START-UPS FEATURE
Mama's Gold
COMMODITIES UPDATE
Oat consumption in Africa
FORMULATIONS
Composite Flours
COUNTRY FOCUS
Saudi Arabia
EVENT REVIEW
AFMASS Food Manufacturing Expo 2024
Buhler's Grain Processimg Innovation Innovation Center
Nelson Carrinho, CEO of Carrinho Group, on how the company's food parks enable Angola’s food security
• Ghana invests US$70M in new grain silo to bolster food security amid drought
• FAO reports marginal decline in August food prices amid global grain market shifts
• Tiger Brands extends CEO Tjaart Kruger’s tenure by 3 years
• General Mills faces major flour recall amid E. Coli concerns
• DRC bans Zambian maize flour over aflatoxin concerns
• Kenya, Israel plan 25-year lease for large-scale wheat production
• Zamseed showcases new wheat varieties, expands seed availability in Zimbabwe
• WK Kellogg emerges stronger after spin-off, focuses on cereal growth
• Symaga to upgrade silo steel for enhanced quality and sustainability
• Bühler acquires Esau & Hueber to enhance expertise in fermentation, hygienic processing technology
• Cargill expands presence in U.S. feed market with acquisition of two feed mills
• Scoular completes US$20M expansion of Idaho feed facility
• Fitch upgrades Bunge’s rating as merger with Viterra moves closer to completion
• Türkiye’s IFF R&D Center achieves Ministry of Industry and Technology certification
• ADM wins 2024 Sustainability Leadership Award for commitment, environmental responsibility
The grains and milling industry remains the cornerstone of global food security, especially in Africa. However, shifting climate patterns and the increasing frequency of climaterelated events like El Niño have significantly impacted agricultural production across the continent. These disruptions are compounded by the emergence of climate-resilient molds, which are responsible for producing harmful mycotoxins—a serious threat to the grain sector. In response, many African nations, including Zambia, the Democratic Republic of Congo, and Malawi, have imposed strict measures, such as banning the importation, marketing, and distribution of contaminated grains. While these actions safeguard public health, they also disrupt trade.
Despite these challenges, the grain industry is fighting back, adopting various strategies to adapt to the new climate realities. These efforts include developing climatesmart crop varieties, embracing genetically modified seeds, investing in irrigation infrastructure, and ensuring the smooth flow of agricultural produce from farm to fork. Among the most innovative solutions are food parks, which are fast becoming critical hubs for modernizing food processing, reducing waste, and bolstering food security across Africa.
In this issue, we spotlight a groundbreaking initiative: Carrinho Group, one of Angola’s largest food parks, is revolutionizing the Angola’s food sector. Carrinho Group has become a game changer in Angola’s pursuit of food security by fostering innovation, streamlining supply chains, and creating employment opportunities. With cutting-edge infrastructure and shared resources, this food park is setting a new standard for Africa's food systems. “As Africa grapples with post-harvest losses and rising demand for nutritious food, Carrinho Group’s approach provides a blueprint for the future of food systems on the continent,” said Nelson Carrinho, CEO of Carrinho Group.
Also, in this edition, we delve into the world of baking with a Baking Tech MEA insert, exploring the role of innovation in this age-old craft. Lilian Nyareru, Founder
and CEO of MAMA'S GOLD, discusses her passion for maternal health and how her lactation cookies are transforming lives. In addition, we tackle the complexities of food additives in the baking industry, addressing the safety concerns that bakers across Africa face, particularly with additives.
This issue is brimming with insights, including a special feature on Saudi Arabia’s evolving agricultural landscape, the power of composite flours driving insights from a panel of nutritional experts, and why oat consumption is on the surge in Africa.
We hope you find this edition informative and inspiring as we collectively work towards a more resilient and sustainable future for the milling sector.
Stay informed. Stay inspired.
Martha Kuria Senior Editor MMEA
EAST & AFRICA
Year 3 | Issue No.10 July-August 2024
FOUNDER & PUBLISHER
Francis Juma
SENIOR EDITOR
Martha Kuria
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Wangari Kamau, Yegon Kipngetich
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Burkhard Böndel
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Vivian Kebabe
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Clare Ngode
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Monica Wachio
ACCOUNTS
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GHANA – The Ghanaian government has set aside US$70 million to construct a new grain silo with a 60,000-tonne capacity in the northern part of the country.
This project, announced by the Minister of Food and Agriculture, Bryan Acheampong, aims to strengthen the nation’s food security infrastructure in response to the severe drought affecting the region.
The silo, which is the first of its kind in Ghana, is expected to be completed within 12 months and will serve as a strategic reserve to safeguard against future climate-related disruptions.
The initiative is critical as the ongoing drought has severely impacted agricultural production, particularly in the northern regions, which account for over 60% of Ghana’s cereal output.
The severe drought has affected over 435,000 farmers across eight regions— Northern, North East, Bono, Bono East, Oti, Savannah, Upper East, and Upper West. These areas are crucial for Ghana’s food supply, and the drought has severely impacted staple crops such
as maize, rice, sorghum, groundnut, millet, and yam, leading to significant economic losses.
The new storage facility is intended to help stabilize food supplies by storing surplus grains that can be used during periods of scarcity.
FAO reports marginal decline in August food prices amid global grain
GLOBAL –
The FAO Food Price Index, which tracks monthly changes in the international prices of a basket of globally traded food commodities, averaged 120.7 points in August, down slightly from the revised July figure and 1.1% below its value in August 2023.
The FAO Cereal Price Index dropped by 0.5% from July, driven by lower global wheat export prices amid competitively priced Black Sea supplies and higherthan-expected production in Argentina and the United States. Conversely, world maize prices edged up due to the impact of heatwaves on yields in parts of Europe and North America.
The FAO All-Rice Price Index increased by 0.6%, with higher quotations for non-Indica varieties, reflecting seasonal tightness and currency appreciations of some
exporting countries against the US dollar.
Despite these declines, global trade dynamics reveal a complex landscape. The FAO Vegetable Oil Price Index rose by 0.8% from July to reach a 20-month high, as rising international palm oil prices more than offset declines in soy, sunflower, and rapeseed oil quotations.
The global cereal total utilization for the 2024-25 season is forecast to rise slightly to 2.852 billion tonnes, marking a 0.2% increase from the previous season. The projected rise is driven by a record-high utilization of rice, reflecting accelerated growth in food intake demand. Meanwhile, world cereal stocks are forecast to expand by 1.2% by the end of the 2024-25 season, resulting in a global cereal stocks-to-use ratio of 30.7%.
AFRICA MILLING & BAKING EXPO
EASTERN AFRICA
Nairobi, Kenya - June 12-14, 2024
AFRICA MILLING & BAKING EXPO UGANDA
Kampala, UgandaSeptember 3-5, 2024
AFRICA MILLING & BAKING EXPO
WESTERN AFRICA
Lagos, Nigeria - September 17-19, 2024
EGYPT – Egypt’s recent decision to place its largest-ever wheat order, totaling 3.8 million tonnes, has set the stage for Russia further to solidify its position in the global wheat market.
