ETHIOPIA – Royal FrieslandCampina, the Netherlands based multinational dairy cooperative has joined forces with Holland-based Veris Investments to invest in Holland Dairy Ethiopia in an undisclosed cash injection.
Friesland Campina said they were investing in supply chain, production and market development as it seeks to expand its already existing presence in the Ethiopian dairy market, particularly in yogurt products.
The minority investment also means to enhance and extend their market presence with the help of Holland Dairy, which has a strong presence in yogurt, pasteurized milk and other dairy products in Ethiopia.
It operates a plant located in Debre Zeit, situated south of the capital Addis Ababa, has an integrated milk supply chain and sources its milk locally.
Established in 2009, Holland Dairy is a strong contributor to Ethiopia’s GDP all through increased availability of quality dairy products and improvement of the supply chain.
Veris Investments and Friesland Campina will provide growth capital and will assist Holland Dairy with determining the strategy for expansion and further improving the company.
FrieslandCampina already exports UHT under Dutch Lady brand and milk powder under Coast brand to Ethiopia and the investment strengthens its current export position, said the company in a statement.
Veris Investments is an independent investment company which makes equity and mezzanine investments in companies and projects with activities in the food value chain in Sub-Saharan Africa.
In 2017, revenues FrieslandCampina’s revenue was US$14.18 billion while that from Africa and Middle East division were reported to be US$1.2bn.
FrieslandCampina aims to boost sustainable milk output with a focus on animals, nature and the climate.
It announced a proposal to introduce a top dairy line to produce dairy with a lower CO2 equivalent and a high score on animal welfare and on biodiversity.