd

Ghana’s FDA partners WFP to boost food safety GHANA – Ghana’s Food and Drugs Authority (FDA) has signed a memorandum of understanding (MoU) with World Food Programme (WFP) to promote food safety initiatives in the country. The MoU will help assist in providing oversight on the safety and quality management, post-production and market surveillance of targeted agro-food processing companies in Ghana. The WFP has provided logistical support to aid in successful execution of the project which covers activities from factories to retail points as well as selected community level agro-food processors. The partnership will assess the level of compliance of 38 food retail facilities and 3 Industrial processors to FDA processing requirements by December 2019. The partnership seeks to help in understanding food safety and quality issues faced by processing facilities in the 3 project regions.

16 JUNE 2019 | FOOD BUSINESS AFRICA

ZIMBABWE – Delta Corporation Limited, a leading beverages producer in Zimbabwe, has increased its shareholding in wines and spirits firm, Africa Distillers Limited (Afdis) to 50.1%, becoming the majority shareholder in the company. Before the additional share accumulation, Delta held 8.29% in direct shareholding in Afdis while Afdis Holdings Private Ltd held the largest shareholding in Afdis at 59.38% followed by Old Mutual at 10.45%. Distell International a leading South African wines and spirits producer has maintained a residual shareholding in Afdis at just below 1%. “Turning to investments Delta has been

making, the group effective shareholding in Afdis has increased to 50.1% and the entity has been consolidated as a subsidiary,” said Mr Moses Gambiza, Delta Southern Region general manager responsible for sparkling beverages. The consolidation of Afdis by Delta follows a spree of other purchases in recent periods where in 2017 Delta acquired Natbrew a Zambian sorghum beer brewer from parent AB In Bev at a purchase consideration of US$12.3 million. In the last quarter of 2018, Delta splurged on another regional sorghum beer producer United Breweries South Africa to acquire full ownership of the firm. FOODBUSINESSAFRICA.COM


FOODTECH EASTERN AFRICA UGANDA

EDITION

FREE ENTRY

JUNE 24-26, 2020 KAMPALA, UGANDA

FINALLY COMING TO UGANDA!

Uganda’s First Food, Beverage & Milling Industry Conference & Expo LOOK FORWARD TO: • Learn latest investment opportunities, food safety, nutrition, processing, milling, packaging and sustainability technologies at high impact conference sessions. • Network with local, regional and international suppliers of equipment, packaging, laboratory, ingredients and supply chain solutions for your next projects. • Discover more at LIVE demos on BAKERY and INGREDIENTS applications. FOODBUSINESSAFRICA.COM

www.afmass.com

JUNE 2019 | FOOD BUSINESS AFRICA

17


AFMASS FoodTech Rwanda edition set to showcase Rwanda and the Great Lakes region of Africa

Event: AFMASS FoodTech Rwanda edition When: August 22-23, 2019 Where: Kigali Serena Hotel, Kigali, Rwanda Timings: 09.00 am to 06.00 pm daily Rwanda's's first food, beverage and milling industry conference and expo to showcase Great Lakes region's potential

I

t's finally here! On August 22-23, 2019, we shall be opening the doors to AFMASS FoodTech Rwanda edition the latest leg of AFMASS Conferences & Exhibitions. Hosted at the Kigali Serena Hotel in the centre of the city of Kigali, AFMASS FoodTech Rwanda edition will be the first substantive food, beverage and milling industry trade event in Tanzania. Processing and packaging technologies provider Tetra Pak and Buhler, the leader in milling and food processing solutions have confirmed their premium sponsorship slots for the event, with a strong number of exhibitors, local partners and Government agencies also confirming their support for the event. Over two days, more than 500 delegates from the food industry, suppliers Government agencies, NGOs and other stakeholders in Rwanda and the Great Lakes Region of Africa, plus over other countries around Africa, Europe and Asia are expected to converge at the event to shape the future of the food industry value chain in the region. "We are excited that the food, beverage and milling industry key decision makers from across the World have already signed up to participate at this inaugural event," says Francis Juma, the team leader at 18 JUNE 2019 | FOOD BUSINESS AFRICA

FoodWorld Media, the organisers of the event. "Rwanda stands shoulders above many countries in Africa for its pursuit of excellence - be it in governance, environmental leadership and adoption of technology. This event will add an extra feather to Rwanda's reputation: a manufacturing hub, not only for its population, but for the sorrounding countries: Democratic Republic of Congo (DRC), Uganda, Tanzania, Burundi and other Eastern African countries." Rwanda's food, beverage and milling industry has seen a rapid rise of investments since the 1994 genocide, taking advantage of the country's ease of doing business, rising economy, surging urbanisation and changing consumer eating habits. Some of the leading food companies with operations in Rwanda include beer and soft drink producers Bralirwa and Skol Brewery, dairy and drinks operator Inyange Industries, milling giants Africa Improved Foods, Minimex, Pembe Flour Mills and Bakhresa Milling Rwanda, and tea and coffee producers Sorwathe and Rwanda Mountain Coffee, among many others. Further, hundreds of small and medium food companies, from producers of spices, fruits and vegetables, potatoes, snacks, baked goods have popped up across the

country, to take advantage of the rising demand for packaged foods in the country. A vibrant hotel, restaurant and catering (HORECA) industry has also taken root in Rwanda to service the booming tourism industry in the country, including Radisson Blue, Serena, Marriott, City Blue have found a home in Rwanda. Government policy focused on exports The Government of Rwanda has laid down strategies to reduce post-harvest losses, improve local addition of produce, improve quality and food safety, with a goal of increasing availability of processed food products for the local, regional and international markets. AFMASS FoodTech Rwanda edition fits perfectly within the Government of Rwanda's strategy. By availing the latest technologies and appropriate information to the industry within Rwanda and teh Great Lakes Region, the event will bolster the food industry in the region. The conference sessions has been crafted to meet the specific needs of the food, beverage and milling industry in the region, with a coverage of the most critical issues in the region, including processing, packaging, nutrition, food safety and sustainability. You can sign up to attend this edition of the events at www.afmass.com. FOODBUSINESSAFRICA.COM


EVENTS PREVIEW

Event: AFMASS Southern Africa Zambia edition When: October 10-11, 2019 Where: Radisson Blu Hotel, Lusaka, Zambia Timings: 09.00 am to 06.00 pm daily

AFMASS FoodTech Southern Africa in Zambia makes a comeback in October, set to be bigger and better

T

he 2019 edition of AFMASS FoodTech Southern Africa edition is set to welcome the food and agro industry stakeholders from across the SADC region of Africa on October 10-11, 2019 with a program full of unique insights and opportunities in the region. The trade event, which marks the second year in a row that the event is hosted in Zambia, will showcase the latest processing, packaging and food safety technologies, market trends and investments opportunities in the growing Southern African region. With a new venue at the magnificent Radisson Blu Hotel in the middle of Lusaka, Zambia, the event features an improved conference program, a bigger Expo Hall and many more opportunities to network and trade with some of the region's key decision makers in the private sector, Government, NGOs and other stakeholders. More than 1,000 delegates and visitors from across southern Africa and the World are expected to grace the event, as Lusaka hosts Southern Africa's largest food, beverage and milling industry event. The organisers are looking forward to an improvement in attendance from across the region, from the more than the 700 delegates and visitors who graced the event in its inaugural edition , which was held last

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year in October. The 2018 event saw the participation of delegates from across the SADC region, including South Africa, Zambia, Zimbabwe, Botswana, Malawi, Namibia, Angola, DRC and Tanzania. The SADC economic block brings together 16 southern and central African countries. "We look forward to hosting an improved AFMASS FoodTech Southern Africa 2019. We hope that this event will continue our tradition of delivering value for the key stakeholders that attend the events across Africa," says Francis Juma, the team leader at FoodWorld Media, the organisers of the event. More sponsors, exhibitors and partners Continuing with the goal of bringing together the food manufacturing, retail and food service sectors of the industry together, this edition of AFMASS FoodTech Southern Africa has received impressive support from a number of sponsors, exhibitors and partners. "We are excited with the preparations so far from across the industry, with hundreds of delegates already confirmed, while the list of sponsors, exhibitors and partners has increased substantially, with Tetra Pak, the leaders in processing and packaging technologies having confirmed their premium sponsorship of the event. The list

of exhibitors has also grown, providing the most diversified solutions at the Expo Hall to the event's visitors. Hosting AFMASS FoodTech Southern Africa is made possible by the sponsors and exhibitors who come from the four corners of the World to showcase their technologies and innovations focused on the food manufacturing, retailing and foodservice industry in Zambia and sorrounding SADC countries, adds Juma. Strong speaker and panelist profiles The 2019 edition of AFMASS FoodTech Southern Africa will highlight some of the opportunities, trends and challenges that the food, beverage and milling industry faces in Zambia and Southern Africa, on the back of growing economies and increasing local value additon in the SADC region. A number of industry leaders, Government policy makers and other vital contributors to the growth of the food industry in Zambia and Southern Africa, consultants and suppliers have confirmed their participation as speakers and panelists at this year's event, to contribute to the growth of the food industry in the region. You can sign up to attend this edition of the events at www.afmass.com.

JUNE 2019 | FOOD BUSINESS AFRICA

19


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UPDATES REGULATORY & POLICY

PEOPLE

FSA backs mandatory full Tetra Pak East Africa appoints Jonathan Kinisu first Kenyan MD ingredient labelling for to ensure that we are all doing our part to pre-packed direct sale food improve the world,” he added. UK – The Food Standards Agency of the United Kingdom has recommended that increased allergen information should be provided on pre-packed direct sale food to give consumers greater confidence in the food they eat. According to FSA, more extensive food labelling will help protect specially consumers who are conscious of what they eat. This is part of the strategy to ensure a transparent food chain while putting in consideration food allergy and intolerance. Following the submission from the Board, the agency has agreed that full ingredient labelling should be mandatory for all pre-packed food for direct sale. Full ingredient labelling requirement is meant to deliver a significant improvement, and greater consistency by following the same labelling system that consumers are familiar with, as found on packaged food. “Food allergies and intolerance affects millions of people and its impact can be as big or bigger than almost all other foodborne diseases,” said Heather Hancock, Food Standards Agency Chair. “That is why we have concluded that more extensive food labelling is the right outcome to provide greater protection for consumers but introduced in a way that we can be confident will work. While it is impossible to eliminate the risks entirely, we consider that this change along with other measures we are prioritising will deliver more effective protection for allergic consumers.” FSA recently published a Board paper on food allergies and intolerances with a goal to review and endorse the program in protecting the hypersensitive consumers. In October 2017, the UK government announced review of allergen labelling for food that is pre-packed for direct sale (PPDS) following the conclusion of the Coroner’s inquest into the death of 15-year-old Natasha Ednan-Laperouse. Natasha died in July 2016 after consuming a baguette which contained sesame seeds as an ingredient, in an allergy-related case. ‘Prepacked foods for direct sale’ are foods that have been packed on the same premises from which they are being sold e.g., a packaged sandwich or salad.

22 JUNE 2019 | FOOD BUSINESS AFRICA

KENYA – Tetra Pak, the world's leading food processing and packaging solutions company, has appointed Jonathan Kinisu as the new Managing Director for its East African business unit, continuing with its strategy of appointing local leaders to manage its businesses in Africa Kinisu, 41, becomes the first Kenyan to attain the position of MD in the history of Tetra Pak. He takes over from Swedish national, Håkan Söderholm. “My ambition is to reinforce Tetra Pak’s packaging solutions leadership in East Africa and support our customers unlock real value for their investments. East Africa has vast opportunities that can firmly position the region as one of the leading food manufacturing hubs in the world for dairy, fruit juices and soya products as well as fruit pulp extraction and food processing,” said Kinisu on his appointment. “Our customers and investors can rely on Tetra Pak’s industry knowledge to demonstrate these opportunities as we have done in over 160 countries around the world for the past 65 years. Tetra Pak in East Africa is also committed to working closely with our customers on Sustainability

He said that he was excited to take over the reins at a time when the packaging industry is experiencing significant growth as consumers seek affordable, accessible and quality products. He joined Tetra Pak East Africa in 2012 as Regional Manager responsible for Tanzania and Ethiopia and was appointed Sales Director in 2014, having worked previously in the oil industry in various capacities at Shell in Kenya and the US. He is a Computational Genetics alumnus from Imperial College London and also holds a BSc. (Hons.) in Biochemistry with Biotechnology from Manchester University (UMIST). Kinisu becomes the second high profile appointment by Tetra Pak in Africa, after the company appointed Oshiokamele Aruna as the MD for its Tetra Pak West Africa business unit in mid 2018, making him the first Nigerian to attain this position in the history of company. The global food processing and packaging giant recently announced that its board had appointed Adolfo Orive as President and Chief Executive Officer, effective April 1, 2019. Adolfo succeeded Dennis Jönsson who stepped down from the company after serving as President and CEO for 14 years. Tetra Pak posted sales of US$13 billion in 2017 and is part of the Tetra Laval Group, which also consists of DeLaval and Sidel. In November last year, Tetra Pak East Africa launched a long-life milk consumer campaign in Kenya to educate consumers on the benefits and safety of long life milk products.

INVESTMENTS

Tyson Fresh Meats to invest US$300m in a new US food production plant USA – Tyson Fresh Meats, a subsidiary of the global meat and poultry company, Tyson Foods has unveiled plans to invest US$300 million in a new food production plant in Utah in the United States. The investment is expected to create 800 jobs and will be processing beef and pork into steaks, chops, roasts and ground meat for retailers. The 400,000 square foot caseready plant will be operated by Tyson Fresh Meats, which also operates case-ready plants in Iowa, Tennessee and Texas. The plant will open in 2021 and Tyson will receive tax benefits from the state for the

project under a ten-year agreement in the form of a “post-performance Economic Development Finance tax credit rebate. Last October, Tyson Fresh Meats is said to have secured contracts worth US$700m to supply fresh beef and frozen ground beef to the US Pentagon. In February, it acquire the operations of Brazilian meat company, BRF in Thailand and Europe for US$340 million. The deal included four processing facilities in Thailand, one processing facility in the Netherlands and one processing facility in the United Kingdom, previously operated by BRF. FOODBUSINESSAFRICA.COM


INNOVATIONS

Diageo launches new zero sugar Smirnoff Infusions in three flavours

USA – The British spirits and beer maker, Diageo Plc has unveiled a new line of Smirnoff Zero Sugar Infusions, which come in three flavour variants. The new range includes Cucumber & Lime, Watermelon & Mint and Strawberry & Rose to delight Smirnoff lovers who are looking to cut on sugar consumption. The new Smirnoff Zero Sugar Infusions are made with natural flavors to create a ‘delicious, sugar-free option without sacrificing taste’. They have alcohol content of 30%, making it easier to make sugar free cocktails at home, packed with natural flavor, and are perfect for mixing simple, crowd-pleasing cocktails and delicious cocktails. “As a leader in the vodka category, Smirnoff has built a reputation for creating breakthrough innovations based on consumers’ evolving taste preferences,” said Jay Sethi, Vice President, SMIRNOFF, Diageo North America. “Now more than ever, consumers are demanding lower sugar options that are still delicious. “With the launch of new Smirnoff Zero Sugar Infusions, we are proud to embrace the zero-sugar trend in order to grow the category and give everyone 21+ an accessible way to enjoy a zerosugar spirit.” The new line will be available first in the US at a suggested retail price of $11.99 per 750mL bottle. Cucumber & Lime is a crisp, cool flavor of a fresh cucumber paired with the bright citrus notes of lime, offering 72 calories per 1.5oz serving. Watermelon & Mint is a juicy watermelon flavor balanced with the taste of fresh mint for a refreshing-tasting finish, providing 72 calories per 1.5oz serving. While, Strawberry & Rose is a sweet strawberry flavor with a light rose petal finish offering 72 calories per 1.5oz serving. Last year, Diageo expanded its line of spiked seltzers in the US with the launch of a raspberry rosé variant, containing 90 calories per 12oz serving, free from sugar and artificial sweeteners.

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PEOPLE

INVESTMENTS

Serengeti Breweries appoints Mark Ocitti as new MD, to up stake

Coca-Cola halts plans to refranchise African bottling unit, retains majority stake

TANZANIA – The East African Breweries Limited (EABL) has appointed Mark Ocitti as the new managing director of its Tanzania based subsidiary, Serengeti Breweries Limited (SBL). Mark will take over from Helene Weesie- who has been moved to a new position at the holding company, Diageo Europe. Weesie is credited for successfully steering the company’s turn around since 2015 and championing the new products in the market to a remarkable growth of the business, numerous innovation awards and a number of investments. Prior to his new role, Mark was the Managing Director at UBL (Uganda Breweries Limited), also a subsidiary of the Diageo controlled brewer. He holds an MBA degree from Herriot Watt University, Edinburgh and a Bachelor’s degree in Statistics from Makerere University. He joined EABL in August 2014 as managing director for EABL International, which is responsible for EABL’s business in South Sudan, Rwanda, Burundi and DRC. He has previously helped the company achieve and maintain market leadership in premium spirits in both Rwanda and South Sudan. Commenting on the new appointment, EABL’s Group Managing Director, Andrew Cowan described Mark as a top performer who turned around (UBL) fortunes in the market. Cowan said that Mark propelled growth in UBL by sharpening its competitive edge and markedly improving the subsidiary’s profitability over the last three years.Meanwhile, EABL has unveiled plans of acquiring an additional 4% shareholding in Serengeti Breweries, increasing its stake to 55%. 24 JUNE 2019 | FOOD BUSINESS AFRICA

SOUTH AFRICA – Multinational beverage giant, The Coca-Cola Company, has revealed that it will retain its majority stake in South African-based Coca-Cola Beverages Africa (CCBA), as talks to find a bottling partner(s) could not be concluded. Coca-Cola previously announced its intention to refranchise CCBA, the largest bottler of Coca-Cola beverages in Africa serving 12 countries, as part of its global plan to divest its manufacturing and distribution assets to focus on main beverage business and boost margins. “Coca-Cola Beverages Africa is a very important part of the Coca-Cola system, and we see great opportunities to create even more value,” said Brian Smith, Coca-Cola President and Chief Operating Officer. “While we remain committed to the refranchising process, we believe it’s in the best interests of all involved for Coca-Cola to continue to hold and operate CCBA,” he added in a statement. The beverage giant said that despite engaging various potential bottling partners for disposal of the stake, it could not reach a deal. The company is said to have been in talks with Coca-Cola HBC, Cola-Cola European Partners, Coca-Cola SABCO and Heineken N.V. Coca-Cola said it would reclassify CCBA holding in its financial statement from the second quarter of 2019 to ‘Continued Operations’, from ‘Discontinued Operations’. CCBA was formed in 2016 through the combination of the African non-alcoholic ready-to-drink bottling interests of

SABMiller Plc, The Coca-Cola Company and Gutsche Family Investments. In 2017, Coca-Cola became the controlling shareholder in CCBA after acquiring a 54.5% stake from Anheuser-Busch InBev (AB InBev) formerly controlled by SABMiller. Meanwhile, CCBA has consolidated its hold on the bottling business in Kenya, by acquiring controlling interests in two Kenyan Coca-Cola franchise bottlers from the public investment company, Centum Investments. Centum has sold its stakes in Almasi Beverages Limited and Nairobi Bottlers, with a total valuation of 19.5 billion shillings ($192.5 million). Subject to regulatory approval, the deal is set to be closed in the next four months. In 2016, Centum raised its stake in Almasi Beverages to 53.8% after investing US$10 million (KSH 1 billion) through a rights issue in the bottling company. Almasi is the second largest Coca-Cola bottler after Nairobi Bottlers. It is the holding company for Kisii Bottlers, Mount Kenya Bottlers based in Nyeri and Rift Valley Bottlers in the Rift Valley of Kenya.

INNOVATIONS

Nestlé launches research & development initiative in Africa GHANA – Nestlé has launched a Research and Development (R&D) innovation challenge in Sub-Saharan Africa as part of the company’s efforts to contribute to local innovations. The initiative aims to boost local entrepreneurship, as well as provide a platform for start-ups and universities to contribute to local sustainable growth by bringing breakthrough ideas to the market. The R&D innovation challenge, which was officially launched in Ghana, will be implemented across several countries in the continent including Côte d’Ivoire, Kenya, Nigeria, Senegal and South Africa. According to the firm, the goal is to work collaboratively with start-ups and universities to identify sustainable and

scalable science and technology solutions that help to accelerate the innovation of products that meet local consumer needs. The challenge calls for novel solutions across four areas: environmentally friendly packaging solutions, sustainable cocoa plantlets, affordable nutrition and new routes to market. “There is a growing number of Africabased entrepreneurs and local researchers with creative ideas to address issues facing their communities,” said Stefan Palzer, Nestlé Chief Technology Officer. “This R&D innovation challenge presents for our company an exceptional opportunity to leverage the outstanding creativity, while helping to turn the most promising ideas into reality.” FOODBUSINESSAFRICA.COM


CAPACITY BUILDING

FrieslandCampina WAMCO inaugurates dairy training academy in Nigeria

Is your African Strategy taking longer to deliver than you planned? 11%

Source| Security Monitor

NIGERIA – FrieslandCampina WAMCO has opened a dairy training academy in Lagos, Nigeria as part of the company’s efforts to promote its business and employees’ growth. Speaking during the commissioning, Mr. Ben Langat, the Managing Director, FrieslandCampina WAMCO highlighted that the facility will improve skills and enhance performance of the firm. “Our new training academy is purpose built and equipped to enhance the skills of our employees who deliver some of the best global practices that FrieslandCampina WAMCO is known for across Nigeria. “The academy has an 80-seater auditorium. It also has a technical training room fitted with up-to-date machine models found in similar facilities across the globe, and an e-Library that connects to world libraries. The facility has a sales simulation room with model markets for training the company staff and will also provide brand touch points for the benefit of participants from outside. It complements the company’s grass to glass value chain system and its dairy development programme (DDP) in Nigeria, with a goal to transform talents into top performers. The new facility strengthens FrieslandCampina WAMCO commitment in developing the dairy sector in the country which has seen the firm adopt other initiatives including the multi-billion-naira Dairy Development Programme (DDP) – established in 2010. Through the programme, the firm has managed to establish a large network of milk collection centres across South-west Nigeria, benefiting more than 3,500 dairy farmers. The firm has also in the past years partnered other organisations in providing community development initiatives as it seeks to ensure the communities fully embraces the business model around the dairy sector. The DDP enables dairy farmers to run their businesses optimally as well as raise the quality and quantity of their dairy production through knowledge-sharing, training courses and exchange programmes with a number of partners.

