MILLING Middle East & Africa Issue 6 by FW Africa

MILLING & GRAINS | BAKING & SNACKS | ANIMAL FEED & PET FOOD | PLANT-BASED FOODS

MILLING MIDDLE EAST & AFRICA

YEAR 2 | ISSUE NO. 6 | OCTOBER - NOVEMBER 2023

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INSIDE:

DUNE

PACKAGING TOP 10 Maize Producers in Africa COMMODITIES UPDATE Maize in Africa COUNTRY FOCUS Egypt TECHNOLOGY FOCUS Flour Enrichment

SCAN ME

General Manager Ahmed El-Sebaie on their mission to feed the world

AFRICA

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SUMMIT The Africa CEO & Leadership Forum OCTOBER 2-4, 2024 | Nairobi, Kenya

The Africa CEO Leadership & Sustainability Forum Africa Business Summit is * The the ground-breaking executive level conference and expo on the future of strategic leadership, entrepreneurship, sustainability & african transformation

Sustainable Business & ESG Digitalisation & Tech Innovation

program at the 3-day Summit * The comprises of a number of premium sessions such as Leadership Dialogues, CEO Roundtables, Plenary and Panel Discussions and a B2B Deal Connect Service as well as presentations by influential people and change makers who are making waves – and inspiring the next generation of leaders in Africa

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Human Capital Development

Strategic Leadership

KEY AGENDA

Pan-African & Global Trade

Financing, Investing & Financial Inclusion

Supply Chain & Logistics Transformation

Industrialisation & Infrastructure Development

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CONTENTS

YEAR 2 | ISSUE NO. 6 | OCT-NOV 2023

COMPANY FEATURE - DUNE PACKAGING

Enhancing food packaging visibility in a competitive market

COMPANY FEATURE EGYPTIAN SWISS

General Manager Ahmed shares on Egyptian group's renewed mission to feed the world WWW.MILLINGMEA.COM

COUNTRY FOCUS - EGYPT

Stretching finite resources to meet burgeoning grain demand OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

CONTENTS YEAR 2 | ISSUE NO. 6 | OCT-NOV 2023

4 6

Editorial News Update: • • • • • • • •

Uganda to destroy 1,700 tonnes of maize consignment after failing EAC aflatoxin test FAO Food Price Index dips in October amid significant price drops in rice, wheat Pasta consumption in Kenya soared by 99% in the last 12 months: Glovo report Millers invited to join coalition aimed at enhancing food fortification across Africa and Asia Tiger Brands picks former Premier Food exec Tjaart Kruger as CEO Woolworths to acquire majority stake in Absolute Pets MasterCard, MiDA commit US$6.1M to boost rice production in Ghana Egypt's supply authority sets tender to import Indian white rice

TECHNOLOGY FOCUS - FLOUR ENRICHMENT A Vital Tool in Combating Malnutrition and Preventable Diseases

50 54

COMMODITIES UPDATE - MAIZE Maize Maintains its Dominance as the Primary Cereal in Africa

OPINION - MAIZE SECURITY IN AFRICA

As demand for maize rises in Africa, we explore modern technologies revolutionizing maize production and postharvest management in Africa

Supplier News & Innovations: • • • • • • •

IMAS introduces polymer-based roller mill chassis ADM unveils four food industry flavor & color trends Kemin unveils potassium sorbate alternative for mold-free bakery Puratos unveils its baking trends for 2024 and beyond Ardent Mills introduces egg replacer, ancient grain flour blend Symrise adds aquafaba and chickpea ingredients to diana food portfolio Kerry unveils new enzyme to extend shelf life of sweet baked goods

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54 WWW.MILLINGMEA.COM

Your Team for Great Flour

The Flourists, Part 4: Composite Flour

First-Class Flour from Regional Grains – For Diversity in Baking. The desire for more sustainability and a flexible choice of raw materials is growing, as is interest in composite flour – combinations of wheat and non-wheat grains like maize, manioc and millet – to stabilize worldwide food supplies. The pioneers in innovative, sustainable enzymes for composite flour: The Flourists, a team of experts specializing in enzyme combinations for diverse flour mixes. Their development focus: Compozym, the MC brand for custom-fit enzyme systems that enable replacing up to 20 percent of the wheat without impairing the quality of the finished product. The result: High-quality individual flours with non-wheat components, whose quality wins over bakers and consumers alike.

#theflourists

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muehlenchemie.com

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

EDITORIAL

We can all learn something from MILLING Egypt Year 2 | Issue No.6 | Oct- November 2023

FOUNDER & PUBLISHER Francis Juma SENIOR EDITOR Paul Ongeto EDITORS Martha Kuria | Wangari Kamau

elcome to the 6th issue of Milling Middle East & Africa Magazine. We are delighted to shine a light on Egypt, Africa’s largest producer of wheat and the fourth largest producer of maize. Our cover star in this edition hails from the land famously known for its pyramids. Egyptian Swiss is no ordinary milling company, it’s a company on a mission to feed the world. The 10th of Ramadhan City-based milling, pasta, and concentrated company exports its products to regions as far as Venezuela. A bulk of its imports however flows to the African continent, with Kenya being one of its top markets for pasta. Behind Egyptian Swiss global focus is one man by the name Ahmed ElSebaie, the Group General Manager. "I joined Egyptian Swiss to lead the company's transformation from a local family business into a robust corporate entity supported by sound governance structures and a renewed global focus. It's been approximately three years now, and we've achieved significant milestones. We find ourselves in a much different place compared to our humble beginnings." Elsewhere in the magazine, we speak to Dune Packaging abouts its role in transforming the flour packaging industry as well as the secret behind its unique offering to customers. “With our state-of-the-art machinery, we craft high-quality paper bags and sacks. We prioritize meticulous attention to detail, ensuring that our clients receive the very best the market can offer, all

BUSINESS DEVELOPMENT DIRECTOR Virginia Nyoro BUSINESS DEVELOPMENT ASSOCIATE Hellen Mucheru HEAD OF DESIGN Clare Ngode CINEMATOGRAPHER Newton Lemein ACCOUNTS Jonah Sambai

Published By: FW Africa P.O. Box 1874-00621, Nairobi Kenya Tel: +254725 343932 Email: info@fwafrica.net Company Website: www.fwafrica.net

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Milling Middle East & Africa is published 4 times a year by FW Africa. 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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HealthCare

Packag ng

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Paul Ongeto Senior Editor FW Africa

MILLING

Food Business Africa

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while optimizing production costs and reducing waste,” reveals CEO Rohin Chandaria. Meanwhile, we look at the grains and milling industry in Egypt highlighting the factors driving the rising consumption of maize and wheat and what the government is doing to bring the nation closer to self-sufficiency. Finally, I’d like to draw attention to our continuing serious on Industry champions. This time we bring you the story of Stern Ingredient’s Technical Application Specialist Esther Ngugi who reveals to us why she was not a big fan of cake premixes until she finally tried them. There’s plenty more insights and latest news from the major players in the grains and milling industry, so we hope that you enjoy your read.

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SUSTAINABLE

AFRICA

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NEWS UPDATES BY WWW.MILLINGMEA.COM

FOOD SAFETY

Uganda to destroy 1,700 tonnes of maize consignment after failing EAC aflatoxin test UGANDA – Authorities in Uganda are reportedly set to destroy 1700 tonnes of maize previously seized by South Sudan after a fresh independent test carried out by regional experts returned positive results of above-normal levels of the aflatoxin. The South Sudan National Bureau

of Standards (SSNBS) red-flagged the grains in May before dumping the consignments at the Elegu border post in July. According to The Daily Monitor, preliminary lab results reportedly showed that 1700 tonnes of maize products valued at US$2 million have now exceeded the normal quantity of

the chemical that is scientifically proven to cause cancer. Mr. Kabondo Jacob, the coordinator of the Uganda Millers Association reported that tests carried out by the East African experts revealed that the maize failed to meet the allowable aflatoxin B1 levels for the East African region.

DIVESTMENT

MABISCO ceases operations, puts biscuit manufacturing plant on sale manufacturing technologies with a remarkable capacity of 3.5 tonnes per hour, supported by access to the Shell LNG Gas terminal. According to the statement, the plant featured high-speed packing machines capable of handling 350 packs per minute, showcasing its commitment to efficiency. Before its closure in March 2023, MABISCO had established a network of over 300 distributors nationwide and commanded a 5 percent market share in Nigeria.

NIGERIA - Mayor Biscuits Company Limited, an indigenous biscuits company, has confirmed the shutdown of its operations and the decision to sell its manufacturing biscuits plant. He said, “We want to sell MABISCO because we want to concentrate on our area of core competence of business,’ adding that ‘to achieve that we have to divest appropriately,” said company Finance Director, Segun Matthew. Established in 2016, MABISCO boasted cutting-edge biscuits FINANCIALS

FAO Food Price Index dips in October amid significant price drops in rice, wheat GLOBAL - The United Nations food agency's world price index fell in October to its lowest level in more than two years, driven by declines in sugar, cereals, vegetable oils and meat. The Food and Agriculture Organization's price index, which tracks the most globally traded food commodities, averaged 120.6 points in October, down from 121.3 for the previous month, the agency said in a report on Friday.

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

The FAO Cereal Price Index averaged 125.0 points, down 1.3 points from September. "International wheat prices fell by 1.9% in October, reflecting generally higher-than-earlier-anticipated supplies in the United States of America and strong competition among exporters," the FAO said. In a separate report on cereal supply and demand, the FAO maintained its forecast for world cereal production this year at 2.819 billion metric tons, up 0.9%

from the previous year. "Turning to 2024, winter wheat plantings are underway across the northern hemisphere and area growth is expected to be limited, reflecting softer crop prices this year," the FAO said. Its report said that in Ukraine the continuing effects of the war with Russia, including constrained access to fields and low farm-gate prices, along with less-than-ideal weather conditions, are seen leading to a reduction in the wheat area. WWW.MILLINGMEA.COM

AFMASS Tanzania Food Expo opens exciting opportunities in Eastern Africa Preparations to host AFMASS Tanzania Food Expo are at a high gear, as Tanzania’s only pure-play food, beverage and milling industry event takes shape. The event will be held at the lovely Serena Hotel in the commercial city of Dar es Salaam on November 23-24 this year, The pan-African event comprises a high-level conference and a parallel exhibition and is set to host more than 1000 attendees from Tanzania and globally. Talking about the importance of the event, the Founder & CEO of FW Africa, Francis Juma noted that the food industry in Tanzania has undergone a tremendous transformation over the last four years, since the last time the event was held in the country. “The transformation of the food industry in Tanzania has taken a new trajectory during the last few years, as indicated by new investments in new and existing plants, exciting new product innovations and an emerging formal retail sector,” says Juma. WWW.MILLINGMEA.COM

“Tanzania is finally taking its rightful place as one of the most important places for the food industry in Africa.” DIVERSE SOLUTIONS, INFORMATIVE CONFERENCE The two day event will see the more than 1000 attendees delve into a number of issues concerning the food industry in Tanzania and Africa, including sustainable business and climate change, food innovation and market trends, operational and manufacturing excellence, food safety and compliance and trade issues. Some of the companies represented at the Expo Hall include Buhler, Bosch, Atlas Copco, GEA, Merck, Resulta and many more. Several local companies and start ups are also expected to participate, showcasing their latest product innovations To sign up to attend AFMASS Tanzania Food Expo, please visit the website www.afmass.com/TZ OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

NEWS UPDATES

FOOD SECURITY

Millers invited to join coalition aimed at enhancing food fortification across Africa and Asia AFRICA – Millers from Africa and Asia have been urged to join a newly formed Millers for Nutrition coalition with bold ambitions of reaching one billion people with adequately fortified rice, edible oil, and flour by 2026. Millers for Nutrition believes food fortification presents a viable solution to addressing this problem as it reaches entire populations and at the same time benefits those who need it most, hence the focus on millers. The industry-led coalition mainly targets millers from eight countries across Africa and Asia: Bangladesh, Ethiopia, India, Indonesia, Kenya, Nigeria, Pakistan, and Tanzania. Millers who join Millers for Nutrition

and commit to improving the nutritional quality of their food- specifically rice, edible oil, and flour (wheat and maize)will receive free technical support to make it easier to fortify their products. This includes access to tailored

technical training and business advice, product testing support, and online tools and resources, which will also help millers to reduce their compliance risk and enhance production efficiency.

MARKET REPORT

Pasta consumption in Kenya soared by 99% in the last 12 months: Glovo report

KENYA – As World Pasta Day was commemorated on October 25, new data from Glovo, a courier service provider has revealed that consumption of pasta meals in Kenya has increased by 99 percent in the last 12 months. According to the data, five units

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

of pasta were delivered through the Glovo App every hour, as well as a 57.8 percent year-on-year (YoY) increase in customers with pasta orders. Pasta is especially preferred for dinner, with 32 percent of daily consumption happening between 5 and 7 p.m. The data showed that Kenya’s top five most-ordered pasta dishes are Chicken Alfredo, Traditional Lasagna, Fusilli Pesto, Spaghetti Bolognese, and Linguine Carbonara. The types of pasta with the most significant growth in the last year in Kenya are Fusilli with 236% growth, Tagliatelle with 173% growth, and Lasagna with 155% growth, which also ranks as the #4 globally with the most significant change. “Our platform has witnessed a substantial 72.3% increase in the

number of partners offering pastarelated products compared to the previous year,” Glovo Kenya Interim General Manager Ivy Maingi said. Maingi added that, notably, the segment experiencing the most remarkable growth is the SMEs, with an impressive 101% increase.

PASTA IS ESPECIALLY PREFERRED FOR DINNER, WITH 32 PERCENT OF DAILY CONSUMPTION HAPPENING BETWEEN 5 AND 7 P.M.

