Unga Group partners with Dutch Nutreco to establish JVs in Kenya, Uganda

KENYA – Unga Group, a Kenyan-based holding company with investments in flour milling and manufacturing of human nutrition products and animal feeds, has forged an investment agreement with Nutreco International B.V. to establish joint venture companies in Kenya and Uganda through its subsidiaries Unga Farm Care and Unga Millers. Under the agreement, Unga Farm Care, the region’s leading manufacturer and marketer of a broad portfolio of quality animal nutrition and health products, will invest in the establishment of a 50:50 joint venture company in Kenya with the Dutch animal nutrition…

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Grupo Bimbo posts strong Q2 results, sells AI-focused subsidiary to Mekitec

MEXICO – Mexican multinational baking company Grupo Bimbo has reported strong Q2 results where net sales grew 6.6% driven volume growth in multiple categories, mainly snacks, confectionery, buns and rolls, and pastries.  During the quarter ending June 30th, Grupo Bimbo generated record profits while boosting return on equity by 280 basis points.  Regionally, the company’s North American business remained resilient amid a pandemic and managed to deliver sales growth of 0.9% buoyed by a strong delivery of the group’s branded business led by sweet baked goods, buns and rolls, and snacks.  In Mexico, sales rose 14.7%, attributable…

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Bunge raises full year outlook as Ardent Mills’ earnings rise sharply in Q2

US – Missouri-based oilseed processor Bunge has raised its fiscal-year outlook for a second time this year following an impressive first half that included a strong performance in Refined and Specialty Oils.  The company reported six-month net sales of US$28.35 billion, a 52% jump from $18.64 billion achieved in the same time of the previous year.  Over the first six months of the 2021 fiscal year, Bunge reported a net income of US$1.19 billion, or US$7.85 per share on the common stock, which more than tripled the net income of US$332 million achieved…

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Flour Mills of Nigeria showcases amazing top line performance in first quarter as it remains profitable

NIGERIA – Flour Mills of Nigeria (FMN) Plc, one of Nigeria’s leading food and agro-allied companies, has started the year with a bang announcing a 51% growth in first quarter revenue. According to the manufacturing giant, its revenue rose from N154.6 billion (US$375.7m) attained in Q1 of 2020/21 to N233.7 billion (US$567.9m). The company attributed the growth to bullish performance across all business segments underpinned by sustained demand in agro-allied, particularly in its edible oils and fertilizer businesses, and continued improvements in the food segment. In the Agro-allied division, the…

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Favourable weather drives up grain production in Bangladesh, Argentina and Australia

GLOBAL – Bangladesh, Argentina, and Australia are set to record bumper grain harvests in the marketing year (MY) 2021/22 thanks to a mixture of factors including favorable weather conditions, moderate precipitation during the planting and growing stages, and a higher total grain production area.  In Bangladesh, rice production in MY 2021/22 is forecast to increase to 36.2 million metric tons (MMT) of milled rice production, according to recently released GAIN reports.   In the report, USDA analysts noted that favorable weather and moderate precipitation during the planting and growing stages of Aus rice were responsible for these higher…

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Seed Co establishes US$12m drying plant in Zimbabwe enhancing availability of seeds in market

ZIMBABWE – Seed producer, Seed Co Zimbabwe has completed setting up its new US$12 million artificial seed drying plant at Stapleford, Mt Hampden, Zimbabwe which will enhance early seed availability for sale post-harvest. The group is also looking at increasing the capacity of the artificial seed drying facility in Harare, as well as replicating it in the region, reports The Herald. Seed Co Chief Executive Morgan Nzwere said, “The artificial seed drying plant was successfully completed at Stapleford, which can do 5,000 tonnes. It will allow us to service early…

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Angolan milling company GMA readies second phase of Lobito’s wheat flour mill construction

ANGOLA – Grandes Moagens de Angola, subsidiary of one of Angola’s leading players in soft commodities and FMCG (fast-moving consumer goods), Webcor, has completed construction of the first phase of its wheat flour mill in Lobito. According to the parent company, construction of Lobito mill began in November 2018 and included the reconstruction of a colonial-era silo, installation of new metal silos, and cleaning and transportation equipment. The silos, with a total storage capacity of 66,000 tons of grain, can unload grain ships at up to 300 tons per hour…

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Ebro Foods to offload French dry pasta business in US$648m deal with CVC Capital Partners

FRANCE – Spanish pasta maker Ebro Foods is selling its Panzani dry pasta, couscous, sauces, and semolina business in France to CVC Capital Partners VIII as part of efforts to refocus its resources and energies to its fresh pasta and convenience businesses.   Ebro Foods has been offloading businesses not aligned with its focus on premium fresh pasta offerings with divestitures in Canada and the United States being some of the latest by the company.  In December 2020, Ebro’s Riviana Foods subsidiary sold its US branded pasta portfolio including San Giorgio and Creamette to TreeHouse Foods; while the company recently finalised its divestment of the Ronzoni…

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Unga Holdings seeks to offload assets of bakery unit to cold chain logistic firm BigCold

KENYA – Unga Group, a Kenyan-based holding company with investments in flour milling and manufacturing of human nutrition products and animal feeds has entered into an asset purchase agreement with Bigcold Kenya Limited for its subsidiary Ennsvalley Bakery Limited, as it seeks to cut costs and improve efficiency. The leading milling and baked goods company has indicated that the transaction is subject to meeting certain conditions prior to completion. “Following discussion, BigCold Kenya Limited and Ennsvalley Bakery Limited have entered into an asset purchase agreement on July 26, under which,…

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Nestlé invests US$70m to expand US facility as Undercover Snacks secures funds to grow ‘better-for-you’ snack brand

USA – Swiss-based food manufacturing giant Nestle has unveiled plans to invest US$70 million in expanding its facility in Burlington, Food Business News has reported.   Lauren Rubbo, a spokesperson at Nestle said that the expansion will lead to the addition of four new lines, new technology and infrastructure designed for refrigerated cookie dough.  According to the report, the plant, which for many years produced candy bars such as 100 Grand, Nestle Crunch and Buncha Crunch, will be retooled to begin production of Nestle Toll House refrigerated cookie dough.  The Burlington plant was not included in…

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