Africa is full of potential but is a tough place to do business, we agree. Our magazines can help you unlock the potential there is in Africa’s food and agro sector. Advertise on our print and online resources.

Contacts us on: Tel: +254 20 8155022; Cell: +254 725 343932 Email: info@foodworldmedia.net


FUNDING

Beverage investor raises US$100m, seeks new opportunities and acquisition targets ETHIOPIA – A frontier markets focused investments company Vasari Beverages B.V. has completed a US$ 100million capital raise to fund a set of growth opportunities including expansion of its existing beverage operations in Ethiopia and the pursuit of new acquisitions and greenfield developments across Africa and Asia. The alcoholic beverage investor, led by Vivian Imerman, the group has over 40 years’ experience operating marketleading consumer goods companies across emerging and developed markets including Scottish distiller Whyte & Mackay, global

fruit-based drinks and products company Del Monte International and confectionary producer Nabisco SA. Vasari Beverages owns 98% of the controlling offshore company of Dashen Brewery S.C., one of Ethiopia’s largest breweries, having acquired the Duet Private Equity minority investors, deploying US$ 120 million to grow the brewery’s production capacity since the first investment in 2012, thereby raising its production volume from 0.5 million hectolitres to 2.5 million after the installation of the state-of-the-art continuous brewery According to the company, Dashen will use some of the capital raised by Vasari to double total production capacity to 5 million hectolitres. Vasari also plans to invest in boosting production capacity at Ethiopian based distiller Rorank Business S.C., one of the

largest vertically integrated distillers in East Africa, which produces a range of distilled liquor products under the Super Eagle and Crystal brands. Vasari acquired a majority stake in the business in 2014 and to date the company has invested US$ 50million and grown the workforce to over 500 people by investing in new capacity, brand development and strengthening sales infrastructure. Rorank will use some of the capital raised to build a new distillery, tripling the annual capacity of the business from the current 8 million litres of alcohol to 25 million litres capacity. The company has extended its investments in Africa beyond Ethiopia as well. In 2016, it acquired the operational assets of South African drinks producer KWV for US$ 85million, one of South Africa’s oldest and most renowned spirits and wine producers.

FOOD LABELLING

US FDA urges the food industry to adopt ‘best if used by’ system to stem food waste USA – The US Food & Drugs Administration has urged the food industry to adopt the ‘Best If Used By’ product labelling system, thereby seeking to make a change to a product labelling system that has been blamed for the wanton waste in the food supply chain across the world. Manufacturers of packaged foods use a variety of phrases on product date labels, such as “Best If Used By,” “Use By,” and “Sell By,” to describe quality dates to indicate when a food may be at its best quality. Consumers have also been confused by the differences in these terms, with a 2007 survey finding that 50% it difficult to distinguish between these terms. In other countries, the “Expiry Date” is also commonly used. The food industry, government, and

NGOs have been working to reduce consumer confusion regarding product date labels, with consumer research indicating that the “Best If Used By” introductory phrase communicates to consumers the date by which the product will be of optimal quality. Further, USDA has emphasized that foods not exhibiting signs of spoilage should be wholesome and may be sold, purchased, donated and consumed beyond the labeled ‘Best If Used By’ date. The FDA says it has found that food waste by consumers may often result from fears about food safety caused by misunderstanding what the introductory phrases on product date labels mean, along with uncertainty about storage of perishable foods, adding that it is estimated that confusion over date labeling accounts

for approximately 20% of consumer food waste. Food waste is a major concern in the US and around the world, with the USDA’s Economic Research Service estimating that 30% of food is lost or wasted at the retail and consumer level, or 60 million tonnes of food worth US$161 billion each year. The guidance by the FDA has been welcomed by leading players in the food industry, including the Grocery Manufacturers Association (GMA), the industry lobby group that brings together some of the most influential food operators in the US. There's no federal requirement to put date labels on food packages, with the only exception being infant formula, where the FDA mandates that infant formula be labelled with a "Use By" date.

FINANCIALS & ECONOMY

Zambeef half year revenue decline 4% amid challenging environment ZAMBIA – Zambeef Products PLC, a food products and agribusiness company, has posted a 4% decline in revenues to US$118.8 million for the six months to March 31, 2019 amid a challenging fiscal and forex operating environment. Zambeef plunged into a pre-tax loss of US$2.5 million compared to a pre-tax profit of US$2.8 million the year before. The company’s earnings before interest, tax, depreciation, and amortisation (Ebitda) margin also declined to 5.8% from 10% a 26 JUNE 2019 | FOOD BUSINESS AFRICA

year before. However, Zambeef said that since the end of the year, margins have improved, and revenue growth has returned. The company, which operates in a number of countries internationally, saw its Zambian retailing operations record 15% rise in revenue to US$67.12 million (ZMW 882million) supported by increased stockfeed, edible oil, and flour sales. However, an imbalance between sales of high and lower margin products led to 8% fall in gross profit to US$6.39 million (ZMW84

million). Looking ahead, the Chairman said the macro-economic climate is anticipated to remain challenging that he's confident the group will perform well in the second six months to September 2019. Zambeef has also continued to build up on the momentum of its macro retail rollout, marked by recent opening of new outlets including in Chaisa and Kitwe as well as a new distribution and processing centre in the northern region. FOODBUSINESSAFRICA.COM


Sustainability

BUSINESS AFRICA

TRENDS IN RENEWABLE ENERGY • WATER • WASTE • AIR • MANUFACTURING • MOBILITY • INFRASTRUCTURE • COMMUNITIES • RESOURCES • POLICY & REGULATION

PARTNERSHIPS

Food industry giants launch plastics credit scheme to tackle pollution

SPAIN – Global food and beverage industry players including

Tetra Pak, Nestlé, and Danone have founded The 3R Initiative which is aimed at accelerating ways of reducing plastic waste and pollution. Under the initiative, the companies will work alongside nonprofits Verra and BVRio to undertake 12 initial pilots of potential credit-issuing projects across Asia, Africa and Latin America. The platform provides companies such as consumer goods firms, retailers and packaging producers with access to a digital tool

which allows them to trade plastics credits issued by recycling and recovery providers worldwide. The credits will be used to prove compliance and to “offset” corporate plastic use, with the money raised through this system set to fund projects tackling plastic leakage “hotspots” and social inequalities in developing nations. For instance, in Brazil the crediting system will enable disadvantaged waste pickers to generate additional income and improve their work conditions through the sale of plastic waste recovery credits. In Southeast Asia, 3R credits will go towards new investments in waste collection and recycling infrastructure to seek out the source of plastic pollution and cut it off. “This innovative 3R mechanism – Reduce, Recover, Recycle - is the brain child of experts coming together, rolling up their sleeves and taking on the challenge of improving collection. Developing and funding solutions to mitigate potential leakage into the environment is one of its core aims close to my heart, and supports our Tetra Pak objective of zero cartons to landfill,” said Mario Abreu, global vice president for Sustainability at Tetra Pak. The 3R Initiative is a new packaging waste drive focusing on standardising and accelerating corporate action on plastics in a move to help companies align their plastic reductions with economic and social sustainability. It includes a 3R Corporate Standard, designed to hold corporations accountable for plastic waste by independently assessing them against a set of guidelines. The assessed companies can then use this standard to celebrate internal successes in terms of waste.

RENEWABLE ENERGY

Coca-Cola launches solar power system in Namibia to strengthen green energy sourcing NAMIBIA – Coca-Cola Namibia Bottling Company (CCNBC), subsidiary of Coca-Cola Beverages Africa (CCBA) has installed 1740 solar panels and 9 solar inverters in its facility as part of its ambitions to explore green energy sourcing. The new solar power system investments, worth over N$5.7 million (US$ 380,000), will supply 9% of the total energy requirement of the manufacturing plant and is expected to reduce carbon emissions by 832 tonnes within a year, equivalent to planting 80,117 trees, says Enid Johr, CCBA Namibia, Public Affairs and Communications Manager. According to a CCBA Chief Executive, Jacques Vermeulen, Coca-Cola is currently conducting a feasibility study on using solar power as a clean, sustainable, distributed energy resource across nine of the 12 African countries in which it currently operates. “The project makes a compelling case for implementing solar powered systems at a number of sites across Coca-Cola’s operations in at least three other countries,” he explains. The company reaffirmed that the newly-commissioned solar powered system marks it efforts towards promoting environmental conservation through water conservation, waste management initiatives in addition to community works. As part of its sustainability initiatives, the beverage giant is FOODBUSINESSAFRICA.COM

seeking to promote reliable access to good and safe water especially in water-stressed countries as well as in all the communities it operates in. In this context, the Coca-Cola system is targeting to use 1.7 litres of water to produce 1 litre of product across all operations by 2020. At Namibia Bottling Company, water consumption has been reduced from 2.57 litres of water to produce 1 litre of product in 2015 to 1.59 litres in 2018. JUNE 2019 | FOOD BUSINESS AFRICA

27


STRATEGY

India’s FMCG major Dabur aims to be a plastics waste free company by 2021 INDIA – India’s health and consumer products company, Dabur has set the ambitious goal to become a plastic waste free company by the end of March 2021. According to an ET Retail report, the company is working with nearly 5,000 ragpickers across six states to collect, process and recycle 20 million kilograms of post-consumer plastic waste from across the country. The company says the move will enable it collect back 100% of the plastic waste that it generates through its product packaging. The initiative initially targets six states including Delhi, Uttar Pradesh, Uttarakhand, Maharashtra, Tamil Nadu and Punjab. “It’s an ambitious target, but we have already started working towards it. We rolled out this pilot plastic recycling

initiative last year in six states,” said Dabur India CEO Mohit Malhotra. “Fiscal year 2018-19 was the first full year of its rollout and we have collected, processed and recycled nearly 4,000 MT of post-consumer plastic waste from these six states.” This will then be extended to 25 states in the 201920 fiscal with plans to collect 12,400 MT plastic waste and send them for recycling or processing. In 2020-21, this will be increased to 20,000 MT. To cement these sustainability efforts, Dabur is working with school children and carrying out education and awareness programmes on plastic waste management and recycling. It has also put in place initiatives to improve the livelihood and health of local ragpickers and waste collectors.

STRATEGY

Nampak unit ramps up investment in plastic bottles alternatives SOUTH AFRICA – South Africa’s packaging group, Nampak, has indicated that various innovations are being advanced to grow the pack share of beverage cans and cartons as environmentally responsible alternatives to plastic. Amid the increase in consumer resistance to plastic, Nampak seeks to capitalise on the opportunity by replacing plastic bottles with aluminium beverage cans and paperboard cartons. According to a Creamer News report, it is estimated that South Africans consume about 600-million plastic water bottles yearly, with most of those containers produced by the beverage firms themselves. Bevcan South Africa, Nampak’s aluminium beverage cans production

unit, is currently achieving high recycling rates, which Nampak believes is creating an opportunity to position beverage cans against plastic, particularly for water. Plastics bottles continue to enjoy a pricing advantage over beverage cans, but the aluminium content is higher value, making them more suitable for collection and recycling and more desirable among increasing environmentally aware consumers. It is also bullish about the future prospects for cartons, noting that paper is re-emerging as a substrate of choice for liquid packaging, riding on their advantages of being made from 87% renewable sources, eco-friendly, high recycle rates of 66% and are they are also cost competitive.

Besides water, for which beverage can alternatives are already being rolled-out for some customers, the company sees significant growth potential in the wine and fruit-juice segments. However, Nampak said it will continue to produce plastic packaging and has no intention of selling its plastics business, as is currently the case for its glass unit, where sale negotiations are ongoing with the preferred bidder. Instead, the packaging giant will seek to reduce the use of plastics by substituting it, where feasible, with other substrates by introducing light-weighting technology, raising the recycled content and ensure that recycling and reuse rates are as high as possible.

PARTNERSHIP

Food majors sign on WWF’s new activation hub to tackle plastic waste

SWITZERLAND – The World Wildlife Federation (WWF) has launched a new activation hub called ReSource: Plastic that aims to offer guidelines in tackling plastic waste and pollution across the globe. Global food and beverage manufacturers including Keurig Dr Pepper, McDonald’s, 28 JUNE 2019 | FOOD BUSINESS AFRICA

Starbucks, Tetra Pak and The Coca-Cola Company are among the companies that have signed on as principal members of the initiative. The new activation hub will serve as a roadmap for companies to take meaningful and measurable action on large-scale commitments while helping them identify concrete changes to reduce plastic pollution. It will provide tools and methodologies for reaching corporate targets, including fostering collaboration with and among participants, along with best practices and action plans. The project will also help track and publicly report participants’ progress on the amount of plastic waste prevented each

year. “ReSource is designed to identify the concrete changes that will make the biggest impacts in reducing a company’s plastic pollution footprint,” said Nik Sekhran, Chief Conservation Officer, World Wildlife Fund. “With ReSource, companies now have access to more advanced tools to maximize, measure and multiply their commitments to make this a reality.” According to WWF, participation from just 100 specific companies could help prevent approximately 10 million metric tons of plastic waste, and more transparent reporting could help make progress in that direction. FOODBUSINESSAFRICA.COM


RENEWABLE ENERGY

Unilever Kenya unveils new solar plant to explore renewable energy solutions KENYA – Unilever Tea Kenya has commissioned a 619 kWp solar plant in its Kericho tea factory as part of the firm‘s ambitions of exploring renewable energy solutions and implementing energy cost savings initiatives. The tea processor becomes the first commercial and industrial power purchase agreement for Unilever in Sub-Saharan Africa. With the addition of solar PV to its existing hydroelectric and biomass resources, over 90 per cent of Unilever Tea Kenya’s energy needs will now be met with clean energy. Sylvia Ten Den, the company’s

managing director described the new investment as a sustainable and cost-free model of cutting costs while cleaning the environment. “Installation of solar power at our Kericho operations delivers on our commitment to reduce our environmental footprint. By reducing the use of energy, raw materials and natural resources, we create efficiencies and cut costs, while becoming less exposed to price volatility. Besides being more cost-efficient this will save 10,000 tonnes of carbon emissions over 15 years This defines our sustainable living plan on cutting costs, reducing health risks and building trust with our stakeholders,”

she said. The project will be implemented via an innovative 15-year power purchase agreement with CrossBoundary Energy handling maintenance, monitoring and insurance as well as future plant upgrades. The solar PV panels are installed on a rotating mounting structure that tracks the movement of the sun throughout the day, increasing the plant’s power output by 20% and brings the company closer to its goal of sourcing 100% of total renewables for its operations. The project is the largest commercial single-axis tracking installation in Kenya to date.

PARTNERSHIP

Land O’Lakes and Mars partner in pitch to accelerate on-farm dairy sustainability

USA – Land O’Lakes and Mars Wrigley have joined forces to accelerate on-farm dairy sustainability by calling for solutions that will reduce greenhouse gas emissions on the farm. The companies have unveiled the ‘Empower Possibilities’ scheme that would allow entrepreneurs and companies to provide ideas, products and services to help farmers reduce their carbon footprint. The call for solution submissions ended June

24, 2019 and the selected solution will be piloted on Land O’Lakes member dairy farm with up to US$200,000 in support from Mars Wrigley. Participants will have an opportunity to present to an audience of Land O’Lakes members and industry experts while the selected solutions will be supported and implemented with Mars Wrigley’s support. They will also receive input, coaching and advice from dairy and ag tech leaders to help bring their products and services to scale on the farm. “Mars has prioritized sustainability throughout our supply chain network, including through our Sustainable in a Generation Plan,” said Ashley Walton, Global Category Director for Dairy, Mars Wrigley. “We believe the world we want tomorrow starts with how we do business today. To reach our ambitious sciencebased climate goals, we are working collaboratively to help reduce greenhouse gas emissions from dairy farms.”

The initiative builds on Land O’Lakes’ efforts in reducing greenhouse emissions through renewable energy initiatives. The company recently partnered California Bioenergy to support the financing, installation and management of on-farm methane digesters to generate renewable compressed natural gas. “Across the dairy sector, entrepreneurs are developing new tools every day to help dairy farmers in all aspects of stewardship, including achieving reductions in greenhouse gas emissions,” said Pete Kappelman, Senior Vice President of Member and Government Relations for Land O’Lakes, Inc. “Dairy farmers are innovative and forward-thinking, and Land O’Lakes is well-positioned to deploy on-farm solutions that can help our dairyfarmer members focus on business results, while also safeguarding natural resources. This pitch event is one more way to amplify emerging tools in our industry.”

PARTNERSHIP

Olam achieves sustainability certification for oil palm plantation in Gabon GABON – Olam International, the multinational food and agri-

business company has announced that it has achieved Roundtable on Sustainable Palm Oil (RSPO) certification for its Mouila Lot 3 palm plantation in Gabon. RSPO, an organisation consisting of players in the palm oil industry, developed a set of environmental and social criteria which companies must comply with in order to produce Certified Sustainable Palm Oil (CSO). Mouila Lot 3 becomes Olam’s third RSPO certified plantation and the first palm oil plantation in Africa to be developed on 100% grassland area. The certification supports Olam’s commitment set out in its Living Landscape Policy to protect high carbon stock and high conservation value areas and to support sustainability agenda.

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The company operates the 38,363-hectare (ha) palm plantation through Olam Palm Gabon as a joint venture with the Republic of Gabon. According to Olam, the total planted areas of the plantation is 18,272 ha and 18,765 ha of high conservation value (HCV) is being conserved. Based on the RSPO GHG calculator, the plantation is expected to make a net positive climate impact by fixing 236,000 metric tonnes of CO2 over 25 years. The plantation has a production capacity of 74,000 metric tonnes of certified sustainable palm oil (CSPO) and 13,000 metric tonnes of certified sustainable palm kernel oil (CSPKO). The certification brings Olam’s total RSPO certified concession area to 94,000 ha, making it the largest certified producer in Africa. JUNE 2019 | FOOD BUSINESS AFRICA

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PEOPLE

Unilever’s Ben & Jerry’s forms dairy advisory council for sustainability support USA – Unilever’s

Ben & Jerry’s has formed a new dairy advisory council to provide guidance on sustainable agriculture and product manufacturing. The new Dairy Advisory Council comprises experts in environmental health, the animal protection movement, water quality, and organic farming to help the company achieve its newly refined Values-Led

Dairy Vision. Each member of the Dairy Advisory Council has been chosen for his or her expertise in a certain field and has been encouraged to challenge Ben & Jerry’s assumptions and approach. With the council, Ben and Jerry’s looks to sustainably source milk used in its products from farms that depict thriving and dignified livelihoods for farmers and farm workers. The farms should uphold exceptional animal welfare standards for cows, with operations that act as a net carbon sink through minimizing greenhouse gas emissions and sequestering carbon in the soil. They should also show a flourishing ecosystem in which feed is grown ecologically, without use of harmful

chemicals or GMOs, and in a way that protects water resources and promotes biological diversity. “While we’re proud of the progress we’ve made over the past decade in helping farmers build soil health, improve animal welfare and increase the sustainability of their farms through our industry-leading Caring Dairy program, we know there is still a long way to go in achieving our vision. This new, independent council will provide ideas and advice as we develop a long-term roadmap for our goals, with objectives and milestones along the way,” said Dave Rapaport, Ben & Jerry’s Global Social Mission Officer.

REGULATORY & POLICY

Tanzania’s ban on plastic bags takes effect in bid to promote sustainability TANZANIA – Tanzania has enjoined other countries in imposing ban on the production, supply and use of plastic carries bags as part of its efforts to promote sustainability through the reduction of environmental pollution. According to the notice by the country’s environmental management agency, no plastic carrier bag will be allowed to be produced, imported and distributed in the country except those, which are allowed under the law, including those used for wrapping up and packaging of certain products such as food, medicine and agricultural materials. According to a Daily News report,

Tanzania produces over 56,000 tonnes of plastic bags and used over two billion pieces of them a year, Joseph Sokoine, an administrator concerned with environmental affairs reveals. Data obtained from NEMC, the country lags behind in recycling of plastics with levels being as low as only one per cent. Tanzania becomes one of the 128 nations that have taken stern measures to curb environmental pollution and the third country in the East African Community (EAC) bloc after Kenya and Rwanda. In Africa, there are about 13 countries that have either banned or introduced a levy on plastic bags to control and eventually stop their use.

CARBON FOOTPRINT

Arla cuts on carbon footprint with more sustainable packaging in Europe DENMARK – Danish dairy giant, Arla Foods, has said that it is on track to achieve its sustainability ambitions, having made over 1 billion pieces of packaging more sustainable across Europe. The company now targets to make 600 million fresh milk cartons renewable and 560 million yogurt pots recyclable across six countries including Sweden, Denmark, Finland, the Netherlands, Germany and the UK, with the move a continuous improvement on the Sustainable Dairy

30 JUNE 2019 | FOOD BUSINESS AFRICA

Farming Strategy launched in 2014. It will cut 7,330 tonnes of carbon. The company is targeting a CO2 reduction of 30% by 2030, initially committing to reduce emissions from its packaging by approximately 8,000 tonnes of CO2 every year. The switch from fossil-based plastic to bio-based plastic derived from sugar cane or forest waste for the 600 million Arla milk cartons makes them 100 per cent renewable and contributes 25% less carbon dioxide into the atmosphere compared to their fossil-based plastic predecessors.