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REGENERATIVE AGRICULTURE

Unilever regenerative agriculture projects reduce environmental impact of rice and soybean farming UK – Unilever has released the 2022 results of its regenerative agriculture projects, showcasing significant reduction in the environmental impact of rice and soybean grown for use in its various household brands. According to Unilever, a joint project with US rice supplier Riviana and the University of Arkansas (UARK) managed to successfully reduce the large amount of methane released when rice fields are flooded by 76% (kg of CO2eq per kg rice).

In another project, Unilever brand Hellmann work with Practical Farmers of Iowa, PepsiCo and soybean supplier ADM achieved 14% less nitrate run off water and 6% less greenhouse gases compared to comparison soybean fields. Unilever also noted that its brand Knorr in partnership with Italian supplier Parboriz managed to achieve a 78% reduction in pesticide residue, a 62% reduction in herbicide residue., and a 78% reduction in fungicide residue in rice field.

Unilever now says that these projects lay the ground for an extensive scalingup of regenerative agriculture in its supply chain. “By the end of this year, we aim to have about 300,000 hectares contracted,” Unilever said. “By 2030, we will have expanded to more than 100 programmes, contributing to Unilever’s commitment to restoring and regenerating 1.5 million hectares of land, oceans and forests.”

NEWS UPDATES

APPOINTMENT

Tiger Brands picks former Premier Food exec Tjaart Kruger as CEO SOUTH AFRICA – Tjaart Kruger, the former CEO of Premier Foods, has been appointed as the new CEO of Tiger Brands, a leading food manufacturer in South Africa, effective from November 1, 2023. The appointment comes after the resignation of Noel Doyle, who announced his exit recently. Doyle will remain available to facilitate a smooth transition until March 31, 2024. Doyle’s departure comes after a period marked by the economic fallout of the COVID-19 pandemic and the legal consequences of the 2017 listeriosis

Louis Dreyfus Company to construct soybean processing plant in the US USA – Louis Dreyfus Company (LDC), a global powerhouse in agriculture and food processing, has announced plans to set up cutting-edge soybean processing plant in Upper Sandusky, Ohio. This state-of-the-art facility promises to become an integral link in LDC’s supply chain, featuring integrated crushing, refining vegetable oil, and lecithin production and packaging capabilities. Construction of this groundbreaking plant is scheduled to commence in early 2024, promising to inject vitality into the local economy by creating over 100 employment opportunities. Once operational, the facility will boast an impressive annual soy crushing capacity of 1,500,000 metric tons, an edible yearly (RBD) soybean oil production capacity of 320,000 metric tons, and an annual lecithin production capacity of 7,500 metric tons. This ambitious project underlines Louis Dreyfus Company’s unwavering commitment to innovation, sustainable practices, and catering to the evolving needs of the food and feed industry. 10

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

epidemic that resulted in over 200 deaths. Additionally, Tiger Brands had to recall over 20 million cans in July 2021 due to packaging defects, incurring a pre-tax cost of US$38 million. The incoming CEO, Kruger has more than 30 years of leadership experience in the South African fast-moving consumer goods sector, including previous roles at Tiger Brands. He has signed a 26-month contract with the company, aiming to provide stability, accelerate strategy execution, and create value for shareholders.

FOOD SECURITY

UAE Food majors Al Dahra, EAP sign deals to set up Agricultural farms in North Eastern Africa AFRICA – Two Emirati agricultural companies Al Dahra and Elite Agro Projects (EAP) are seeking to set up agricultural farms in Egypt and Ethiopia respectively. In Egypt, negotiations are reportedly taking place between Al Dahra Egypt, and the Egyptian Army’s National Service Projects Organization (NSPO) for a potential new agricultural farm. According to the agreement prospects, the arrangement might call for the gradual purchase of 500,000 feddans (210,000 hectares) through a purchase or a long-term lease in Toshka in the governorate of New Valley. The group already operates nearly 28,000 hectares of agricultural land across the governorates of New Valley and Ach-Charqiya mainly for the production of wheat and irrigated corn, but also citrus fruits, onions, sorghum, and sesame. The company sells nearly 80% of its harvests on the local market. Meanwhile in Ethiopia, EAP is planning to establish a wheat farm to

meet the rising demand for the grain in the country, the company’s General Manager, Hassan Halawy, has revealed. The proposed project would involve an agreement with the local government to export part of the harvest to the UAE and sell the rest locally in Ethiopia. WWW.MILLINGMEA.COM

Registration Is Open & Expo Floor Plan is Available

For Registration, Sponsorship & Expo Booking PLEASE CONTACT:

info@iaom-mea.com 0096824398767 www.iaom-mea.com

NEWS UPDATES

ACQUISITION

Woolworths to acquire majority stake in Absolute Pets of their families. Absolute Pets has a complementary brand positioning, and a well-established market presence, and is led by a strong management team. Therefore, the acquisition of Absolute Pets will accelerate Woolworths’ pet strategy by bringing together two strategically aligned businesses and positioning the Group well to become the end-to-end pet care destination of choice, in South Africa.

SOUTH AFRICA – Woolworths Holdings Limited (WHL), a South African multinational retail company, has announced its intention to acquire 93.45% of the shares in privately-owned pet retailer Absolute Pets Ltd from Sanlam Private Equity and Absolute Pets management. According to the statement, the purchase consideration will be settled in cash, and the conclusion of the transaction is subject to the fulfillment of both regulatory and commercial suspensive conditions customary of

a transaction of this nature, including competition authority approval in South Africa. The remaining managementretained shareholding will be acquired by Woolworths over an agreed period, post the completion of the transaction. In South Africa, Pet care is an attractive and rapidly-developing market, with substantial growth potential. It is also an increasingly important category for Woolworths customers, who consider their pets an integral part

WOOLWORTHS IS ACQUIRING THE SHARES IN THE PRIVATELY-OWNED PET RETAILERT ABSOLUTE PETS FROM SANLAM PRIVATE EQUITY AND ABSOLUTE PETS MANAGEMENT.

MARKET UPDATE

Zimbabwe targets to produce over 420,000 tonnes of cereals in 2023 ZIMBABWE – Zimbabwe is targeting over 420 000 tonnes of cereal this season up from last season’s 380 000 tonnes that led to the country achieving self-sufficiency. Mr Graeme Murdoch, the chairperson of the Food Crop Contractors Association (FCCA) revealed this while updating the 2023 winter wheat harvesting status in the country. According to him, 60 percent of the cereal has so far been harvested with some farmers already delivering their produce to the Grain Marketing Board (GMB) and the Zimbabwe Mercantile Exchange (ZMX) trade platform. 12

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

Mr Murdoch revealed that different contractors had started buying wheat adding that they had bought a total of 35 000 tonnes of wheat as of November 4 with GMB also reportedly buying 50 000 tonnes as of last week. The announcement comes after President Mnangagwa’s May declaration that Zimbabwe had reached selfsufficiency in wheat following a record harvest of over 375,000 tonnes. The president highlighted that the country has saved up to US$300 million in import costs and is working hard to ensure a lot more wheat is delivered this year. WWW.MILLINGMEA.COM

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FOOD SECURITY

Senegal unveils plans to cut wheat imports by 40%

SENEGAL – The government of Senegal plans to reduce its wheat imports by at least 40% over the next five years, an initiative that the executives hope will reduce the bill dedicated to future cereal purchases. This was revealed by Momar Talla Seck, director general of the National Institute of Agricultural Research (ISRA) on November 2. In Senegal, wheat is the second most consumed cereal after rice, recognized as key to accelerating the achievement of national food security, production selfsufficiency drive, and the broadening of the state revenue channels. Data compiled by the National Agency for Statistics and Demography (ANSD) indicate that Senegal’s wheat imports totaled 754,000 tonnes in 2021 at a total cost of 149.3 billion CFA francs (US$248 million). As part of this ambition, ISRA’s interventions focus on the development and supply of sufficient quantities of wheat seeds adapted to local climatic conditions with a view to allowing the cultivation of the cereal in the country. According to Mr. Seck, ISRA has already succeeded in registering 8 varieties of wheat and is also working on other varieties that are under development. 14

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FINANCIALS

Unga Group posts US$6.6M loss on back of depreciating shilling, foreign currency crunch KENYA – Unga Group Limited, a Kenyan-listed food processing firm has posted a KES 959.3 million (UD$6.6M) loss for the year that ended June 30, 2023, attributing the dip to a depreciation of the Kenyan shilling and constrained access to foreign exchange. this reverses a profit of KES 311.3 million (US$2.1M) posted in the preceding 12-month period to June 2022, which included gains from the transfer of business assets. Despite Unga’s profit erosion, the grain and feed miller posted revenue growth of 33% driven by high prices of finished goods. The miller’s margin however

significantly reduced due to inability to full pass added costs to consumers. The business, nevertheless, remains solvent with current assets at KES 6.6 billion (US$45M) against current liabilities at KES 5.6 billion (US$38.4M). Unga expects shortages in the supply of foreign currency to persist alongside the depreciation of the Kenya shilling, identifying both as risks to the business. The company, however, is betting on the implementation of its new strategic plan, which includes putting out quality products to the market to turn around its fortunes.

INNOVATION

Iranian scientists develop novel method for processing lignocellulosic waste into animal

IRAN - A group of Iranian scientists have developed a novel method for processing lignocellulosic waste into nitrogen-rich feed. Dr. Kian Mehr, one of the chief researchers involved in this project, explained that Iran produces approximately 21.5 million tons of lignocellulosic residues from straw yearly. These residues have been viewed as inexpensive and abundant sources

of fiber, but their application in the feed industry has been limited due to their historically low digestibility. The breakthrough in converting lignocellulosic waste into high-quality animal feed could have significant implications for Iran, which relies heavily on importing feed ingredients, resulting in substantial foreign exchange currency expenditures. Preliminary trials have shown that the biomass processed using this pioneering technology, when incorporated into cattle feed, can significantly reduce methane emissions by an impressive 67%. One of the key advantages of this method is its efficiency. The processing is rapid, operates at ambient temperature and pressure, and can be applied to various biomass in a solid state, eliminating the need for chemical recovery beforehand. WWW.MILLINGMEA.COM

FW AFRICA UPCOMING EVENTS 2024 FOOD MANUFACTURING, RETAIL & HORECA

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JUNE 10-11, 2024 | Nairobi, Kenya LEADERSHIP, ENTREPRENEURSHIP & SUSTAINABILITY

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NEWS UPDATES

FOOD SECURITY

Unga Group signs deal to source soya beans from Homa Bay county

KENYA – Unga Group PLC, a Kenyanlisted food processing firm has signed an off-taker agreement for soya beans cultivated and harvested by the Homa Bay County Women Caucus (HBCWC)

as the grain miller strengthens its commitment to sustainable agriculture. According to the company, the partnership is part of Unga Group’s commitment to ensuring that locally produced soya beans meet regional

standards, with a focus on key quality factors such as protein and oil content. Additionally, the partnership aligns with the Group’s broader mission to foster environmentally friendly initiatives, women empowerment, support local farmers, and create lasting value for all stakeholders. Speaking during the MoU signing, Unga Group Managing Director Joseph Choge said that the company recognizes that the future of agriculture lies in responsible and sustainable practices. “We are thrilled to announce a significant milestone in our commitment to sustainable agriculture. This marks the beginning of a transformative partnership that emphasizes social responsibility, gender inclusivity, and the promotion of local agricultural communities,” Choge said.

REGULATORY

USDA approves sale and growth of Insignum AgTech’s innovative corn USA - The U.S. Department of Agriculture’s (USDA) Animal and Plant Health Inspection Service (APHIS) has approved for the sale and growth of corn plants developed by Insignum AgTech. These genetically modified plants incorporate unique traits that enable them to communicate and signal to farmers when specific plant stresses commence. The approved corn plants developed by Insignum AgTech exhibit a unique feature – they turn purple to indicate the onset of a fungal infection before it becomes visible. This early warning system provides farmers with a valuable tool to address potential issues promptly and efficiently. The USDA APHIS reviewed the 12 plants modified using genetic 16

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engineering, focusing on assessing whether they posed an increased risk as plant pests compared to non-modified comparators. The USDA concluded that these

modified plants, including Insignum AgTech’s corn plants, were unlikely to pose an increased plant pest risk and, therefore, are not subject to regulation under 7 CFR part 340.

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EASTERN AFRICA’S BIGGEST MEAT, POULTRY, FISH & SEAFOOD INDUSTRY TRADE SHOW Discover innovative products and the latest technologies and market trends in the meat, poultry, fish and seafood industry in Eastern Africa and globally.

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JUNE 12-14, 2024

Sarit Expo Centre, Nairobi, Kenya

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FOOD SECURITY

MasterCard, MiDA commit US$6.1M to boost rice production in Ghana

GHANA – The MasterCard Foundation and the Millennium Development Authority (MiDA) have sealed a US$6.1 million deal to enhance rice production in Ghana. The formal contract signing ceremony, held in Accra on Tuesday, 5th December 2023, marked the commencement of a five-year project that will extend its impact until 31st May 2028. Over the next four years, the collaborative effort anticipates remarkable outcomes, including the cultivation of some 2,560 hectares of rice and creation of 38,269 jobs, with 70% designated for women. Stakeholder estimate that output from the project will result in a 20% increase in national rice output. This will have a positive effect of lowering rice import costs which are currently expected to surpass US$45 million if the status quo remains. The primary beneficiary of this ambitious initiative is the Kasunya Economic Enclave Project, a vital component of the Ghana CARES “Obaatan Pa” Programme, under the Ministry of Finance. According to Hon. Ken Ofori-Atta, the grant will play a pivotal role in the operationalization of 6,000 acres out of 10,000 in the Kasunya region, fostering innovation, training, skill development, and implementation support. 18

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

COMMODITY UPDATE

Zimbabwe predicts maize yield to drop by 300,000 tonnes in 2024 ZIMBABWE - Zimbabwe’s maize harvest is expected to halve to 1.1 million tonnes in 2024 due to an El Nino-induced drought, Finance Minister Mthuli Ncube said on Wednesday, December 13. This stock would represent a drop of 300,000 tonnes compared to the production of 1.4 million tonnes achieved during the previous campaign. It would also mark a second consecutive season of drop in cereal harvest for the country which had set a production record of 2.7 million tonnes in 2021/2022. In Zimbabwe, maize is the main staple food for the population. The southern African country requires about 1.8 million tonnes of maize annually for human consumption and projected a 2.3 million ton maize harvest in 2023. In 2022/2023, the country registered a 41% drop in production and

now expects another difficult campaign in 2023/2024 due to unfavorable weather conditions, threatening food security in poor households.

