KENYA – AgDevCo, a specialist agricultural investor, has invested US$9.5 million in Agventure, a Kenyan farmer-owned canola oil processor and producer of wholesome food products.
AgDevCo’s mezzanine loan will enable the company to continue to develop its canola oil production capabilities, allowing the company to increase its volumes purchased from outgrower farmers.
It will also help to build Agventure Seed’s platform to supply high quality certified seed to farmers. Agventure its sells canola oil under the Pure Mountain brand in Kenya.
Agventure’s CEO, Don White, said, “Agventure is looking forward to working with AgDevCo to expand and strengthen our business and in doing so expand availability of regenerative agriculture solutions to many more farmers”.
The seed oil company was established in 2010 with the mission of enabling Kenyan farmers to develop more sustainable farming practices.
The company consists of a collective of farmers, researchers, educators, and entrepreneurs working to model, promote, and share regenerative production methods throughout the food system.
AgDevCo’s Managing Director for East Africa, Rebecca Sankar, said the investment will support Agventure in its journey to add more value commodity crops, which increases the availability of high quality, locally produced food for the domestic market and reduces reliance on imports.
Canola oil is renowned for its low saturated fat content, making it a heart-healthy option. It contains a high proportion of monounsaturated and polyunsaturated fats, including omega-3 fatty acids.
Along with this, the high smoking point and neutral flavor of canola oil make it versatile in the kitchen, suitable for various cooking methods, including frying, sautéing, and baking, without breaking down or imparting unwanted flavors to the food.
In line with this, the escalating demand for non-GMO and organic canola oil offerings is strengthening the growth of the market.
The edible oil market in Kenya is reported to have generated approximately US$0.54 billion in revenue in 2023. With the anticipated market growth, revenue is expected to reach US$0.95 billion by 2028.
This indicates significant potential for revenue generation within the industry. Kenya currently produces only 80,000 metric tonnes of edible oil annually, while the national demand stands at over 900,000 metric tonnes.
This translates to a local production deficit of 91%, highlighting a significant reliance on imports.
According to IMARC Group, the global canola oil market size reached 28.8 million Tons in 2023 and is projected to reach 32.2 Million Tons by 2032, exhibiting a growth rate (CAGR) of 1.1% during 2024-2032.
The market is witnessing consistent growth, driven by the health benefits associated with the regular use of canola oil in cooking.
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