The dairy company is making strategic commitments with an ultimate aim to achieve carbon net zero across its entire dairy portfolio by 2050. Over the next decade, it plans to reduce greenhouse gas emissions by 30% per kilo of milk, a positive step towards even more sustainable dairy farming. The company says since 2005, it has reduced the CO2 impact of its packaging by 25%, equal to 123,000 tonnes of CO2 being diverted from the atmosphere.

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AFMASS EASTERN AFRICA 2019 REVIEW: SPONSORS & EXHIBITORS PROFILE BIOMERIEUX SA France Website: www. biomerieux.com Contact Person: Soumeya Loucif

BUHLER LTD P.O. Box 44553 – 00100, Nairobi, Kenya Tel: +254 720 180 011 Website: www.buhlergroup.com

SENDY MOB:+254 709 779 779 EMAIL:support@sendyit.com Website: www.sendyit.com

DSM NUTRITIONAL PRODUCTS South Africa (Pty) Ltd TEL: +27 11 966 9172 Website: www.dsm.com

Coca-Cola Central, East & West Africa Nairobi, Kenya. P.O.Box 30134-00100 Nairobi GPO Website: www.coca-cola.com

Endress+Hauser (Pty) Ltd Gauteng Sandton, South Africa Tel. +27 11 262 8000 Email: info@za.endress.com Website: www.endress.com

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BioMérieux is first and foremost a human and scientific adventure that began more than 50 years ago, yet its roots reach back to the tradition of Louis Pasteur and the fight against infectious diseases. In 1897, Marcel Mérieux, who had studied with Pasteur, founded a laboratory in Lyon where he developed the first anti-tetanus sera. bioMérieux develops and produces in vitro

diagnostic solutions (systems, reagents and software) for private and hospital laboratories, mainly for the diagnosis of infectious diseases. The results obtained from a patient sample (blood, urine, stool, cerebrospinal fluid, saliva, etc.) provide doctors with information to support their decisions.​​

Every day, billions of people come into contact with Bühler technologies to cover their basic needs for food and mobility. We strive for innovations for a better world, with a special focus on healthy, safe, and sustainable solutions. We contribute significantly to feeding the world’s population, while setting the focus on food security and safety. Our solutions and technologies enable efficient and clean mobility.

In 2017, around 11,000 employees in over 140 countries generated a turnover of CHF 2.7 billion. As a globally active Swiss family-owned company, we are particularly committed to sustainability. We want our customers to be successful. We want every human being to have access to healthy food. We want to protect the climate with energy-efficient cars, buildings, and machinery.

Sendy is a technology platform that connects businesses to vehicles and drivers with the purpose of moving packages simply and transparently. We provide an app and web platform that enables businesses to request for deliveries with Trailers, Trucks, Vans, Pickups & Motorcycles. Our service enables businesses to track the

vehicles in real time, collect data on their logistics and benefit from goods in transit insurance. Sendy serves businesses across all sectors. We have built the first efficient shared logistics platform for Africa that will create new possibilities for both businesses and transporters.

The importance of being healthy is apparent: people around the world and across different age groups worry and care about their health. Our research showed that 82% of the global population* think that nutrition is key to maintaining a good health and enhance quality of life. While grocery store shelves offer us more choices today than ever before, many still find it challenging to live a healthy lifestyle.

At DSM, we understand the power of nutrition and the profound impact it has on our future, especially during the first 1,000 days from the start of pregnancy. As the leading science-based supplier of vitamins, carotenoids, Omega-3 & 6 lipids, nutraceutical ingredients and unparalleled services in custom premixes, innovation and brand-centric marketing.

Coca-Cola’s mission is to refresh the world, to inspire moments of optimism and happiness and to create value and make a difference. The company’s vision serves as the framework for its Vision 2020 Roadmap

and guides every aspect of its business with a focus on people, portfolio, passion, partners, planet, profit, productivity, in order to continue achieving sustainable, quality growth.

Endress+Hauser is a global leader in measurement instrumentation, services and solutions for industrial process engineering. We provide process solutions for flow, level, pressure, analytics, temperature, recording and digital communications, optimizing processes in

terms of economic efficiency, safety and environmental impact. Our customers come from various industries, including chemical, food & beverage, life sciences, power & energy, primaries & metal, oil & gas and water & wastewater.

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KEPHIS P.O. Box 49592-00100, Nairobi Cell: +254 709 891 000 Tel: +254 20 661 8000 Email:director@kephis.org Website: kephis.org

KENYA DAIRY BOARD. P.O. Box 30406-00100 Nairobi. Mob: +254 722 573432 / 0733521438 Email: Info@Kdb.co.ke Website: www.kdb.co.ke

RESULTA EXPORTERS (PTY) LTD Email: info@resulta.co.za Tel: +27(0)21 880 1094 , South Africa Website: www.resulta.co.za

PROMACO LTD Africa Reit House, Karen, Nairobi, Kenya Email: projects@promaco.co.ke Tel: +254 723 708032

Seibu Giken DST Spanga Sweden Website: www.dst-sg.com Contact Person: Mahran Ahmed

34 JUNE 2019 | FOOD BUSINESS AFRICA WWW.AFMASS.COM

Kenya Plant Health Inspectorate Service (KEPHIS) is the government parastatal whose responsibility is to assure the

quality of agricultural inputs and produce to prevent adverse impact on the economy,

Kenya Dairy Board (KDB) is a state corporation under the Ministry of Agriculture Livestock and Fisheries established through an Act of Parliament, CAP 336 of the Laws of Kenya. Dairy farming and marketing of dairy products in Kenya goes way back to 1900 when it was in the hands of the colonial settlers. As Africans exerted pressure to have a share in dairy activities at that time, there was need to expand the sector and allow the native Africans to also produce and have a market share. A committee was formed in early 1940’s chaired by the

department of Agriculture of the time which led to the development of the Swynnerton plan of 1948 that recommended the inclusion of Africans in dairy farming. As the whites and Africans struggled to have a share of a very limited market, and improve quality of milk and milk products, there was a recommendation in 1955 that there was need to form a body that could regulate milk and milk products standards in Kenya. This led to the birth of KDB in 1958 through an ACT of parliament CAP. 336 laws of Kenya.

Resulta is an international consulting engineering company with headquarters in South Africa. We specialise in supplying state-of-the-art engineering process equipment, spare parts, components and other products. The bulk of our clients are manufacturers, producers, and processing companies in

Africa and Europe. These encompass a number of industries, from the edible oils and agro-processing sectors to food and beverages. With 30 years of international experience and an extensive service offering in English, French and Portuguese, Resulta has become Africa’s preferred engineering equipment supplier.

Established in 1998, Promaco is East Africa’s leading distributor of specialty food ingredients, Promaco represents on an exclusive basis leading global manufacturers including Chr. Hansen A/S (Dairy Starter Cultures & Enzymes, Natural Colors and Rapid Test Kit Solutions), Tate & Lyle PLC (Modified Starches, Sweeteners, Functional Fibres and Stabiliser Blends), and CP Kelco

(Hydrocolloids) among others. Promaco prides itself on supporting the East African Food Processing Sector with high quality ingredients and technical formulation support to drive innovation, improve product quality, increase process efficiency and lower formulation cost. Headquartered in Nairobi, Kenya with branch offices in Kampala, Uganda and Dar es Salaam, Tanzania.

Seibu Giken DST in Spanga, Sweden, was founded in 1985. In 1993, DST became subsidiary to rotor manufacturer Seibu Giken Co., Ltd Japan. By producing sorption dehumidifiers of the highest quality, DST has been established as one of the premium manufacturers, in top of the competition. All DST dehumidifiers are sold through a world-wide net of representatives. DST is currently represented in over 45 countries

throughout the world and has three subsidairy companies in America, China and Poland. Up to today, DST has sold over 70 000 units. Seibu Giken was first in the world to manufacture silica gel rotors, they remain the world leaders in this technology since 1984. They have now produced over 850 000 desiccant rotors.

the environment and human health.

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AFMASS EASTERN AFRICA 2019 REVIEW: SPONSORS & EXHIBITORS PROFILE PINGLE has proudly served customers for more than 20 years. We are a Chinese manufacturer that is committed to the development, production, distribution, installation, and testing of flour milling machines. Our main products include the roller mill, square plansifter, purifier, multi-storey flour milling plant, and the steel structure flour milling plant. Additionally, we can provide stand-alone machines in the 9 to 1,000t range, which include popular selections such as the grain

pre-cleaner, grain cleaning equipment, flour milling machine, flour processing equipment, maize processing equipment, and conveying equipment. Also available are turn key projects for flour milling plants with capacity ranging from 100 to 1000t. Our technical solutions and high performance machinery are implemented worldwide for the fine processing of wheat, maize, and other types of cereal grains.

CAPWELL Tel: +254 20 2055422 Email: admin@capwell.co.ke Website: www.capwell.co.ke

Capwell Industries Limited (henceforth referred to as CIL) started its operations in 1999 with a modern maize milling factory in Thika. It manufactures high quality flour, rice, pulses and porridges, using the best processes and technologies available. CIL has since diversified its operations to milling of rice, porridge and wheat flour. Pearl Rice and Soko Maize flour are

the flagship brand of the company and key contenders and leaders in their respective categories. CIL products are readily available to consumers in the general trade and modern trade and has an integrated distribution system that ensure customers have access to CIL range of products at their convenience.

Kunshan YGT Imp.& Exp. Co.,ltd Tel: +8618962654847 Website: www.ygt-china.com

KUNSHAN YGT IMP.&EXP. CO.,LTD is a innovative, learning and technical international trading company. With enhanced creativity, YGT has tackled many technical problems. Built close cooperation between many food machinery manufacturer as well as outstanding packing and consumable material

companies. Communication played an important role throughout the whole growth of YGT. Thanks to research and development institutions, equipment manufacturing factories and our clients, YGT won good reputation and confidence among our peers and kept upgrading and improving product performance.

BIGCOLD KENYA LTD A: P.O. Box 5311-00506,Nairobi, Kenya M: +254 717 283038 Email: services@bigcold.com Website: www.bigcold.com

BigCold is a logistics company providing sophisticated cold chain solutions across East Africa from our facilities in Nairobi, Kenya and Dar es Salaam, Tanzania. Our team is experienced in storing and delivering perishable products on time and at the right temperature. BigCold is a BlackIvy endeavor. Anchored in East and West Africa, BlackIvy is a values-driven company that builds and

grows commercial enterprises in SubSaharan Africa that unlock new sources of growth. BlackIvy builds businesses – from housing to healthcare – that serve the needs of the growing population and that provide solutions – from logistics to infrastructure – for growing businesses. BlackIvy has offices in Accra, Dar es Salaam, Nairobi and Washington, D.C.

DNV GL is a global quality assurance and risk management company. Driven by our purpose of safeguarding life, property and the environment, we enable our customers to advance the safety and sustainability of their business. We provide classification, technical assurance, software and independent expert advisory services to the maritime, oil & gas, power and renewables

industries. We also provide certification, supply chain and data management services to customers across a wide range of industries. With origins stretching back to 1864 and operations in more than 100 countries, our experts are dedicated to helping customers make the world safer, smarter and greener.

Paperbags Ltd is a privately owned and operated full service manufacturer of quality paper bags, sacks, and specialty supplies. Paperbags Ltd continues to operate today based on the guiding principles established by the company, which strongly advocates that “the customer is king”. Our entire team takes immense pride in maintaining quality standards and

manufacturing processes that emphasise our commitment to producing consistent quality, value, and services that our customers have grown to expect. With over 50 years of experience in the industry, wholesalers, distributors, and customers in East and Central Africa rely on our company as a trusted source for environmentally friendly and biodegradable products.

Pingle Group Dul Dul Business Park, Mlolongo, Nairobi Tel: +254 712 686 268 Website: www.pingle.com/en

DNV GL Kenya Limited Nairobi, Kenya. Tel: +254 724 418978 Website: www.africa.dnvgl.com

Paperbags Limited P.O Box 18167 - 00500, Nairobi Mob:+254 700 725 725 Email: sales@paperbagsltd.co.ke Website:www. paperbagsltd.co.ke FOODBUSINESSAFRICA.COM

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SENSIENT TECHNOLOGIES SA (PTY) 11 Mastiff Road, Linbro Business Park, Sandton, South Africa Tel: +27 11 053 520 Website: www.sensient.com

Diversey Eastern & Central Africa Ltd Nairobi, Kenya Tel: +254 703 040000 Website:www.diversey.com Contact Person: Sammy Lamba

FrigorTec Grain Cooling Germany Tel: +49 1515 3801195 Contact Person: Marcel Barendsen Website: www.frigortec.de

QUANTILAB E: info@quantilab.mu / sales@quantilab.mu Pantone 326 C Black 100% T: (230) 427 5802 / 427 5807 M: (230) 5 253 7341 Website: www.quantilab.mu

GREIF KENYA LTD, MOMBASA Address: Unga Street, Shimanzi City/Town: Mombasa, Kenya Tel: +254 41 2001406 Website: www.greif.com

36 JUNE 2019 | FOOD BUSINESS AFRICA WWW.AFMASS.COM

Sensient Technologies Corporation is a leading global manufacturer and marketer of colors, flavors and fragrances. We employ advanced technologies to develop specialty food and beverage systems, cosmetic ingredients, pharmaceutical excipients, inkjet and specialty inks and colors, and other specialty and fine chemicals. Sensient’s innovative technologies create fresh, unique solutions tailored

to meet the needs of today’s educated consumers. Our name communicates what we do: Enhance SENSory experiences through specialized ingredIENTs, delivered through proprietary TECHNOLOGIES. Sensient Technologies has facilities around the world that produce a broad range of innovative products for many of the world’s best-known consumer and industrial companies.

Diversey has grown into a major global company by remaining true to his values of constant innovation and unwavering focus on delivering long-term benefits to our customers, our employees and the environment. It is a partnership based on a wealth of expertise, values and a deep knowledge and experience of the institutional and laundry industry that both organisations have gained over many years of involvement

in the hospitality and healthcare sector. Helping you succeed in a challenging business environment. Working with you, we will create ways to reduce your consumption of resources; help you lessen your environmental impact while maintaining operational efficiency and effectiveness. In addition, we use our in-depth knowledge and expertise to help deliver against sanitation and food safety standards.

FrigorTec Grain Cooling took over the product range of refrigeration equipment from Axima Refrigeration GmbH (formerly Sulzer Escher Wyss). The new brand stands for a young company which draws on 50 years of experience. Experience which we use in

the development and production for our customers. Ask us about a cooling solution for your application. FrigorTec delivers grain cooling units, room air conditioners, custom container cooling units and standard cooling units - worldwide.

QuantiLAB is an independent multidisciplinary ISO 17025 (full ILAC MRA recognition) and ILAC G7 accredited laboratory equipped with state-of-the-art technology. Our core services revolve around the fields of: Environment testing, Food Testing,Toxicology, Pharma Testing, Auditing, Training, Consultancy & Problem Solving We have to date more than 160 accredited

methods and are audited by Mauritas, our clients, GLP and EU regulated authorities. Our services are not limited to only those falling within our scope of accreditation; we also develop and validate specific methods to meet our clients’ needs. With above 400 clients over 21 countries and counting, QuantiLAB provides, through its team of highly trained scientists, analytical solutions that help improve quality systems and quality of life.

Greif, Inc. is a global leader in industrial packaging products and services and is pursuing its vision to become the world’s best performing customer service company in industrial packaging. The company produces steel, plastic and fibre drums, intermediate bulk containers, reconditioned containers, flexible products, containerboard, uncoated recycled paperboard, coated recycled paperboard, tubes and cores and a diverse

mix of specialty products. The company also manufactures packaging accessories and provides filling, packaging and other services for a wide range of industries. Greif also manages timber properties in the southeastern United States. The company is strategically positioned with 308 operating locations in 43 countries to serve global as well as regional customers.

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AFMASS EASTERN AFRICA 2019 REVIEW: SPONSORS & EXHIBITORS PROFILE

ISUZU EAST AFRICA LIMITED Enterprise Road, Industrial Area P.O. Box 30527-00100, Nairobi, Kenya TEL: +254-703-013-300 Website: www.isuzu.co.jp/world/ distributor/africa.html

Sai Raj Ltd Address: Baba Dogo Road, Nairobi - Kenya Tel: +254 20 359 7770/7 +254 708 771100/117 Website:sairaj.com

SIKA KENYA LIMITED Tel : +254 20 269 9683 /+254 711 140 234 Email: customerservice@ke.sika.com

ACO Systems SA 122 Shad Road, Wadeville Ext.2 Germiston, Gauteng, South Africa Tel: +27 11 824 3525/6 Email: info@aco.co.za Website: aco.co.za

Kevian Kenya Limited Nairobi Head Office: Off Ngong Road, P.O Box 25290 - 00603 Nairobi, Kenya Mobile: (+254)­722-398-802/733-944-483 Email: info@keviankenya.com Website: keviankenya.com

FOODBUSINESSAFRICA.COM WWW.AFMASS.COM

Isuzu East Africa is the leading motor vehicle assembler in East Africa, selling a wide range of Isuzu vehicles. The company is starting out from a solid foundation established by the Isuzu brand’s automotive excellence over the last 40 years. The brand has attained strong leadership in this market, selling over 80,000 units since the first Isuzu vehicle rolled out of its Nairobi assembly plant in 1977. With over 15 models in its line-up, the

Isuzu brand has dominated the new vehicle segment for five years in a row since 2012, achieving a market share of 39.1% by end of 2018. This is a testimony to customer confidence in its vehicles and excellent aftersales service. With the financial and technical support resources behind it, Isuzu East Africa is well established to meet customers’ needs through an extensive dealer network (Sales, Parts and Service) in all the major towns in East Africa.

Sai Raj Ltd continues to serve the region as a pioneering fibreglass products manufacturer with a team of highly trained professionals that are committed to providing quality fibreglass products and a wide range of associated products and services. For over 40 years, we have provided clients with bespoke innovations by

maintaining a system that can integrate developments as they occur; these cost and quality advantages are passed onto our valued customers. Our core values of Innovation, Flexibility, Quality, Reasonable prices and Timely delivery are reflected in our products and services.

Founded in Switzerland by visionary inventor Kaspar Winkler over 100 years ago, Sika has developed into a successful global company with a leading position in the development and production of systems and products for bonding, sealing, damping, reinforcing and protecting in the building sector and the motor vehicle industry. The future success of Sika is not only dependent on pursuing the right strategy, but is just as much based on the trust

and dedication of all employees. The Sika journey to global leadership is founded on the company's entrepreneurial philosophy and the Sika Spirit. The Sika Spirit is a synonym of the strong set of values and principles which makes up the DNA of the company. Five management principles are expressing the corporate culture and are the foundation of future success:

Throughout the world, the ACO brand is recognised as a leading supplier in the design, development and manufacture of surface water drainage systems. An extensive portfolio offers the market quality solutions for every application, including internal and building drainage, landscaping, sport facilities, retail, distribution centres, highways and airports as well as solutions for environmentally sensitive projects. The ACO Group has been manufacturing

and selling market leading drainage systems for over 70 years. During this time the group has made extensive investment in global research and development and manufactures products world-wide at 30 modern environmentallysensitive production sites. The ACO group has offices in Europe, USA, Australia, the Middle, Far East and Africa - in total over 40 countries on four continents and employs more than 4800 people worldwide.

Kevian Kenya Limited is a private limited, It was incorporated on 9th July 1992. It’s Head Office is located in Nairobi along Ngong Road, about 12 Km from the City Center. What we do: • Packaging bottled water under the brand name ‘Mt. Kenyan’ for sale in the local and export markets. • Packaging whole fruit juices under

brand name “ Pick ‘N’ Peel” for sale in local and export markets. Packaging fruit based Ready –toDrink juice under brand name “Afia”, with a difference from what is locally available. The product is for sale in both local and export markets. Extraction of concentrates from fresh fruits.