According to trade analysts, as one of the world’s largest wheat importers, Egypt’s shift in its purchasing strategy towards Russia and other non-European exporters means that Russia stands to gain significantly from this development.
A weak rouble bolsters Russia’s ability to offer wheat at highly competitive prices, enhancing its appeal to price-sensitive buyers.
The currency’s devaluation has allowed Russian exporters to undercut European competitors, making Russian wheat more attractive to importers
facing economic pressures.
This competitive edge is crucial in the wake of reduced output from EU countries, particularly France,
which has seen a sharp decline in its wheat exports due to a poor harvest. As a result, EU soft wheat exports are projected to fall from an average of 35 million tonnes to just 26 million tonnes this year, a 9 million tonne decrease.
Russia’s ability to offer wheat at highly competitive prices is bolstered by a weak rouble, which enhances its appeal to price-sensitive buyers. This competitive edge is crucial in the wake of reduced output from EU countries, particularly France, which has seen a sharp decline in its wheat exports due to a poor harvest. As a result, EU soft wheat exports are projected to fall from an average of 35 million tonnes to just 26 million tonnes this year, a 9 million tonne decrease.
with E. coli to ensure consumer safety.
This recall has since expanded as investigations linked multiple batches of Gold Medal Flour to reported illnesses across the United States. The recall was prompted after the Centers for Disease Control and Prevention (CDC) identified 63 cases of E. coli infections in 24 states, with 17 individuals hospitalised.
Fortunately, there have been no reported fatalities associated with this outbreak. General Mills responded promptly, stating, “We are committed to providing safe products to our consumers and are taking this precautionary measure to ensure their health and safety.”
The initial recall involved specific batches of Gold Medal Flour, Gold Medal Wondra Flour, and Signature Kitchens Flour. As the investigation progressed, it became clear that more products were affected, leading to two additional recall announcements on July 1 and July 25 this year.
“Trust between ingredient suppliers,
food manufacturers, and consumers is vital, and trust is easy to lose,” remarked Michael DeAngelis, a nutrition director at Porter Novelli.
The recall has prompted General Mills to enhance its food safety protocols and thoroughly review its supply chain practices.
THE RECALL WAS PROMPTED AFTER THE CENTERS FOR DISEASE CONTROL AND PREVENTION (CDC) IDENTIFIED 63 CASES OF E. COLI INFECTIONS IN 24 STATES, WITH 17 INDIVIDUALS HOSPITALISED.
SOUTH AFRICA – Tiger Brands Limited, a South African packaged goods company, has extended the tenure of newly-appointed CEO and executive director, Tjaart Kruger, for an additional three years.
In October, the board of Tiger Brands appointed Kruger as CEO and executive director of Tiger Brands for a 26-months period starting on November 1, 2023.
Kruger will now serve as chief executive until 31 December 2028. He replace Doyle at a time when the company was South African agri-food industry faces numerous challenges.
Tiger Brands said: “The decision is premised on Tjaart’s positive progress to date with the group’s long-term strategic turnaround plan, including the appointment of new executive
managing directors for the six operating divisions, implementation of a new operating model, as well as progress with regards to the group culture and staff engagement.”
“”The group added it “believes that this decision will provide leadership certainty to Tiger Brands’ multiple stakeholders and the necessary runway for the group’s succession plans.”
In the company’s most recent interim results, Tiger Brands’ revenue fell from R19.4bn to R19.2bn in the six months to 31 March 2024. The business said at the time the fall was “driven by price inflation of 8%, offset by a reduction in volumes of 9%. Meanwhile, group operating income decreased 3% to R1.3bn. However, profit for the period was up from R1.2bn to R1.4bn.
GHANA - Ghana is confronting a critical maize shortage for the 2024/2025 season, with projections indicating a 36% decline in production to about 2.3 million tonnes, according to the United States Department of Agriculture (USDA).
This significant drop from last year's 3.4 million tonnes raises alarms about food security in a nation where maize is a
staple for many. The drought affecting key agricultural regions, particularly in the north, has severely hindered planting and crop development.
“We are seeing the worst of the climatic conditions in the north, which threatens not only local farmers’ livelihoods but also national food security,” stated a spokesperson from the Ministry of Food and Agriculture.In response to the escalating crisis, the Ghanaian
government has banned maize exports to ensure sufficient domestic supply. The USDA anticipates that maize consumption will reach 3.5 million tonnes this season, with over 80% allocated for human consumption.
The drought has also led to soaring maize prices; Eric Manteaw from the Association of Feed Millers reported an increase from GH¢200 (US$17.86) per 50 kg bag in January to GH¢360 (US$32.14) currently—an 80% rise.
Lawrence A. Tetteh from the Ghana Poultry Farmers Association warned that poultry prices could surge during the festive season without adequate domestic production. The government is exploring emergency relief options and potential imports to stabilise local markets as it grapples with this dual threat to food security and agricultural sustainability.
land
after discussions between Musalia Mudavadi, Kenya’s Foreign Affairs Minister, and Avi Dichter, Israel’s Agriculture Minister, during which they outlined plans for Israeli investment in thousands of hectares in Kenya.
“This is a private-private arrangement that will be guaranteed by the two governments by providing necessary logistics and a conducive environment,” Mudavadi said in a statement.
The agreement, a private-private arrangement guaranteed by both governments, involves a 25-year farming deal on large tracts of arable land in Kenya. It aims to mitigate Israel’s declining food production, partly due to external factors like the war in Ukraine. Under the partnership, Israeli investors will work with local farmers to boost wheat supply using Israel’s advanced agricultural technologies to lower production costs and enhance
productivity.
This initiative comes after the failure of the Israeli-led maize project at the Galana-Kulalu irrigation scheme, which had sought to enhance food security but was plagued by mismanagement and corruption. However, the renewed partnership aligns with Kenya’s 2022 policy to commercialize large-scale agricultural activities on public land in a move to boost food security.
ZAMBIA —Zambia Seed Company Limited (Zamseed), the leading and oldest seed producer in Zambia, has committed to strengthening its position in the agricultural sector with new climatesmart wheat varieties. On August 27, Zamseed hosted a wheat demonstration day to introduce its new wheat varieties, Harrier and Falcon, launched since its 2018 investment.
The workshop highlighted the Harrier variety’s high yield potential and resilience against lodging and the Falcon variety’s superior grain quality, higher protein and gluten content, and unique resistance to bird damage due to its long horns.These advancements are expected to benefit Zambian farmers by offering robust, higher-yielding wheat options,
contributing to the country’s agricultural growth.
Meanwhile, Zamseed has formalized a partnership with Intaba Trading, a leading Zimbabwean agro-input distributor, to enhance the availability of certifiedquality seeds in the Country.
This collaboration integrates Zamseed’s extensive research capabilities with Intaba’s robust distribution network, promising a consistent supply of highquality seeds to farmers throughout the region.
Both companies will collaborate on training programs and support initiatives designed to empower farmers with the knowledge and resources needed to maximize the benefits of Zamseed’s varieties.