COMMODITY UPDATE

Egypt's supply authority sets tender to import Indian white rice

EGYPT - Egypt's state grains buyer the General Authority for Supply Commodities (GASC) set a tender on Thursday to import natural white wholly milled short-grain Indian rice, it said in a statement. GASC, on behalf of Egypt's Holding

Company For Food Industries, sought arrival of the rice from Feb. 1-19 and/or Feb. 20-March 10. It added that the rice should be of a 10% breakage rate packed in 50-kilo containers and from the 2023/2024 crop. Price offers should be made on a cost, insurance, and freight (CIF) basis in U.S. dollars or Egyptian pounds, and for payment at sight and in 180- and 270-day suppliers’ facilities, GASC said. "Prices will be compared in a way that serves the authority's interest and the priority in confirmation will be given to offers submitted in Egyptian pounds," it added. The delivery should be for warehouses specified by Egypt's Holding Company For Food Industries. WWW.MILLINGMEA.COM

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Fresh Produce EXPO

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AUGUST 1-3, 2024 – Visa Oshwal Centre, Nairobi, Kenya

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INVESTMENT

NatFoods set to commission new pasta and biscuit plants by end of year ZIMBABWE – National Foods (NatFoods), one of Zimbabwe’s largest food manufacturers plans to commission pasta and biscuit plants before the end of the year as part of the company’s new products and expansion strategy. NatFoods is one of Zimbabwe’s largest food manufacturers and produces a broad range of food commodities including maize meal, flour, rice, salt, snacks, biscuits, pasta, sugar beans, baked beans, popcorn, and a full range of animal feed. Speaking during a tour of the company’s operation by Industry and Commerce Minister Dr. Stembiso Nyoni, Mr. Mike Lashbrook, NatFoods’s Chief Executive Officer said that the expansion project is part of a US$30

million investment that the company set aside two years ago. “The pasta plant is expected to come online this year; the biscuit plant will be completed by December this year while in Bulawayo we have invested in bread capacity,” he said According to him, the investments in the value chain will ensure the company

produces competitively against regional products. With the new investments, the company is seeking to ramp up production and expand. Other major projects in the pipeline include a new flour mill in Bulawayo and a second cereal plant in Harare.

MARKET REPORT

Russia’s minimum grain export price leads to supply chain strain Farmers are already feeling the impact. According to Russian publication Gorodn, the government’s commitment to the minimum export price has put pressure on the supply chain. In the southern regions, many trading companies have ceased purchasing grain from farmers, citing a lack of available warehouse space to store it. RUSSIA - Russian authorities have effectively prohibited farmers from selling grain to foreign customers at prices below the government’s minimum threshold. This strategy, while intended to benefit the Russian farming industry, has begun to strain the supply chain and could potentially hurt the country’s grain exports. The Russian government blocked the delivery of 480,000 tons of wheat to Egypt in September because the sale

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price was below the minimum threshold of US$270 per ton Free on Board (FOB). The Russian Ministry of Agriculture appears to believe that foreign buyers have no alternative to Russian grain and will eventually purchase it at the government-mandated price. This policy aims to bolster Russian farmers’ financial well-being and contribute to the federal budget. Sources however intimate that wheat similar to Russian wheat is currently selling for a maximum of US$240 per ton FOB on the global market.

RUSSIA HAS SET A MINIMUM PRICE OF US$270 PER TON ON FOB WHICH IS HIGHER THAN THE GLOBAL MARKET PRICE OF US$240 PER TON.

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SUMMIT

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Food Safety SUMMIT

Western Africa Edition | Lagos, Nigeria

SEPTEMBER 17-19, 2024 NIGERIA

Africa's No.1 food safety and quality conferences and trade shows

AFRICA

Food Safety SUMMIT

Eastern Africa Edition | Kampala, Uganda

SEPTEMBER 3-5, 2024

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

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EGYPTIAN

Swiss

On a mission to feed the world

BY PAUL ORINA

n Egypt, no agricultural commodity holds greater significance than wheat. With a per capita wheat consumption rate of 150 kg per year, the most populous nation in North Africa boasts one of the highest rates globally. Remarkably, despite its leading position in wheat production in Africa, Egypt remains the largest wheat importer on the entire continent. Within this wheat-centric landscape, companies operating in the sector hold a special place, and among these distinguished entities, Egyptian Swiss stands out. Established as a family-owned business in 1995, Egyptian Swiss has become a symbol of innovation and ambition in the industry. While many of its peers focus solely on meeting the dietary needs of Egypt's population, which recently surpassed 109 million, Egyptian Swiss has set its sights far beyond the country's borders. This is where Ahmed El-Sebaie, the Group General Manager of Egyptian Swiss, becomes instrumental. With a background in Mechanical Engineering, he's no stranger to the world of corporate governance. Ahmed's journey is a whirlwind of diverse experiences, spanning industries from petrochemicals to ceramics and electronics assembly. But it was at Savola Foods, a multinational foods company from Saudi Arabia, that he truly honed his skills in the wheat supply chain. For nearly a decade, he was the mastermind behind the pasta business supply chain, orchestrating operations that spanned the Black Sea region to the Middle East and North Africa. As a subsidiary of the larger Saudi Arabian industrial conglomerate Savola Group,

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Savola Foods also compounded his expertise in corporate governance, rightfully preparing him for his new role at Egyptian Swiss. At Egyptian Swiss, he has been tasked to reshape the company's destiny from a local family business into a global powerhouse. He notes, "I joined Egyptian Swiss to lead the company's transformation from a local family business into a robust corporate entity supported by sound governance structures and a renewed global focus. It's been approximately three years now, and we've achieved significant milestones. We find ourselves in a much different place compared to our humble beginnings." In a nutshell, El-Sebaie sums up the company's mission as follows: “Our mission is to make a difference in the world every day by enriching our customers' lives with convenient, highquality, safe, and innovative products.” EGYPTIAN HERITAGE, SWISS-STYLE OPERATIONS In Egypt, the Egyptian Swiss shines as a 100% Egyptian family-owned company. While the name may evoke images of the Swiss Alps, Ahmed ElSebaie is quick to clarify that "the 'Swiss' in our name pays homage to our operational standards, which are modeled to match Swiss levels of excellence." The journey of Egyptian Swiss began as a grain trader, mainly involved in the importation and trading of wheat. Processing operations gained momentum in 2003 with the establishment of the company's first wheat flour mills in Assiut, Upper Egypt. Today, the company boasts not one, but two state-of-the-art milling facilities. OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

COMPANY PROFILE: EGYPTIAN SWISS

Part of the team behind Egyptian Swiss' high quality products.

The first is a 17,000-ton-per-month (TPM) mill located on the 10th of Ramadan City. The second, situated in Borg El Arab, processes 14,000 tons per month, showcasing the company’s dedication to expanding its reach and capabilities. Although Egyptian Swiss has shifted its focus towards wheat flour milling and pasta processing, grain trading continues to play a vital supporting role for its facilities. Over time, the scale of this arm has grown, with Egyptian Swiss for Grain Trading emerging as a leading trader in Egypt, importing over 1,000,000 tons of wheat and corn annually. What sets Egyptian Swiss apart is its commitment to resourcefulness. Any surplus, not intended for sale, is directed to the grain milling division where it is processed into various wheat flour products, including Semolina flour, Allpurpose wheat flour for home use,

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and specialized flours for pizza, cake, biscuits, tortillas, noodles, and pasta. Moreover, the company formulates flours tailored to various types of bread, such as baguettes, pitas, toast, and butter bread. In addition to milling, Egyptian Swiss is a trailblazer in pasta processing. The company's state-of-the-art, fully automated, lab-monitored Pasta Factory features three Italian production lines with integrated packaging systems, allowing for a variety of packaging techniques and sizes. Two of the lines, one with a 3-tonper-hour capacity and the other with 6 tons per hour, specialize in the production of short pasta varieties, including fusilli, penne, and rice pasta. The third line is dedicated to producing long pasta products such as spaghetti and linguine. This factory, located on the 10th of Ramadan City, has the capability to produce over 10 different pasta shapes and boasts a total production capacity of 7,000 tons per month. A significant portion of this volume is exported to various countries across Africa, the Middle East, Eastern Europe, and Latin America. ElSebaie proudly declares, "Currently, we export over 100,000 tons of products. In addition to offering private labels, our own export brand, Martino, has gained WWW.MILLINGMEA.COM

exceptional traction in markets, particularly in Kenya and Somalia." Speaking with ElSebaie, we discover that a substantial portion of Egypt's pasta exports make their way to the East African market, with Kenya emerging as a prominent destination. The figures are a testament to this trend – in 2021, Kenya imported pasta products worth US$15.18 million from Egypt, according to the United Nations COMTRADE database on international trade. What's even more intriguing is the projection for Kenya's pasta market. It is projected that Kenya's pasta market will reach US$98 million by 2030. Egyptian Swiss is determined to seize the opportunity presented by this growing demand in Kenya. As evidence of their commitment, ElSebaie references his visit to Kenya in September of this year, where the company sought to establish new trade partnerships to increase their share of exports to the country. DIVERSIFYING BEYOND PASTA Apart from pasta, Egyptian Swiss also operates a flourishing concentrate business that primarily produces tomato paste and jams. "We have two fully automated, lab-monitored Italian concentrate lines located in 10th of Ramadan that

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EGYPTIAN SWISS FOR PAST HAS THE CAPABILITY TO PRODUCE OVER 10 DIFFERENT PASTA SHAPES AND BOASTS A TOTAL PRODUCTION CAPACITY OF 7,000 TONS PER MONTH. produce our renowned Tomato Paste, Jam, and Juice," ElSebaie reveals. Unlike wheat, tomatoes and fresh fruits can be sourced locally, reducing the exposure to volatile international markets and allowing the company to select the finest fruit available. ElSebaie explains that diversifying into concentrates was a natural step for Egyptian Swiss. "When developing the pasta business, the founders recognized that tomato paste, as a complementary product, shared the same distribution channel and had a vast unmet demand. Accordingly, we established our own tomato paste and concentrates factory."

A selection of different products in Egyptian `Swiss' extensive portfolio

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COMPANY PROFILE: EGYPTIAN SWISS

Completed in 2013, the concentrates factory features two fully automated lines with a total monthly capacity of 3,500 tons. Using state-ofthe-art technology, the new factory can produce tomato paste in various concentrations and packaging forms, from cans to jars to sachets, tailored to different customer specifications. "We use only the highest quality ingredients in this premium paste to infuse an unmistakably authentic Italian flavor into any dish you create." The factory also produces a variety of jams, including strawberry, apricot, and fig. In addition to private labels, Egyptian Swiss takes pride in packaging its own brands, such as Rawaa, Dahsha, and Dandy, which are known internationally for their quality and superior taste. EGYPTIAN SWISS’S COMMITMENT TO PREMIUM WHEAT MILLING In the wheat milling business, quality is paramount. It all starts with sourcing the right quality of wheat. El-Sebaie emphasizes, "Sourcing the right quality of wheat at a competitive price is crucial, as it enables our products to be globally competitive in terms of both price and quality." Curiously, in Egypt, locally farmed wheat cannot be sold to the private sector due to legal restrictions; it all belongs to the government. ElSebaie clarifies, "All private sector players must rely on imports to meet their processing needs.

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Fortunately, we have a trading company, Egyptian Swiss for Grains, which possesses extensive expertise in wheat trading and can source quality wheat internationally at competitive prices."

Egyptian `Swiss for Milling relies on state of the art tech to produce high quality flour.

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To ensure that only top-quality wheat is milled, incoming wheat undergoes rigorous testing for mycotoxin content, moisture levels, test weight, falling number, and protein. Interestingly, protein, the last parameter mentioned, actually holds the foremost position in ensuring quality. It determines the level of blending required to achieve the desired end quality. However, the Russian-Ukrainian war disrupted normal trading activities in Egyptian Swiss's traditional markets in the Black Sea region. Shedding light on this, El-Sebaie explains, "The war affected our traditional source markets, necessitating a shift to Brazilian, Polish, and French wheat to maintain optimal operations." Diverse sourcing led to variations in wheat quality characteristics. El-Sebaie acknowledges this challenge but highlights the capabilities of highly qualified millers in handling wheat of different qualities. “They employ solutions like flour improvers to maintain product consistency despite variations in grain quality,” he says. The good news is that this issue has since been mitigated, as supplies from Russia have resumed, with occasional Ukrainian imports also coming in, although in smaller quantities than before. Automation also plays a significant role in bolstering quality, with state-of-the-art in-built capabilities making it easier to consistently WWW.MILLINGMEA.COM

achieve the desired level of quality. Additionally, automation reduces human interaction with products on the manufacturing line, minimizing the risk of food contamination. Skilled quality assurance officers conduct checks throughout the production process to ensure that the product meets the desired standards. Notably, Egyptian Swiss is ISO 22000 certified, underscoring the presence of a robust food safety management system. This certification instills confidence that all products emerging from its various factories meet the highest hygiene and quality standards. Additionally, the company holds ISO 9001:2015 certification, emphasizing its commitment to customer satisfaction through the consistent provision of higher-quality products and services. Furthermore, the company is included in Egypt's National Food Safety Authority's whitelist and is registered with the United States Food and Drug Administration, consolidating its commitment to providing customers with high-quality pasta and tomato paste products at a fair price. THE REMARKABLE ACHIEVEMENTS OF EGYPTIAN SWISS El-Sebaie considers Egyptian Swiss's transformation into a robust corporate entity, supported by sound business structures, as

A section of the fully automated pasta factory.