JUNE 2019 | FOOD BUSINESS AFRICA

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Food companies must reform HR policies to tap into women's talents in Africa

Kemisola Oloriegbe (Nigerian Breweries), Charity Magwenzi (Capwell Industries) and Shollay Ramlaul (BASF) in the Women in the Food Industry panel discussion moderated by Virginia Nyoro of FoodWorld Media. KENYA – Companies in the food and agro the Business Development Director at IN AFRICA, WOMEN MAKE UP industry must reform their human resource FoodWorld Media who noted that not so ONLY 5% OF TOTAL CEOS BUT policies to tap into the huge talents and many women are in senior positions and THE NUMBER OF WOMEN AT capabilities offered by women workers and in board level in the food industry value chain, despite the fact that over the last 30 managers in the industry in Africa. BOARD LEVEL IS HIGHER AT This was the rallying call during this years or so, education levels for women have 14%. SOUTH AFRICA LEADS year’s AFMASS Eastern Africa edition improved significantly. WITH 20% OF WOMEN AT Ms. Kemisola Oloriegbe, a packaging held in Nairobi, Kenya in May 2019, during the “Women in the Food Industry Panel”, technologist from Nigerian Breweries, one BOARD LEVEL, WITH EASTERN one of the panel discussions at this year’s of the operating companies for Heineken, AFRICA HAVING 16%. gave insights into the global number of event. Shollay Ramlaul - BASF This year’s panel was themed around women in leadership position in Fortune implementing strong and progressive 500 companies as being less than 5%. “In Africa as a whole, women make and rise through the ranks while dealing human resource (HR) policies that only 5% of total CEOs but the number with nurturing their families back at home. encourage and support women working Charity Magwenzi, the Head of in the food industry. The panel had a very of women at board level is a little higher informative discussion on policies that at 14%. South Africa leads with 20% of Research and Development at Capwell support women to perform better in the women at board level with Eastern Africa Industries, stated that due to unconscious agriculture value chain, food industry having 16%,” revealed Ms. Shollay Ramlaul bias on women leadership, generally women and generally in the Science, Technology, Head of Sales & Business Development, in have to be better than the male counterparts at work, since the tests for women are much Engineering and Mathematics (STEM) BASF East Africa. The women panel noted that with higher than for men. In her experience arena, historically viewed as a man’s forte and calling. The panellists drew from the above figures, even if there has been a working in the food industry, Charity their own experience working in the food tremendous change indicated by a rise in notes that women leaders constitute about industry and rising through the corporate the number of senior women compared to 10-15% in the food industry, compared say 20 years ago, the business owners, CEOs to about 1% when she joined the women ranks. The panel composed of experienced and the board still has to strategically put in workforce about 20 years ago. Charity is grateful to the people who women managers working in various policies that support and encourage women roles in the food industry. The discussion to join STEM careers and sustain them at noted her intelligence, enthusiasm and was moderated by Ms Virginia Nyoro, work as they navigate the corporate world passion for her job as a young lady and 38 JUNE 2019 | FOOD BUSINESS AFRICA

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AFMASS EASTERN AFRICA 2019 REVIEW

along the way, gave her the opportunity to work in those positions to her current job. “A lot has been done to get women into CEO and top positions, but we need more equal representation in the food and beverage industry. It’s not easy as a young lady climbing up the corporate ladder as you have to prove yourself at every level more than the male counterparts.” She reckons that, now, there are more positive perceptions on women as leaders for their integrity and strong work ethics. The panellists noted that women make a large proportion of the labour force in food processing mainly at the bottom of the pyramid, with only a few navigating the rigours and pressures of STEM jobs, hence they fall out mid-career, a phenomenal referred to as “the missing middle”. “The HR directors and top management must make a deliberate effort of bringing girls into the pipeline and have more robust policies that encourage them to have a balance of motherhood and work,” says Ramlaul. The panel agreed that some of the ways food companies can attract and maintain women in positions of leadership include the following: Maternity leave days - Companies should increase the maternity and paternity leave days and also introduce half-pay extended maternity leave for women, to remove the double burden of giving up on careers to take care of their children, nuclear and even extended families. Introduce flexible work time policy after maternity – Companies should create a favourable environment or space for the woman to come back to from their maternity leave e.g. some hours the woman can work form home or do online work and or flexible work time to enable them spend time with the children. Facilities for baby care – Companies should install baby care centres or crèches and mother friendly rooms in the office block or factories that are comfortable and private and that allow ladies get comfortable and tend to the young ones for some time during the day. Training and behaviour change – Companies should implement training to both male and female managers in the organization to recognize unconscious bias and how to prevent it. “BASF has instituted a mandatory training for unconscious bias to all its employees to easily recognize it and prevent this problem through a small handbook issued by the HR, to all the managers,” says Ramlaul. It starts with the job adverts! – Companies should make job adverts friendly in their wording, indicating strong and genuine interest that encourage women to apply for positions of leadership. Retention strategies – Companies should have retention strategies

“I WISH THAT WOMEN CAN RAISE THEIR VOICES AND SPEAK UP FOR THEMSELVES ON WHAT THEY HAVE DONE AND ACHIEVED, BE VISIBLE AND CREATE NETWORKS WITHOUT WAITING FOR ANYBODY TO DO IT FOR THEM. WOMEN MUST BE AT THE TABLE” Charity Magwenzi- Capwell Industries that focus on the “missing middle” and have defined quotas of how many women will get to the top. For example, BASF has put in a mandatory quota in some of its business units. They should also implement a monitoring program to track the women working in the organization and track their progress from joining to junior management to senior positions. Mentorship structures – Companies should have policies and structures for mentorship where senior managers, including at the board level, take on young mentees at work and guides them on career progression, performance, and how to climb the corporate ladder. They should also have a structure for networking forums in the workplace for women “Nigeria Breweries has a monthly program to discuss unconscious bias and to create networks for women” says Ms. Kemisola, who is based in Lagos. Women must have the I CAN mindset The panel brought to the light some of the self-limitations that women carry in their minds sometimes that limit their career progression and ascension to leadership positions. Women tend to undervalue themselves tremendously by thinking they are not good enough. Ms. Ramlaul advises that women must correct this mindset and believe in themselves and their capability and go for any of the jobs even if they fail to meet the total skills set. “I wish that women can raise their voices and speak up for themselves on what they have done and achieved, be visible and create networks without waiting for anybody to do it for them. Women must be at the table, otherwise nobody will know them,” says Kemisola Oloriegbe, who encourages women to run the race by applying for the jobs even if they do not qualify. Charity urged the young women in the food industry to aim at being better than the male counterparts to stand a chance in the competition. They should strive for better qualifications and develop their skills to stand out. They should be unapologetically ambitious and avoid mediocrity.

ADVERTISE IN THE FOOD BUSINESS AFRICA MAGAZINE Reach the Key Decision Makers in the food, beverge and milling industry supply chain with your products and services in Africa. Build confidence in your company, and stand tall in a crowded market place. Be associated with the premier food industry resource published by those who understand the industry in Africa

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JUNE 2019 | FOOD BUSINESS AFRICA

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Experts call for sobriety in the proposed Kenya Food & Drugs Authority (KFDA)

Richard Fritz (Consultant, Food & Agriculture Export Alliance, USA) ; Dr. Christopher Wanga (co-Chair, KFDA), Julia Otaya (Scientific & Regulatory Affairs, Coca, Cola) and Roya Galindo (Director, Regulatory Services, North American Meat Institute) during the panel discussion. KENYA - With an eye on a vibrant, well-coordinated, harmonized, Related Agencies Appropriating Subcommittees. In East Africa, a well-structured and efficient food safety regulatory system in country like Tanzania has gone ahead to have one agency, Tanzania Kenya, stake holders at the just concluded AFMASS Eastern Food & Drugs Authority (TFDA) which has enormous challenges. “From where I sit, the challenges the food industry stakeholders Africa conference and expo agreed that there is need to rejig the food safety regulatory environment in Kenya to create clear and are facing is what we are walking through. We want the KFDA to specific levels of responsibility, build customer confidence, support be in place, but what is the problem?” probes Dr. Wanga. He says that looking at the Laws of Kenya, the Food, Drugs and Chemical businesses and facilitate local and international trade. The panel, which was composed of Julia Otaya, Scientific and Substance Act is a very good law. This includes the Public Health Regulatory Affairs Manager at the East and Central Africa, Dr. Act and other food safety related laws. The enforcement of the laws Christopher Wanga, the Chairman of the Kenya Veterinary Board has, however, for a long time not met the needs of the public and and the co-chair of the proposed Kenya Food & Drugs Authority, the industry at large. Fritz, who has had a long experience working with regulators in Roya Galindo, Director, Regulatory Services, North America Meat Institute, and Richard Fritz, Consultant for the Food & Agriculture many developing countries including China, Vietnam and Ghana Export Alliance (FAEA), USA, made recommendations for the in their quest to reform their food safety regulatory systems, adviced proposed Kenya Food & Drugs Authority (KFDA), which is in its the delegates that it is not an easy path to coming up with the KFDA, considering conflicting interests are bound to voice their formative stages of development. Seating at the food safety and regulatory management opposition to any significant changes to their mandates. However, discussion at the recent event, the panelists reminded delegates that he said that it is important to learn from the rest of the world on food safety is a complex and most stakeholders have been thrust how they have reformed their regulations so that Kenya doesn't go into the deep end of matters, with a mix of regulatory frameworks through the same challenges other regulators are grappling with. He also called for sobriety from the existing regulators to allow across the world. For example, in the US, despite the well-known Food & reform to take place. Drugs Administration (FDA) doing regulatory work, at least a dozen federal agencies, including the Department of Agriculture, Food plus medicine regulator? implement more than 35 statutes that make up the federal part One of the major discussion points in the proposed KFDA has been of the food safety system, with 28 House and Senate committees whether to blend the regulation of food products with those for medical purposes. While some are vouching for distinct agencies providing oversight of these statutes. The primary Congressional committees responsible for food linked to a main body, others wonder whether we should have one safety are the Agriculture Committee and Commerce Committee strong entity like the Tanzania Food and Drugs Authority. “The Tanzanian experience may not be the best because if in the House; the Agriculture, Nutrition, and Forestry Committee and the Labor and Human Resources Committee in the Senate; you’re not yet regulating medicines well then you bring on board and the House and Senate Agriculture, Rural Development, and food from a position already at a disadvantage, it even gets it into a 40 JUNE 2019 | FOOD BUSINESS AFRICA

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AFMASS EASTERN AFRICA 2019 REVIEW

bigger position of disadvantage,” thinks Dr. Wanga. Nonetheless he contends that the Kenyan team that are working on the proposed KFDA is equal to the task and is getting very good support from their counterparts from within and outside the country on the best structure for the new regulator. He adds that the proposals made are going to address the stumbling blocks and look at how effective the organizations are going to be for the country. “For example, in Kenya, if you want to trade in animal products there is the Veterinary Health Certificate which limits the spread of diseases. The competencies of the veterinary authorities in other countries will be in discussion as we strive to establish this new organization while benchmarking with well-developed jurisdictions like the USA, where various agencies and competent authorities are clearly linked, making clearance of products for trade seamless,” strongly anticipates Dr. Wanga. However, Wanga contends that there are already treaties and protocols to facilitate world trade, including the World Trade Organisation (WTO) that have been put in place to help regional trade and that have embedded food safety. He also adds that during the legislative process, the food industry will be involved as much as possible to avoid unnecessary bottlenecks at enforcement. Enforcement must be impartial and strong The panelists are concerned that even with the new law, there is need to have proper enforcement of the laws to make them effective. Roya Galindo, Director, Regulatory Services, North America Meat Institute, USA, reckons that enforcement agencies also have individuals from different walks of life and backgrounds. You will have inspectors eager to walk with you through the processing and some who won’t wait, which leads to a struggle with consistency, she informed the audience. Weighing in on the discourse, Julia Otaya, Scientific and Regulatory Affairs Manager at the East and Central Africa CocaCola franchise, agrees that the regulations enforcement ought to encourage fair trade in the market in the eyes of an industry player like herself. “I am cognizant that the products I put in the market are safe for the consumer and they provide value. However, as-much-as we want to do that, there exists glaring complexities in uniformity in regulatory enforcement and long waits for approvals in the region,” laments Julia, looking at the regulator through an industry player’s lenses. She strongly feels there is a big discrepancy and non-uniformity in enforcing the regulations, with the regulators tending to go hard on bigger players, while the rest of the industry are left behind in terms of meeting regulatory requirements. “The enforcement should be impartial; it becomes difficult to explain and convince the stakeholder on what to do and what not to do, when competition is on the shelves with the same prohibitions from the regulator.” The US food safety regulatory system has its own peculiarities. “In the US, to sell across the states, you must be federally inspected unless there is a state inspection program that has been reviewed and proved to be equivalent. Otherwise, if you are not trading across a state’s frontiers you don’t have to be federally inspected,” adds Roya, having been an inspector herself. For those interested in supplying the US with food products, they must be ready to meet strict requirements that may be daunting without the right information. “It is not easy to supply into the USA; it’s difficult. If you’re particularly looking at meat, poultry or some other products, you must get approval from the US Department of Agriculture,” informs Richard Fritz, Consultant for the Agriculture Export Alliance (FAEA), USA. “The biggest issue is animal diseases. It takes time and money to get through the US approval process. The facility has to meet the US food safety and labelling standards, though some products are easier to clear than others depending on the level of sensitivity,” he says. FOODBUSINESSAFRICA.COM

“FROM WHERE I SIT, THE CHALLENGES THE FOOD INDUSTRY STAKEHOLDERS ARE FACING IS WHAT WE ARE WALKING THROUGH. WE WANT THE KENYA FOOD & DRUGS AUTHORITY TO BE IN PLACE, BUT WHAT IS THE PROBLEM?” Dr. Christopher Wanga - co-Chair, KFDA.

Regulator must allow innovation The panelists had a concerted view that when it comes to innovations and new technologies, the industry wants a regulator who is curious and who wants to walk the journey with it. “The regulators should be supportive rather than wait to be convinced and won over on the developments,” states Julia, who recommends the local regulator to have a sub-committee for new product developments, because we are operating in an open market where consumers are alive to what is happening around them and the world. Richard Fritz advises that the key to an expeditious and smooth process in product development with the regulations is to have early discussions from the onset. “Having the trust in your regulator and bringing them on board that early is something else, but its key to faster adoption and clearance,” he offers. He adviced that regardless of the bustle and stir around structural and organizational views on the kind of the most befitting regulatory system, the role of all stake holders in food safety and regulation management can not be gain said. To eliminate or minimize unsafe practices, products and counterfeits in our markets, calls for the governments, manufacturers, the supply chain and consumers to take their rightful role in the food safety stage, he concluded. Further, to foster and enhance local, regional and international trade, harmonization of standards and fluent regulatory structures are paramount. Countries in Africa were adviced to consider having a harmonized food safety regulatory system to reap from the benefits of regional trade.

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41


Powerful Speakers and Panelists at AFMASS Eastern Africa 2019 edition AFMASS FoodTech Eastern Africa brought together industry veterans and managers, Government officials, suppliers, consultants from Africa and the World . . . .

Bharat Shah - Founder & Chairman, Kenafric Industries.

Joyce Gachugi – Country Programme Manager – PETCO Kenya

Julius Kiptarus - Director, Livestock, Production Ministry of Agriculture

Quentin Rukingama – Managing Partner, JBQ Africa

Amir Parpia Financial Director, Alpha Fine Foods

Nitin Menon – Group General Manager, Sayona Drinks

Victor Maina – Commercial Director, Sendy

Roya Galindo, Director, Regulatory Services, North American Meat Institute, USA

Fabrice Lesault - Regional Business Director Industry, bioMérieux

Julia Otaya – Scientific and Regulatory Affairs Manager – East and Central Africa Franchise, Coca-Cola, SEABU.

Dr. Christopher Wanga - Chairman, Kenya Veterinary Board

Eelco Weber CEO, Bio Food Products Ltd

Emillie Opiyo – Retail Manager, Equatorial Nuts

Kituto Kitele, Officer Kenya Dairy Board

42 JUNE 2019 | FOOD BUSINESS AFRICA

Richard Fritz, Food & Agriculture Expert Alliance, USA

Jacque Njonjo – Operations Officer, IFC Global Food Safety Advisory

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AFMASS EASTERN AFRICA 2019 REVIEW: SPEAKERS & PANELISTS

Caroline Keror – QSHE Manager, Coca-Cola Beverages Africa

Peter Wathigo – Market Development Manager, DSM Nutritionals

Khadija Mohamed - Churchill, CEO, Kwanza Tukule

Patricia Kruger - Technical Manager, Sensient Technologies

Kemisola Oloriegbe - Packaging Technologist, Nigerian Breweries

Colm D’Olier - General Manager, Promaco Ltd

Andrew Wanga – QSHE Manager, Mars Wrigley Confectionery

Molly Abende - Product Developer, Burton & Bamber.

Newton Matope - President, Big Cold Kenya

Amar Bahar - Director, Sai Raj Ltd

Pule Melaletsa – Business Development, Endress & Hauser

Michael Ndereba - Sales & Marketing Engineer, DST East Africa

John Kariuki – Agribusiness Lead, Bidco Africa

Kevin Ochien’g - General Manager, Isuzu East Africa.

Arthur Peywa – Ag. Energy Manager, New KCC Ltd

Virginia Nyoro - Business Development Director, FW Media

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Leonard Odongo – Maintenance Controller, Coca-Cola Beverages Africa

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Shollay Ramlaul – Head of Sales & Business Development, BASF East Africa

Charity Magwenzi – R&D Manager, Capwell Industries Ltd.

INTO AFRICA

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Peter Wathigo (DSM) has a conversation with a delegate at their booth at the Expo Hall

Nathan Sang and Lameck Nyakoe of Buhler attend to a customer at their stand.

Richard Fritz from the US; Dr. Christopher Wanga and Julia Otaya and Roya Galindo in the panel discussion on food safety regulation

Young upcoming food industry managers take a group photo with their mentors at the Expo Hall

The YGT Kunshan team engage with delegates at their booth as they discuss their products.

The Kevian Kenya stand was busy with delegates and visitors having a taste of their new Afia Energy Drink

Kevin Sage-EL (Agricultural Counselor, USDA FAS) Richard Fritz and Roya Galindo from USDA listen to a presentation at the conference 44 JUNE 2019 | FOOD BUSINESS AFRICA

Delegates keenly follow an explanation at the Sendy stand.

FOODBUSINESSAFRICA.COM


PICTORIALS| AFMASS EASTERN AFRICA EDITION 2019

Patricia Kruger of Sensient Flavours engages delegates at their booth at the Expo Hall

Delegates listen attentively during the Buhler Africa Milling School field visit.

The MD of Capwell Industries, Rajan Shah, his Marketing Manager, Margaret Kamaru with Nitin Menon of Sayona and Francis Juma

Delegates take a breather at the Networking Lounge during a break from the proceedings. FOODBUSINESSAFRICA.COM

A customer is taken through the hygiene and sustainability products and services at the Diversey East Africa booth.

A delegate engages at the Greif stand at the Expo Hall. Greif showcased their packaging solutions for the food industry.

Delegates and Exhibitors network and explore at the Discover Nairobi by Night Cocktail at Azure Hotel.

Yhannish Jaggesha, Technical Sales, Quantilab attends to a customer. JUNE 2019 | FOOD BUSINESS AFRICA

45


Staff from Paperbags Ltd, the provider of sustsinable packaging products, busy with customers at the Expo Hall

The Investment panel of Amir Parpia, Quentin Rukingama, Victor Maina and Nitin Menon, moderated by Francis Juma.

Event delegates pose for a picture at the entrance of the African Milling School after the visit to the faclity.

The Energy, Utilities & Sustainability Management panel discussion in session.

Francis Juma moderates the Food Safety, Quality & Defense Management panel discussion with Eelco Weber, Caroline Keror, Jacque Njonjo and Emillie Opiyo as panelists.

The DSM team engages with delegates at their stand at the Expo Hall

Tyran Whitehead and Wycliff Kihumba of Resulta Engineering welcome a delegate at their stand.

The team from Frigortech and Brazafric have a discussion with Kirtesh Shah, CEO Sigma Feeds, about their grain cooling solutions

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FOODBUSINESSAFRICA.COM


PICTORIALS| AFMASS EASTERN AFRICA EDITION 2019

Delegates have a drink and network during the evening Food Industry Cocktail on Day 1 at the Expo Hall

Delegates have a drink and network during the evening Food Industry Cocktail on Day 1 at the Expo Hall

The refrigerated trucks on display from Sai Raj on display at the entrance to the Expo Hall at the event

The refrigerated trucks on display from Isuzu East Africa on display at the entrance to the Expo Hall at the event

Samples of food products from Ethiopia at the Innovations Area at the Expo Hall. Products from several countries were on display

China Pingle staff attend to a delegate at their booth at the Expo Hall FOODBUSINESSAFRICA.COM

Delegates network and explore more at the Promaco stand at the Expo Hall

A delegate from Coopers asks a question at the conference sessions JUNE 2019 | FOOD BUSINESS AFRICA

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EXECUTIVE INTERVIEW

BHARAT SHAH: FOUNDER/CHAIRMAN, KENAFRIC INDUSTRIES LTD Ronald Onsare

Kenafric Industries is Eastern Africa’s largest confectionery manufacturer. With a changing business landscape, the company has ventured into the general food side, with intentions to grow further in Kenya and the regional markets. The formerly family-owned company in 2017 sold a 40% stake in their packaged foods business to private equity funds Amethis Finance and Metier, while a younger generation are gradually taking over the day to day running of the business. Bharat Shah, the Director at the firm, had an extensive discussion with Francis Juma at the recently concluded AFMASS Eastern Africa edition in Nairobi, Kenya to talk about the start, growth and future of the company.