CÔTE D’IVOIRE - Côte d’Ivoire has significantly enhanced its rice production capabilities by signing a memorandum of understanding (MoU) with South Korea’s Saemaul Foundation. This partnership aims to address the country's low rice output, which currently meets less than half of its consumption needs. Agriculture Minister Kobenan Kouassi Adjoumani expressed confidence that the National Strategy for the Development of the Rice Sector (SNDR 2) will lead to selfsufficiency in rice, stating, “We are confident that this strategy will lead Côte d’Ivoire towards self-sufficiency in rice.”
The initiative plans to increase local milled rice production from 1.4 million tonnes in 2023 to 3.2 million tonnes by 2030, requiring an investment of US$1.3 billion. The collaboration will
focus on infrastructure development, farmer training, and access to modern technologies. This agreement is part of a broader trend across Africa, where countries like Madagascar and Nigeria are also forming partnerships to boost rice production. For instance, Madagascar recently signed agreements with Yuan Longping High-Tech Agriculture Co. to develop hybrid rice cultivation. According to official data, experiments carried out on hybrid rice in Madagascar have produced a yield of 8.5 tonnes per hectare, which is three times higher than the average yield of conventional rice. Additionally, the partnership with Yuan’s Seed complements existing collaborations, including the “K-Ricebelt Project” with South Korea, aimed at boosting rice production across Africa.
Under this initiative, advanced rice production complexes are being
established in key regions, enhancing local capacities in seed supply, storage, and processing.
On the other hand, Nigeria, which currently imports 25% of its rice needs, is collaborating with Singapore’s Yihai Kerry Arawana, a subsidiary of the Singaporean agribusiness giant Wilmar International, to enhance local production amid significant import reliance. “YKA will provide us with technical and advisory support to optimize rice production efficiency using modern farming practices, training, and other ancillary services. Together, we can refine every aspect of the rice production process, from cultivation to milling,” said Governor Sanwo-Olu. These initiatives aims to achieve greater self-sufficiency and economic upliftment for local farmers.
SAUDI ARABIA – Arabian Mills for Food Products Company, formerly known as the Second Mills Company, is set to become the third flour milling company in Saudi Arabia to go public, with plans to sell a 30% stake through an initial public offering (IPO) in Riyadh.
The decision comes after the Capital Market Authority approved the offering in June 2024, marking another milestone in the ongoing privatisation of the kingdom’s flour milling industry.
“The decision to go public is a decisive one toward accelerating our growth trajectory. Since our privatisation in 2021, we have significantly scaled the business, increased profitability margins, and strengthened our market share,” said Rohit Chugh, CEO of Arabian Mills.
“The growing market for flour,
feed, and bran in the kingdom presents significant opportunities for Arabian Mills, which plans to leverage these through continuous innovation and quality enhancements,” he added.
Arabian Mills has appointed HSBC
Saudi Arabia as the sole financial adviser, global coordinator, and lead manager for the IPO. Additionally, Alrajhi Bank, Saudi Awwal Bank (SAB), and Banque Saudi Fransi will serve as receiving agents for the individual investors’ tranche.
GHANA – Olam Agri, a global leader in food and agriculture, is set to transform Ghana’s pasta market by constructing a new state-of-the-art pasta production facility and expanding its wheat flour production capacity.
As the only pasta production facility in Ghana, the planned facility, which will be constructed in two phases, aims to have the capacity to meet Ghana’s entire pasta demand, significantly reducing reliance on imports. The company did
not disclose the investment package for the facility.
Baibhav Biswas, Country Head of Olam Agri in Ghana, emphasized the new facility’s positive impact, noting that the initiative is part of the company’s efforts to contribute to Ghana’s economic development by providing greater stability in the supply and affordability of pasta.
“With this facility, we will be able to bring high-quality, nutritious, and affordable pasta products closer to our Ghanaian consumers than ever before,” he said.
Olam Agri has established a strong presence in Ghana over the past 30 years as a major supplier of food and agricultural products.
According to Statista, in 2022, As the only pasta production facility in Ghana, the planned facility, which will
be constructed in two phases, aims to have the capacity to meet Ghana’s entire pasta demand, Ghana imported US$56.4M worth of Pasta, becoming the world’s 48th largest importer. The facility, therefore, intends to reduce the country’s import burden.
“THE FACILITY WILL BRING HIGH-QUALITY, NUTRITIOUS, AND AFFORDABLE PASTA PRODUCTS CLOSER TO OUR GHANAIAN CONSUMERS THAN EVER BEFORE," Baibhav Biswas.
NIGERIA – BUA Foods Plc, one of Nigeria’s foremost food manufacturing companies, has entered into a strategic partnership with IMAS, a renowned Turkish flour milling equipment manufacturer, to construct four advanced wheat and flour milling factories. This significant development is set to enhance BUA Foods’ production
capacity by an additional 3,200 tonnes per day, marking a pivotal step in the company’s expansion strategy.
The agreement, which aligns with BUA Foods’ broader growth ambitions following its listing on the Nigerian Exchange (NGX), was formalized during a high-profile ceremony attended by top executives from both companies.
“This collaboration with IMAS underscores our commitment to improving food security in Nigeria. These new factories will greatly enhance our capacity to continue delivering high-quality flour products while also creating much-needed jobs across the country,”said Abdul Samad Rabiu, Chairman of BUA Foods Plc.
SIGNIFICANT
FOODS’ PRODUCTION CAPACITY BY AN ADDITIONAL 3,200 TONNES PER DAY.
Fourth Milling Company sets IPO price range, aims to raise to US$228.9M
SAUDI ARABIA - Fourth Milling Company (MC4), a prominent flour producer in Saudi Arabia, has announced
million (US$228.9 million).
The share price is set between SAR 5 (US$1.33) and SAR 5.30 (US$1.41),
its initial public offering (IPO) price range. It aims to raise between SAR 810 million (US$216 million) and SAR 858.6
with institutional book-building that started on September 15 and closed on September 19, 2024.The Capital Market
Authority approved the IPO on June 26, allowing the company to offer 162 million ordinary shares, representing 30% of its total issued capital. Riyad Capital will serve as the offering's financial advisor and lead manager.
The proceeds from the IPO will go to selling shareholders, as MC4 will not receive any funds from this offering.
The IPO is expected to enhance Saudi Arabia's Vision 2030 initiative by diversifying the economy and increasing private sector participation. The Kingdom’s flour production sector has grown substantially due to rising domestic consumption, positioning MC4 to leverage this market expansion effectively.Following the completion of the IPO, shares will be listed on the Saudi Exchange’s Main Market.
NIGERIA - The Enugu State Government signed a significant ₦40 billion (approximately US$51 million) agreement with Jelfah Nigeria Limited to revitalize the long-abandoned Sunrise Flour Mills. During a ceremony at the Government House in Enugu, Governor Peter Mbah announced this partnership, highlighting its potential to boost the local economy and create jobs. "Today, we took another decisive step towards revitalising our moribund assets," Mbah stated, emphasizing the importance of strategic partnerships with the private sector.