IN NUMBERS

31,000 EGYPTIAN SWISS' COMBINED MILLING CAPACITY IN TONNES PER MONTH.

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COMPANY PROFILE: EGYPTIAN SWISS

Food safety and Hygiene practices on full display at Egyptian Swiss for Concentrates.

A BULK OF THE EGYPTIAN SWISS' EXPORTS PRIMARILY FO TO AFRICAN COUNTRIES SOMALIA, SUDAN, GHANA, DJIBOUTI, AND COTE D'IVOIRE. 28

his most significant achievement as General Manager. He points out, "This is unprecedented, as we are the only company in the entire milling industry in Egypt to adopt this new corporate structure. In contrast, all other milling businesses in Egypt are owned and managed by their proprietors." Following this, the complete repositioning of the company into an export-focused business with a global reach rank as the second major achievement. El-Sebaie notes, “When we started two years ago, exports accounted for only 20% of our total sales. This figure has since surged to 80%. The bulk of the company’s exports primarily go to African countries, including Madagascar, Somalia, Djibouti, Sudan, Ghana, and Cote d'Ivoire, where we have already established a strong presence.” Continuing with his global outlook on exports, he explains, “We also make substantial exports to various Middle Eastern countries, including the United Arab Emirates, Saudi Arabia, Oman, Palestine, and Bahrain. As part of our mission to feed the world, we are also exploring new export markets, with exports reaching as far as Venezuela. In addition, we have begun exporting tomato paste and pasta to Germany, France, and the Netherlands.” ElSebaie acknowledges the invaluable contributions of his team in making these achievements possible. He emphasizes, "No one can accomplish something like this alone; you need a capable team." At Egyptian Swiss, this

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team comprises division managers overseeing the operations of the three distinct businesses within the group and over 600 employees who are the driving force behind the high-quality products that the Group is renowned for. INNOVATIVE ADAPTATION FOR A SECURE FUTURE In the face of evolving health trends, Egyptian Swiss remains agile and forward-thinking, adapting to the growing demand for glutenfree products. The company has introduced a range of products that align with these emerging trends. ElSebaie elaborates, "We are working on developing various products, such as rice pasta and corn pasta, to meet this new demand." However, the company also recognizes the enduring appeal of wheat-based products, which is expected to further expand with the expanding population, particularly in their primary market, Africa. To meet this anticipated surge in demand, Egyptian Swiss has proactively invested in expanding its capacity. ElSebaie reveals, "We have a new milling line that is ready for commissioning, and we are planning to install a new tomato paste line." The only factor currently impeding the Group from proceeding with these projects is the ongoing Ukrainian war, which has disrupted global trade. Once normalcy returns to global markets, Egyptian Swiss will be firing on all cylinders, powering ahead with its mission to feed the world. WWW.MILLINGMEA.COM

AFRICA FUTURE FOOD SUMMIT JUNE 10-11, 2024 Nairobi, Kenya www.africafuturefoodsummit.com

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THE CEO SUMMIT ON THE FUTURE OF SUSTAINABLE FOOD SYSTEMS IN AFRICA FOOD NUTRITION & SUSTAINABILITY

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DUNE PACKAGING Enhancing food packaging visibility in a competitive market

W BY PAUL ONGETO

ith over two decades of experience in the packaging industry, Dune Packaging Limited stands tall as the premier artisan of tailored packaging solutions for the grain and milling industries. Its expertise has become increasingly important today as competition heats up in the sector. Brands want to shine brightly amidst the increasingly crowded shelves. The allure of superior, eye-catching packaging has never been more compelling. Dune has made it a mission to ensure grain millers have access to these all-important packaging materials. At Dune, their mission is crystal

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COMPANY PROFILE: DUNE PACKAGING

WITH OUR STATE-OF-THEART MACHINERY, WE CRAFT HIGH-QUALITY PAPER BAGS AND SACKS. WE PRIORITIZE METICULOUS ATTENTION TO DETAIL, ENSURING THAT OUR CLIENTS RECEIVE THE VERY BEST THE MARKET CAN OFFER. Rohin Chandaria, CEO, Dune Packaging clear: to empower grain millers with access to these essential packaging marvels. Rohin Chandaria, the visionary CEO at Dune Packaging, passionately reaffirms their commitment, stating: 'With our state-of-the-art machinery, we craft high-quality paper bags and sacks. We prioritize meticulous attention to detail, ensuring that our clients receive the very best the market can offer, all while optimizing production costs and reducing waste."

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PIONEERING MULTI-COLOR PHOTOGRAPHIC PRINTING TECHNOLOGY In 2016, Dune Packaging embarked on a transformative journey, setting a remarkable milestone in the packaging industry. It was a bold move that would redefine the art of packaging and set them apart as leaders in East and Central Africa. This pivotal moment came with the adoption of MultiColor Photographic Printing, an innovative technology that left industry experts and competitors in awe. This groundbreaking multi-color printing technique substantially expanded the CMYK color space, introducing a palette of three additional colors to the standard cyanmagenta-yellow-black spectrum. The results were nothing short of astonishing – images with an unprecedented level of sharpness, depth, and contrast, and a color spectrum that seemed boundless with exceptional fidelity to the original digital format. The impact of this innovation was felt far and wide, especially in the flour packaging industry in Kenya. Gone were the days of mundane and uninspiring packaging. The introduction of multi-color printing enabled the creation of vibrant and captivating packaging that stimulated customer imagination, a substantial upgrade from the plain and uninspiring packaging that was customary at the time. Dune harnessed these newfound capabilities to help flour millers create packaging that not only stood out from their competitors but also tugged at the heartstrings of consumers. This, in turn, led to increased sales and a remarkable expansion of market presence. The triumphs of early clients paved the way for Dune's ascent as the foremost provider of top-quality packaging WWW.MILLINGMEA.COM

solutions for millers. Orders began to come in from all corners of the region, and Dune's reputation as the go-to provider of top-quality packaging solutions for millers grew stronger with each passing day. Mr. Chandaria reflects, “Over time, we earned the trust and confidence of clients across East Africa and the COMESA region, and by 2021, we had firmly established ourselves as the dominant player in the market." DUNE PACKAGING'S UNRIVALED COMMITMENT TO QUALITY AND SUSTAINABILITY When it comes to delivering unparalleled quality, Dune Packaging consistently surpasses expectations. As the leading paper packaging supplier in East Africa, the company proudly holds an ISO 9001:2015 certification, a resounding testament to its commitment to consistently exceed customer and regulatory standards. But Dune doesn't stop there. Dune, the largest manufacturer of tea sacks in sub-Saharan Africa, carries the esteemed ISO 22000:2018 certification, a symbol of its formidable food safety management system. Vijay Chandaria, the perceptive Director at Dune Packaging, eloquently narrates, "Crosscontamination remains a significant concern for our clients in the food industry. By adhering to good manufacturing practices and production prerequisites delineated in ISO 22000 technical specifications for the packaging industry, we ensure that our products are exclusively crafted from foodgrade materials, adhering to both local and international food safety standards." But that's not all. Dune Packaging proudly waves the banner of the Forest Stewardship Council (FSC) certification,

Some of the awards and honours the company has won over the years

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COMPANY PROFILE: DUNE PACKAGING

underscoring its unswerving commitment to ethically sourced raw materials. In doing so, the company champions biodiversity, and supports local communities and workers, all while ensuring the sustainability of ecosystems and the economy. "These certifications have considerably fortified Dune's credibility in the market, instilling heightened confidence among clients," Mr. Chandaria affirms. FORGING SUCCESS THROUGH STRONG RELATIONSHIPS IN SERVICE DELIVERY Dune Packaging recognizes the pivotal role strong relationships play in establishing and maintaining a leading position in the market. According to Mr. Chandaria, these partnerships extend beyond the company's walls, embracing suppliers, customers, and the dedicated staff who drive its mission. Through these collaborations, Dune Packaging has consistently upheld high

Section of Tiger Packaging plant

standards in quality and service, fortifying its position as a market leader. As he eloquently puts it, "Through partnerships with suppliers, customers, and the collaborative efforts of our dedicated staff, we have consistently upheld high standards in terms of quality and service, which has significantly bolstered 34

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our standing in the market." To stay ahead in this fiercely competitive landscape, Dune maintains a team of experts dedicated to deciphering market dynamics, demographic trends, and evolving consumer preferences that shape the packaging industry. This keen insight enables the company to swiftly integrate emerging trends into innovative packaging prototypes. These prototypes undergo rigorous testing, scrutinized for durability, quality, and environmental impact before transitioning into full-scale production. Moreover, catering to the unique needs of customers has also played a pivotal role in Dune's success. As Mr. Chandaria underscores, "Customer feedback constitutes a fundamental component of our research and development strategy, guiding us in refining our production processes to better serve them with the exceptional quality they rightly deserve." In a bold move to cement its position as the preferred packaging supplier for the milling industry, Dune took a significant step forward by establishing a subsidiary, Tiger Packaging, in 2022. Situated in the coastal county of Kilifi, Tiger Packaging produces high-quality woven polypropylene (PP) laminated and unlaminated sacks, employing stateof-the-art technology that also incorporates photographic multicolor printing technology. These PP bags come in various sizes, ranging from 5kg to 90kg, catering to the specific requirements of their clients. What sets these sacks apart is their exceptional versatility, durability, lightweight nature, reusability, and 100% recyclability. They find application in a diverse range of industries, from fertilizer, sugar, flour, animal feed, grains, pulses, spices, and snacks, to sand, minerals, chemicals, and much more. Tiger Packaging's commitment to innovation and excellence rings throughout its journey, proving that quality and customer-centric strategies are the cornerstones of its continued success. ENVIRONMENTAL STEWARDSHIP AT THE HEART OF DUNE PACKAGING OPERATIONS Dune Packaging places a strong emphasis on environmental responsibility. In 2014, the company made a pivotal decision to completely stop the manufacturing and sale of single-use plastic-based products. Mr. Chandaria proudly asserts, "We take pride in being the leading eco-friendly packaging manufacturer in the region. Our primary products comprise biodegradable packaging crafted from organic or recycled paper, which naturally decomposes, mitigating its environmental footprint." Dune further ensures that it exclusively sources paper from suppliers certified under globally responsible sourcing schemes. The company also enforces a comprehensive strategy founded on the three "R" framework: Reduce, targeting overall production waste; Reuse, involving the conversion of internal waste into paper thread for wrapping finished goods; and Recycle, where all waste not used internally is directed to government-certified collection centers and recycling WWW.MILLINGMEA.COM

companies. To protect the environment, Dune treats all wastewater before it leaves the factory. The treated water from Dune's Thika facility often boasts higher purity levels than the nearby river water, owing to urban pollution. Dune is currently in the advanced stages of implementing solar energy solutions. Mr. Chandaria anticipates that once this system is fully operational in 2024, it will supply up to 40% of the company's energy needs. "For Dune, sustainability is not just something we do; it's who we are," Mr. Rohin asserts emphatically. BUILDING A PAN-AFRICAN BUSINESS In the span of 23 years, Dune Packaging has transformed from a small enterprise with 25 employees into a significant player in the packaging industry, now employing over 500 individuals. In 2017, the company earned the official recognition of a large-sized company from KPMG, a multinational professional services network and one of the Big Four accounting organizations globally. Three years later, Dune attained the esteemed Superbrands status, an accolade reserved for the most outstanding brands in their respective domains. Superbrand is highly coveted as it not only confers prestige but also assures consumers and suppliers that they are engaging with the best brand in their category. WWW.MILLINGMEA.COM

Having firmly cemented its presence in the Kenyan market, Dune aspires to reach even greater heights. Mr. Chandaria shares, "In the coming years, we aim to ascend as a leading PanAfrican player in the packaging industry." To achieve this objective, Dune is making substantial investments in its production capabilities. However, this path towards Pan-African leadership does come with its share of challenges. Increases in import duties on the paper used for manufacturing flour packaging have elevated the cost of raw materials, impacting exports to neighboring countries. Dune and its peers also face competition from low-cost tea sacks from Sri Lanka, with local manufacturers struggling to match these prices due to prohibitive duties on raw materials. Despite these challenges, Mr. Chandaria remains optimistic about Dune's future. He notes, "As the middle class continues to expand across the continent and the general public becomes increasingly aware of the advantages of paper packaging, we have observed a growing demand for products packaged using paper solutions. As a forward-thinking business, Dune is well-prepared to meet this anticipated surge in demand for paper packaging through continuous investments in research and development, technology, product development, and production capacity."

State of the art technology used in the manufacture of PP sacks.