48 JUNE 2019 | FOOD BUSINESS AFRICA

Bharat Shah - Founder & Chairman Kenafric Industries Ltd Kenafric Industries ventured into the food business by selling sweets that retail in low denomination coins in Kenya. How did you think about this as a business line that has grown into such a huge enterprise? Confectionery, and especially commodity items in Kenya have been in the KSH 1 range for as much as I can remember to date. The challenge is whether you can manage that KSH 1 price. To sustain retail price at that position is not possible because currency changes, raw material prices always go up as well as other operational costs and distribution etc. Therefore, it’s a very difficult route to maintain. This is the reason we are moving to premium products. Coin shortage is another challenge. With all these in consideration, coupled with lack of reasonable margins, growth is an arduous task. We are now in a transformational journey that we started a few years and we are devotedly moving on with it. How did Kenafric Industries come into being? Something starts with a dream, and you either walk the dream or just stay in the dream. The dream gravitates around our family: we are four brothers all at a similar age with two years difference between each

other. Two were educated in the USA, myself in India and my other brother grew helping our father in the trading business from where we learnt a lot to grow into manufacturing. Essentially, we were in trading which was started by our father and one of our relatives as a partner and other relatives supported us to start the business too. We began from what you can term a semi-wholesale to wholesale then to distribution and finally to manufacturing. It is a growth story that has had its natural steps from A-Z. By 1982, the same year I was getting married, in the same week, the coup attempt took place in Kenya, which ruined our business. We could have kept on crying, but we had to move on amidst that impediment. We learnt that shops were an easy and soft

IN NUMBERS

1,800 NUMBER OF EMPLOYEES AT KENAFRIC HAS AS A GROUP, FROM 20 FOODBUSINESSAFRICA.COM


“WE BEGAN THE COMPANY FROM A SEMI-WHOLESALE TO WHOLESALE THEN TO DISTRIBUTION AND MANUFACTURING. IT IS A GROWTH STORY THAT HAS HAD ITS NATURAL GROWTH STEPS” target by looters and plunderers. We started pondering going into manufacturing. At that time, I had a furniture workshop where we were making ordinary furniture but I didn’t see the prospect in that furniture business at that time other than it having given me some flavor of manufacturing experience. Kenya, at that time was not as free as it is now, where you can use dollars to buy and sell goods. Back then we had forex restrictions. There was the Foreign Exchange Allocation License (FEAL) to contend with. To import raw materials or finished products you needed a license and that would depend on forex allocation, incentives given and so many other things. By going into furniture, I didn’t have to import anything. All inputs were available locally including foam and resin that was made by a plant in Industrial Area. However, we had to sell the business nonetheless 4 years later after operating it from 1981-1984. In 1987 we acquired a running shoe factory that was making PVC shoes. PVC shoes were picking in the market and in a short time were the in-thing and one of the hottest selling items in terms of footwear. We were about 17-18 players in PVC shoes manufacture, ourselves being the last entrants. We had two machines while the biggest manufacturer had 11 machines. Believe it or not, as you say life is a struggle, we were running 2-3 days a week. Strangely, being an entrepreneur, when my brother travelled to Taiwan, he ordered another machine when we were not even running two machines well. He took a big risk. However, as we got the machine, we developed a product that I remember we even framed it because it made our history. It was called “Dancing Queen”- a lady’s sandal. It became a big hit that we couldn’t meet production. Other manufacturers copied the product and at that point we realized that we could not match the capacity of the biggest manufacturer. They could reduce their prices because they had a wide product range. We had to go back to the drawing board. We decided that in 3-4 years we had to be as good as number one in the game. And surely within three years we were at the top of the pile and within that time we hadn’t sold our business or thought with emotions, we were focused and only wanted to achieve our goal. On the way we took-over 2-3 factories because competition had become so stiff that people could not earn and hence sold their businesses while others went into mergers and acquisitions. By the time this competition fizzled out there were only 4-6 factories standing and later there were only 4. One of the biggest one disappeared too over time. Of course, markets change with time as well as other factors and having started with footwear and having been in trading we were very much interested in confectionery. During one of our family meetings and talks, my uncle told me that some years before, there was a product called ‘Dandy Gum’ from a factory that had existed in Kenya. The factory was on offer for sale, but we lacked the finances. In 1991 we hit headwinds. In the late 80s building up to early 90s there was the Iraq-Iran war. Our footwear product having been oil-based saw the prices for raw materials skyrocket and they were no longer affordable due to the prevailing economic conditions that had also eroded the purchasing power. Thus, the downside of the plastic footwear business dawned on us. This gave us the resolve FOODBUSINESSAFRICA.COM

and impetus to get into confectionery, starting with bubble gum and in 1993 went into hard boiled candy and continued expanding. What has been some of the positives and challenges of working with family members, given that each member would naturally think differently? This depends on the size of the business, your dreams, the challenge and how you manage the challenges. The lucky part was that the four of us were specialized in different fields, thus we became very complementary rather than compete with each other. I have an accounting and finance background, my second brother has sales experience, the third is an industrial engineer and the fourth a marketing guru. We divided our jobs accordingly and that’s how we maintained the harmony. But equally important is the sacrifice that you make. Every Saturday we used to have meetings in the morning or evening and sometimes the whole day. In the meetings we channeled our views challenges and solutions. This made us soldier on solidly through the hinderances and obstacles. On your food side, what are you currently handling in terms of products and where you sell them? We are a packaged food and beverage company. The products we make are confectionery, culinary, biscuits and powdered juices. The confectionery side is big, with hard-boiled candies, toffees, lollipops, bubble gum, chewing gum and icing sugar. Up to the year 2000, we were not selling outside Kenya, but our dream was to be an export-oriented company to balance our forex inflows and outflows. Coincidentally, around 2000 or later the government introduced a scheme called Export Promotion Project Office (EPPO), where imported raw materials were allowed duty free and there was VAT exemption on exports for finished products. By 2005, our export sales had grown from zero to a staggering 70% of our total trade. After EPPO, came TREO, which was similar to EPPO but with some further few changes, which paved the way for the East Africa Community (EAC) duty remission. We were exporting to 34 countries from 2005-2009 but the financial crisis that was hitting the world suddenly escalated transport costs followed by rationalization of markets. Currently, we are exporting to 12 countries, with a plant in Uganda that is about a year old and five marketing offices within the East Africa region. In this journey what have been the missteps, some strategies that didn’t work out and how did you weather them? When you’re living, life is full of mistakes - that’s the beauty. People get worried about mistakes, but mistakes teach you something. There is a phenomenon called the 3Es, that the young people or anyone in business should know. Experience, Experiment and Expectation. In business just as in life, yesterday was experience, today experiment and tomorrow expectation. In life you must go through these stages. We have had challenges and pitfalls because of lack of capital, lack of expansion space, thinking diversity of expansion plans, collection of money, forex during the formative years and challenges with government regulators. All these are a continuous parts of life. In the early year, foreign exchange constraints hit our business badly. In 1990, Kenya had something called a foreign retention account. The dollar to shilling was 76 at that time. The government ridiculously, by order, confiscated the dollar accounts and gave us the rate of 46 shillings; a 30 shillings straight loss. Kenya is freer now, and I believe there is no any country including South Africa and Nigeria with a freer forex regime. These journeys have made us see the light at the end of the tunnel. The same way our footwear business was impacted by a war elsewhere in oil producing countries, our confectionery one has also been affected by trade in sugar. Sugar in this country is the most political commodity. Countless time I JUNE 2019 | FOOD BUSINESS AFRICA

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“WE WERE EXPORTING 70% OF OUR PRODUCTS FROM 2015 ONWARDS. WITH TEH GROWTH POTENTIAL, WE INVESTED US$20 MILLION BETWEEN 2005-12. BETWEEN 2012-19, WE ARE INVESTING US$8 MILLION.” have had 18-20 government officers huff and puff into my office with closure threats demanding to see our importation papers, with threats to shut down the factory. We have endured a lot of such threats and recently we had to sue the Parliament, a first in the history of Parliament, that gave us a reprieve after revoking our sugar importation permit. In business, you must be a fighter, you need to confront challenges head on – both on the government and regulatory sides. On the business side, you have to develop your relationships with partners: suppliers, customers, your bankers, etc. When this forex problem manifested with the dollar account confiscation, there was no supplier willing to give us goods because payments could not get through. However, there was one or two European firms that we had built a rapport with, which understood and supported us. Therefore, relationship building is one of the qualities of a successful business venture. Notwithstanding, with all the experience we have, we made wrong decisions too. The worst or most impacting decision we ever made was to introduce a chocolate line in 2014. To introduce the products, we did a lot of research, had former guys from Nestle work with us, 50 JUNE 2019 | FOOD BUSINESS AFRICA

did psychology tests. We did everything!. We invested more than US$ 6 million in the equipment and US$ 4 million in marketing and development - a US$ 10 million investment. The challenge was the chocolate culture in Kenya and the affordability challenges by the consumers. For a KSH 20 chocolate product, we were losing money. The purchasing power was absent, though people liked and loved the chocolate. We couldn’t reach the economic volumes to sustain the business that was backed by a very high-tech processing machine. We had a very painful decision to make and those two years were the worst in our lives because the fire in our belly had died out. We couldn’t grow and decided to close the plant and look for a buyer and ultimately got one. We really took a hit and got out but since the space had been freed, we put up a biscuit line. With time we have overcome that phase, because as the fire died down, we needed to reignite the flames again. The fire has come back but the economic situation in the country is a question that everybody is asking now. What have been some of the key milestones for your business? When did you feel that you had overcome the earlier challenges and were on a strong path to growth? I think when we were exporting 70% of our products, from 2005 onwards. With the growth potential we must have invested US$ 20 million between 2005-2012. Between 2012-2019, which is still an ongoing process, we are investing about US$ 8 million. Of course, in the cause of life there is always a booster, and, in our case, it came in the form of acquiring a culinary division in a running factory called OYO in 2009. In 2010 we started a stationery line, on which we have added envelops to and recently bags. We have two more FOODBUSINESSAFRICA.COM


TRENDS

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US$10M KENAFRIC'S INVESTMENT IN CHOCOLATE BUSINESS WHICH FAILED - THEIR BIGGEST MISTAKE, BHARAT SAYS new projects in the pipeline, which may begin at the end of 2019. How have you managed this growth, especially when your export market sprung to 70%, you increased the value of investments? We sometimes wonder how we managed! We started with 20 people, today we are at about 1800 people as a group. The good thing is that the banks had been watching our progress. We evolved over time to get out of the capital caps set by the Central Bank of Kenya and other financial institutions. Our strength was in a strong balance sheet, favorable cash flows, clear goals, our achievements and a capable management team. For us it has been the overall health of the business and not much to do with the capacity to provide securities that worked in our favour in our growth path. In 2005-2007 we took US$ 5 million loan from PROPARCO, a development financial institution partly owned by the French Development Agency (AFD), which is an equivalent of IFC in Europe. This funding was expensive, we nonetheless took it and it changed our name and reputation in the country and region. When we finished paying back the loan on time, Proparco approached us to go for US$ 20-30 million and not another US$ 5 million. However, we didn’t have any project for that much money. Today it is not an issue to get any kind of financing from a bank, we have surpassed that. This was the goal, by building on a journey to a strong reputation, credibility, focus, strong balance sheet and the like. This has been the basis of our success. A few years ago you brought in some private equity funders into your food side. How did you arrive at that and how significant is that for the company? I think for a family business that was the most significant step to take. Remember FOODBUSINESSAFRICA.COM

we had built from our foundation to this strong level in 2014/15. Our children who had opportunities elsewhere in the world were keen to come back to Kenya: it was their goal as they left. The headache was, what were these educated people coming to do back here? We had a business, by Kenyan standards big in size. In our confectionery line, the key raw material is sugar. One of our biggest suppliers took up one of my nephews to work with them for about a year to learn the ropes in sugar trade. My son, an aerospace engineer, worked for a British Petroleum firm in charge of North Sea oil fields. After two years he decided to return home. My son went into the production side of the business and my nephew joined strategic planning, finance and procurement but of course my brother Ketan is still handling the company’s procurement portfolio and all that. As a family, we decided, sugar being a political item and having faced a myriad of challenges, it was apt to look at private equity. Everybody from Helios to many more companies had been approaching us for years, but we were not ready. Thus, as a family we chose to hire two consultants to oversee the process. We did this for two reasons. One was for the founding shareholders to create liquidity and cash their shares and two, to pave the way for the young generation to take over the lead and run the business. Private equity will not be interested in me running the business, they want young blood. This was a long process with challenges, disturbances, lack of happiness at times within the family, but we had to come through that and settled on one among the many suitors. The private equity investors were looking for growth and that is why we have started in Uganda and the reason for the expansion plan this year. We will allow things to settle, then may be the next project will be in Ethiopia or West Africa. It is a process we are building and after a few years probably cash-in and go into something else. What's your take and advice to young businesses and entrepreneurs? Looking at the history of Kenyan businesses, most have been family owned. The challenge has been continuity especially when the founders grow old or are no longer there. The young generation may have divergent ambitions and dreams and may not want to enter the business, and this is the challenge I have come across. You have a vision, a dream and probably a product but you lack the financial muscle, marketing muscle, regulatory muscle and whatever other requisite muscle. My advice to the youngsters is to look towards private equity, venture capital and all these available

FOOD SAFETY

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THE STRENGTH OF OUR COMPANY IS A STRONG BALANCE SHEET, FAVOURABLE CASH FLOWS, CLEAR GOALS, OUR PREVIOUS ACHIEVEMENTS AND A CAPABLE MANAGEMENT TEAM funds. But then there must be an exit plan with them. If these young businesses can get an investor locally to invest and guide them, they should consider it. That’s the favorable way to grow while remembering that failure is part of life. FAIL actually means “First Attempt In Learning”. They should not get disheartened by failure. All the success stories have their failures, but they kept their goals and vision and remained focused. It’s of course easy to talk but managing the same is quite a task. They should be determined and plan their journey. As they say 5Ps: Proper Planning Prevents Poor Performance. This is an important doctrine. Emotions and thoughts are always fighting each other and how one makes a conscious decision to the right path is important. But above all, young people must express happiness in their pursuits. Be fun going, create something and go on the journey for a journey is never ended quickly, it’s like a life journey. There will be stops, gaps, decisions to be taken and to this, there is nothing cast in stone. With time a person’s thinking does change. We never thought we would go for private equity, tomorrow we could be a public limited company, so thinking keeps changing along the journey. As you usher in the next generation into the business are there any strains? What are the lessons to be learnt? How have you managed the challenging part of working with family? When you’re four brothers in a similar age-group and you’ve grown up together, you tend to know each well to manage yourselves. The challenges appear when the young Y-generation get into the mix and how you manage that transition is critical. We had our own goals that we focused on, we possibly achieved them. The focus of the young generation is diverse: brand development, serious operational efficiencies, technology investment, power and overall cost reduction. By the way we have won the Energy Management Awards (EMA) in Kenya for 5 consecutive years. We have made fantastic savings in energy and are now moving to water management. All these factors have enabled us to become JUNE 2019 | FOOD BUSINESS AFRICA

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“WE BROUGHT IN PRIVATE EQUITY INVESTORS INTO THE BUSINESS TO ALLOW THE FOUNDERS TO CREATE LIQUIDITY AND CASH IN THEIR SHARES AND TO PAVE THE WAY FOR THE YOUNG GENERATION TO TAKE OVER THE LEAD AND RUN THE BUSINESS.” more efficient. We also have agro-based boilers since 2009, as we moved towards greener energy and reduced our cost of production. The young generation is our business are multi-tasking people, they are digital, while we were analog, and their presentation skills are excellent, their persuasion and convincing power is great. They have their strengths and ambitions; we have given them opportunity and a free hand. They seek advice when it comes to certain things and we assist them though we are still a part of it. They are in the business; we are on the business. They run the business, we oversee the business. There are many SMEs coming up in the region on the industrial and manufacturing sectors. You are involved with the Kenya Association of Manufacturers (KAM) and regional issues. What are some of the challenges and opportunities in regional trade? For common external tariffs (CETs) & non-tariff barriers (NTBs) in EAC, there are challenges from time to time, hence the reason why we need a body that works with the government and counterparts to find solutions. The current problem in the region is in any sugar produced items. We cannot currently export our confectionery products duty-free to Tanzania, which costs our business US$ 1.5 million per month in sales. We are waiting for verification from the Tanzanian authorities on this matter. NTBs will always remain but through perseverance, focus and patience we shall prevail, without expecting results overnight when dealing with governments. To succeed in these trade challenges, you need to know how to build up your case. We should go to government with solutions not problems only. As KAM we take proposals, choices of solutions and reasons for the solutions. That is KAM’s advocacy policy. What is your take on the Big 4 Agenda? Are we on track? According to the Kenyan government, manufacturing is targeted to make up 15% of the GDP by 2022 but we have actually gone down from 11-12% to 8.3% currently. To achieve the 15% level, we need a 30% annual compounded growth in the sector, which is impossible. The agenda is great, but implementation is the major hindrance. The costs are going up. For example, take the Standard Gauge Railway (SGR) railway: goods have been forced to use the SGR. A 20 feet container from Mombasa to Nairobi costs USD 780-800 delivered, emptied and sent back. Today on the SGR it costs over US$ 1,000 freight, US$ 250 to clear goods from ICD to your warehouse and to send the empty container back a further US$ 130. The SGR route is 50-60% more expensive, meaning the cost of production has gone up and besides that, the multiagency operations carried out recently led to demurrages and port charges running into billions of shillings. The cost of sugar, a key raw material, at that time went up by KSH 6-8 per kilo. You can imagine the impact it had on the cost of final products. These are the reasons you see all companies in the red now. Whether we shall achieve the Big 4 Agenda remains to be seen. All proposals by the industry players have been accepted by technical committees, but 52 JUNE 2019 | FOOD BUSINESS AFRICA

the government has not been able to implement, although we are alive to the challenges therein. If these proposals are implemented and a strict follow up done, we shall see the beginning of the rejuvenation of manufacturing in Kenya, although the growth will not happen overnight and could stagnate at 10-11% by 2022 at the prevailing conditions. We have been hit so badly and you have to cover the past, maintain the current and hope to grow for the future. Can one grow a company beyond personal growth and development? Which attributes have enabled you to propel your company to these heights in terms of education, philosophy and business acumen? The most important attribute is entrepreneurial drive coupled with dreams for growth. But everything keeps evolving as you get along. So, the focus should be where you want to be, which segment, niche and such. You must understand that pitfalls will come, learn from them and avoid them at the next level. What is your firm doing to stimulate and engage innovations from students? We work with Kenyatta University. I appreciate that Kenyan entrepreneurs have brilliant ideas, but we don’t have a centralized bank of funds and information. The responsible ministry should identify and channel the funds from all over to an objective that is clearer. The problem is that manufacturers and universities are both struggling financially, and no one wants to take up the extra financial responsibility at this time. But if I am looking at the next few years and with Microsoft and other tech companies coming up with some of these incubation hubs and knowing that Kenyans are really advanced in IT and innovation, in 5-7 years there will be an explosion of ideas and funds to match the likes of India who have phenomenal success stories by young guys, some in their twenties. What do you make of the recent changes in the Kenya retail market space that has seen several foreign brands trooping in? The retail market in Kenya has been a roller coaster. We know what happened to a few of those retail stores. South African firms, in the likes of Shoprite, were here before in various forms but closed down because of incompatible business cultures. Every country has a different way of doing business and a different culture and thinking for that matter. For Carrefour, it was a blessing in disguise. May be if Nakumatt Supermarkets was existent it would have been a different story, but now they have an open field. The supermarkets here try to squeeze the much they can from the supply chain, and this diminishes the margins, with many delivery conditions and payment challenges. Most of the new ones are paying on time currently and we hope they will maintain that. Because of the space created they have a good score. However, when you look at malls which house these stores, they are struggling. There are only about 3-4 malls that are working in this country - Junction, Sarit Centre and Village Market, etc. Foothold in the malls is seriously down: you can see it, you can feel it. There are no buyers and our economy is on a downward spiral, the rents are down to 10% of what they used to be paid because the owners don’t want the space to remain empty. The economy is on its knees, there is no cash circulation. On the other hand, there is a lot of VAT refunds and a lot of money is lying with the Kenya Revenue Authority (KRA) or Treasury.

FOODBUSINESSAFRICA.COM


EXECUTIVE INTERVIEW: Fahad Awadh Co-Founder, YYTZ Agro-Processing, Zanzibar

The cashew nut industry in Tanzania, one of the top three producers in the World, is at a crossroads. Increasing local production and rising international demand have failed to pull up farmer prices, leading to the Government of Tanzania intervening in the buying and marketing of the produce. What are the opportunities, trends and challenges in the country’s top foreign exchange earner? Francis Juma had a discussion with Fahad Awadh, the CEO of Zanzibar-based YYTZ Agro-processing at the recently held AFMASS FoodTech Tanzania edition, which took place in Dar es Salaam Tanzania. Ronald Onsare Who is Fahad Awadh? I am a young entrepreneur from Zanzibar running a company called YYTZ Agro- Processing, whose objective is to build an allinclusive cashew nut value chain in Tanzania. We work with small scale farmers and women groups to help them participate in the value addition and to make sure that more value reaches these rural communities. Given that the young generation is really eyeing investments in tech-oriented ventures, what made you go into agriculture? I moved back to Tanzania in 2012 and my goal was to simply add value somewhere. I didn’t know what or how. I began by looking at what Tanzania produced in plenty, while being very cognizant that most of our African countries produce agricultural commodities with very little value addition. At the time of my come-back, the traditional big exports were tobacco, cotton, coffee and cashew nuts. The first three looked a bit more challenging because of their fragmented value chains. I didn’t know much about cashew nuts, but I learnt that Tanzania was the fourth largest producer of cashew nuts in the world then (the third today). Ninety percent of what is produced locally is taken out of the country to be processed elsewhere like in India and Vietnam. I thought this was crazy and set out to know why and try to change that. What is your educational/professional background? How did FOODBUSINESSAFRICA.COM

you set up your enterprise? I studied Business Marketing; I have no background in agriculture but was very keen to learn. Something that I practice and learnt from Toyota Motors Corporation is a principle called Genchi Genbutsu – “Go and See”, which suggests that in order to truly understand a situation one needs to go to the "real place" - where work is done. I went to the southern part of the country where most cashew is grown. I met farmers and also got to understand the regulatory environment and the local market systems. Since cashew is traded globally, I needed to understand the global market system too. On that I went to the largest cashew nut exporter, Vietnam. There I visited one of the top five cashew processors who processes 60,000 tonnes per annum nearly a quarter of what we produce as a country. I had a chance to see first-hand the automation, mechanization and what makes them successful. If we have to compete and build our industry, we have to learn from the best; we have to go and seek that knowledge and bring it back. Strangely, as soon as the owner of the that factory knew I was from Tanzania, he asked if I could help him get cashews from Tanzania because they are rated highly in quality – they are big, white and peel comes off easily; their customers love Tanzanian cashew nuts. What came out of this is that we have a valuable commodity, but we are neither generating nor getting our true JUNE 2019 | FOOD BUSINESS AFRICA