Under the terms of the deal, Jelfah will acquire a 60% equity stake in Sunrise Flour Mills and invest ₦24 billion (US$14.4 million) in its revitalisation, which includes ₦22 billion (US$13.2 million) for facility upgrades and ₦2
billion (US$1.2 million) million) for state development projects. A Special Purpose Vehicle (SPV) will manage 10,000 hectares of farmland for essential crops like cassava and grains, ensuring a steady supply chain for the mill.
This initiative is part of Governor Mbah's broader vision to grow Enugu's economy from US$4.4 billion to US$30 billion through investments in agriculture and agro-industrialization. The deal follows a recent ₦100 billion (US$60.1 million) project to revitalise Enugu United Palm Products Limited. Jelfah's Chairman, Moses Saromi, expressed confidence in the partnership, stating, "We firmly believe that this partnership will catalyse positive change... and contribute significantly to the socioeconomic advancement of Enugu State."
USA – Ardent Mills has announced plans to update and expand its flour mill in Commerce City, Colorado, marking the company’s first expansion at the facility since 1999.
This project is a significant part of Ardent Mills’ long-term investment
strategy in the Mountain West market, aimed at enhancing efficiency, optimizing capacity, and boosting capabilities to support growing customer demand.
The expansion will add 9,500 hundredweights (cwts) (475 tons) of
daily milling capacity, bringing the total capacity of the Commerce City mill to 28,000 cwts per day (1400 tons). The expansion will also include a new cleaning house and enhanced flour and feed load-out areas.
Ardent Mills has chosen Bühler Inc. as its principal equipment supplier, continuing a partnership that began with the mill’s last major update in 1999. The last major upgrade, completed in 1999 by Conagra, involved a US$35 million investment engineered by Bühler, which modernized and automated the facility with the addition of new buildings and milling units.
The upgraded facility will maintain its production of white, whole wheat, organic flour, and specialty flours such as spelt, as needed.
BY BURKHARD BÖNDEL
In Angola, the family-owned company Carrinho Group has built one of the most modern food parks in the world – and in doing so has embarked on the country’s transformation to a better future.
Comprising 17 factories producing more than 20 different consumer products, the food park is a driving force for the country’s food security.
It is as if a UFO has landed in the desert – a gigantic one, 43 hectares in size, equivalent to 60 soccer fields. Anyone approaching it from the city of Benguela cannot help but be struck by the contrast with its surroundings. Along the unpaved roads that cross the arid landscape are scores of townships.
Children play while adults search in the litter that is piled everywhere for recyclable materials to sell. The poverty is clear to see. According to the latest statistics from the World Bank, around a third of the people of Angola are still living below the absolute poverty line, facing
high unemployment and the rising cost of living, particularly when it comes to the price of food. As a result, food insecurity and undernutrition are serious problems.
Entering the food park is like stepping into another world. The buildings are equipped with state-of-the-art technology, equipment, and machinery. The offices are bustling with employees, while fully-automated robots load packages onto pallets. There is an infirmary that provides free health care for employees, a cafeteria, and an academy for training and continuing education.
This is not science fiction, but one of the largest and most modern production facilities for basic foodstuffs – a food park with 17 fully integrated factories. Built by the family-owned company Carrinho, the food park in Benguela is a beacon of hope for the entire country. “Our mission is to transform Angola. We want the country to be able to supply itself with food
Nelson Carrinho, CEO of Carrinho Group
again,” says Nelson Carrinho, CEO of Carrinho Group. Today, the country imports more than half of its food products. But with Carrinho’s efforts, that is changing.
BIG STEPS TOWARD A BRIGHTER FUTURE
Rice, pasta, wheat and corn flour, cookies, cooking oil, mayonnaise, margarine, ketchup, and cereals are all produced here from raw materials, and packaged for sale as final products, in sophisticated and automated production and logistics processes. “Our goal is to build the entire value chain of food production in the country,” Carrinho explains. For Angola, the Carrinho food park in Benguela is a turning point, the beginning of a new, brighter future for the country. When the Carrinho Group production complex is completed in 2023 with its third expansion, 610,000 tonnes of staple foods will be produced here every year, including 180,000 tonnes of rice, 250,000 tonnes of wheat flour, and 180,000 tonnes of maize flour. This is enough to feed almost half of Angolaʼs entire population of 34.5 million. Carrinho Group sells most of the goods through its own network of wholesale stores, with a smaller portion going to the small local markets.
DRIVEN BY A LOVE OF ANGOLA
As gigantic as the food park appears with its silos that have an impressive capacity of 100,000 tonnes of cereals and 55,000 tonnes of crude vegetable oil products, its creator, Nelson Carrinho, speaks only modestly about these achievements.
But it’s important not to confuse his reticence and humbleness with his visionary power and strength of determination. “We have to deliver on our purpose, every day,” he explains.
Nelson Carrinho’s optimism and his belief in a better future for his country have carried him from the beginning. His father died when he was 15-years-old. Nelson then took over the bookkeeping at the bar run by his mother, Leonor Carrinho. The business, which she established in 1993, was doing well and this enabled him to study in South Africa. On his return to Angola, rather than seeking his fortune in the oil industry, as his mother had envisioned for him, he started a business of his own and opened a bar as well.
After making the bar the best hangout in town, he moved on to catering, and then to the Carrinho family business. Once again, the Carrinhos proved themselves successful entrepreneurs, catering first to Angola’s booming construction industry, then to the military, and in this process gaining important experience with food, its logistics, and preparation. The knowledge and the confidence that grew with success allowed the dream of a self-sufficient Angola to mature in Nelson Carrinho. When asked why, he answers clearly and simply: “I love my country. There would be no need at all for dependence on foreign imports. We used to be self-sufficient in all the basic food crops except wheat, but that was before the Portuguese left the country in 1975 and it subsequently sank into misery and chaos in a civil war that lasted almost 30
years. We just need to remember that again.” Nelson Carrinho wants the people of Angola to be able to have access to safe, affordable food; he wants raw materials to come from Angola and be processed there; he wants to help bring the people of Angola out of poverty with new jobs. He wants a better future for his country and its people.
The most important thing at the beginning was to find fellow campaigners. In this, Nelson Carrinho was three times lucky. The new Angolan government supported the project and a consortium of banks agreed to provide financing; but above all, Carrinho found a kindred spirit in Décio Catarro, a Portuguese engineer and factory manager in the food industry who brought with him the necessary experience and knowledge.
“You only get an opportunity like this once in a lifetime,” says Catarro, who is a Board Member Holding and CEO of Carrinho Indústria. Together with other specialists from his network he brought into the project, they set to work in 2014. At the beginning, there was nothing – only desert sand. No electricity. No water. No roads. The pioneers had to organize the entire development of the huge site themselves. It took two years to engineer the plant, and two years to work on the plans. They started working out of just two office containers. In Phase 1, they focused on grains – rice, wheat flour, and maize flour, as well as pasta, biscuits, breakfast cereals, and animal feed. This includes a blending and mixing plant, and a packing plant for beans, sugar, milk powders, salt, and also yeast.
