Ethiopia set to build US$193.7m Integrated Agro- Industrial Park, fostering economic growth

ETHIOPIA – The Oromia Industrial Parks Development Corporation of Ethiopia has signed an agreement worth Birr 7.8 billion (US$193.7m), to build a 250ha agricultural processing park in the western highland province of Oromia. The agreement was signed by Sisay Gemechu, head of the Ethiopian Industrial Parks Development Corporation, and Dereje Ermias, head of the Walabu Construction Share Company, a contractor based in Oromia. According to reports by Ethiopia News Agency, the entire budget required for the construction of the park will fully be covered by the regional government and it…

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Kenyan tomato farmers to benefit from US$3.9m processing facility, to be operational by 2022

KENYA – The government of Kenya is investing Ksh. 430 million (US$3.9m) to build a tomato processing factory in Loitok tok, Kajiado County, one of the country’s food basket. According to reports by Business Daily, the establishment of the facility is funded by the national government under the Ewaso Ng’iro South Development Authority (ENSDA). It is expected to be up running by the end of 2022, promoting value addition of the crop, in a bid to curb post-harvest losses and reap more benefit in the market both locally and abroad.…

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Britain’s First Milk to produce more cheese and whey following US$15m capacity expansion

UK – British dairy cooperative First Milk has announced plans to invest £12.5 million (about US$15 million) in two cheese and whey production sites in the UK. According to the dairy cooperative, the capital investment will provide additional processing capacity to meet the growing needs of customers in the UK and export markets. A significant proportion of the investment will go towards the expansion of its Lake District Creamery in Aspatria, Cumbria. The Cumbria facility will receive £9 million ( about US$10.86 million) for the installation of new high-capacity cheese…

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US retail giant Target to spend US$4bn annually to expand e-commerce capabilities

US – American retail corporation Target has announced plans to spend US$4 billion annually over the next several years to upgrades stores and strengthens its online business. The store upgrades are aimed at cementing the gains made during the pandemic that led to blowout holiday quarter results. The number 8 largest retail in the US has over the last year used its retail outlets as fulfillment centers for online orders. This drastically cut delivery times and enabled it to swipe market share from smaller rivals who rely more on their…

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Corbion expands lactic acid capacity to meet rising demand for natural food preservatives

NETHERLANDS – Dutch food and biochemicals company Corbion is launching an initiative to increase its capacity for producing lactic acid and lactic-acid derivatives in response to rising demand for natural food preservation solutions. The expansion also ties into Corbion’s five-year business strategy that sharpens the supplier’s focus on food preservation and production strategies as well as health and environmental sustainability. The global drive is expected to produce a combined additional output roughly equivalent to a new production site without actually having to build one  It also involves capital expenditures at…

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Danone CEO to step down even as the French dairy invests in Spain

FRANCE –Emmanuel Faber, Chief Executive Officer (CEO) and President of the French dairy multinational Danone, will step down from his role as CEO after the company’s board voted to  separate the chairman and CEO roles. A statement from the dairy giant stated that Faber will stay on in his current positions at Danone until a new CEO is found and then become non-executive chairman. The maker of Oikos dairy yogurt has been under fire by several activist investors in recent months who have called for changes in leadership amid a…

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Global shipping company Hapag-Lloyd expands presence in Africa, opens office in Kenya

KENYA – Hapag-Lloyd, one of the world’s leading liner shipping companies has announced the opening of a new office in Kenya as part of its growth strategy in Africa. The German shipping company mainly transports agricultural goods out of Kenya, especially tea, coffee, fruits and textiles, and ships in chemicals, foodstuffs and a wide range of goods made of plastic or rubber. Setting base at East Africa’s largest economy, Hapag-Lloyd’s main business in Kenya will be managed from the port city of Mombasa served by 19 staff members and supported…

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Kellogg to shut down two production lines in Ohio even as it launches a new cheese-flavoured popcorn snack

US – The Kellogg Company has announced plans to shut down two production lines at its Mariemont, Ohio, plant, in a bid to strengthen its salty snacks business. “While this would be the right thing to do for the business, it is never an easy decision to make when people are impacted,” Kellogg Spokesperson, Kris Bahner said. Bahner added that when the planned changes are complete, the Ohio plant will continue to produce a number of Kellogg cracker brands. The company will meanwhile add a new line and reconfigure another…

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2020: A Review: Investments in new plants continue in Africa but Covid-19 impacts pace

Africa’s food and beverage market is worth more than US$313 billion and is projected to reach US$1 trillion by 2030. To spearhead growth, players in the industry have been raking in huge amounts of investments channelled towards upgrading facilities and systems, product innovations, expansions, technological advancements, among many others, with the anticipation of more efficient and cost-effective operations, which ensure higher returns and leadership in the market place. By Catherine Wanjiku Nigeria In Nigeria both local companies and multinationals with subsidiaries in the country invested in their organizations and the…

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2020: A Review: Covid-19 knocks the sail on deals in 2020 but Africa’s food industry remains positive

Deals are the lingo of businesses and the food and beverage industry in Africa had its fair share in 2020. Despite the pandemic, companies found ways to streamline their operations with the clinching of extra funding, acquiring and merging businesses, forming strategic partnerships and in some instances divesting to accelerate growth and create synergies in operations. By Catherine Wanjiku January January started with the government of Rwanda offloading 98.3% shareholding in Burera Diary Limited to African Solutions Private Ltd (Afrisol), a Zimbabwean firm. Burera Diary Ltd was one of three…

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