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“TANZANIA IS THE THIRD LARGEST CASHEW NUT PRODUCER WORLDWIDE. WE HARVEST AT THE PEAK OF GLOBAL DEMAND AT THE END OF THE YEAR, WHEN THERE IS A SPIKE IN CONSUMPTION DUE TO WINTER IN THE NORTHERN ATMOSPHERE AND RELIGIOUS FESTIVALS IN INDIA” value from it. Setting up the enterprise was challenging especially on the financial part, because no bank wanted to support us in setting up the factory. To date I am not able to get a loan from a local bank. Nonetheless I got funding from Netherlands through Rabobank. This is a bank that isn’t in Tanzania and never took any collateral. This shows you the stiff challenge upcoming entrepreneurs getting into agro-processing are faced with in trying to get funding. Which kind of facility did you come up with finally after overcoming the financing hurdle? We had to pool our finances especially from the family. I partnered with my father and set up a factory in Zanzibar with a capacity of 2,500 tonnes per annum. This year we are putting up a second facility in southern Tanzania, which is mainly for the women groups and the farmers because we want them to participate in the value addition. We are giving out de-shelling machines that will up their productivity many times over. Manually, a farmer can shell 40kg/day but with the machine one can do up to 600kg/day. This also means that we pay a higher price for the shelled, value-added cashew nuts. What is the status of technology in the cashew nut value chain in Tanzania? It all starts with knowledge, which is information at the point of action or application. Knowing the right technology and how efficient it is going to be for that particular process is important. It has to be appropriate and globally competitive to match prevailing global status. The importance of technology cannot be stressed enough. If you look at Vietnam, their cashew nut industry is the biggest in the world. Africa produces 60% of the world’s cashew nuts but processes less than 10%. Vietnam imports over 1 million tonnes of Africa’s cashew to process. What makes them successful is the fact that they started making their own machines by reverseengineering Italian machines and with time owning the machines and technology. One of the challenges in the cashew nut value chain, just like many other commodities, is traceability. When I was in Rwanda, I bought some cashew nuts from a store that said they were from Belgium! Belgium produces no cashew nuts! They were probably imported after processing in Vietnam having originally come from somewhere in Africa, almost certainly Tanzania, roasted in Belgium, then found their way to Kigali via Dar es Salaam! However, what we are doing now is we are using technology to trace the product and connect it with the origin. We are using blockchain technology to guarantee single origin. Each pack we produce has a QR code that connects with the origin and journey through the value chain of the nuts in the pack. For this technology we are working with a startup in Netherlands who had developed this technology for designer furniture to combat counterfeit furniture. We asked them to help us adopt it for our cashew nuts to create a traceable and transparent system because the modern-day consumers want to connect with 54 JUNE 2019 | FOOD BUSINESS AFRICA

the origin of what they consume. What is the process involved in getting a finished product from raw cashew nuts? Raw cashew comes with a hard shell. The first process is to steam the raw cashew nuts to soften the shell then cut it open to unravel the nut. The nuts are then dried and during this process the peel starts detaching from the nut making the next step of peeling easier. Peeling results in white cashew kernels that are graded by size, color and wholesomeness. The kernels are then vacuum packaged for export. The finished kernels can be roasted, flavored and repackaged under various brands and sold to consumers. Production volumes for cashew nuts have gone up in Tanzania. How has this been achieved and what is the role of government in the value chain? Tanzania is the third largest global producer of cashew nuts, but most importantly, we harvest at the peak of global demand at the end of the year when there is a spike in consumption because of the winter in the northern hemisphere, holidaying in the USA and religious festivals in India. Tanzania produces quality nuts and the processors know that. All these factors make Tanzania a favorable place to procure cashews and this has spurred growth. However, with all these low hanging opportunities we haven’t been able to brand Tanzanian cashew nuts to our advantage. The government of Tanzania has done really well in research and development on cashew nut growing. Tanzania has the best cashew nut resource program in Africa. We were the first country to release hybrid varieties which are early maturing. The government is expanding cashew nut growing in areas that were traditionally not cashew nut growing zones e.g. Singida in central Tanzania. Researchers agree that the best conditions for cashew growing in Tanzania are even better than in the southern regions of the country. The government has given over 20 million seedlings to farmers over the last three years, and it is projected that in the next 5-10 years, we will double our production figures. This has made the government to focus now on processing and value addition of cashew nut in the country. Hardships bring out areas where you are exposed, and we must put measures in place to avoid that recurring. What are the gaps that still exist in this sector? Technology is a major issue. Ivory Coast, the leading African producer, invites cashew nut equipment manufacturers to showcase their machines and technologies every two years in a fully paid-up government show to the Ivorian cashew nut value chain. The other issue is finance. In Ivory Coast again, the government will guarantee up to 25% on loans to cashew nut processors to a ceiling of US$8 million. This de-risks the banks and encourages them to engage and get involved in the cashew nut sector. The third is the commitment to create an environment that really favors the processors. In Mozambique, they open up for export only after the local processors have procured all their needs. They are now processing 50% of what they produce; the highest in Africa. We need policy interventions that support the cashew nut sector to attract investment. What is the opportunity beyond Tanzania to boost the growth of this crop in Africa? Beyond Tanzania, there are elaborate projects in Kilifi, Kenya; Mozambique, Zambia and in many west African countries like Benin, Mali and Senegal. There is great opportunity and potential continentally, but it has to be tied to processing. The cashew crop is very versatile requiring minimal rainfall. As they say, “if nothing else can grow there, cashew will”. FOODBUSINESSAFRICA.COM


TANZANIA’S CASHEW NUT INDUSTRY: A sub-sector with huge potential, mixed fortunes Ronald Onsare

C

ashew nut production in Tanzania is growing aggressively, according to its Cashew Nut Board of Tanzania (CBT), with significant opportunities for investors along the value chain. Cashews are grown in southern Tanzania, mainly in Mtwara, Lindi, Ruvuma, and Pwani regions, with a total planted area of about 695,683 hectares. Cashew nut is the lead cash crop export in the country followed by tea, coffee and sisal. According to data from the statistics bureau, cashew nut exports rose to US$541.77 million in 2017 from US$270.6 million in 2016, surpassing all of Tanzania’s cash crops, including coffee and tobacco. Cashew nut exports reached over 320,000 tonnes in 2017, against 169,200 tonnes in 2016. However, the growth in exports shrunk to US$196.5 million in 2018. Tanzania has seen an unprecedented rise in cashew nut production, rising to be the top three world producer in less than 10 years. In 2017/2018, the country’s raw cashew nut production reached 387,936 metric tons (MT), from a low of 75, 387 MT in 2010, more than quadrupling its figures. With an additional of over 450,000 hectares of land in the Lindi, Mtwara, Pwani and Ruvuma regions designated either as industrial parks (green fields) or land for new cashew plantations/farming, this number is set to increase in the coming years. Nearly 90% of Tanzania’s cashew nut exports remain unprocessed and is mainly exports to India – and more recently Vietnam – that have high processing capacities, owing to the country’s low processing capacity. The processed cashew nuts are then exported to large markets like the US and Europe, where they are used in snacks and food products. Locally, there are estimated 29 large and small-scale cashew processors (brownfields) in Tanzania that are seeking joint ventures to expand their businesses. Tanzania had two operating factories that processed most of the crop pre-independence. A company called Oltremare ran these factories; a formidable cashew equipment manufacturer from Italy and an influential figure in the shifting global cashew economy. The Vietnamese government actually commissioned a study of Oltremare’s machines when developing its own cashew industry. Vietnam now produces some of the best cashew processing equipment and is the largest cashew processor in the world, with a processing capacity of over 1.2 million tones. They have successfully ridden the wave of growing cashew production in Africa, with annual imports of 1 million MT of raw cashew nuts from Africa. In Africa, the Ivory Coast is leading the way with game-changing policy to attract investment in the processing sector; they are also the largest cashew producer in Africa. However, several controversies affect the cashews sector, especially in relation to the 2018 harvest when Tanzania’s FOODBUSINESSAFRICA.COM

President John Magufuli intervened in trying to sustain the crop’s collapsing price. The President set the price at a minimum buying price of TZS 3,000 (US$ 1.30) a kilo in late October 2018, up from the TZS 1,550 (US$ 0.67) recommended by the CBT. While traders had paid up to TZS 4,000 (US$ 1.74) a kilo for the 2017 crop, in 2018 they were willing to pay no more than TZS 1,700 (US$ 0.74) a kilo of the nuts. The President further intervened in November 2018 directing that the GoT would purchase all cashew nuts from farmers at TZS 3,300 (US$ 1.43) per kilo, through the Tanzania Agricultural Development Bank (TADB). Although the Government continues to pay the farmers the produce collected from farmers across the country, uncertainty continues to hang around the future prospects of the cashew nut industry in the country. Tanzania reckons that local processing will help secure a ready market for the nuts. The Tanzania Investment Centre (TIC) says the Government is seeking to establish cashew nut processing projects and industrial parks mainly in Lindi and Mtwara regions. The USAid Hub has supported TIC in drafting a strategy for cashew nut production and processing mainly in Lindi, Mtwara, Tunduru and Pwani. A total of 538,993 hectares of land has been set aside by the government in these regions for agricultural expansion and industrial development as it also seeks investors to set up industrial parks and develop cashew nut processing industrial zones. The Government of Tanzania (GoT) is actively seeking investors in cashew nuts processing and has recently produced a study that identifies investment opportunities in cashew nut growing and processing in the country. Tanzania The Tanzania Investment Centre (TIC) has announced that the Tanzania Cashew Nuts Forum will be held on the July 1213, 2019 in Mtwara. The forum aims to attract potential investors from outside Tanzania as well as domestic investors interested in establishing cashew nuts processing projects as well as industrial parks in Tanzania and more specifically in Lindi and Mtwara regions. The forum will engage business investment institutions operating in the cashew nuts sub-sector to showcase the value CASHEWNUT PRODUCTION IN TANZANIA addition, farming/plantations and extension services so as to increase productivity and total tonnage from the current 0.3 MT/ Yearto the real 2010potential 2011 2012 2013 2014 2015 year of 1.0 MT/year Production

75,387

121,135

CASHEWNUT PRODUCTION IN TANZANIA Year Production

2010

75,387

158,719

127,956

130,345

2011 2012 2013 2014 2015 2016 2017 2018 121,135 158,719 127,956 130,345 198,114 155,245 265,238 313,826

Cashew Nut Production in Tanzania 2010-18

Cashew Nut Production in Tanzania 2010-18

350,000

350,000

313,826

300,000

300,000

313,826

265,238

250,000 200,000

250,000

265,238

198,114 158,719

150,000

127,956 130,345

121,135

200,000

100,000

155,245

198,114

75,387 50,000

158,719

150,000 0

2010

2011

2012

2013

100,000

2014 2015 121,135

2016

155,245 127,956 2018 130,345

2017

75,387 50,000 0 2010

2011

2012

2013

2014

2015

2016

2017

2018

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55

198,114


CHOCOLATE COATED RICE CAKES Tropical Heat Ltd - www.tropicalheat.co.ke

Tropical Heat has added a new variety to its rice cakes snacks line. Chocolate Coated Rice Cakes are available in 30g and 150 gram options. Declarations: Less than 100 calories per piece; Gluten free; Trans fat free. Ingredients: Rice, Sugar, Hydrogenated Palm Kernel Oil, Skimmed Milk Powder, Cocoa Powder, Soya Lecithin (E322) And Vanillin

NUTRIPRO FAMILY PORRIDGE Tropikal Brands Ltd; www.tropikal.co.ke Tropical Brands has added a porridge mix to its growing line of food products. Produced in Rwanda by Africa Improved Foods, Nutripro is available in 500 g flexible packaging. Ingredients: Millet, Maize, Vitamins and Minerals

ASAS FULL CREAM MILK Asas Dairies, Tanzania. www. asasgrouptz.com Asas Dairies, Iringa, Tanzania, has a UHT milk product to add to its dairy products. Available in 500 ml pouch packaging, the company says that has introduced the product after a recent investment in its processing technology. Butterfat content: 3.5% Ingredients: Milk

AKARABO SWEET POTATO BISCUITS Sina Gerard, Rwanda; www.sina.co.rw

Sina Gerard has introduced orange-fleshed sweet potato biscuits into the Rwandese market. The biscuits are packaged in 100 grams stand-out Pringles-type packaging Ingredients: Orange-fleshed sweet potato (60%), wheat flour, eggs, sugar, milk, butter, vanilla, bicarbonate of soda.

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KILIMANJARO FRESH LONG LIFE MILK Galaxy Foods & Beverages Ltd, Arusha, Tanzania; www. kilimanjaro fresh.co.tz

New milk processing company Galaxy has introduced Kilimanjaro Fresh Long life milk in 450 ml plastic pouches format.

Ingredients: Milk

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NEW PRODUCTS ON THE SHELF

MINUTE MAID NUTRIDEFENSES NECTAR+

Coca-Cola Beverages Africa, Kenya - www.coca-cola.com Coca-Cola Beverages Africa has debuted Minute Maid Nutridefences Nectar+. It's available in 1 litre plastic bottles. 50% juice from concentrate. With Vitamin E and Zinc. Ingredients: Water, Sugar, Apple juice concentrate, orange juice

concentrate, mango puree concentrate, pineapple juice concentrate, passion fruit concentrate, acidulants (citric and ascorbic acid), Stabilisers (E466) glucose syrup, DL-alpha-tocopheryl acetate, zinc gluconate, colorant (beta carotene), flavour.

SAYONA FRUTTI'S ORANGE FRUIT JUICE

Sayona Fruits Ltd' www.sayonafruits.com Sayona Fruits Ltd has added an orange variant to its packaged juices line of products. Available in 250ml and 1L aspetic packaging options. Ingredients: Water, Sugar, Orange Pulp, Citric acid (E330), Ascorbic Acid (E300), Stabilisers (E466 and E415) and Nature Identical Flavour, Beta Carotene (E160a)

AFIA ENERGY DRINK

Kevian Kenya Ltd - www. keviankenya.com Kevian Kenya has unveiled a line of energy drinks. Afria Energy Drink is vailable in 250 ml cans in classic, straberry, apple and exotic flavours. Ingredients: Carbonated purified spring Water, Sugar, Citric Acid (E330), Sodium citrate E331, Flavouring, Glucose fructose syrup, Caffeine, Taurine, Inositol, Colours: sulphite ammonia caramel (E 150d) & quinoline yellow( E 104), niacin, pantothenic acid, vitamin B6, vitamin B12.

AZAM UHT FLAVORED MILK Bakhresa Group, www.bakhresa.com

Azam Dairy Products, Zanzibar has introduced a cardamon flavoured UHT milk product. Available in 500 ml plastic bottle. Butterfat content: 2.0% Ingredients: Water, Skimmed Milk Powder, Sucrose, Milk Fat, Emulsifier and Stabiliser (E417, E401, E407, E412) and contains Cardamon flavour)

MELLO JUICE DRINK Milkcom Dairies Ltd Milkcom Dairies has extended its range of juice drinks by introducing a line of aspetically-packaged juice drinks. Available in various flavour options including mango, strawberry and tropical blend and packaged in 250 ml. Ingredients: Water, blueberry juice (5%), strawberry juice (10%), cherry juice (5%), raspberry juice (5%), sugar, citric acid monohydrate (E330), ascorbic acid (E300), stabiliser (E440)

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PACKAGING INNOVATIONS & CHANGES

BROOKSIDE FARM FRESH MILK RANGE Brookside Dairy Ltd has refreshed its range of UHT milk products with a new, fresher and bold blue packaging. The company continues to roll out new blue packaging designs for its Brookside brand across the board including in its fresh, UHT and value added product lines.

KILIMANJARO PREMIUM LAGER CAN Tanzania Breweries Ltd has made changes to its branding for the popular Kilimanjaro Premium Lager. Availed in both cans and bottles in the 330ml and 500ml pack sizes.

DASANI DRINKING WATER IN GLASS BOTTLE Coca-Cola Beverages Africa, Kenya has introduced its Dasani drinking water in returnable glass packaging, adding to the plastic packaging option the product has had since its launch in the country.

SUGAR FREE SODA IN 750 ML PLASTIC PACK

NEW DEL MONTE JUICES BRANDING Del Monte Kenya has revitalised the look of its juices line. The company says that the new look products give the consumer same refreshing taste of Del Monte juice flavors in a bold new look that stands out on the shelves.

Coca-Cola Kwanza Ltd, a subsidiary of Coca-Cola has launched a 750 ml pack of its sugar free range in Coca-Cola, Fanta and Sprite variants. Prized at TSH 1000, the products, which come in plastic bottles are targeted at the hugely significant price point in Tanzania.

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Do you have any new product innovations you would like to see on this New Products on the Shelf page? Please send us the pertinent details about the product and you may see it listed here for FREE in a future edition of the magazine.

GOLDEN FRY WITH NEW CLOSURES Bidco Africa has introduced new packaging for its Golden Fry cooking oil line. The new pack has a unique non-drip spout top which ensures no spillage and has a measuring cap which ensures exact measurement of required oil by consumers 58 JUNE 2019 | FOOD BUSINESS AFRICA

What we require to list a product on this page: • High resolution photos of the product • Name of the product • Types of SKUs available • Varieties (e.g. flavours) available • Brief description of the product covering target market, unique product profile, declarations etc NOTE: The product should be one year old or less from the time it was launched to be considered. Send details to press@foodworldmedia.net or call us on +254 725 34 39 32. FOODBUSINESSAFRICA.COM


C E R E A L S | P U L S E S | T U B E R S | O I L S E E D S | C O F F E E | M I L L I N G | PA S TA | B A K I N G | S N A C K S | F E E D S

COMMODITY MARKETS

Lower maize production prospects in the US dampen global cereal production outlook this year

WORLD – The Food & agriculture Organisation (FAO) has forecast that the world’s cereal production in 2019 will increase marginally by 1.2% from 2018, to 2 685 million tonnes, much lower than earlier predicted, dragged by the reduced global maize production due to sharp downward revisions in the United States. According to the report, due to prolonged excessive wet conditions resulting in major delays in crop plantings, this year’s maize production in the United States is now expected to hit 330 million tonnes, down 45 million tonnes from FAO’s forecast published in May and almost 10% (36 million tonnes) short of 2018’s level.

The recent USDA crop progress report pointed to a sharply reduced planted area of only 58% of planting intentions as of 26 May, well below the 5-year average level of 90% and the slowest pace ever recorded. FAO says that most of the expected rebound in global cereal production in 2019 is attributed to expected expansions in wheat and barley production, with year-on-year increases of 5.3% and 5.8%, respectively. Total rice production is likely to remain close to last year’s record level as expectations of area-driven expansions in Asia could offset foreseen contractions in most other regions, triggered by inclement weather and prospects of reduced profit

margins. World cereal utilization in 2019/20 is forecast to reach 2,707 million tonnes, down 15.5 million tonnes, or 0.6%, from the May forecast but still 1% (26 million tonnes) higher than in 2018/19, with reductions due to the United States, where, because of deteriorating production prospects, total domestic utilization of maize could to fall below the 2018/19 level. Therefore, world utilization of coarse grains in 2019/20 is now expected to reach 1,434 million tonnes, down 0.9% from the previous forecast but 0.7% higher than in 2018/19. Global wheat utilization is expected to grow by 1.2%, reaching 755 million tonnes, while that of rice is predicted to reach 518 million tonnes, 1.4% higher than in 2018/19. The report reveals that world cereal stocks could decline by 26 million tonnes, or 3%, in the new season to a four-year low of 830 million tonnes, 18 million tonnes, or 2% below the FAO’s May forecast. Due to lower maize ending stock figures whereas the forecasts for wheat and rice inventories have been raised slightly since the previous report. The projected fall in cereal stocks would result in a drop in the global cereal stock-to-use ratio to just below 30 percent, which still points to a relatively comfortable supply level.

INVESTMENTS

Mars Petcare backs US$11m funding in dog food startup Wild Earth USA – Wild Earth Inc., a technology startup developing clean protein dog food has closed US$11 million Series A funding round backed by Mars Petcare. The financing was led by venture capital firm VegInvest, with participation from other current investors including Mark Cuban’s Radical Investments, Felicis Ventures and Peter Thiel’s Founders Fund. The investment brings Wild Earth’s total funding to US$16 million and seeks to accelerate the company’s growth as well as portfolio expansion. It will enhance development of its nomeat food for dogs made from an ecofriendly and renewably sourced fungi, a complete protein containing all ten FOODBUSINESSAFRICA.COM

essential amino acids. The company expects the dry kibble formula to be available in the second half of 2019. “Given the shocking amount of animal farming required for pet food, and the environmental strain caused by feeding companion animals, Wild Earth represents an important component of a more sustainable and humane food system,” said Amy Trakinski, managing director of VegInvest, who joins Wild Earth’s board of directors. “We’re investing in Wild Earth not only to impact this market but because Ryan and his team can provide valuable leadership to other companies in the plant-

based innovation space.” Given that 25-30% of meat’s environmental impact in the US is attributed to pet food, Wild Earth targets to develop alternatives to sustainably nourish more than a billion pets by 2050.

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FOOD SAFETY

Insect sector calls for improved hygiene standards and more transparency

INVESTMENTS

Ghana’s National Food Company to expand storage capacity by 80,000 tonnes GHANA – The National Food Buffer Stock Company (NAFCO) has revealed that it is set to construct storage facilities with a total capacity of 80,000 tonnes as part of its efforts of shoring up the national buffer stock. The new facilities, which are scheduled to be complete by the end of the year, will increase its storage capacity from the current 33,000 tonnes of food. According to the chief executive of NAFCO, Hanan Abdul Wahab, the government had so far awarded contracts for the construction of warehouses

intended for storage of rice, maize, soya bean, millet, cowpea and peanuts. He added that the company has also constructed three additional warehouses each with a storage capacity of 1,000 tonnes. The ministries of Special Development Initiatives and Food and Agriculture are respectively responsible for the 50,000 and the 30,000 tonne capacity warehouses across the country, reports GhanaWeb. The government under the one district, one warehouse initiative has also constructed about 40 warehouses as part of its measures to address post-harvest losses in the country.