In Phase 2 they expanded into oils and fats, with an oil refinery for sunflower, palm, and soy, as well as a plant for bottling and filling. They also began producing mayonnaise, condensed milk, soap, margarine, vinegar, and noodles. In addition, Carrinho, Catarro and their team built a meat processing and packing plant and the capacity to produce hard and soft candy. In Phase 3, they are building a sugar refinery, a glucose processing plant, and a seed cru-shing plant, along with a sugar storage warehouse. Once fully operational, the seed crushing plant will be the biggest in Africa.
To date, Carrinho has already created more than 4,000 new jobs. Because there was no infrastructure to fall back on, Nelson Carrinho organized transportation for his employees. For the three-shift operation, the company’s own buses pick up the workers from their homes and bring them back again; to be able to perform demanding tasks well, they are provided with a meal before starting their shift.
In terms of operations, Carrinho was keen on achieving maximum efficiency and food safety. He and Catarro therefore decided to buy equipment from the leading solution providers on the market, like Bühler. In addition to equipment, Bühler also brought in its knowledge of whole value chains.
“When Carrinho Group started this exciting project, they chose to do the initial stage of Phase 1 with all projects in
IN NUMBERS
610,000T
NUMBER OF STAPLE FOODS TO BE PRODUCED PER YEAR
parallel. However, coordinating various suppliers and interfaces was extremely challenging,” explains Harry Blöchlinger, Managing Director Southern Africa at Bühler. “We were chosen as the trusted project partner for the extension of Phase 1 as well as the grain processing solutions in Phase 2 and 3, and we made this happen.”
Bühler was able to offer suitable process solutions not only for single production lines, but for entire product value streams, from the raw material to the finished products. The responsibility of managing all the interfaces was given to Bühler. In addition, Bühler provides data transparency over the entire production process and an overall maintenance concept.
“The close cooperation between the Carrinho teams, our regional Bühler organization, and the specialists at our headquarters in Uzwil, Switzerland, helped make the project the success it is today,” says Blöchlinger. “This was a large-scale and challenging project, and it gave us the opportunity to make use of all our capabilities as an all-round solution provider and partner. We look forward
to working with Carrinho on the next phase and building the future of both our companies together.”
Two examples show how far-sighted Carrinho and his team have been in designing the facilities: The wheat and corn (maize) processing plant is built to handle both domestic and imported raw material, while the rice processing plant can handle both brown and white rice. In addition, it has the capability to process paddy rice to white rice. This means that the plant technology is already set up for regionally produced raw materials. The buildings for the Bühler grain and rice mill, which will complement the existing facilities, have been built, the equipment is on site and being commissioned; the “start of operation” is scheduled for mid-2024.
The supply of these will still take some time, however. Two figures suffice to illustrate the challenge ahead: In the 1950s, the average Angolan family produced 5 tonnes of corn per hectare of arable land; today, the figure is 700 kilograms. The
country has 35 million hectares of arable land, of which only approximately 10 percent is currently cultivated. Although 2.5 million tonnes of food is grown locally, and production has grown rapidly over the course of the past 15 years, much of it is not of a sufficient quality to be used for industrial processing. Meanwhile, local consumption stands at 2.8 million tonnes.
A lot is still lacking – know-how, equipment, seeds, logistics, irrigation, and industrial buyers.
“That’s the crucial point,” says Carrinho. “As long as farms don’t have secured buyers, all attempts to develop agriculture remain doomed to failure.”
That gap is now being filled and, with the “Agri” branch of the company, Carrinho is in the process of connecting small farmers and their families. Through NGOs such as Saiver, which train and mentor and supply seeds to local farmers, he has begun to build a nationwide network of raw material suppliers. The plan is to contract 50,000 in a first test phase. That is just the beginning. “Our potential in the coming years is around 1 million,” Carrinho says.
The entrepreneur is not resting there, and the successful implementation of the Benguela
food park has given him, his family, and his team additional impetus to make their shared dream reality. The credibility and experience that Carrinho has gained have spurred him on to build the next, even larger complex, code-named “Wakanda”.
The Wakanda food park, to be built in northern Angola, will have the same orientation as the Benguela facility – just three times the size. Currently the concept is being developed and the planning phase is in full swing. Construction is planned to start in 2025. “We want to take a leap and finally get in the lead,” Carrinho says. The company has been running behind the curve, he explains, especially given Angola’s rapidly growing population.
The country has around 34.5 million inhabitants, but experts expect this number to double to more than 60 million by 2050.
“By 2030, we will have built the value chains and platforms in the country to be self-sufficient in managing and even exporting this growth,” says Nelson Carrinho confidently. Those who have seen what has emerged in Benguela share his conviction. The next Carrinho UFO has already begun its approach into northern Angola.
CARRINHO OPERATES A MODERN FOOD PARK OF OVER 43 HECTARES COMPRISING
INTEGRATED FACTORIES THAT PRODUCE MORE THAN
In the lively world of FW Africa’s highlevel events, the 2024 AFMASS Food Expo Eastern Africa edition wasn’t just an event—it was an experience that left an indelible mark. With a fresh rebrand as an 8-in-1 Trade Show, this year’s expo at the Sarit Expo Centre in Westlands, Nairobi, was a culinary and industry extravaganza. We’re talking eight pavilions packed with everything from food manufacturing and retail to hospitality, technology, and compliance.
And wow, what a show it was! Over 68 exhibitors and sponsors from across the globe brought their A-game. We had local heroes, regional champions, and international titans all under one roof. Ingredient suppliers were the real show-stealers, with over 10 multinational companies dazzling us with their innovations. But let’s not forget the SMEs from KIRDI—they came in hot with unique products that had everyone buzzing.
And the visitors! More than 3,800 food lovers, industry pros, and curious minds walked through our doors over those three days. One of the highlights? A live processing demo by Freddy Hirsch’s Lil Freddy, a machine that cranked out sausages, burgers, and minced meat faster than you could say, “I’ll take two!”
The conference? Absolutely packed! With over 200 attendees daily, the sessions were a hive of activity, covering everything from investment and trade opportunities to the latest in food safety and entrepreneurship. Missed it? Well, you might have to live with the FOMO—at least until next year. But don’t worry; you’ll get your chance to redeem yourself at the AFMASS Food Manufacturing Expo Uganda Edition. Trust us, you won’t want to miss the sequel!
See you in Uganda, where we’ll do it all over again—only bigger, better, and even more unforgettable!
BY MARTHA KURIA
Given Africa’s heavy reliance on imported staples such as wheat and rice, Bühler has joined forces with Flour Mills of Nigeria Plc (FMN) and Olam Agri, two key players in the industry, to inaugurate a cutting-edge grain application centre in Kano, Nigeria. Dubbed the Grain Processing Innovation Center (GPIC), the centre’s primary goal is to advance the industrial processing of local grains such as sorghum, millet, maize, and soybeans, contributing to affordable nutrition.
Speaking during the launch on July 11, Johannes Wick, CEO of Bühler’s Grains & Food
segment, said that the main goal is to bring the industrial processing of these grains to the next level and thereby contribute to affordable nutrition. "Sustainable food value chains utilizing local grains are the number one priority to develop Africa.
