KENYA – Bidco Land O’Lakes, a joint venture between the oil refineries firm Bidco Africa and American Land O’Lakes has launched the first poultry centre in Mombasa, Kenya.
In partnership with Coast Animal Feeds, the venture will manage the centre serving as a one stop shop for farmers by providing quality feeds, supplements, information and educational resources on farming.
Land O’Lakes brings its expertise in feed quality and safety while Coast Animal Feeds may slot in its experience in customer basis, market and distribution networks at the Coast.
The collaboration will ensure availability of a range of products to dairy farmers in order to improve animal nutrition needs.
Bidco Africa entered a partnership with Land O’Lakes, a Minnesota-based agricultural cooperative back in March 2016 to capitalize on the potential growth of the agricultural markets in Kenya.
The two are leveraging their complementary animal feed portfolios to ensure improve feed, ensure optimal animal health and wellbeing, while ensuring improved yields for better agricultural productivity and food security.
New and emerging markets
For Land O’Lakes, the partnership was necessary in an expansion drive into new and emerging markets around the globe.
Speaking to FoodNavigator, a Land O’Lakes spokesperson said the firm was eying Africa as a high-potential growth market and the partners were expected to bring their complementary product ranges into the joint venture.
Bidco holds a popular brand in animal feeds in East Africa and has been seeking partnerships particularly in the US and abroad to deliver on increased value that is, promote animal health, boost yields.
It works with about 30,000 farmers in 17 countries in Africa and as part of their agreement, it was to offer market insights and distribution networks in East Africa.
Both companies have an equal ownership in the joint venture with feed development and sales focused on Kenya but expansion into the neighbouring countries was an issued to be pursued.
Land O’Lakes also holds a joint venture with Villa Crop Protection in South Africa offering crop input products.
Animal nutrition driving growth
In 2017, O’Lakes animal nutrition delivered growth of US$92m in pretax earnings driven by mergers including integration of WinField United that added new products on its portfolio.
Its animal nutrition venture in Kenya, Bidco Land O’Lakes unexpectedly grew 80% in 2016 with the American firm expressing intentions to expand the business to all of East Africa.