EAST AFRICA – Unga Group, a Kenyan-based holding company with investments in flour milling, manufacturing of human nutrition products and animal feeds, has received the green light to form two joint ventures with Dutch animal nutrition and aquafeed company, Nutreco International B.V., in Kenya and Uganda.
The two parties have received regulatory approvals, paving way for the formation of feed processing outfits, under the name Tunga Nutrition, aimed to meet the demand for high-quality animal nutrition products in the East African region.
Tunga Nutrition will leverage on assets contributed by Kenya-based Unga Farm Care (EA) Limited and Unga Millers Limited in Uganda, to be managed by Nutreco.
“After many years of working with Nutreco as a supplier, we are thrilled to have elevated our relationship to the next level through the Tunga ventures.
“Now is a critical time to increase feed and food production in the East African region, and alongside Nutreco we are confident we can help develop the market to keep up with demand,” Joseph Malel Choge, CEO at Unga said.
Under the deal, Tunga Nutrition Kenya will increase production capacity at its jointly owned fish feed plant in Nairobi to commercialize its products under the Skretting and Fugo brands.
Meanwhile Tunga Nutrition Uganda will make use of Unga Millers’ dormant flour mill in Kampala, converting it into a state-of-the-art feed mill producing animal feeds and concentrates. Its products will be sold under both Trouw Nutrition’s Hendrix and Unga’s Fugo Brands.
Deal strengthens Nutreco’s business lines
This announcement furthers Nutreco’s commitment to its purpose of Feeding the Future and will strengthen the footprint of its business lines, Trouw Nutrition and Skretting, in East Africa – a core focus region as it continues to expand globally.
“We are proud to be partnering with Unga Group, and working together to share our knowledge of the animal nutrition and aquaculture markets.
“Unga Group possesses great expertise in the East African region, and we are delighted to join forces as we look to meet the growing demand for high-quality protein there,” Pieter Bastiaanssen, managing director Middle East & Africa at Nutreco said.
Nutreco entered Africa in 2001 by acquiring a share of the Egyptian company Hendrix Misr, which came under full ownership in 2013 and was renamed Skretting Egypt.
The company extended its presence in 2014 through a fish feed joint venture in Nigeria, and, in 2016, it also started a fish feed joint venture in Zambia.
The JV makes executive appointments
In a bid to streamline the operations, Tunga Nutrition will have new senior management teams in Kenya and Uganda, bringing together the expertise of both Nutreco and Unga, strengthening their commitment and communication as partners.
In Kenya, Harrison Juma will take the role of general manager, while Jennifer Wangari Githuku joins the team as finance manager.
In the first phase of hires in Uganda, Pieter Bastiaanssen will take the role of general manager A.I, and TC Chido, the current controller of Skretting Nigeria, will be appointed project manager.
This partnership will bring significant investment to the Eastern African region, and support both Kenya and Uganda in meeting the rising demand for high-quality protein.
The population in East Africa is expected to double from 170 million to 340 million by 2050, and the Tunga ventures will help meet the corresponding increased demand for aquaculture and agricultural produce to feed the growing population.
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