The GPIC is not just a processing facility; it is a state-of-the-art center, with research and training hub. The three-story building, spanning 480 square meters, houses pilot-scale production facilities, research and development labs, and classrooms. The production facility includes
everything from cleaning and sorting to dehulling, tempering, and milling. At the core of this facility is Bühler’s highcompression AlPesa grinding system, which will enable highefficiency grain processing.
According to Buhler and partners, the centre’s most significant goal is to reduce Africa’s reliance on imported grains, which can be both expensive and subject to supply chain disruptions. John Coumantaros, Chairman of the Board at Flour Mills of Nigeria, remarked, “FMN has always been at the forefront of driving food self-sufficiency in Nigeria and progressively across the continent.” This initiative, he noted, is about empowering local grains, developing them into viable alternatives to imported raw materials, ultimately benefiting both the economy and the population.
Furthermore, the GPIC's collaboration with Bühler’s African Milling School in Nairobi, Kenya, opens new opportunities for training and education on the unique requirements of processing local grains. This partnership ensures that the technological advances made at the center are supported by a skilled workforce capable of carrying the region’s grain processing capabilities into the future. Bühler and its partners are setting a model for how Africa can achieve food security.
“Together with our partners, we at Bühler are happy to contribute to this system change, which aims to ensure that more people in Africa have access to affordable and healthy food, thereby reducing hunger and malnutrition,” said
GPIC ’S PRIMARY GOAL IS TO ADVANCE THE INDUSTRIAL PROCESSING OF LOCAL GRAINS SUCH AS SORGHUM, MILLET, MAIZE, AND SOYBEANS, CONTRIBUTING TO AFFORDABLE NUTRITION.
The United Nations Food and Agriculture Organization (FAO) estimates that around 2.3 billion people globally live in food-insecure conditions, many in Africa. Local grains such as sorghum and millet offer numerous advantages
for food security. These crops are droughttolerant, nutrient-dense, and require fewer inputs like fertilizers and pesticides compared to imported grains. As climate change accelerates, the ability to cultivate resilient crops in Africa is crucial. Ali Hmayed, head of the new center, emphasized the importance of this aspect, stating, “With these characteristics, local grains are ideal plants to be cultivated in Africa, specifically under the conditions of accelerating climate change.”
The focus on local grains addresses multiple concerns: nutritional deficiencies, economic opportunities, and climate adaptation. “Sustainable food value chains utilizing local grains are the top priority to develop Africa.” Indeed, crops like sorghum and millet have been cultivated in Africa for centuries and are key to achieving food sovereignty on the continent, ” Wick emphasized.
The GPIC is embedded in Bühler's global network of 25 Application & Training Centers. The first series of trials with customers has already been agreed upon.
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BY MARTHA KURIA
Saudi Arabia's agricultural sector, particularly its grain production, plays a pivotal role in ensuring food security and supporting the nation's economic diversification goals under Vision 2030. Despite the challenges posed by its arid climate and limited water resources, the Kingdom has made notable progress in boosting domestic production of certain grains while maintaining a strong reliance on imports to meet its consumption needs. Wheat, barley, and corn are the key grains cultivated within the Kingdom.
A GROWING FOCUS ON WHEAT SELFSUFFICIENCY
Wheat is a dietary staple in Saudi Arabia, commonly consumed as flatbread (pita) or the local hamburger bun known as “Samoli.” The Kingdom's wheat industry has undergone significant transformations since the 1970s when Saudi Arabia embarked on an ambitious project to become one of the world's top ten wheat producers. However, in 2015, concerns over depleting aquifers led to a phase-out of wheat production. By 2018, the government reintroduced support for wheat cultivation,
offering forage producers an alternative to the more water-intensive alfalfa, the primary green fodder crop.
The process of wheat cultivation, harvesting, and delivery in Saudi Arabia is highly organized. Planting begins at the end of November and continues through the second week of January, with the harvest occurring from June to October. The harvested wheat is delivered to the General Food Security Authority (GFSA), a key agency under the Ministry of Environment, Water, and Agriculture (MEWA). The GFSA plays a critical role in regulating and managing the country’s wheat supply chain as the sole purchaser of both domestically grown and imported wheat.
Since MY 2020/21, MEWA has actively encouraged local farmers to produce up to 1.5 million metric tons (MMT) of wheat annually for delivery to the GFSA. To incentivize domestic production, the GFSA purchases all locally produced wheat at a government-set premium price, which is determined annually after planting.
For MY 2023/24, the GFSA offered US$467 per metric ton (MT) for domestically produced wheat, significantly higher than the average price of US$394.74 per MT for imported wheat. This price differential aims to influence farmers' planting decisions, encouraging them to prioritize wheat and alfalfa cultivation based on the government's purchase price.
Looking ahead to the 2024/25 marketing
year, Saudi Arabia’s wheat production is projected to reach 1.5 MMT, a 25% increase from the previous year. This growth is part of the Saudi government’s broader strategy to enhance food security by boosting local agricultural output. The wheat production area is estimated at 250,000 hectares, with an average yield of 6 MT per hectare, signaling a promising future for wheat production in the Kingdom. However, despite these efforts, the Kingdom remains reliant on imports from Germany, Canada, and Australia to ensure a stable supply of high-quality wheat that complements domestic production.
In MY 2023/24, Saudi Arabia's annual per capita wheat consumption reached approximately 129.43 kg, with white flour remaining the dominant choice among consumers. According to the GFSA, all wheat in Saudi Arabia is allocated exclusively for human consumption. The government strictly prohibits the use of subsidized wheat for animal feed, ensuring that livestock farmers receive monthly payments to cover their feed expenses.
As the nation modernizes, a noticeable shift in consumer preferences toward healthier food options is emerging. The rising demand for whole-wheat flour reflects this trend, particularly among health-conscious consumers and those managing conditions such as diabetes
production in Saudi Arabia
4.75MMT IN NUMBERS
AMOUNT OF WHEAT CONSUMPTION FOR MY2024/25
and obesity. Saudi Arabia ranks among the countries with the highest rates of diabetes and obesity worldwide, prompting increased awareness of the benefits of whole grains. In response, the Kingdom's four flour mills have ramped up whole-wheat flour production to meet this growing demand.
For MY 2024/25, total wheat consumption in Saudi Arabia is projected to reach 4.75 MMT, a 5% increase from the previous year. This growth is largely driven by the expanding food service sector, which is experiencing heightened demand due to the development of labor camps for multibillion-dollar mega projects, including the construction of luxury resorts and other attractions along the Red Sea coast. These projects, aligned with Saudi Arabia’s Vision 2030 initiative, aim to attract over 150 million visitors annually, significantly boosting demand for bread and other food products in the catering and food service industries.
Moreover, the Saudi government's emphasis on food security and self-sufficiency continues to shape wheat consumption patterns. The Kingdom's strategic initiatives to diversify its economy and reduce reliance on oil revenue have created a robust environment for the growth of the food and agriculture sectors, further reinforcing wheat's importance in the Saudi diet.