IN NUMBERS

550

TOTAL NUMBER OF PEOPLE EMPLOYED BY DUNE PACKAGING

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COUNTRY FOCUS: EGYPT

stretching finite resources to meet burgeoning grain demand

BY MARTHA KURIA

onnecting Northeast Africa with the Middle East, Egypt boasts one of the most ancient histories on the African continent, tracing its roots to the Nile Delta dating back to the 6th-4th millennia BCE. According to the latest World Bank data, Egypt's total population stands at 104.3 million, making it the third-most populous country in Africa, trailing only Nigeria and Ethiopia. This population is projected to surge to 123 million by 2030 and further to 174 million by 2050, as per the United Nations World Population Prospects, exerting more pressure on the country's limited agricultural resources. Achieving self-sufficiency in staple crops while prioritizing sustainable land and water usage are

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the cornerstones of Egypt's present policies and developmental plans. GRAINS OCCUPY A CENTRAL ROLE IN EGYPT'S AGRICULTURAL LANDSCAPE Grains occupy a central role in Egypt's agricultural landscape. Consequently, Egyptian farmers cultivate crops across three seasons: two primary seasons, encompassing winter from October to April and summer from May to September, along with a third season referred to as "nili," which spans from August to late autumn. During the winter, wheat, clover, sugar beets, and vegetables are the predominant crops, while rice, maize, cotton, and sorghum dominate the summer season. Maize, rice, and potatoes take center stage during the nili season. WWW.MILLINGMEA.COM

One of the most pressing challenges Egypt has grappled with in recent decades is water scarcity. Located in an arid region, the country faces considerable hurdles in securing sufficient water resources for agriculture. The Nile Delta accounts for approximately 50% of Egypt's agricultural lands and is home to roughly half of the nation's 105 million population. The remaining 50% of food production areas are found in Middle and Upper Egypt. According to the Food and Agriculture Organization (FAO), Egypt has limited opportunities for expanding its water resources to meet domestic food demand, but the country is doing its best to push the boundaries over what its possible with whatever minimal resources it has. AN AMBITIOUS TARGET TO SATISFY 70% OF LOCAL WHEAT DEMAND Cereals constitute a fundamental component of the Egyptian diet, contributing to 62.3% of daily calorie intake. Per capita wheat consumption, the primary dietary staple in the country, averages around 150 kg per person per year, equating to 52.4% of calorie intake derived from cereals. Thus, nearly one-third of an individual's daily calorie intake in Egypt is sourced from wheat. Despite its limited water resources, Egypt remains the largest wheat producer in Africa but has never attained self-sufficiency. As

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PER CAPITA WHEAT CONSUMPTION, THE PRIMARY DIETARY STAPLE IN THE COUNTRY, AVERAGES AROUND 150KG PER PERSON PER YEAR, EQUATING TO 52.4% OF CALORIE INTAKE DERIVED FROM CEREALS. global markets grow increasingly volatile, Egypt has set a goal to produce 12 million metric tons (MMT) of wheat this year from approximately 4 million feddans (about 1.68 million hectares). Reda Mohamed, the Director of the Field Crops Research Institute and Head of the National Campaign to Preserve Wheat, states that the nation aims to enhance production to meet 6570% of local needs by 2030, up from the current 55%. The country is targeting to increase the area of the wheat crops by 1.5 million feddans over the next three years in an effort to get closer to its 2030 goal. Consequently, the government has implemented measures to incentivize Egyptian farmers to boost wheat production. It has increased the grain's purchase price by 42%

Despite its limited water resources, Egypt remains the largest wheat producer in Africa.

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

COUNTRY FOCUS: EGYPT

and introduced an additional financial incentive for every 150 kilograms of wheat delivered to the government. The government is also actively promoting breeding programs and improved cropping practices to bolster production. The impact of these government-led initiatives is becoming evident, with notable increases in the planted area, growing from 3.4 to 3.7 million feddans, and improved average yields, rising from 2.7 to 3 tonnes per feddan, owing to enhanced seed varieties and superior cropping practices. As a result, the United States Department of Agriculture (USDA) forecasts Egypt's wheat production for MY 2023/2024 to reach 9.8 MMT. In a bid to support local production, the Egyptian government has significantly expanded its wheat storage capacity to 3.6 MMT in 2023, up from 1.2MMT in 2014, marking a 200% increase, according to a state report. These endeavors necessitate substantial financial commitments, prompting Egypt to seek partners to realize its 2030 wheat production target. In April, Egypt inked a €40 million (US$43.5M) grant agreement with the European Union (EU) in collaboration with the Italian Agency for Development Cooperation (AICS) to support wheat production in the country.

2000 to 2020), has not been able to match the country's population growth (2.01% p.a.), resulting in a persistent deficit that necessitates imports. Egypt, perennially the world's top wheat importer, brought in approximately 12 million metric tonnes of wheat annually from 2017 to 2021. However, in 2022, Egypt's total wheat imports declined by 18.7% to around 9.5 million tonnes due to surging prices and a foreign exchange crisis that left private mills and importers unable to pay for wheat shipments stranded at ports. Wheat consumption is projected to increase by 2% to 20.5 million tonnes in the 2023/2024 market year, according to the USDA. To meet this demand, the Food and Agriculture Organization of the United Nations (FAO) anticipates that Egypt will import 12 million tons of wheat during the fiscal year 2023/2024, up from 11.6 million tons in 2022/2023. The escalating demand is primarily attributed to population growth. Egypt's population, currently at 104 million, is expected to reach 124 million by 2030, according to the Central Agency for Public Mobilization and Statistics (CAPMAS). Additionally, Egypt is home to approximately 10 million migrants from Iraq, Syria, Libya, Yemen, and Sudan.

GROWING POPULATION DRIVES EGYPT'S WHEAT IMPORTS Despite being one of the largest wheat producers in Africa, Egypt maintains its status as the world's largest wheat importer. Steady growth in wheat production (1.9% p.a. from

EXPLORING ALTERNATIVE SOURCES OF WHEAT The conflict that erupted with Russia's invasion of Ukraine on February 24, 2022, reverberated through the global grain industry, sending prices to unprecedented levels and intensifying market volatility. For Egypt, this conflict caused

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

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alarm, as Ukraine had consistently been the second-largest wheat exporter to Egypt after Russia, with the two countries collectively supplying 82% of Egypt's wheat imports over the past five years. As a result, the government is faced with the prospect of increased expenses as it continues to secure flour for subsidized bread, partially due to rising freight costs and escalating global wheat prices. According to projections from the World Bank, the cost of importing wheat for Egypt's subsidized bread program may nearly double, soaring from an annual expenditure of US$3 billion to US$5.7 billion. For the 2022-2023 fiscal year, the government increased its budget allocation for bread and food subsidies by EGP 3 billion (US$97.09 million), reaching EGP 90 billion (US$2.91 billion), thereby putting additional strain on the nation's budget. Despite its toll on national resources, Egyptian politicians often invoke the possibility of a bread riot to underscore why the provision of cheap bread is a "red line" that cannot be crossed as a matter of national security. As ongoing conflicts threatening wheat supplies from the Baltic region, Egypt has been WWW.MILLINGMEA.COM

actively exploring new markets to source wheat. In the past year, Egypt has imported wheat from France, Romania, Bulgaria, and Germany, in addition to shipments from Russia and Ukraine. The country has also ventured into new sources, striking an agreement to import 500,000 tonnes of wheat from India. Diversifying sources has already made an impact. Ukraine's wheat exports to Egypt dropped to 9% from 21% a year earlier, enabling Romania to increase its exports to 13%. The government has also granted the General Authority for Supply Commodities (GASC) the authority to directly contract with any government or company for wheat purchases, bypassing the need for international tenders, as was customary in the past. PUBLIC SECTOR DOMINATES THE MILLING INDUSTRY Egypt presently boasts more than 410 public, public/private, and private sector mills, with total investments exceeding US$1.5 billion, according to the USDA. Public mills and public/private mills collectively produce 82% extraction flour,

Egypt produced 7.4 million tons of maize in 2022.

IN NUMBERS

US$3B

ANNUAL COST OF EGYPT'S BREAD SUBSIDY PROGRAM.

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COUNTRY FOCUS: EGYPT

Egyptian rice is globally renowned for its high quality.

CURRENTLY, EGYPT'S MAIZE DEMAND FOR ANIMAL FEED REPRESENTS 85% OF THE TOTAL MAIZE DEMAND WHICH EXCEEDS 16MMT ANNUALLY.

used for making subsidized baladi bread. Public mills account for 70% of the flour supplied to the Baladi bread subsidy program, while private mills contribute the remaining 30%. However, private mills exclusively rely on imported wheat and do not purchase any wheat from the domestic market. They process this wheat into much finer 72% extraction flour for fino bread and cakes. Unless contracted by the government, private mills are prohibited from producing 82% flour to prevent black market trade. MAIZE CONSUMPTION DRIVEN BY ANIMAL FEED SECTOR In Egypt, maize is the predominant summer crop, covering a significant cultivated area with an average productivity of 7.78 tons/ha. While there has been some growth in planting yellow maize for animal feed, white maize remains the prevailing variety. In 2022, Egypt produced 7.4 million metric tons of corn, marking an increase compared to 2020 when 6.4 million metric tons were produced. In February 2022, the government announced a guaranteed price of 9,000 EGP (292.2 USD) per metric ton of white corn and 9,500 EGP (308.4 USD) per metric ton of yellow corn to encourage farmers to expand corn cultivation, with some

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degree of success. The FAS Cairo forecasts corn production in MY 2023/24 (October – September) at 7.6 MMT, up by 2.1% from the MY 2022/23 estimate. This increase is attributed to a potential expansion of the planted area by 20,000 hectares as more farmers join the fray to benefit from high corn prices in the domestic market. Despite the uptick in production, there is still a gap between maize production and consumption in Egypt, estimated at around 45%. Currently, the country's demand for animal feed represents 85% of the total maize consumption, which exceeds 16 million tons annually. However, in the latest USDA report, corn consumption for MY 2022/23 was revised down by 20.6% from the MY 2021/22 estimate of 17 MMT, with the decrease attributed to a significant dip in feed and residual consumption. The USDA pointed to surging commodity prices globally as a likely cause for the decline. Over the past eight months, corn prices surged from 8,000 EGP/MT to 19,000 EGP/MT, while poultry feed prices climbed from 11,300 EGP/MT to 26,000 EGP/MT. EGYPTIAN RICE IS GLOBALLY RENOWNED FOR ITS HIGH QUALITY Egypt stands as the largest rice producer in the Middle East and the primary rice market in North WWW.MILLINGMEA.COM

Africa. Rice is a staple in various cuisines in restaurants and households alike. For example, Koshari, the national dish and a beloved street food, prominently features rice, making it a vital commodity for Egyptians. Egyptian rice is renowned for its high quality and commands premium prices on the global market. The growing demand for specialty rice varieties, especially long-grain rice, has fueled market growth. According to Mordor Intelligence, the Egypt Rice Market is estimated at US$1.82 billion in 2023 and is anticipated to reach US$2.54 billion by 2028, exhibiting a CAGR of 6.88% during the forecast period (2023-2028). However, due to its significant consumption of limited water resources, the government discourages large-scale rice cultivation. The Ministry of Water Resources and Irrigation (MWRI) imposes restrictions on the use of land for rice cultivation in the Delta area provinces to mitigate seawater intrusion into the Delta lands and prevent soil salinization. Recognizing the importance of rice in the national diet, Egypt actively supports the development of rice varieties that require less water to grow. Considerable progress has been made in this regard, with a new variety named "Sakha Super 300" earning a gold medal at the 2022 Geneva International

Exhibition of Inventions for its ability to thrive in water-scarce conditions. Hopes are also high for a new partnership between the Egyptian and Chinese governments, which seeks to develop new varieties of drought-tolerant crops, particularly rice. A SHINING EXAMPLE FOR AFRICA Despite its status as one of the most water-scarce countries in the continent, Egypt has consistently led the way in agricultural production over the years. Its wheat production, standing at 9.3 MMT, is the highest on the continent. Furthermore, the nation is actively strategizing to increase production to 12 MMT by 2030. Innovation in areas like rice and maize, focusing on drought-tolerant varieties, is also gaining momentum. All these point to a nation on a mission to feed the millions within its borders. Its an open secret that despite what it does, Egypt, limited by finite water resources, may not fully meet demand. This is, however, not stopping it from making improvements in its quest to move closer to food security. That alone is admirable and should serve as a motivation for many other food-insecure countries, especially in sub-Saharan Africa, which possess significantly greater water resources and arable land.

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TOP 10 MAIZE PRODUCERS IN AFRICA

SOUTH AFRICA - 17,100,000 MT

South Africa presently leads as the foremost corn producer in Africa. The yield for the marketing year 2022/23 exhibits notable progress, surpassing the 16,137,000 MT recorded in the previous year by an impressive 8%. The lion's share of South Africa's maize exports finds its way to Zimbabwe, Namibia, Botswana, and Zambia.

NIGERIA - 12,735,000 MT

Nigeria has maintained a steady corn yield, maintaining a 5-year average of 12,283,000 MT. However, the forecast for the 2023/24 marketing year indicates a slight dip to 12,000,000 MT due to adverse weather conditions.

MALI

GHANA

NIGERIA

ETHIOPIA - 10,200,000 MT

The current maize yield in Ethiopia marks an 8.5% surge from the 9,400,000 MT achieved in the 2021/2022 marketing year. The outlook for the next marketing year is optimistic, with a projected increase of 200,000 MT attributed to expanded acreage.

EGYPT - 7,440,000 MT

Corn production in Egypt remains constant compared to the previous marketing year and is expected to reach 7,600,000 MT in MY 2023/24. The country has experienced a progressive growth in corn production, with the current yield exceeding the five-year average of 6,896,000 MT by 10%.

Source: USDA TANZANIA - 5,900,000 MT

The current maize yield in Tanzania represents a significant reduction from the 7,039,000 MT produced in MY 2021/22. However, the outlook for MY 2023/24 anticipates a 3% increase, reaching approximately 6.1 million metric tons (MT). This surge can be attributed to more farmers transitioning to corn cultivation in response to favorable prices.

MALI - 3,733,000 MT

Corn production in Mali has maintained relative stability, boasting a 5-year average of 3,659,000 MT. Nevertheless, the yield for MY 2023/24 is expected to decrease to 3,500,000 MT due to the country's struggle with drought and the encroachment of desertification.

EGYPT

MALAWI - 3,717,000 MT

ETHIOPIA

The 2022/23 yield in Malawi marked a 19% decline from the 4,581,000 MT achieved in 2021/22. This drop was primarily attributed to droughts, cyclones, rising temperatures, and erratic rainfall. However, the trend is poised to recover in MY 2023/24, with the country expected to produce approximately 3,510,000 MT.

UGANDA KENYA

TANZANIA

GHANA - 3,401,000 MT

Ghana's maize production represents a 15% increase from the 5-year average of 2,968,000 MT. The yield is projected to remain steady in MY 2023/24, reflecting the government's "Planting for Food and Jobs" (PFJ) initiative aimed at boosting corn production.

MALAWI

KENYA - 2,900,000 MT

Maize is one of the most cultivated food crops in Kenya. However, the yield for MY 2022/23 has witnessed a 12% decline from the preceding year due to drought and erratic rainfall. The Kenyan government is diligently planning to augment maize acreage by utilizing public lands, with the aspiration of achieving maize self-sufficiency by 2024.

