KENYA – The Dangote Group of companies is to set up a multi-billion-shilling powder milk plant in Kenya.

The conglomerate is looking at possibilities of exploiting the rich Kenyan dairy sector and the precise position, to set up a factory that would process dry milk for the Nigerian market, according to group vice-president Sani Dangote.

“We will process the milk and have it shipped to Nigeria: We are first commencing with a full study to understand the value chain of the Kenyan dairy market and to evaluate the costs involved in running a full plant.”

Mr Dangote said that the Nigerian market relied on a beverage company that imports in excess of 4,000 tonnes of powder milk annually.

The company imports an estimated Sh1 billion worth of milk, which was still insufficient, he said.

Mr Dangote said there was minimal local production of milk in the country, hence the increase in consumption of powder milk.

He spoke Thursday during a Kenya-Nigeria agribusiness meeting in Nairobi. The talks were intended to boost trade between the two countries in agriculture.

September 11, 2014;–milk-factory/-/996/2449702/-/10i0hsj/-/index.html