Saudi Arabia’s flour milling industry is a cornerstone of the nation's food security, ensuring a steady supply of bread, a dietary staple. Initially, the country had nine governmentowned mills crucial in maintaining this supply. However, in line with the Saudi government's Vision 2030 initiative, these mills were consolidated into four companies and sold to private investors through a competitive bidding process.
The privatization of these milling companies marked a significant industry shift. The journey toward privatization in Saudi Arabia's flour milling industry began in earnest in 2020, spearheaded by the Saudi Grains Organization (SAGO) and the National Center for Privatization (NCP). The First Milling Company was sold to AlRaha AlSafi Foods for SAR 2.027
billion (US$547.29 million). The Second Milling Company was acquired by a consortium that includes Abdulaziz AlAjlan Sons Co., Sulaiman Abdulaziz AlRajhi International Co., NADEC, and Olam International for SAR 2.138 billion (US$577.26 million).
The Third Milling Company was purchased by a consortium of Mada and AlGhurair Ltd. for SAR 750 million (US$202.5 million). Lastly, the Fourth Milling Company was acquired by a consortium led by Allana International and Abdullah Al Othaim Markets for SAR 859 million (US$231.93 million).
Despite these ownership changes, SAGO remains the primary regulator of the industry and the main importer and supplier of wheat. SAGO’s role is vital in ensuring a stable wheat supply to the mills and regulating wheat prices, which helps maintain the affordability of flour products for consumers. Through these measures, the government continues to control wheat prices and provide subsidies to ensure that flour remains accessible to all, even under private ownership.
Barley is a staple crop in the Kingdom, integral to the livestock sector, which is a crucial component of the nation's food security strategy. The Kingdom's livestock sector, which includes over 10 million sheep, goats, and camels, relies heavily on barley, especially during the dry season when natural forage is scarce.
According to MEWA, about 85% of the barley consumed in Saudi Arabia is used for animal feed, amounting to approximately 7 MMT annually. Locally grown barley is primarily used in specialty food items, such as soups and traditional Saudi dishes during Ramadan. Imported barley is used exclusively for animal feed, as there is no beer production in Saudi Arabia.
The total area under barley cultivation in Saudi Arabia has fluctuated over the years. As of 2022, about 150,000 hectares were dedicated to barley cultivation. However, this area has been shrinking due to water conservation efforts and a shift towards more economically viable, less water-intensive crops.
The Saudi government has introduced several policies to support barley production, including subsidies for irrigation infrastructure, research into drought-resistant barley
varieties, and financial incentives for farmers who choose to cultivate barley. Additionally, the government has invested in modern farming techniques, such as precision agriculture, to improve yields and reduce water usage. Total Saudi feed barley consumption for MY 2023/24 is estimated at 3.2 MMT, down by approximately 16% from MY 2022/23 due to higher local barley prices compared to domestically produced processed animal feed. Low international barley prices are projected to increase barley demand by approximately 9% to 3.5 MMT in 2024/25 as local market prices become more competitive.
Saudi Arabia's corn production is minimal, with the country producing approximately 15,000 to 20,000 metric tons annually, primarily used for animal feed, especially in the poultry and dairy industries. The country's growing population and increasing demand for poultry products have led to a surge in corn consumption over the past decade. Saudi government policy discourages domestic production of waterintensive crops, including feed corn. Though the dairy sector is consistent with its corn use in feed formulations, local animal feed processors, such as ARASCO, determine their corn usage based on prevailing international prices.
When prices are competitive, as they are this marketing year, corn usage is high. Total Saudi corn imports for MY 2024/25 are projected to reach 4.5 MMT, an increase of nearly 29% from this year’s estimate of 3.5 MMT. This increase in corn imports is driven by expansive projects throughout the country to boost domestic chicken meat production.
Rice is a staple in Saudi cuisine, yet the Kingdom does not produce rice due to water constraints and relies on imports. Private companies freely import rice into Saudi Arabia. However, in recent years, GFSA implemented strategies with major rice importers to ensure adequate rice reserves are kept at importers’ warehouses. Rice does not face a tariff and is not subsidized. Most major Saudi rice importers purchase the new Indian rice crop by December each year and complete their imports by June.
IN LINE WITH THE SAUDI GOVERNMENT'S VISION 2030 INITIATIVE, THESE MILLS WERE CONSOLIDATED INTO FOUR COMPANIES AND SOLD TO PRIVATE INVESTORS THROUGH A COMPETITIVE BIDDING PROCESS.
Meanwhile, imports from other countries, such as the United States, last throughout the year. The General Food Security Authority (GFSA) ensures adequate rice reserves with major importers, and imports are projected at 1.62 MMT for MY 2024/25, a 4% increase from the previous year. Rice imports are expected to rise by approximately 5% in the coming years due to food service sector expansion.
Saudi Arabia has heavily invested in grain storage infrastructure to secure a stable food supply. Managed by SAGO, the country’s storage facilities can accommodate millions of metric tons of grains. In 2021, the Saudi Grains Organization (SAGO) completed construction of two new silos with storage capacity of 120,000 tonnes, lifting grain storage capacity in the country by 37%. Dubbed the Yanbu Silos Project, the US$97 million project was part of the larger National Transformation Program underway in Saudi Arabia. In 2023, the kingdom built the largest advanced grain storage capacity in the Middle East, increasing the total by 40 percent from 2.5 million tons in 2016 to 3.5 million tons. The private sector also plays a critical role in grain storage.
Recently, CESCO EPC announced a significant collaboration with United Feed Co. (UFC) on a storage and conveying project in Saudi Arabia. The development included the construction of 15 corrugated steel flat-bottom storage silos, boasting a total capacity of 205,152 tonnes. As of recent estimates, Saudi Arabia's total grain storage capacity exceeds 6 million metric tons, including both silos and warehouse facilities.
EGYPT - 500,000 TO 600,000 TONS
Egypt is the largest pasta producer in Africa, with approximately 500,000 to 600,000 tons. A well-developed food processing sector and high domestic demand for pasta products support this industry. Major companies such as Edita Food Industries, Misr Foods, and El Rashidi El Mizan lead the local pasta market. The average volume per person in the Pasta market is expected to amount to 8.0kg in 2024
NIGERIA -400,000 TO 500,000 TONS
Nigeria's large population and increasing consumption drive its significant production volumes, with around 400,000 to 500,000 tons produced annually. Nigeria’s production is primarily for domestic consumption, reflecting the country’s large population and growing demand for pasta as an affordable and convenient food choice.
SOUTH AFRICA- 250,000 TO 300,000 TONS
South Africa has a mature pasta industry with substantial production capacities. Currently, the sector produces 250,000 to 300,000 tons, but it is expanding due to the high rate of urbanization.
MOROCCO - 200,000 TO 250,000 TONS
Estimated at 200,000 to 250,000 tons, Morocco's pasta production is growing, bolstered by both local consumption and regional exports. Morocco's thriving pasta industry is primarily driven by its strategic location as a gateway between Europe and Africa, facilitating trade and supply chain efficiency.