SOUTH AFRICA

UGANDA - 2,800,000 MT

Ranking 10th on this list is Uganda, with maize production slightly lower than its neighboring country, Kenya. The current yield mirrors that of the prior marketing year and is expected to persist at the same level in the 2023/24 marketing year.

TECHNOLOGY FOCUS: FLOUR ENRICHMENT

Flour ENRICHMENT A Vital Tool in Combating Malnutrition and Preventable Diseases BY MARTHA KURIA

MICRONUTRIENT DEFICIENCIES: A LINGERING GLOBAL HEALTH CRISIS In 2004, the Micronutrient Initiative (MI) and UNICEF jointly released a report that underscored the pressing issue of vitamin and mineral deficiencies as one of the most significant public health challenges of our time. Shockingly, nearly two decades later, this sobering reality persists. Micronutrient deficiencies continue to afflict a staggering 3 billion individuals, causing severe and enduring health problems. Malnutrition, an unfortunate consequence of nutrient deficiencies, underpins 45 percent of child mortality, according to the 2022 data from the Micronutrient Forum. Furthermore, statistics from the World Health Organization (WHO) reveal that a distressing 155 million children experience stunted growth each year, both physically and cognitively, while one-third of women of reproductive age suffer

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from anemia, including 40 percent of pregnant women, due to nutritional deficiencies. THE CRUCIAL ROLE OF GRAIN FLOUR ENRICHMENT Grain flour serves as the cornerstone of diets in countless societies worldwide, comprising not only the staple food but also a foundation for numerous value-added baked products. Approximately 79% of the global population, approximately 6.3 billion people, rely on grains as their primary dietary source. This includes cereals such as rice, wheat, maize (corn), millet, and sorghum, as outlined by the WHO. Regrettably, modern flour production methods strip grains of essential nutrients, exacerbating

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the risk of malnutrition. The flour-making process typically entails the removal of two integral parts, the bran and the germ, leaving behind only the endosperm, which is then ground into fine powder. This extraction significantly diminishes the nutritional value of the flour, as it eliminates a substantial portion of thiamin, riboflavin, niacin, vitamin B-6, folic acid, and iron present in whole grains. Moreover, once the endosperm is isolated, it undergoes further grinding into a fine powder and a chemical bleaching process to achieve a whiter appearance, often involving chlorine or benzoyl peroxide. Unfortunately, this bleaching step results in the destruction of many original nutrients, further diminishing the flour's nutritional quality. To counteract this loss of nutrients incurred during milling, the practice of flour enrichment comes into play. Enrichment is the process through which the critical nutrients lost during milling are reintroduced in quantities comparable to those lost during processing. A HISTORICAL PERSPECTIVE The concept of flour enrichment has its roots in the 1920s when Benjamin R. Jacobs, a renowned biochemist, documented the loss of essential nutrients during cereal and grain processing. Studies indicate that the first successful flour enrichment took place in 1935 when chemist Robert R. Williams pioneered a method to synthesize thiamin and vitamin B. In the early 19th century, America grappled with high deficiencies in vitamin B and thiamin, leading

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to approximately 17,000 deaths attributed to beriberi and pellagra in 1928. This crisis fueled the momentum for flour enrichment we witness today. In 1998, the FDA mandated the fortification of enriched grain foods with folic acid to combat neural tube defects (NTDs). Public health studies subsequently reported a 23 percent reduction in NTD incidence in the U.S. and a 54 percent decrease in Nova Scotia, Canada, directly attributed to the presence of folic acid in flour. Dr. Magda Aguiar, the project director of a study published in August 2019 in the European Journal of Clinical Nutrition, highlighted the economic benefits of mandatory flour enrichment. She emphasized that the British National Health Service would incur an additional cost of £65 million (US$80 million) without mandatory flour enrichment, whereas the cost of such enrichment would be negligible, at just 12 pence per person annually. THE GLOBAL EMBRACE OF FLOUR ENRICHMENT Recognizing the benefits associated with mandatory flour enrichment, an increasing number of countries worldwide have adopted measures to alleviate the health burden. As of 2023, 92 countries have legislation mandating the fortification of at least one industrially milled cereal grain. Of these, 91 countries require the fortification of wheat flour either individually or in combination with other grains, while Papua New Guinea mandates rice fortification alone.

ENRICHMENT IS THE PROCESS THROUGH WHICH CRITICAL NUTRIENTS LOST DURING MILLING ARE REINTRODUCED IN QUANTITIES COMPARABLE TO THOSE LOST DURING PROCESSING.

Fortification of maize and wheat products is encouraged to enhance access to quality nutrition.

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TECHNOLOGY FOCUS: FLOUR ENRICHMENT

IN NUMBERS

NUMBER OF AFRICAN COUNTRIES THAT HAVE MADE FLOUR FORTIFICATION MANDATORY.

A small scale mill utilizing Sanku flour fortification technology.

In the United States, nearly 95 percent of white flour is enriched with iron and four essential B vitamins: thiamin, niacin, riboflavin, and folic acid. The U.S. FDA stipulates specific quantities of these nutrients to qualify, ensuring that enriched flour effectively combats nutrient deficiencies in populations reliant on refined grains. ENRICHMENT RESHAPES WHOLE-GRAIN OFFERINGS Over the last decade, consumer demand for whole-grain products has surged due to the well-documented health benefits associated with their consumption. This includes the prevention of cardiovascular diseases, certain cancers such as colon cancer, reduced risk of type-2 diabetes, and their prebiotic potential. Brian Strouts, Vice-President of Baking and Food Technical Services at AIB International, observes, "There is substantial consumer acceptance, and whole grains come with minerals, antioxidants, vitamins — all of which are easy to promote as healthier." However, incorporating whole grains into bakery

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formulations poses challenges, affecting factors like shelf life, color, flavor, and texture. One of the primary issues bakers encounter when using whole wheat flour is a lack of volume in the final product. Dough may not rise adequately, resulting in dense loaves. Some researchers posit that the bran flakes and germ in whole wheat flour act like small razors, shredding gluten strands in the dough, impeding gluten development. By enriching flour to match the nutritional content of whole grains, bakers can satisfy health-conscious consumers with highquality products. FORTIFICATION: A VITAL APPROACH IN AFRICA While flour enrichment is a rare practice in the African milling industry, fortification has gained prominence as a complementary approach to combat malnutrition. Unlike enrichment, which focuses on restoring the nutrients originally present in grains before milling, fortification takes a broader perspective by adding new micronutrients that are not inherently found

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in the grains but are lacking in the diets of the target population. Research has demonstrated that fortifying flour with iron helps protect against anemia, while fortifying with folic acid prevents severe birth defects such as neural tube defects and spina bifida. Moreover, fortifying staples with vitamin A promotes eye health, boosts immune systems, and saves hundreds of thousands of lives annually. The attractiveness of fortification in the African context lies in its ability to effect change without necessitating behavior alterations by consumers, making it possible to reach entire populations, particularly those most in need. To date, 29 African countries have made flour fortification mandatory, striving to enhance the nutritional well-being of their citizens. Some countries, including the Democratic Republic of Congo, Namibia, Sierra Leone, and Swaziland, voluntarily fortify over half of their industrially milled wheat flour, even though it is not required by law. WWW.MILLINGMEA.COM

CHALLENGES IN FORTIFICATION PROGRAMS However, national fortification programs in Africa often face challenges stemming from poorly established or inadequately designed protocols, insufficient resources, and a lack of qualified laboratory expertise for product testing. A 2021 study analyzing the micronutrient content of maize procured from the Kenyan market revealed a compliance rate of only 28 percent. Another study in Nigeria found that imported premixes, commercial blends of vitamins and minerals, typically OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

TECHNOLOGY FOCUS: FLOUR ENRICHMENT

MILLERS FOR NUTRITION IS AN INDUSTRYLED COALITION

SPEARHEADING

AN INITIATIVE, AIMING TO ASSIST MILLERS IN PRODUCING FORTIFIED STAPLE FOODS WITH THE TARGET OF REACHING 1 BILLION PEOPLE BY 2026.

adhered to high-quality standards, while local blends exhibited inconsistent quality, with some falling below standards. PAVING THE WAY FOR EFFECTIVE FLOUR FORTIFICATION IN AFRICA Efforts are underway to enhance compliance rates and realize the full potential of flour fortification in Africa. Millers For Nutrition, an industry-led coalition, is spearheading this initiative, aiming to assist millers in producing fortified staple foods and reaching one billion people with fortified rice, edible oil, and flour by 2026. The coalition is currently implementing programs in eight countries across Africa and Asia: Bangladesh, Ethiopia, India, Indonesia, Kenya, Nigeria, Pakistan, and Tanzania. Several challenges have been identified by the coalition, including insufficient government enforcement and limited consumer demand, which often reduce millers' incentive to fortify their products. Additionally, establishing fortification procedures and maintaining consistent fortification requires significant investments in equipment, premixes, staff training, and management time. To address these challenges, the coalition seeks to create incentives and capabilities for millers to comply with regulations and voluntary standards effectively. Millers joining Millers for Nutrition and committing to improving the nutritional quality of their products will receive free technical support, including tailored training, business advice, product testing, and access to online tools and resources. Highquality premixes have been a significant barrier

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to compliance, and the coalition has enlisted various stakeholders across the food fortification value chain, including founding partners BASF, DSM-Firmenich, Mühlenchemie/SternVitamin, Piramal, BioAnalyt, and Sanku. These partners will contribute technical expertise and support to ensure high compliance levels. Sanku, in particular, is an expert in working with small and medium-sized millers. This nonprofit organization installs small machines called dosifiers, which add essential nutrients like vitamin B12, zinc, folic acid, and iron to flour produced by local millers. To date, Sanku has provided over 800 dosifiers to more than 750 mills in Tanzania, Kenya, Rwanda, Malawi, and Mozambique, where malnutrition is prevalent. AMBITIOUS GOALS AND TANGIBLE RESULTS The coalition has set ambitious goals, aiming to ensure adequate and sustained fortification of 85 percent of selected industrially processed staple foods. Encouragingly, the framework on which the coalition is based has already achieved some level of success. The coalition highlights the Millers Fortification Index, which was introduced to acknowledge millers' fortification efforts in Kenya. Since its launch in 2018, compliance with wheat flour fortification has risen from 51 percent in 2018 to 70 percent in 2022. A similar trend is observed in maize flour, with compliance rates increasing from 28 percent in 2018 to 49 percent in 2022. This success underscores the potential for compliance rates to rise significantly across the African continent.

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COMMODITIES UPDATE: MAIZE

M Maize Maintains its

Dominance as the PRIMARY CEREAL in Africa BY WANGARI KAMAU

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

aize stands as the unrivaled staple in Sub-Saharan Africa (SSA), analogous to rice in Asia, as affirmed by the Africa Development Bank (AfDB). Remarkably, 16 out of the world's 22 nations with the highest maize-based calorie intake are situated in Africa. Particularly esteemed in the Eastern and Southern Africa (ESA) region, maize constitutes over 30% of total protein and calorie consumption. In West Africa, it contributes to one-fifth of calorie and protein intake. MAIZE PRODUCTION TRENDS Recent data from USDA reports a notable surge in maize production across Africa, experiencing an impressive 8.2% growth from 2017 to 2022, reaching an estimated 90.8 million metric tons. South Africa, the continent's leading maize producer, achieved its second-largest corn harvest in history during the 2022/23 market year, totaling 17 million tonnes. However, this surplus harvest is anticipated to exert downward WWW.MILLINGMEA.COM

pressure on local corn prices, constraining expansion in the area allocated for corn in the 2023/24 marketing year, and leading to production decline by 7% to 15.8 million metric tons. Nigeria, the second-largest maize producer, has maintained a consistent yield, averaging 12,283,000 metric tons over the past five years. Nevertheless, adverse weather conditions are predicted to cause a dip in production to 12,000,000 metric tons in the 2023/24 market year. Ethiopia, ranking third in production, is poised to improve its output to 10,400,000 metric tons, a 5% increase from the 2022/23 estimate of 10,200,000 metric tons. Noteworthy maize producers in Africa also include Egypt, Tanzania, Mali, Malawi, Ghana, Kenya, and Uganda, according to USDA figures. However, maize production in the region grapples with persistent challenges, including weeds, insects, bacteria, viruses, nematodes, fungi, suboptimal seeds, limited mechanization, inadequate post-harvest management, drought, and climate change. Notably, the average maize grain yields in Africa stand at 2.1 tons/ ha, significantly below the global and North American averages of 5.8 tons/ha and 10.8

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tons/ha, respectively. Egypt, with an average maize yield of 8 tons/ha, emerges as a beacon, showcasing the potential for enhanced yields even with limited water resources, according to IITA. MAIZE CONSUMPTION LANDSCAPE As previously highlighted, maize serves as a primary energy source for millions across Africa. The International Institute of Tropical Agriculture (IITA) reports that over 300 million Africans depend on maize as their main staple, utilizing all parts of the crop for both food and non-food products. Although Africa produces approximately 90 million tons of corn annually which is insufficient to meet demand. White maize is the preferred variety for human consumption. In South Africa, which leads in maize production, white maize accounts for 65% of the total yield. The consumption landscape is evolving with technological advances and urbanization, leading to the emergence of new commercially processed maize products such as cornflakes, cornmeal, corn flour, and snacks. Maize is also gaining prominence in the animal feed industry due to an increasing cattle population and a resurgent

IN NUMBERS

US$300M NUMBER OF AFRICANS WHO DEPEND ON MAIZE AS THEIR MAIN STAPLE

Fortification of maize and wheat products is encouraged to enhance access to quality nutrition.