M&A

WORLD - The International Platform of Insects for Food and Feed (IPIFF) has reaffirmed the need to establish EU food hygiene standards for the insect sector while fostering transparent communication along the food and feed chain. During a workshop in Copenhagen, Germany, participants from across the EU and US, as well as Israel and Switzerland called for the need to focus on the main research gaps in order to broaden the regulatory options for using insects as food or feed at an EU level and explored possible avenues for fostering cooperation between operators throughout the food and feed chain. “The European farming sector is looking for new protein sources to overcome the current protein deficit in the EU,” said Thor Gunnar Kofoed, Vice President of the Danish Agriculture & Food Council and Chair of the Copa-Cogeca Working Party. “We do therefore welcome the emergence of the insect sector, as it can bring innovative and valuable solutions for the European livestock while providing an economically sound opportunity for farmers.” The IPIFF Guide on Good Hygiene Practices seeks to support the insect sector in establishing risk management and foster transparent communication among feed chain partners. The EU is deliberating to include specific standards for insects as food in the EU food hygiene legislation and is also looking to specific rules for insect organic production destined to human consumption and/or for animal feed, something that IPIFF has welcomed.

60 JUNE 2019 | FOOD BUSINESS AFRICA

Nigeria’s Ellah Lakes Plc acquires Telluria Limited to diversify operations NIGERIA – Ellah Lakes Plc, a fishing company in Nigeria, has acquired 100% equity stake in Telluria Limited, one of the leading palm and oil cassava producers in the country, at an undisclosed amount. Ellah Lakes Plc, in a statement to Nigerian Stock Exchange, said that the acquisition made in furtherance of the diversification of its business. The company said that the acquisition will also enable it to strengthen the balance sheet, improve operations and create organizational efficiencies that will drive profitability. The firm said that the transaction would also

improve administrative and operational efficiencies of the company as well as strengthen the company’s market position by aiding access to new products and markets. The development also comes at a time when the company has appointed Chuka Mordi as its new Chief Executive Officer. Mordi, who replaced Frank Ellah, was previously serving as a director at Tulleria Limited and is said to have joined Ellah Lakes Plc as part of the acquisition agreement, reports Naira Metrics.

INVESTMENTS

Louis Dreyfus joint venture breaks ground on new aquafeed mill in China

CHINA – Louis Dreyfus Company B.V., through a joint venture with Guangdong HAID Group has started construction of a new aquafeed mill in Tianjin, China. The new mill will be built and operated by their joint venture, Tianjin Rongchuan Feed Co. Ltd., producing high-end aquatic feeds, including prawn feeds, as well as fermented soybean meal. The plant, located on a 53,000-square-meter plot of land is expected to open by mid-2020, with an annual feed production capacity of 300,000 tonnes. “As demand for protein rises in a number of markets and consumer demand

for healthy meat alternatives grows in China, aquaculture represents an efficient and sustainable source of protein and our move into aquafeeds is consistent with that vision,” said James Zhou, head of North Asia Region at LDC. The investment is part of LDC’s strategy to diversify downstream into more value-added products and HAID provides it an opportunity to grow in animal nutrition. The partnership aims to develop the biggest aquafeed mill in North China and leverage the synergies from combining soy crushing and feed production activities in one location. LDC has identified Asia as a prospective growth market, shifting its eye on China which is the world’s largest supplier and consumer of aquafeed. Further, in a bid to diversify and expand in Asia, LDC announced plans to invest in the planned initial public offering of Leong Hup International, a Malaysian poultry and food firm. It also opened a new oilseeds processing plant, Louis Dreyfus Company (Tianjin) Food Technology Company Ltd in China. FOODBUSINESSAFRICA.COM


PEOPLE

US Grains Council names Ryan LeGrand as new President and CEO USA – The U.S. Grains Council (USGC) has appointed Ryan LeGrand, current council director in Mexico as its new president and chief executive officer. He succeeds Tom Sleight, who announced his retirement from the council in February. LeGrand joined USGC in Mexico in 2015 and has served as the director of the council’s Mexico City office since 2016. He has overseen the expansion of the council’s programming in that country to include ethanol promotion and worked to steady relations with the U.S. and Mexican feed and livestock industries during the negotiations of the U.S.-Mexico-Canada Agreement (USMCA). During his tenure in Mexico, he is said to have contributed the council’s expansion including increasing U.S. DDGS demand, cultivating both large and small craft brewers to purchase more U.S. barley and encouraging sorghum use by Mexican livestock producers. He had earlier worked a year in USGC’s Washington, D.C.based office as a manager of international operations. He holds a bachelor’s degree from Oklahoma State University in international business.

INVESTMENTS

2 Sisters Group to invest in UK Poultry and Fox’s Biscuits businesses UK – The 2 Sisters Group has announced that it is making further

investments in its UK Poultry and Fox’s Biscuits businesses in an effort to drive efficiency and accelerate business transformation. The company is also considering reducing the number of its UK poultry sites to simplify its business operations across the supply chain while delivering quality products and services. This is part of the business turnaround strategy initiated by the newly elected CEO Ronald Kers who set out ‘Framework for Success’ plan to drive the business back to profitability. 2 Sisters Group which was embattled in a food hygiene scandal in 2017 has said that the new commitments are set to increase performance of businesses and strengthen its financial position. In addition, the business has secured new, longer term, customer commitments at its bakery site in Dronfield. “Our stated strategy is to become the number one poultry plus business in Europe and for several months now we have been engaged in a strategic review to facilitate our delivery on this, focussed on improving execution, reducing cost and building a better organisational culture,” said CEO Ronald Kers. He said that the company’s UK Poultry business will benefit from this further investment and work, with some major investments around automation, marketing and product innovation.

STRATEGY

ADM combines origination and oilseeds businesses to accelerate growth

USA – Archer Daniels Midland Company (ADM) has announced the creation of a new business unit called Ag Services & Oilseeds, which combines ADM’s Origination and Oilseed business operations in a bid to accelerate growth through value creation. The new business unit will begin operation on July 1, led by Greg Morris, formerly president, Oilseeds for ADM. The move is part of the company’s efforts to create a simpler organisational structure to address business operational challenges in some of the markets. According to the company, the reorganisation will enable it better to integrate the supply and value chains to deliver significant simplification and efficiency to the day-to-day business. Last year, ADM unveiled a new business structure to help drive growth in the global grain market. The company separated its operations into four units: carbohydrate solutions, nutrition, oilseeds and origination. The restructuring is expected to give the company greater capacity to differentiate its product portfolio, drive innovation and evolve to meet changing consumer demands. The restructuring includes relocation of its sales and commercial staff members at its milling division to its headquarters in Illinois. FOODBUSINESSAFRICA.COM

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AGRIBUSINESS

FINANCIALS & ECONOMY

Zimbabwe’s poultry sector Astral Foods reports 52% decline in earnings as poultry recorded 19% decline in division declines output in first quarter

ZIMBABWE – The poultry industry in Zimbabwe recorded a 19% decline in output during the first quarter of the year attributed to a decline in demand and supply in the sector. The period is said to have witnessed high cost of feeds forecasting similar conditions in the second quarter. “The first quarter of 2019 witnessed marked reduction in demand and supply due to the increases in cost of feed and reduced consumer buying power,” said Zimbabwe Poultry Association (ZPA) chairperson, Solomon Zawe. “These twin forces are expected to persist into the second quarter. Due to the drought, the country will have to depend on expensive imported soyabean meal and maize for the rest of the year.” Broiler day-old chick production in the first quarter totalled 19.5 million at an average of 6.5 million per month, 19% lower compared to the same period last year. Zawe cited that breeding stocks continued to increase post-outbreak of Avian Influenza in May 2017 with broiler breeder stocks (growing and in-lay) averaging 730, 753 birds per month, 41% up on the first quarter of last year. Hatching egg production from local broiler breeders averaged 7.5 million per month in the quarter, 36% higher than 2018 figures. Production of layer hatching eggs averaged 840,590 per month, 7% down in the fourth quarter of 2018, but 146% higher than the same period last year. Total layer breeder stocks (growing and in-lay) averaged 71,108 birds per month in the period under review while total broiler meat production was estimated at 10, 203 tonnes per month, 9% lower than the same period in 2018. 62 JUNE 2019 | FOOD BUSINESS AFRICA

SOUTH AFRICA – Astral Foods has reported a 52% decline in headline earnings for the six months to end-March 30, 2019 attributed to a significant decline performance of the poultry division. Despite a 3% growth in revenues to R6.8 billion (US$455.51 million), the company said that higher cost of sales and distribution expenses also dented the firm’s profits. “Feed price and production cost increases could not be recovered by increasing sales realisations due to the consumer market not being able to absorb price increases,” said the company. Astral, which also manufactures animal feed, noted that its poultry division reported a 68.9% drop in profit to US$20 million (R285m), driven largely by the higher feed input costs and lower sales. The group said poultry imports remained high during the period, equating to about 38% of local production, or an average of 41,771 tons a month. “Higher local poultry production

levels together with imports from Brazil and the US will negatively impact the supply and demand balance in the short term,” it said. The company also cited the newly legislated minimum wage, rotational power cuts, water supply interruptions and costs associated with industrial action in KwaZulu-Natal as contributors to higher costs. However, it noted that the outlook for maize prices and stocks have improved.

REGULATORY & POLICY

Ethiopia approves tax free imports of agricultural and animal feed technologies ETHIOPIA – Ethiopia’s Ministry of Finance (MoF) has approved the tax reform policy that will exempt agricultural mechanization, irrigation and animal feed technologies and equipment from import duties. The tax reform policy was initiated by the Ethiopian Agricultural Transformation Agency (ATA) in close collaboration with the Ministry of Agriculture (MoA) in a bid to improve food security in the country. “Based on the study recommendation by ATA, the Agricultural Transformation Council provided direction to facilitate farmers’ access to agricultural technologies which will ensure food security at the household level and national nutrition development,” ATA said. The tax reform is aimed at enhancing the agriculture sector by removing duty and taxes on imports of farming machinery, irrigation and drainage equipment as well as animal feed ingredients and technologies. The development also seeks to provide incentives and investments to enhance the importation and local production of these

technologies. A transformation from small-scale subsistence farms to mechanised, more commercially viable farms has been identified as a major contributor to food security in the country. According to the African Development Bank (AfDB), Africa currently spends about US$35 billion annually on food imports with the bank projecting that if the current trend continues, food imports could rise to $110 billion by 2050.

FOODBUSINESSAFRICA.COM


INVESTMENTS

Dangote Group unveils new rice and sugar investment strategy, eyes dairy sector

NIGERIA – The Dangote Group, Nigeria based diversified investment holding firm has unveiled new investment strategy for its rice and sugarcane business, pointing to

the possibilities of venturing into the dairy industry. According to the company, investing in the country’s dairy sector would help meet local milk supply. The group which has currently acquired thousands of hectares across major rice and sugarcane producing belts for production and processing said that it will now focus only on processing. Engr. Mansur Ahmed, the Group Executive Director, Government and Strategic Relations of the group said the change in strategy will enable the group to adopt the Anchor Borrower Programme (ABP). “With the new approach, the group is constructing about six large-scale industrial processing mills, each with about 250,000

tonnes per annum capacity, in six states: Jigawa, Zamfara, Sokoto, Kebbi, Niger, Kano and hopefully in Nasarawa. The intention here is to basically create a sort of similar anchor borrower, an arrangement where we engage out-growers.” The group has acquired the stateowned Songhai project in Katsina State and is establishing tomato production and processing facilities. The group seeks to convert the facility, which was used as an agric skill development centre, into an agribusiness development centre: seed development and multiplication for training and skill development and all sort of trials. The project is expected to be completed by the end of the year.

FUNDING

Agricultural commodity trader ETG to raise US$80m to boost operations in Africa KENYA – The Export Trading Group (ETG), a Kenyan-based agricultural commodities trader is raising US$80 million (KSH 8 billion) to finance and boost its operations in Africa. ETG, which trades a wide range of commodities including maize, pulses and fertiliser, seeks to utilise the funding to improve its grain exports as well as fertiliser imports. The International Finance Corporation (IFC) has committed to inject US$40 million (KSH 4 billion) in

funding while the London-based Standard Chartered Plc is expected to finance the remaining capital. “The proposed project involves the second renewal of the existing funded risksharing facility with Standard Chartered Bank for a trade finance facility of US$80 million to support ETG agri-commodity trader’s export of cash and food grains, storage, and import of fertiliser in subSaharan Africa,” said IFC in a statement. The project will support the purchase, storage and sales of agricultural commodities

and fertiliser mainly in East, southern and West Africa. ETG will invest in Malawi, Benin, Kenya and Tanzania among other sub-Saharan African countries. Established in 1967 in Kenya, ETG has operations in 40 countries including over 25 African countries, as well as in India, China and South East Asia where it buys, stores, processes and/or manufactures finished goods. The company has additional trading and merchandising desks in Europe, the Americas and the Middle East.

COMMODITIES

Zambia, DRC to sign maize supply pact to ease shortage

ZAMBIA – The government of Zambia has unveiled that it is set to sign a Memorandum of Understanding with the Democratic republic of Congo (DRC) that will see Zambia export maize to the Central African country. The Zambian government says it is capable of supplying 1.3 million metric FOODBUSINESSAFRICA.COM

tonnes of maize to the DRC to enable the country meet supply maize deficit, reports Lusaka Times. According to the acting Minister of Commerce, Trade and Industry Moses Mawere, the government MoU will also facilitate for trade of agriculture products. He unveiled that the government has begun facilitating for trade between the two countries noting that the draft document of the agreement will be ready and shared with the DRC counterparts by the early July this year. Jacques Katwe, DRC Haut-Katanga Province governor, affirmed that Congo is depending on Zambia to help with providing it with food security through the export of maize and mealie meal. However, he highlighted that while the country imports mealie meal from Zambia there is need to promote agriculture in

order to increase production of maize and other Agriculture produce. Mr. Katwe says the province has come up with a policy aimed at promoting Agriculture in Katanga and the country as a whole. He said that the formulation of the MoU will also stop illegal vices in the export of maize such as smuggling and fraud. Meanwhile, Ministry of Agriculture Permanent Secretary Songowayo Zyambo says the country has enough maize stock for local consumption and export. He says the country is exploring means of investing in the maize production in the Northern part of Zambia to meet the growing demand of the product.

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MILLING TECHNOLOGY: THE IMPORTANCE OF MILL BALANCE By Ronald Sebastian

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n the industry milling today, there is a misconception of the full implication of a balanced mill compared to a mill that is just running. The perception, in most cases, is that the extraction value is being attained and the mill is running “well” so let it be, until lab personnel raise the alarm of out of spec production. This is when the miller on duty runs around checking flour streams for burst covers, or start checking the moisture content to B1, and often make unnecessary adjustments to roll grinds, in an effort to rectify the anomalies. Mill balance requires the following to be done diligently, every time: 1. Cleaning and conditioning has to be thorough, in that all or as much of the impurities as possible in the wheat is removed. This requires thorough inspection, and correct setting up of all screens room equipment, thereby ensuring that the wheat being fed into the conditioning system is free from impurities. The natural moisture content is confirmed in the mill as well as in the laboratory and the correct quantity of water is added and lying time is correctly allocated for both first and second conditioning. (Mills equipped with PLC and MYFC monitoring will have the advantage over those that aren’t). Where this equipment is not available, the miller will have to confirm that. 2. The first conditioning moisture content is achieved and adjust for second conditioning 3. First break moisture content is achieved through repeat testing throughout the run for confirmation in both cases as previously mentioned. 4. Break releases set as directed by management for the type

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of wheat being milled.

THE PERCEPTION IS THAT AS LONG AS THE EXTRACTION VALUE IS ATTAINED, THE MILL IS RUNNING WELL - UNTIL THE LAB PERSONNEL RAISE THE ALARM OF OUT OF SPECIFICATION PRODUCTION 5. Condition of roller mill fluting on a regular basis has to done. 6. Plansifter sampling and verification of stocks from like sifters. This has to be inspected by the mill operative on shift. 7. Inspection of purifier separations and adjustments where necessary for cleaning of the semolina being channeled to the head reduction rolls. The over tails have to be inspected as well for confirmation of the stock to the lower break rolls and recovery reduction passages. 8. Feed to like rolls are evenly distributed by weighing out either the grind of the roll through catch weighing or through catching the ground stock on the sampling board as one would for break releases, using the board that is made for the full width of the rolls. 9. Adjustment of the automatic feed mechanisms to ensure that the roll is constantly fed, instead of on and off, as this results in bare and rich dressing in the plansifters, every time the roll disengages and engages. 10. Roller mill temperatures during the shifts to maintain the temperature of the stock and prevent condensation inside the plansifters, that can cause caking of stocks and blinding FOODBUSINESSAFRICA.COM


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of the sieves. 11. Flour stream inspection for bare dressing; burst or holed covers; and leaks. Especially after miller’s maintenance has been done or a sifter section was opened and repaired during a run. 12. The reason for this is to ensure that the mill is running consistently and the flour produced is constantly within specification.

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dressing in like sifter sections. When the feed is not evenly

MILL BALANCE IF PRACTICED AS A NORM WILL MAKE THE MILL OPERATOR'S/ MILLERS LIFE SO MUCH EASIER AT WORK AND THEY WILL ENJOY THEIR PROFESSION TO THE FULLEST.

Operational issues are critical The following issues are important to be monitored by the miller on a continuous basis to achieve excellence in milling operations: B1 moisture content and feed rate must be constant and evenly distributed to all B1 roller mills. The break releases are set to ensure that the stocks to the mills are evenly and correctly distributed. This is to ensure that all the passages achieve the targets as set. Too high a release will result in bran powder being generated on the break passages causing the purifiers to be flooded and separation affected negatively, and the stocks to the head reduction rolls having too much bran, while the lower breaks are under fed also contributing to the generation of bran powder due to insufficient feed to the rolls. Flour produced with this type of stocks are normally high in ash value; high water absorption and erratic stability, making it unsuitable for bread making. Too low a release can and will result in too much stock being over-tailed to the lower break passages, and possible choking of the sifters and airlifts and high power consumption on these roller mills. This again will result in the flour produced on these rolls having high ash values and contaminated stocks to the following purifiers and rolls. Rich dressing in the plansifters will mean that the branny stock will contain more endosperm particles that should have been directed to the purifiers, going further down to the 3rd and 4th break roller mills. Semolina to the head reduction rolls will also be reduced with possible bran contamination, that increases ash values of the flour produced due to the presence of the branny stock. B1 moisture content being maintained at constant level is absolutely critical to the performance of the mill and the quality of the products derived from the grain in process. The miller has to make sure that the natural moisture content of all consignments of grain is checked and recorded, enabling him/her to make the correct adjustments to the quantity of water to target for conditioning on grist changes. He/she has also to ensure that the grain to the 1st break roll is free from any contamination. Adding water to second cleaning is also important as this helps with the toughening of the bran just prior to the rolls. The preferred lying time in the B1 buffer bin is approx. 10 to 12 mins, which allows for the moisture to penetrate into the bran layer, thereby toughening and making it pliable. Plansifter sampling and verification is a function often ignored by millers and mill operatives. They assign a trainee or millers assistant to perform this task and don’t do the actual inspection as is necessary. In most cases the samples are drawn for purposes of satisfying the requirements of the job description. Or his senior. Millers need to be familiar with mill stock identification, including purifier separations and destination stocks to be able to assess at a glance when something goes wrong during a run or when QA calls him/her with a complaint of out of specification production. Plansifter separations go hand in hand with checking of break releases and purifications, as stated in (a) above. This function will also help the miller to identify potential blinding or damage to sieve covers or even leaks between sieves in a section, and in the purifiers. Balancing of feed to all like rolls, will prevent rich and bare FOODBUSINESSAFRICA.COM

distributed, one will find that during sifter separation inspection, there are huge variances in the quality and quantity of the stock being separated. (millers will eventually develop a feel for the rate of flow from the various sifter sections) Feed gate control to like rolls and other passages has to be consistent with the running of the mill. If the feed constantly stops and starts, you will find that your product specification is constantly off, resulting in more mill adjustments than is necessary. This stop-start, contributes to bare dressing and high ash production due to the fact that the plansifters run empty every time the roll disengages and re-engages. It is one aspect of milling that is most often overlooked by the different shifts because roll grinds and feed mechanisms are adjusted to keep the mill from having chokes. This is a practice that often causes substandard production and even milling gains and losses between shifts. The writer has often found that the automatic feed mechanisms are adjusted to its lowest resistance, resulting in the feed to the roll not being evenly spread across the entire surface of the roll. This causes damage to the rolls because the miller ignores correct mill balance in favour of the mill running at all hours while on shift. This is a very poor practice. (Millers indulging in this will know who they are, and hopefully feel guilty and make amends.) Roller mill temperature monitoring is critical for two reasons, the first being to prolong the lifespan of the rolls and secondly to save on electricity (power) costs. Flour stream inspection should be done twice on each shift to ensure that there are no anomalies arising from worn covers. A sure way of ensuring that this does not occur on your shift or that of your colleagues, is to check all sifter covers personally during millers’ maintenance or when you stop to correct burst or holed covers. The plush seals on the sides of the sifter cabinet is often damaged during replacement of the sieves, this is also a contributor to O.O.S production and is often found to be overlooked by the miller or his assistant. One will always find the head miller or mill manager in some facilities going around the mill inspecting flour streams, roll grinds and sifter separations after the samples have been drawn by the millers’ assistant or someone who has been trained for this function, not knowing exactly that the feeds to the various systems are unbalanced. Lack of initiative and force of habit are the main causes of this behaviour and they in turn will be making unnecessary adjustments to roller mills when something is amiss at the laboratory. From experience and having been responsible for setting up and running “lights out” operations, I have found that mill balance will only make the millers’/ mill operatives life so much easier at work and they will enjoy their profession to the fullest, but only if this is practiced as a norm to mill operation Ronald Sebastian is a miller and trainer at Morning Star Milling Corporation

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SUGAR REDUCTION IN BAKING:

