Ethiopia beefs up edible oil production with launch of new US$114m processing plant

ETHIOPIA – WA Group, Ethiopian multi-sectoral company has set the turbines rolling at its newly built Birr 5 billion (US$114m) edible oil processing plant. The recent investment is a move by the company from importation of edible oil into the country, to refining of crude palm oil imported from abroad, and crushing of locally sourced oil seeds such as niger seed, sesame seed, peanut, soya bean, and haricot bean. WA Oil Factory, located in Amhara Regional State, has the processing capacity of 1.3 million litres of edible oil daily. According…

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Zambian palm oil processor Zampalm increases local production while regulatory body ZABS supports cashew farmers

ZAMBIA – Zampalm, subsidiary of Zambia’s national development finance institution, the Industrial Development Corporation (IDC), is seeking to boost production of crude palm oil in the country, by on-boarding 1,000 beneficiaries into its out-grower scheme. The oil palm out grower scheme, was commissioned in 2019 by President Edgar Chagwa Lungu, to increase domestic production of palm oil and its by- products, in a bid to meet the rising local demand. According to Zampalm General Manager, David Subakanya, the processor targets to cultivate over 5,000 hectares by 2025 through the out-grower…

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Nigeria set to welcome coconut oil processing factory aimed to boost the economy

NIGERIA – Nigeria is nearing completion of the new coconut oil processing factory in Akwa Ibom State, Southern part of the country. The facility known as Gabriel’s Coconut factory, is set to commence operations in September this year. This was revealed by the State Governor, Udom Emmanuel, while inspecting the installation of production lines at the factory. According to the state government, the plant will have a processing capacity of 300,000 coconuts per shift, translated to an out-put of 66 tons in a day from three shifts of production. To…

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Nigeria’s Agvest Limited to list US$12.1m cashew nut contracts to raise funds for expansion

NIGERIA – Agvest Limited, Nigerian agricultural value chain player, is seeking to list cashew nut contracts worth N5 billion (US$12.1m) through diversified financial instruments. The AgGroup is a group of interrelated companies with investments primarily along various crop and livestock value chains of the agricultural sector. Its investments span across microfinance, fund management, farming, food processing, communication and food retail/distribution. In readiness for the listing, Lagos Commodities and Futures Exchange (LCFE) has successfully screened the frontline player. According to reports by This Day Live, financial instruments worth N1.5 billion (US$3.6m)…

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Kenyan firm Sasini bounces back to profitability despite decline in half year revenue

KENYA – Sasini, a Kenyan agricultural firm that produces and exports tea, coffee, macadamia and avocado has bounced back to profitability, posting a net profit of Ksh.122million (US$1.13m) in half-year period ended March 31 2021, a recovery from a Ksh13 million (US$121,000) loss attained in the same period last year. The firm, according to reports by Citizen Kenya, attributes the improved performance to gains from non-sales income, with the group ‘s operating activities yielding in gains of Ksh.177.9 million (US$1.66m) from a loss of Ksh.7.3 million (US$68,000) previously. The growth…

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Global oilseed production to grow 5 percent in 2021/22 buoyed by rise in soybean output in the Americas

GLOBAL – The global oilseed production is forecast to grow 5 percent in 2021/22, primarily on growth in soybean output in the United States and South America, according to a recently released report by USDA. The USDA projects that about 632 million tons of oil seeds will be produced during the year under review due to record plantings. Soybean production is forecast to rise 23 million tons to 386 million, a 6-percent increase while production of all oilseeds is forecast to increase, with all but cottonseed and rapeseed reaching at…

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State-owned TADB seeks to partner with local cashew nut, grapes sub-sector players to enhance productivity

TANZANIA – Recognizing the opportunity in the cashew and grapes sub-sector, the Tanzania Agricultural Development Bank (TADB) is setting out to support investment in the sub-sectors through a Processor – Producer Partnership Project. To this end TADB has called for submission of proposal from sector players who will follow a market-led and demand driven private sector development approach. In line with the bank’s Integrated Agricultural Value Chain Financing (IVCF) Model, key stakeholders in the project will include producer groups (smallholder farmers, women and the youth), input and technology suppliers, research…

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IFC, FMO to back Tunisian olive oil producer CHO Company with US$14m financing

TUNISIA – One of Tunisia’s largest olive oil producers, CHO Company is eyeing €12 million (US$14.4m) long-term financing facility from the International Finance Corporation (IFC)and Dutch development finance institution FMO. The proposed debt will finance the company’s permanent working capital and capital expenditures to support its strategy to increase its sales of bottled olive oil. “CHO’s overall goals through this project are its contribution to preserving linkages with farmers, maintaining jobs, and domestic value addition,” indicates FMO. The project’s contribution to market resilience will be through building capacity along the…

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Alliance Ginneries Limited invests US$11m in construction of soybean oil processing plant in Zambia

ZAMBIA – Alliance Ginneries Limited (AGL), a cotton ginning company operating in Southern Africa is seeking to diversify its operation by venturing into soybean oil extraction and refining. The company has commenced construction work for its new processing plant in Lusaka, Zambia to cost US$11m. The invested amount was raised by the company through impact investment. This was revealed by Prospero Zambia, a UKaid-funded private sector development entity, who supported Alliance Ginneries to close the deal. “Prospero is happy to have supported Alliance Ginneries with investment readiness technical assistance to…

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Egypt’s local production of edible oil, meal to rise following expansion of crushing capacity

EGYPT – Egypt to continue relying on oil seed imports as a result of expansion of its crushing industry and local production being far below demand levels. The main oil seeds utilized in the country for production of both edible oils and animal feeds are soybeans and sunflower seeds. In marketing year (MY) 2021/22, production of soybeans is expected to be 25,000 metric tons (MT), against local demand of 4.64 million metric tons (MMT), according USDA Foreign Agricultural Services in a GAIN report. The consumption rate is 2.2 percent up…

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