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

COMMODITIES UPDATE: MAIZE

RECENT DATA FROM USDA REPORTS A NOTABLE SURGE IN MAIZE PRODUCTION ACROSS AFRICA, EXPERIENCING AN IMPRESSIVE 8.2% GROWTH FROM 2017 TO 2022, REACHING AN ESTIMATED 90.8 MILLION METRIC TONS. poultry sector. In 2021, the African region produced 44.2 million metric tons of feed, driving maize production growth in countries like Egypt, where 85% of maize consumption is attributed to animal feed. The forecast for 2023/24 in Egypt stands at 7.6 million metric tons, surpassing the five-year average by 10%. With Africa's population projected to grow from 1.4 billion to nearly 1.7 billion by 2030, the

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demand for maize is anticipated to surge. Mordor Intelligence projects the African maize market size to grow from US$38.80 billion in 2023 to US$53.66 billion by 2028, at a Compound Annual Growth Rate (CAGR) of 6.70% during the forecast period (2023-2028). TRADE DYNAMICS IN MAIZE Given that most African countries are not selfsufficient in maize, imports fulfill around 30% of the consumption demand. Intra-regional trade prevails, with surplus-producing nations like South Africa, Tanzania, Uganda, and Ethiopia exporting to deficit countries, notably Kenya. According to a recent report from the Farming Early Warning System Network (FEWS), Tanzania, Ethiopia, Uganda, and Zambia are anticipated to be the primary exporters of maize in East Africa, possessing an estimated 2 million metric tons of tradeable stocks. These exports are vital to meeting the demand in maize-deficit countries like Kenya, South Sudan, Rwanda, Burundi, and Somalia, where import demand is expected to reach 902,257 metric tons in the 2022/23 marketing year. Regional prices are expected to remain notably higher than the previous year and the five-year average due to

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below-average harvest expectations, elevated production and marketing costs, and soaring global commodity prices. FEWS further forecasts Southern Africa's maize supplies to be slightly above average in the 2023/24 marketing year. Major producers South Africa and Tanzania are expected to record surpluses, while Zambia, Mozambique, and Zimbabwe are anticipated to be self-sufficient in maize. Malawi, however, is projected to register a minor deficit. Domestic demand is expected to be 23% higher than the five-year average in structurally grain-deficit countries like Botswana, Lesotho, Namibia, Eswatini (BLNE), and 10% above the five-year average in southern DRC due to higher costs of substitutes like wheat and rice. South Africa's regional maize exports are forecasted to be above average in the 2023/24 marketing year due to increased regional demand. Conversely, reduced stocks in Zambia are expected to constrain typical export flows to Malawi, Kenya, and the DRC. In West Africa, regional self-sufficiency in maize is expected to surpass the previous year and five-year averages. The anticipated marketable surplus for coarse grains in 2022/23 is approximately 10.3 million metric tons, with maize constituting over 80%. However, the region has experienced higher than five-year average maize prices. In Ghana, prices of sorghum, maize, and millet in May 2023 were up to 75% above their elevated year-earlier levels due to persistent inflationary WWW.MILLINGMEA.COM

pressures, currency depreciation, elevated international commodity prices, and higher transport costs. In Nigeria, prices of maize registered seasonal increases of 5 to 20% between January and April 2023. On a yearly basis, prices of maize and other cereals were up to 25% higher, reflecting market disruptions due to insecurity, persistent shortages of cash, and currency depreciation, pushing up production and distribution costs. In both Benin and Togo, prices of maize were near or below their year-earlier levels in May, while Senegal's national average prices of maize and millet remained stable. In the Sahel, prices of maize, millet, and sorghum remained generally stable between February and April in Chad and were between 5 and 25% above their elevated year-earlier levels. North Africa presents an interesting case where maize is primarily used for animal feed. Egypt, the region's largest consumer, is expected to import 6.5 million metric tons of corn in MY 2023/24, up by 500,000 metric tons from the previous marketing year's estimate. Egypt sources yellow corn from international markets, with Brazil leading at 15.8 million metric tons, followed by Argentina at 13.8 million metric tons, and Ukraine with 12.7 million metric tons over the past five marketing years. Algeria, Egypt's neighbor, is also anticipated to import 4 million tons of maize in the coming market year, primarily for use as feed. The country primarily imports maize from Argentina, Brazil, Ukraine, the United States, and Turkey. OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

OPINION: MAIZE SECURITY IN AFRICA

Advancing MAIZE

SECURITY IN Africa

As demand for maize rises in Africa, we explore modern technologies revolutionizing maize production and post-harvest management in Africa BY WANGARI KAMAU

s the demand for maize continues to surge across Africa, it is imperative to explore the modern technologies that are reshaping maize production and postharvest management on the continent. Maize, an indispensable staple grain, constitutes approximately 30% of Africa's total energy intake. Diverse in its consumption, it takes the form of maize meal, flour, cornbread, snacks, and beverages, deeply ingrained in the African diet. However, despite an annual maize production of roughly 90 million tons in Africa, a dependency on imports persists to fulfill approximately 30% of consumption needs. This article delves into the strategies and cutting-edge technologies that hold the potential to unleash Africa's capacity for amplified maize production. CLOSING THE YIELD GAP: Africa's vast expanse of arable land presents the potential to cultivate more maize. Presently, Africa occupies 21% of global arable land, yet its contribution to the world's agricultural output stands at a mere 7.4%, signaling substantial yield disparities. Specifically, maize yields in Africa are meager, averaging a mere 2.1 tons per hectare, which starkly contrasts with the global average of 5.8 tons per hectare and the North American average of 10.8 tons per hectare. The imperative task at hand is to bridge this yawning yield chasm, an indispensable goal for ensuring food security, especially in the context of the continent's burgeoning population.

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ADDRESSING FORMIDABLE CHALLENGES: Unlocking Africa's maize production potential hinges on the proactive resolution of formidable challenges. The overreliance on rain-fed agriculture is a formidable obstacle, with a staggering 95% of agricultural practices in Africa relying on rainfall for irrigation. This vulnerability is underscored by the mounting unpredictability in weather patterns, a disconcerting trend for maize, which is extremely sensitive to fluctuations in meteorological conditions. Indeed, a study conducted in Ghana elucidated that climatic variables account for a staggering 40.8% of maize yield fluctuations during periods of drier-than-normal rainfall. Another formidable adversary in the maize landscape is the ubiquitous presence of pests and diseases, which have the capacity to drastically diminish yields and undermine produce quality when not effectively managed. Maize crops are particularly susceptible to a gamut of pernicious agents, including the fall armyworm (FAW), maize streak virus, and stem borers. Among these adversaries, FAW stands out as particularly calamitous. The voracious larvae of FAW inflict widespread devastation on maize crops across WWW.MILLINGMEA.COM

all stages of their life cycle, feasting on the apex, leaves, and ears. This insatiable appetite translates into a catastrophic 50% loss in yield or, in some cases, the complete failure of entire crops. Furthermore, the lack of access to improved agricultural inputs compounds Africa's production challenges. Smallholder farmers, who significantly dominate maize production on the continent, frequently encounter barriers to securing high-quality seeds, fertilizers, pesticides, and modern agricultural technologies. The dearth of these critical inputs is a pivotal bottleneck inhibiting the attainment of higher yields and superior crop quality. This predicament is further exacerbated by the prevalence of traditional, labor-intensive farming practices that persist among many smallholder farmers, diminishing the efficiency of operations and resulting in subpar yields.

Despite an annual maize production of roughly 90 MMT, a dependency on imports still persists in Africa.

POST-HARVEST LOSSES: A LOOMING CHALLENGE In addition to the aforementioned challenges, the specter of post-harvest losses casts a long shadow over maize production in Africa. Investigations OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

OPINION: MAIZE SECURITY IN AFRICA

POOR STORAGE PRACTICES ACCOUNT FOR A SUBSTANTIAL PORTION OF POST HARVEST LOSSESS, AMOUNTING TO 15 AND 25% OF THE HARVEST.

by Africa RISING have unveiled disconcerting statistics, revealing that post-harvest losses in Tanzania's maize-based systems range from 25% to 40%, with a staggering 47% attributed to maize alone. Poor storage practices account for a substantial portion of these losses, amounting to between 15% and 25% of the harvest, which translates to a substantial 150-200 kg per ton. These staggering losses necessitate farmers to augment their inputs and expand the land area under maize cultivation to meet their intended production targets. MODERN TECHNOLOGIES: THE VANGUARD OF SOLUTIONS: African nations are resolutely exploring solutions to confront these multifaceted challenges in maize production. The imperative of climate change underscores the need for technologies that can safeguard production capacity and foster self-sufficiency in maize production to satiate the burgeoning demand for this dietary staple. To this end, governments in Africa have instituted policies that encompass subsidizing production inputs and the implementation of price protection schemes. However, it is essential to recognize that some of these policies, especially those leading to distorted consumer prices and supply volatility, have faced criticism from development banks, which deem them unsustainable.

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technology from Syngenta proves to be a powerful control agent for FAW. Farmers have used it to protect over 3000 tons of maize from FAW attacks in countries like Zambia. Vitamin A Biofortified Maize: Traditional starchy white maize varieties, while widely grown, often lack optimal mineral and vitamin content. Recent advances in conventional breeding have boosted provitamin A content in maize, offering a viable avenue for bolstering community nutrition. Golden maize, enriched with beta-carotene, can be converted into vitamin A upon ingestion. More than 40 biofortified maize varieties are now accessible across Sub-Saharan Africa, resulting from the crossbreeding of Central and South American maize lines naturally rich in provitamin A with well-adapted lines that boast enhanced agronomic traits such as disease resistance and drought tolerance.

Emerging research posits that Africa's paramount focus should be on policies and programs that emphasize non-monetary incentives. These include the advancement of technology and infrastructure, investments in irrigation, the promotion of precision agriculture, research services, and human development. Nevertheless, an emerging consensus is pointing towards the efficacy of production inputs, particularly hybrid seeds and fertilizers. Programs that incentivize investment in making these crucial materials more accessible to smallscale producers present a promising avenue for rural development in maizeproducing regions. KEY INNOVATIONS: PIONEERING SOLUTIONS FOR AFRICA'S MAIZE INDUSTRY Drought-Tolerant Maize Varieties: Recently developed maize varieties WWW.MILLINGMEA.COM

exhibit commendable grain yields even under conditions of short-term and moderate drought, mitigating the adverse impact of climate variability and enhancing crop resilience in SubSaharan Africa. Imazapyr-Resistant Maize for Striga Management: Maize varieties fortified with resistance to the herbicide imazapyr provide an effective bulwark against parasitic Striga invasions, a notorious yieldreducing menace. Emerging Pest Control Practices: To counter the existential threat posed by fall armyworm, a range of insecticide products designed to eliminate FAW larvae in the soil and on the plant are now available on the African market, offering a more efficient alternative to traditional foliar applications. For example, FORTENZA Duo seed coating

Maize-Legume Rotation and Intercropping: The strategic integration of maize and grain legumes in intercropping or rotation confers myriad benefits compared to continuous maize monoculture. Legumes augment nitrogen content in the soil through biological nitrogen fixation and mineralization, effectively meeting the nitrogen requirements of maize. Furthermore, this synergy between crops bolsters land efficiency, enhances nutrient utilization, and optimizes water use, all while curbing weed, pest, and disease infestations. Nevertheless, it is imperative to note that intercropping entails its own set of challenges, necessitating careful crop selection and spacing. Some field operations, such as mechanization and chemical weeding, may prove more challenging in intercropping systems. Pre-Emergent Herbicides for Weed Management: Effective weed control is pivotal, particularly during the establishment and vegetative growth phases of maize, which extend up to 10 weeks

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OPINION: MAIZE SECURITY IN AFRICA

after planting. Without robust weed control, maize yields are vulnerable to a staggering reduction of up to 50% on average, and losses can escalate to 80% if farmers neglect adequate measures. The predominant method of handweeding, employed by most smallholder farmers in Africa, is a labor-intensive practice requiring two or three repetitions for effectiveness. Shallow hoeing tends to agitate the soil, promoting weed seed germination. Pre-emergent herbicides emerge as a promising solution to curtail labor requirements, eliminating the need for manual weeding and sparing the soil from the detrimental effects of excessive tillage. Aflatoxin Management: A common fungus, Aspergillus flavus, infests crops and food products, producing a pernicious toxin known as "aflatoxin." The consumption of contaminated food by humans or livestock leads to the accumulation of aflatoxin in the body, inflicting severe harm to internal organs and blood. Across Africa, the widespread and severe contamination of staple crops, animal feeds, and processed foods is fueled by favorable weather conditions, potent fungal strains, and inadequate post-harvest handling and storage practices. Fortunately, biocontrol technologies designed to combat aflatoxin have emerged, relying on natural competitors rather than industrial chemicals. These agents have witnessed increasing adoption on larger 58

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swaths of farmland over the past decade. A notable example is "Aflasafe," a non-chemical agricultural product developed by the International Institute of Tropical Agriculture (IITA), which significantly reduces aflatoxin levels in food. Aflasafe products are now available in several African countries, including Burkina Faso, Ghana, Kenya, Malawi, Mozambique, Nigeria, Senegal, Tanzania, The Gambia, Uganda, and Zambia. Post-Harvest Management Technologies: A significant proportion of post-harvest losses in maize occurs during the drying, processing, and storage phases. Innovations geared toward optimizing the efficiency of these crucial post-harvest handling stages exhibit promising potential in reducing losses. One such technology, the "GrainPro Collapsible Dryer Case," is renowned for enhancing the drying process, facilitating rapid drying at elevated temperatures, thereby enhancing grain quality and mitigating losses. This pioneering technology reduces damaged grain by a remarkable 41%, translating into a drop in the quantity of non-consumable damaged grain from 67.3 to 24.7 kg per ton, reflecting a 38% reduction. This, in essence, means that households, given the reported drying losses in Eastern and Southern Africa, could preserve approximately 32 kg per ton of produced grain, equivalent to a saving of US$10. Furthermore, low-cost mechanized shellers have WWW.MILLINGMEA.COM

demonstrated the capability to enhance grain quality, achieving an impressive 81% reduction in broken grain and a 38% reduction in impurities. With a shelling efficiency rate of 98%, this innovation substantially curtails food losses resulting from the inefficiencies inherent in manual shelling, cleaning, and winnowing, reducing them from 68 kg to less than 20 kg per ton. Lastly, hermetic storage bags have emerged as a potent solution to surmount storage challenges. By excluding air and moisture from the grains, they render it impossible for insects to thrive. Empirical evidence demonstrates that when deployed correctly, these hermetic storage bags effectively prevent insect damage to the grain, resulting in almost no observable damage in grains stored in this manner. This translates into a remarkable reduction in grain losses, exceeding 85%. A VISION OF MAIZE SELF-SUFFICIENCY Africa's ambition to attain maize self-sufficiency is within reach. However, realizing this vision necessitates a fundamental reevaluation of food production systems across the continent. It demands the unwavering support of policies that encourage the adoption of the aforementioned technologies by farmers throughout the region. The elimination of post-harvest losses through

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AFLASAFE, A NON-CHEMICAL AGRICULTURAL PRODUCT DEVELOPED BY IITA SIGNIFICANTLY REDUCES AFLATOXIN LEVELS AND IS AVAILABLE IN SEVERAL AFRICAN COUNTRIES INCLUDING BURKINA FASO, GHANA, KENYA, MALAWI, UGANDA, AND ZAMBIA. the application of these innovative technologies holds the promise of increasing the quantity of maize available for human consumption by up to 40%. Our potential would be even greater if we matched the global maize yield average. Reflecting on the broader horizon, if Africa were to attain the global maize yield average, it could potentially produce an excess of maize to nourish its burgeoning population, thereby reversing the prevailing reality where it depends on smaller countries, such as Ukraine, despite its vast, fertile land and industrious people.

