KENYA – DOB Equity has taken up a stake in the dairy at a publicly undisclosed value as part of a commitment to increase social impact investment deals in Kenya.
Countryside Dairy is an integrated milk processing company with a high-quality processing plant and an installed processing capacity of 100,000 litres daily.
The dairy company’s business model is based on serving the underserved low-income segment of the populations.
“Our latest deal in the East African dairy sector will allow Countryside Dairy to beef up its supply chain and offer better purchase prices to farmers while guaranteeing product traceability,” said Brigit van Dijk-van de Reijt, CEO of DOB Equity.
Countryside Dairy currently distributes its flagship Countryside Dairy Fresh milk product to markets in Nairobi, Eldoret and Nakuru.
It also has plans for retail milk products that would guarantee low-income consumers access to high-quality, fresh milk products at lower prices.
Dairy Managing Director of the dairy company, George Mwangi, said the entry of DOB Equity will help to further boost the firm’s efforts to enhance value for Kenyan Dairy farmers.
“DOB Equity’s investment has come at a crucial growth stage for Countryside Dairy and will allow us to create innovative marketing concepts for dairy products aimed at the low-income segment of the population stressing that low-cost, high-quality milk plays an essential role as a key part of a healthy diet.”
Saskia van der Mast, Investment Manager at DOB Equity, said the formal market for processed milk is still in its infancy and valued at only $570 million, with an estimated potential value of $2.8 billion annually as the dairy market matures.
“Currently, only 13% of total milk products are traded formally,” said Van der Mast.