REPLACING SUGAR FUNCTIONALITY IN BAKED GOODS By Godfrey Anunda

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combination of high quality and ‘healthier’ baked goods is on the rise, be it a craft, supermarket or industrial producer of bread, pastry, cake or confectionery. Governments have set in to help with regulations and just like fat, sugar is never getting any good publicity, while they have joined the push for less sugar through education campaigns, and sugar taxes on sweetened goods. The UK government has unveiled an ambitious sugar reduction program challenging the food and beverage industry to reduce overall sugar across a range of products by at least 20% before 2020. Brazil and other Latin American countries are considering caloric limits for bakery sweet goods. Yielding to the ‘no’ or less sugar pressure, manufacturers have identified ways of reducing calories 66 JUNE 2019 | FOOD BUSINESS AFRICA

in their formulation either by replacing carbohydrates or replacing fats. The US Food and Drug Administration’s mandate to include Nutrition Facts Label for added sugars also shines a light on the need for a healthy diet, including in baked goods. The requirement, which has received strong support from health advocates is based on the World Health Organisation’s (WHO) recommendation that the daily intake of calories from added sugars not exceed 10% of total calories. A 2015 study by Innova Market Insights indicates that purchasing decisions are continuously being influenced by the sugar content in foods and in the US, 52% of consumers said they pay attention to sugar when purchasing a bakery product. Reformulation is key in reducing added sugar intake

The bakery industry around the world faces a number of product development challenges, including managing sodium; adding dietary fibre, vitamins and minerals; creating wholegrain and fibre enriched products with good consumer appeal; reducing fat and sugar; formulating clean label products and identifying natural alternatives to food additives and meeting the needs of gluten sensitive consumers. Sweet baked goods such as cakes, cookies and biscuits contribute high amount of added sugar intake around the globe. According to WHO, excess sugar intake, which mostly comes from baked goods, breakfast cereals and sugary drinks increases the risk of weight gain and dietrelated noncommunicable diseases (NCDs) such as diabetes, obesity. Even as the struggle to remove sugar from confectionery and snacks continues, FOODBUSINESSAFRICA.COM


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consumers are indulging in this category, with €1 billion (US$1.13 billion) more having been spent by Western Europeans in 2016 than in 2015, according to Nielsen report. These figures are expected to continue growing though consumers are becoming specific on what they want: health and experience. Of these challenges, sugar reduction seems to have taken a back burner, especially in Africa where bread is a delicacy to newly urbanized populations that take bread to be a clear indicator of social progress. But with the double burden of overnutrition rearing its head, and lifestyle diseases like diabetes and heart disease rise, it’s a matter of time before the consumer asks more from bakers. Kenyan company Broadway broke new ground in the bakery industry in Kenya in 2017 by debuting a campaign pushing the lower sugar message in baked goods in 2017, with the overall goal of informing the consumers of its products of the lower sugar content of its bread products. The company has reported an increase in awareness by consumers on the sugar content of their products, with an increase in sales. Sugar replacement options Sugar has for a long time been relied upon as a source of energy. Although consumers are sounding off on sugar, most of them want products that have around the same level of sweetness and reformulation can help achieve that. To remove sugar, other ingredient alternatives must be added to retain taste and texture. Commonly used ingredients include taste modulation solutions which can allow for sugar reduction, while enhancing flavour and texture. Artificial sweeteners such as aspartame, saccharin and sucralose have in the recent past been commonly used as they are sweeter than sugar and lower in calories, but unapproved health concerns have left consumers think otherwise. For a sugar reduction strategy, cookies, muffins and sweet baked breads are the sweet spot, as these products are often consumed around the world. Sugar reduction solutions in baked goods are desired but maintaining functionality for browning and yeast activation is paramount. Next generation stevia sweeteners could be a great choice for sugar replacement as consumers view stevia as a healthful ingredient. According to Ingredion, bakers are turning to stevia sweeteners as a number of consumers are shying away from artificial counterparts. Stevia sweeteners work well in applications when the primary function of the sweetener is taste. Because of the flour, fat, fruit or spices in sweet baked goods, stevia can be used to enhance sweetness with less risk of having the off-flavours associated with stevia, adds the company. To reduce bitterness stevia can also be blended with other sweetener alternatives like monk fruit. Monk fruit extract natural sweetener sold by Tate & Lyle is said to be 200 times sweeter than sugar and is also available in fruit juice concentrate. Another clean label sweetener is chicory root fiber powder offering nutritional and functional benefits. Cargill’s erythritol and chicory root fiber can replace the functionality of sugar, delivering the tenderness and mouthfeel while checking on cost-effectiveness. Soluble corn fiber ingredients could also be used to replace sugar functionality in baking formulas. Some of its functions include improving texture, taste, shelf life, boosting fiber content and reducing calories. US-based ingredients supplier, Ingredion provides soluble prebiotic fiber solutions that can reduce sugar by 30% in baked goods. Used for binding syrups in nutrition bars, the fibers replace sugar in dessert applications with several nutritional benefits i.e. lower postprandial glycemic response in healthy people; enhances mineral absorption and supports bone health. Another ingredient debuting the bakery and food scene is FOODBUSINESSAFRICA.COM

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allulose, a no-calorie, non-fermentable sugar generally recognized as safe. It can be considered with yeast-leavened products offering the functional properties of sugar while not tampering with flavour or texture properties, notes Tate & Lyle. Striking a balance between flavour and functionality In addition to playing a critical role as a functional ingredient and adding sweetness to baked goods, sugar contributes to shelf life by absorbing extra moisture and inhibiting bacterial growth. It increases dough yield and softness through fermentation and improves texture through crystallization while the bread is in the oven. It also contributes to browning through Maillard reaction, a characteristic that is desirable in most baked goods. For a business looking to reduce sugar, the process is not as simple as reducing sugar inventories. Multiple ingredients will always be needed to mimic the lost functionality and flavour of sugar. Though some functional attributes can be replaced by ingredients such as starches, polyols and fibres, there are no, at least not yet absolute substitutes for sugar as the flavour and mouthfeel perception of the original product is not achieved. In cookies for instance, sugar reduction can be detrimental, leading to gluten development and starch gelatinization or pasting. Cookie spreading, aeration in cakes, browning, bulking, more so shelf life depends on sugar. “The challenge is that trimming sugar isn’t as simple as substituting an alternative sweetener and calling it a day,” said Kati Ledbetter, technical sales manager, ADM, which helps customers meet demand for clean labels with a portfolio consisting of nonGMO stevia sweeteners. “While the latest generation of highintensity options does a great job of replicating sugar’s sweet taste, many fall short when it comes to performing the essential functions sugar takes on behind the scenes.” Taste has been identified as number one priority when reducing sugar in dessert formulations. No consumer would buy a ‘reduced sugar’ product that tastes ‘bad’. It takes a combination of various functional bulk ingredients or high-potency sweeteners (HPS), which are way much sweeter than sucrose to strike a balance in flavour. Artificial sweeteners include aspartame, acesulfame-K and sucralose – which are widely used, as well as saccharin, cyclamates, alitame and neotame. Natural HPS such as stevia and monk have gained greater caption in the industry due to clean label requirements by regulators and consumers. These natural derivatives however come with undesirable bitter off-notes and aftertastes and this is where ingredient suppliers come into the picture to bring customized sweeteners or masking agents. To replace the sweetness of sugar, while masking any off notes, Ihab Bishay, PhD., senior director of new business development at Ajinimoto USA suggested blending a clean-tasting sweetener with enhancers and modifiers to find the right taste. Kerry has developed a natural flavouring solution called TasteSense, which allows 30% sugar reduction, with the ability to build back the sweetness when sugar is removed. The product can be used in applications including bakery, ice-cream, sauces, ready meals and yoghurt to help customers stay ahead of the present and future consumer trends. Clean alternatives and labels widen Consumer preferences are undoubtedly shifting towards clean label solutions thus, sweet ingredients such as honey and agave hold strong appeal, though traditional cane or beet sugar can also apply. This is putting pressure on bakers to explore clean alternatives in their baked goods, with a goal to reduce consumer’s daily intake of free sugars such as glucose, fructose and sucrose JUNE 2019 | FOOD BUSINESS AFRICA

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MY CORPORATE JOURNEY

KEMISOLA OLORIEGBE Packaging Technologist, Nigerian Breweries Kemisola Oloriegbe has a first degree in Mechanical Engineering and a second degree in Industrial Engineering, currently pursuing a Master’s in Business Administration with the University of South Wales, United Kingdom. She is a Project Management (PMP) and Certified Lean Six Sigma Black Belt (CSSBB) Professional. She is a Registered Engineer with the Council for Regulation of Engineering in Nigeria (COREN). 1. Describe your current role, your key responsibilities and the most critical deliverables? My current role is Packaging Technologist with Nigerian Breweries Plc. I am responsible for assuring production of quality products across the different production sites in a safe and cost effective manner that meets customers' expectation. I develop and manage standard operating procedures and governance documents to ensure that quality products are produced first time right in a sustainable way. I lead in providing technological guarantees for new product introduction and development, validation of packaging lines and materials and consumer value engineering. The deliverables on my role is equipping the production sites with standards, procedures and global best practices to produce quality products which are safe for consumptions and guarantee consumer’s satisfaction. 2. Tell us about your company and how it fits in with career goals. Nigerian Breweries Plc is the pioneer and largest brewing company in Nigeria and is part of the Heineken Operating Companies. It serves the Nigerian market and exports to other parts of West Africa. Our company was incorporated in 1946 and in June 1949, we recorded a landmark when the first bottle of STAR lager beer rolled off our Lagos Brewery bottling lines. This first brewery in Lagos has undergone several optimization processes and as at today boasts of one of the most modern brew houses in the country. Thus, from that humble beginning in 1946, our company has now grown into a brewing company with 11 breweries, 2 malting plants and 26 sales depots, from which our high quality products are distributed to all parts of Nigeria and international markets. Nigerian Breweries is a forward thinking company with the vision to – “Wow Nigeria with our great brands, passionate people, and World class performance!” The company is winning with Nigeria and has the largest portfolio of alcoholic and nonalcoholic beverages in the country. The company supports my career goal to be a world class professional utilizing cutting edge technologies to deliver quality products, which delight consumers always. My company is very customer and people-centric and it feels great working here. 3. What are the most important skills sets in achieving success in your role? It is important to have excellent analytical and technical skills to be able to have a complete overview of the production process and operations in order to deliver the end goal of meeting consumer’s expectation. You have to be thorough in order to improve a process and deliver value to the end users. It is also important to be able 68 JUNE 2019 | FOOD BUSINESS AFRICA

to utilize systemic thinking to solve problems and deliver long term practical solutions which can be easily implemented. Most importantly is to have excellent communication and interpersonal skills to manage diverse stakeholders and support them proactively. 4. What were some of your previous roles? How important were those roles in shaping your current role? I started my career with the company as a Shift Manager Packaging and this gave me the knowledge and experience of managing people on different production lines to deliver quality products. I later joined the projects team as the Startup Manager for the installation of a 36,000 bottles/hour PET line which gave me a good experience and knowledge about PET technology and application. The project pioneered the innovation and introduction of malt beverages into PET bottles in the Nigerian market and if not the first in Africa, set the pace for others to follow. My team was also the first to introduce the use of amber coloured PET bottles into the Nigerian market. The different roles have enable me, over the years, to gather numerous experience across different packaging lines from glass, PET, can, keg and flexible packaging. This year, I also worked in Mozambique to set up the green field plant, which was Heineken's first brewery in the country and holds the world record for the fastest brewery project completed in 12 months! My role was ensuring that the packaging process meets technological guarantees and delivers the expected standards and quality products to consumers. This international experience has enabled me to hone my skills and ability to work in a foreign and FOODBUSINESSAFRICA.COM


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multi-cultural environment. My earlier roles in the oil and gas sector and automobile industries also set the tone and formed part of the building block of my career, which has enabled me to accumulate a wealth of experience and expertise to function in diverse roles. 5. What have been some of the key turning points in your career? Have you ever had a change in career direction? If so, how did you handle the change? What lessons did you derived from this change? During my undergraduate days, I took both science and engineering courses and finished a degree course in science laboratory technology with a view of becoming a scientist, but along the way, I got involved in some engineering projects which fueled my curiosity and motivated me to enroll back for an engineering degree. Looking back, this has enabled me to have different perspectives with an open mind having the ability to critically examine and analyze possible alternatives before making decisions. I believe my educational background has strengthened my creativity and thought process, enabling me to become a well-rounded leader. I started my career in the Oil and Gas sector as a process engineer before moving into food and beverage industry. The change was quite challenging at first because I needed to learn new terminologies and concept, which I wasn’t familiar with, coupled with the different work environments. I was able to manage the transition by self-developing myself for the task ahead and acquiring the right competencies. I also connected with different professional colleagues in the industry to learn from them to get me started on the right foot. What I have learnt from my career change is the ability to be flexible enough to learn new things. 6. What makes your role interesting? What do you enjoy most about your role? What has been the role of mentors and family in the achievement of your professional goals? The opportunity of having to work in a production company to deliver quality products, which constantly delights consumers makes my role interesting. What I enjoy about my role is the ability to conceptualize and innovate new ways of constantly improving a process through an end-to-end approach. I am always up to date on new trends, technology and application and this makes my role very exciting. 7. Briefly, what is the typical day like in your role and company? My typical day start with having a detailed and holistic plan of how to achieve business priorities. I engage my manager and colleagues for concession and alignment when necessary and follow up with execution. Everyone in the company has different roles working together in synergy to deliver utmost consumer’s satisfaction. I am always prepared to respond swiftly to tackle an issue when the occasion arises. 8. What challenges do you face in delivering on your current role and how do you overcome them? Working in a production company has its own inherent challenges. There are numerous processes that you have to constantly keep an eye on, and have a good overview to avoid unexpected results. One way I have been able to overcome them is to appropriate time and plan my work routines proactively to avoid surprises. I interface with multiple stakeholders and other functions within the business. It is important to stay abreast of all that is happening and work with available information to support business priorities. 9. What is the status of the sector in which you operate in the region and Africa and what do you FOODBUSINESSAFRICA.COM

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think are the opportunities, challenges and market trends in the sector? Nigerian Breweries is in the food and beverage sector and holds the largest market share. There are numerous opportunities for the African continent because of the growing population. The challenges in Nigeria are centered on inadequate infrastructure, especially power. Power is a big issue which affects manufacturing companies quite negatively. Other issues are poor funding and distribution channels. However, opportunities still abound in Africa, especially Nigeria, because of the growing and vibrant youth populace which are below 30 and represent about half of the entire population. There are vast amount of natural resources in the region, which are not yet fully exploited and holds high gain for people and enterprise willing to invest. Despite the challenges, Africa still holds huge opportunities and it is the people that arrive early to maximize its potential that will reap the highest rewards. 10. How do you wind down after a hard day at work? What are our personal hobbies? How do these hobbies contribute to your personnel and professional development? My personal hobbies include swimming, playing a good game and catching up with families and friends. When I have lot of time, I usually pen down my thoughts through writing and carrying out research on specific interests. My hobbies help me to keep fit and also enable me have a good vibe of what is happening around me. 11. What are some of the personal or community activities you engage in to develop yourself or your community? I am a volunteer mentor for young ladies mentorship program where I mentor young ladies on career choices and personal growth. I am also a member of a project management social good initiative where we are involved in community projects within our immediate society to advance the livehood of people and the environment. I also managed a social media page called SMEFOODNETWORK on Instagram and Facebook which serves as a food and beverage community for small and medium scale businesses. We provide our community with resource materials to equip food entrepreneurs to succeed and build sustainable businesses. Moreso, I am passionate about sustainable development goals, which I believe will make the world a better place. I lend my voice, time and resources to causes centered on sustainable environment, responsible production and consumption, quality and affordable education, inclusion and diversity and the pursuit for zero hunger.

EDUCATION

12. How can young people who may aspire to a career choice like yours plan their journey? It begins with a having clear career interests and acquiring the right capabilities and skillsets to enable you get into the industry. It is also important to identify your strengths as this will go a long way to guide your career choices and enable you have long time prospects in the industry. 13. What else would you want to do in the future? What would you want to accomplish in your career before you step away from the industry? My goal is to have a complete overview of the industry and hone other competencies apart from my core competencies, which is part of the reason I am pursuing an MBA. I look forward to the future to manage a manufacturing company that is customer eccentric, people focused and in pursuit of utmost excellence in delivery of products and services while leveraging on the use of technology to create impact in a safe and sustainable way. JUNE 2019 | FOOD BUSINESS AFRICA

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SUPPLIER NEWS & INNOVATIONS NEW PRODUCTS

Ingredion launches corn-based clean label starch for lower-fat products USA – Ingredients supplier Ingredion

has unveiled a new corn-based clean label starch suitable for production of indulgence textures in healthier foods such as lower-fat and lower-calorie products. NOVATION Indulge 2920 starch enables food producers to improve mouthfeel by offering the same functionality as a modified starch while replacing or reducing ingredients such as fat and oil, the company says. Available in Europe, the Middle East and Africa (EMEA), the new co-texturizers can be used across a range of savory and dairy products from

soups and sauces to dairy desserts and dairy drinks. The new product carries “starch” or “cornflour” label in the UK and enable cost savings by replacing raw ingredients such as fat and oil without compromising texture. “In recent years, government measures and guidelines across countries in Europe, the Middle East and Africa have been introduced to improve the nutritional profiles of foods,” said Mona SchmitzHübsch, Regional Senior Marketing Manager for Clean and Simple Ingredients. “In regions where fat reduction is a priority, NOVATION Indulge 2920 starch can help

manufacturers achieve this. These changes have boosted consumer awareness of the need for improved nutrition and they are increasingly looking for on-pack claims such as ‘fat-reduced’ or ‘low-in-fat.” The company says that other benefits include the ingredient’s functionality in low-shear instant applications and throughout broad processes from low shear to cold process. It also brings the potential to reduce the volume of dust typically generated by fine powders during the manufacturing process.

INVESTMENTS

Givaudan strengthens global innovation with new US$120m center SWITZERLAND – Global flavours and fragrances company,

Givaudan, has invested US$120.2 million in a new flagship Innovation Centre in Switzerland to accelerate global research and innovation. The center, which was officially inaugurated by the company alongside state officials includes a 12,000 square metre of workspace accommodating 300 employees and reinforces the company’s efforts in creating differentiated and sustainable flavour, taste and fragrance solutions for the food and beverage and beauty, personal and home care industries. The investment marks one of the company’s largest investment in research to date and is part of its global innovation ecosystem designed to leverage broad expertise in flavours, fragrances, active cosmetic ingredients and natural solutions. “Building on our 250 years pioneering heritage, our new flagship centre is the latest example of Givaudan’s strong innovation culture,” said Gilles Andrier, CEO of Givaudan. “As the newest addition to Givaudan’s vast network of research and creation

centres, the Zurich Innovation Centre will act as a key enabler to deliver breakthrough science and technology solutions for our customers while tackling the industry’s most pressing challenges.” Givaudan says the center will enable close collaboration and co-creation with its customers, partners and start-ups by creating a holistic customer experience on-site. It brings together experts in chemistry, biotechnology, biocatalysis, fermentation, flavour delivery technologies, sensory and application science. To drive speed and efficiency in new solutions while putting into consideration future consumer trends, the center enhances capabilities in unique sensory and consumer insight tools and SPRINT fast prototyping methodology. According to the company, the new building is one of Switzerland’s first facilities to receive a gold certificate from Leadership in Energy and Environmental Design (LEED) and fosters healthy and productive work through user-oriented workplace design that reduces water and energy consumption and improves environmental and economic efficiency by up to 45%.

FOOD SAFETY

Tetra Pak partners FOSS to launch advanced in-line standardization analyser SWITZERLAND – Global processing and

packaging solutions provider Tetra Pak has joined forces with FOSS A/S, a global provider of high-tech analytical solutions to launch an advanced version of the Tetra Pak Standardization unit. According to Tetra Pak, with continuous accurate measurement and control of protein and fat in dairy products, the new unit has been designed to help customers ensure consistent product quality and strengthen their profitability by removing the uncertainty of sampling techniques. The solution utilises automation hardware and software algorithms that react and adjust in real time, offering 70 JUNE 2019 | FOOD BUSINESS AFRICA

unique guaranteed ratio performance, while delivering key data accurately every seven seconds, enabling quicker reaction times to ensure product quality. The company says that the solution offers a range of benefits for customers especially in cheese and milk powder production, including advanced performance for fat to protein ratios that significantly increase profits, uniform and on-specification product quality throughout the production cycle and the elimination of uncertainty associated with manual sampling of products during processing. “Integrating our propriety software algorithm and the FOSS analyser in the

new Tetra Pak Standardization units with continuous protein control results in the industry’s most advanced and optimal solution for in-line measurement and control,” said Tetra Pak Product Manager, Helen Sellar. “With process variation minimised and profitability boosted, the solution is expected to pay for itself in 2 to 4 years.” The new units are currently being tested with Finnish dairy company, Valio and is available in Australia, New Zealand, USA, Canada, Germany, Holland, France, UK, Denmark, Sweden and Poland and will roll out to more markets in the next year. FOODBUSINESSAFRICA.COM


FOODTECH CONFERENCE & EXPO

NOVEMBER 12-13, 2020 ADDIS ABABA, ETHIOPIA

ETHIOPIA EDITION

Welcome to where it all began . .

Ethiopia & North East Africa’s Largest Food, Beverage & Milling Industry Conference & Expo Join us in Addis Ababa, Ethiopia at AFMASS FoodTech Ethiopia edition 2020 where we shall celebrate the recent peace and tranquility in the North-eastern Africa region and seek to discover the huge potential in the food and agro value chain in Ethiopia, Eritrea, Djibouti, Sudan and Somalia. AFMASS FoodTech Ethiopia edition is the first substantive food, beverage and milling industry conference and exhibition to bring the key decision makers from across this vast and changing region to learn the latest technology, network and be inspired about the future of the industry in the region Sign up today not to miss!

WWW.AFMASS.COM


Profile for FoodWorld Media

Food Business Africa June 2019 edition  

Africa's No.1 Food, Beverage and Milling Industry Magazine

Food Business Africa June 2019 edition  

Africa's No.1 Food, Beverage and Milling Industry Magazine