Hermatic storage bags have emerged as a potent solution to surmount storage challenges.

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

SUPPLIER NEWS & INNOVATIONS

MARKET TRENDS

ADM unveils four food industry flavor and color trends USA - Archer Daniels Midland Company (ADM) has identified four key trends reshaping consumer preferences in the Food and Beverage (F&B) industry. The first trend highlights "Phygital" experiences, where consumers connect the physical and digital realms, especially through viral food trends. As a result, bold and satisfying foods and flavors are in high demand. The second trend focuses on cost-effectiveness, with economic offerings recreating cherished products authentically.

The third trend emphasizes flavors and colors as "powerful cues" supporting product positioning, with consumers seeking functional foods and beverages for holistic health. The fourth trend is about vibrant colors becoming commonplace, as experiences once considered rare become the norm. According to ADM, consumers are increasingly selecting flavors and colors that align with their personal tastes, expressing themselves through delectable flavor choices and appealing hues.

NEW PRODUCT

Kemin unveils potassium sorbate alternative for mold-free bakery an extended period,” says Caroline Ecoffard, product platform manager, EMEA, at Kemin Food Technologies. She emphasizes the significance of the product in the food and beverage industry: “Our product represents an additional step in natural preservation, offering bakery manufacturers a powerful tool to extend the shelf life of their products while meeting consumer demands for clearer labels and superior quality.”

EMEA - Global ingredient manufacturer Kemin Industries has unveiled its latest ingredient in the EMEA region (Europe, Middle East, and Africa) that inhibits mold growth and allows manufacturers to extend the shelf life of bakery products without synthetic additives. The product, Shield V Plus Dry, is a natural ingredient that combines buffered vinegar and botanical extracts to prevent mold growth in cakes, tortillas, and flatbreads while meeting consumer demands for clearer labels and superior 60

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quality. While specifically formulated for bakery products, the ingredient is versatile and can also be applied as a natural alternative to potassium sorbate in emulsions, sauces, dressings, and other highly aqueous foods, notes the business. “Its naturally occurring active molecules – such as acetic acid and sorbic acid – work in synergy to slow down the development of molds, ensuring product freshness over

THE PRODUCT IS A NATURAL INGREDIENT THAT COMBINES BUFFERED VINEGAR AND BOTANICAL EXTRACTS TO PREVENT MOLD GROWTH IN CAKES. WWW.MILLINGMEA.COM

MARKET TRENDS

Puratos unveils its baking trends for 2024 and beyond

USA - Global ingredients business Puratos shone a light on some of the latest confectionery and snacks consumer trends and preferences at its annual Taste Tomorrow event, which took place in Austin, Texas, US. Significantly, Puratos research found that more than half (69%) of the North American consumers polled are looking for nostalgic, familiar culinary experiences. Another 64% of respondents are interested in experimenting with food presented in new ways. In response, the company has developed its Deli fillings,

crafted with traditional ingredients, making it easy for bakers to incorporate the authentic flavour and texture of nostalgic desserts like lemon pie or cheesecake into their baked goods. In terms of health considerations, a total of 76% of North American consumers recognise the essential role of improving gut health for overall health – from a boost in immunity to enhanced mental well-being. In fact, 66% express interest in food products designed to enhance and enrich gut health. Notably, as the company added, sourdough emerges as an unwavering

symbol of this trend, holding its position as one of the most popular goods in this category among consumers. Another key area of sustained innovation has been in terms of the plant-based revolution that is continuing to impact on all segments of the market. As Purtos observed, in North America, 53% of consumers recognide the positive impact that pant-based choices have on the environment. Another 46% believe plant-based offerings both cater to their well-being and are a healthier choice than animalbased products.

64 PERCENT OF RESPONDENTS INTERESTED IN EXPERIMENTING WITH FOOD PRESENTED IN NEW WAYS.

NEW PRODUCT

Ardent Mills introduces egg replacer, ancient grain flour blend USA – Ardent Mills Egg Replace and Ardent Mills Ancient Grains Plus are new additions to the Ardent Mills’ ingredient portfolio. Egg Replace serves as a 1:1 replacement for dried and liquid whole eggs, according to the company. Formulated with chickpea flour and three other ingredients, the product is gluten-free and vegan and contains no major US food allergen or soy ingredients. Ancient Grains Plus baking flour blend is blended from ancient grains WWW.MILLINGMEA.COM

and chickpeas to provide more quality protein than traditional flours, according to the company. It has a mild flavor, is plant-based and gluten-free, and contains no major US food allergens. "Our latest products, Ardent Mills Egg Replace and Ancient Grains Plus baking flour blend, underscore our commitment to being strategic partners with our customers by providing proactive solutions to industry challenges while simultaneously meeting consumer demand," said Angie Goldberg, chief growth officer at Ardent Mills. OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

SUPPLIER NEWS & INNOVATIONS

NEW PRODUCT

Symrise adds aquafaba and chickpea ingredients to diana food portfolio “These chickpea ingredients constitute another way in which Symrise is addressing the growing, trendy plant-based market. Aquafaba offers the perfect vegan alternative to egg yolk, while chickpea flakes improve the nutritional value.”

GERMANY — Symrise, a Germanbased supplier of flavor, food, fragrances, and cosmetic solutions, has added chickpea and aquafaba ingredients to its diana food portfolio. The diana food chickpea and aquafaba ingredients are aimed at benefiting plant-based food products to provide cleaner labels, the company said. Products include chickpea flakes and aquafaba flakes. Aquafaba flakes may be used as an

alternative to egg yolk. The chickpea flakes may be used as a vegan protein option in applications like falafels and hummus. Both ingredients are precooked and may offer a longer shelf-life, according to the company. “According to a recent Euromonitor study, 42% of the population is restricting its consumption of animal-based products,” said Sophie Helleux, product manager in the Naturals Business Unit of Symrise Food & Beverage.

THE CHICKPEA AND AQUAFABA INGREDIENTS ARE AIMED AT BENEFITTING PLANT BASED FOOD PRODUCTS TO PROVIDE CLEANER LABELS.

NEW TECHNOLOGY

4B Group introduces new vibration sensor for industrial monitoring UK – 4B Group, a leading provider of industrial monitoring solutions, has unveiled its latest innovation in condition monitoring with the introduction of the Vibmil Vibration Sensor (VIBMIL). This innovative sensor is designed to continuously monitor vibration levels and temperature in industrial environments and hazardous areas up to ATEX/IECEx Zone 20 and Class II Div 1. The VIBMIL is a state-of-the-art current loop-powered accelerometer that delivers precise vibration RMS velocity readings through a 4-20 mA output. Encased in a robust stainlesssteel enclosure with a 3/4” NPT thread for conduit connection, the VIBMIL is 62

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built to withstand even the harshest industrial conditions, ensuring its durability and reliability. One of the key features of the VIBMIL is its flexibility. It can be supplied with optional in-built NTC or PT100 temperature sensors, allowing users to monitor temperature alongside vibration for a more comprehensive view of their equipment’s performance. The VIBMIL is also designed for ease of installation and compatibility. Equipped with a female 1/4″-28 UNF mounting thread, it can be securely attached using screws, studs, or mounting studs. Furthermore, optional converters to M8 and M6 male threads provide additional flexibility, making it suitable for various mounting scenarios. WWW.MILLINGMEA.COM

SUSTAINABILITY

DSM-Firmenich’s feed additive achieves up to 42% enteric methane reduction from dairy cows FRANCE – A project conducted at Bel Group-supplying farms in France has shown ‘promising results’ about the rate of methane emissions reductions achieved by administering dsmfirmenich’s feed additive. For this pilot project, five farms that were representative of the diversity of feed distribution equipment, type of ration at the trough and distribution arrangements seen across APBO farms were selected for the pilot. Bovaer was added at a rate of around a quarter teaspoon a day to the diet of dairy cows. Bel technicians collected data and

analyzed samples of rations during the test. Experts from Idele, the French institute for livestock breeding, interpreted the data. The study revealed that under ideal conditions, enteric methane reduction ranged from 29% to 42% across different farms over the two-month period. The results corroborate existing evidence that suggest 30% methane reduction can be expected on average. Meanwhile, dsm-firmenich is currently developing a slow-release form of the product which should also enable Bovaer to be active during the hours when cows are out at pasture.

FUNDING

AFEX secures US$26.5M funding to enhance food security in Africa security. BII’s investment will be used to build 20 modern warehouses in strategic locations in Nigeria, Kenya, and Uganda. The additional warehouses will provide 230,000 MT of storage capacity, enabling up to 200,000 more farmers to access low-cost storage and maximise sales from crop harvests, potentially helping increase farmer incomes by more than 200 per cent.

NIGERIA - Nigeria-based commodities platform AFEX has raised US$26.5 million in funding from British International Investment (BII), the UK’s development finance institution (DFI) and impact investor. The Abuja-based AFEX is a platform business that enables efficient trade for commodities in Africa. Operating through three business units, AFEX addresses the challenges faced by smallholder farmers, providing better

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access to inputs, credit facilities, microinsurance, storage services, training, and markets. The company currently operates over 200 warehouses in Nigeria, Kenya, and Uganda, and serves over 450,000 farmers. It has now banked US$26.5 million in funding from BII, which will support structural improvements in Africa’s agricultural industry, significantly benefitting smallholder farmers and leading to improvements in food

BII'S INVESTMENT WILL BE USED TO BUILD 20 MODERN WAREHOUSES IN STRATEGIC LOCATIONS IN NIGERIA, KENYA, AND UGANDA.

OCT/NOV 2023 | MILLING MIDDLE EAST & AFRICA

SUPPLIER NEWS & INNOVATIONS

NEW PRODUCT

Kerry unveils new enzyme to extend shelf life of sweet baked goods

IRELAND - Kerry has announced the introduction of Biobake Fresh Rich, an enzyme that helps sweet baked goods retain their freshness for longer. The clean-label starch-acting

enzyme enables sweet baked goods containing more than 20% sugar to remain fresher for longer, significantly reducing food waste. It is designed to create a softer, more consistent and more flexible crumb structure with improved perceived moistness, enabling products to stay fresher for longer. Deborah Waters, product director for enzymes at Kerry, said: “Biobake Fresh Rich is a proven performer, maintaining product freshness, softness and moistness in high-sugar content products. This delivers significant benefits in reducing food waste by making the supply chain more robust and improving the sustainability profiles of bakeries.” Biobake Fresh Rich comes in a highly dispersible dry format, has a neutral taste and is suitable for kosher, halal, vegetarian and vegan product manufacture.

As this enzyme extends the shelf life of baked goods without compromising the quality of the product Kerry hopes to contribute to a more sustainable future by reducing the amount of baked goods which are thrown away by the consumer.

THE CLEANLABEL, STARCH ACTING ENZYME ENABLES SWEET BAKED GOODS CONTAINING MORE THAN 20% SUGAR TO REMAIN FRESHER FOR LONGER.

NEW PRODUCT

Benson Hill develops ‘breakthrough soybean varieties’ for use in pet food and animal feed USA - Benson Hill has unveiled novel proprietary soybean varieties for the pet food and animal feed markets to diversify the business and foster industry collaboration while complementing the company’s human food ingredient portfolio. Benson Hill’s proprietary CropOS® platform, which leverages artificial intelligence and data insights to drive innovation in agriculture, made the development of these innovative soybean varieties possible. The company conducted external analyses to identify three key value-adds that promise to benefit the Broadacre animal feed and pet food industries. Ultra-High Protein Low 64

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Oligosaccharide (UHP-LO) is the first key attribute of these soybean varieties. It offers cost-reduction benefits for producers and caters to the growing demand for high-protein feed formulations. Additionally, these soybeans have fewer anti-nutritional components, which support animal digestive health. Furthermore, they boast an improved amino acid profile, which reduces the need for synthetic amino acids in animal feed. Benson Hill plans to expand its UHPLO soybean offerings over the next two to three years, introducing herbicidetolerant and second-generation seed varieties. WWW.MILLINGMEA.COM

Danisco Animal Nutrition & Health

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AC TIVE PROTEC TION FOR YOU R B I RDS •

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PALSGAARD ® SA SERIES

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BRINGING GOOD THINGS TOGETHER

 Ensures soft, moist and delicious cakes  Convenient powder form – no need for refrigeration  Available from our warehouses across Africa  Produced in Denmark Find out more at www.palsgaard.com/egg-reduction