01 05 02 03 04
ALGERIA - 150,000 TO 200,000 TONS
Algeria's production is roughly 150,000 to 200,000 tons, driven by strong consumer demand and local durum wheat production, which is ideal for pasta making. The average volume per person in the Pasta market is expected to amount to 1.7kg in 2024.
KENYA - 100,000 TO 150,000 TONS
KENYA ETHIOPIA
Kenya's pasta sector is on an upward trajectory, reaching 100,000 to 150,000 tons annually. Production is expanding, fueled by urbanization and changing dietary preferences toward more processed and convenience foods, reflecting a growing domestic market.
TUNISIA - 80,000 TO 120,000 TONS
Tunisia's pasta industry is relatively small but expanding, with an annual production of around 80,000 to 120,000 tons. Tunisia is a notable pasta producer in North Africa, with a strong tradition in durum wheat cultivation, which is essential for high-quality pasta.
GHANA- 70,000 TO 100,000 TONS
Ghana is a critical player in West Africa's pasta market, with an estimated annual production of 70,000 to 100,000 tons. Ghana’s pasta production is increasing as more local manufacturers enter the market. Major players include Takoradi Flour Mill and Irani Brothers, which cater primarily to the domestic market.
ETHIOPIA:- 50,000 TO 70,000 TONS
Ethiopia's pasta production is in its early stages, about 50,000 to 70,000 tons, but growing steadily. With local players such as East Africa Group and Dire Dawa Food Complex supporting the sector, the expansion of Ethiopia's pasta market is driven by increasing urbanization, a young population, and the rising popularity of pasta as a staple food.
CÔTE D'IVOIRE- 40,000 TO 60,000 TONS
06 07 08 09 10
Ivory Coast is developing its pasta industry, with increasing production capacities at roughly 40,000 to 60,000 tons. In 2022, Cote d’Ivoire exported US$36.4M in pasta, making it the 43rd largest exporter of pasta in the world. In the same year, pasta was Cote d'Ivoire's 39th most exported product.
BY MARTHA KURIA
Genetic modification remains a contentious issue, especially when it involves bioengineered products intended solely for human consumption. The adoption of genetically modified (GM) crops faces numerous challenges, many stemming from widespread misunderstandings beginning with the very definition of genetically modified organisms (GMOs). According to the World Health Organization, a GMO is any organism whose genetic material (DNA) has been altered in a way that does not occur naturally through mating or natural recombination.
On August 27, 2024, the U.S. Department of Agriculture (USDA) made a landmark decision by approving the cultivation of genetically modified wheat in the United States for the first time. The USDA deregulated HB4 wheat, a droughtand herbicide-tolerant variety developed by the Argentine company Bioceres Crop Solutions. This decision followed a comprehensive evaluation by the USDA's Animal and Plant Health Inspection Service (APHIS), which concluded that HB4 wheat does not pose a greater risk as a plant pest compared to conventional wheat varieties. Consequently, it will not be subject to the stringent regulations typically applied to genetically engineered organisms under 7 CFR part 340.
The agency's determination makes the U.S. the fourth country in the world to green-light the production of HB4 wheat, following Argentina, Brazil, and Paraguay. Although USDA’s ruling clears the regulatory pathway for cultivating HB4 wheat in the United States, several additional steps remain before its commercial planting. These include conducting closed-system field trials to evaluate its performance under U.S.
growing conditions.
"This is the first time USDA has deregulated a transgenic trait for wheat, but there is a long way to go before we know the outcome," noted Steve Mercer, U.S. Wheat Associates Vice President of Communications.
HB4 wheat, developed by Bioceres Crop Solutions, is engineered to withstand environmental stresses like drought by incorporating the HaHB4 gene from sunflowers. This gene encodes a protein that binds to specific sequences of wheat DNA, regulating gene expression in response to stress conditions. When the HB4 gene is activated, it increases the production of antioxidants and osmoprotectants, enhancing the plant's resistance to drought. Additionally, the presence of this gene delays the natural process of senescence, allowing crops more time to survive during dry spells until water availability improves.
This drought-tolerant trait has demonstrated remarkable performance in field trials in Argentina, where HB4 wheat yielded up to 51% more than its conventional counterparts under drought conditions. Even in optimal growing conditions, the genetically modified wheat showed an average yield increase of 23% compared to non-modified varieties.
In an interview earlier this year, Martin Mariani Ventura, Global Seeds and Traits Manager at Bioceres, highlighted that data from three seasons of field trials in 34 different locations in Argentina showed that when environmental conditions limited yield to less than 30 bushels per acre (bpa), varieties with HB4 technology yielded 38% more on average than the same wheat variety without the technology.
"Even in a non-limitation environment, where yields exceed 60 bpa, the varieties with HB4 yielded 23% more on average than the same varieties without it," he said. "From the grower perspective, this is important because it means the technology works when there is a drought situation, but it also doesn't cause a yield drag when there is no drought."
The regulatory pathway for HB4 wheat has been strategic and extensive. Following Argentina's approval in 2020, Brazil authorized its cultivation
and commercialization in March 2023. More recently, in August 2024, the USDA concluded its regulatory review, confirming that HB4 wheat does not pose an increased plant pest risk compared to conventional varieties. The United States now joins Argentina, Brazil, and Paraguay in approving HB4 wheat for cultivation, with approvals for food and feed use already obtained in other countries, including Australia, New Zealand, South Africa, Nigeria, Thailand, Indonesia, Colombia, and Chile.
The North American Millers’ Association (NAMA) and the U.S. Wheat Associates (USW) have cautiously supported the introduction of HB4 wheat, emphasizing the importance of maintaining consumer choice and transparency. While NAMA advocates for the consumer’s right to purchase foods according to their preferences, it also underscores the need for labeling products containing bioengineered ingredients. Furthermore, USW has engaged in dialogue with Bioceres to ensure alignment with their principles for biotechnology commercialization, which include obtaining regulatory approval in key export markets.
Despite nearly three decades of GM crop technology, the recent approval of GM wheat in the U.S. has elicited mixed reactions. U.S. wheat industry organizations, such as the National Association of Wheat Growers (NAWG) and U.S. Wheat Associates (USW), have praised the USDA's decision, viewing it as a potential tool for stabilizing yields amid increasing drought challenges. However, they also emphasize that the commercialization of HB4 wheat will require time and careful management to align with market needs and consumer preferences.
“There is still a lot of ground to cover with this technology, and our organization will stay actively engaged in the process on behalf of our farmers and overseas customers. We appreciate the commitment that Bioceres is making to work with its wheat industry partners to ensure.
THE UNITED STATES NOW JOINS ARGENTINA, BRAZIL, AND PARAGUAY IN APPROVING HB4 WHEAT FOR CULTIVATION, WITH APPROVALS FOR FOOD AND FEED USE ALREADY OBTAINED IN OTHER COUNTRIES.
BY MARTHA KURIA
Composite flours are emerging as a viable solution to address food security and nutritional needs across Africa. As global disruptions, such as the Russia-Ukraine conflict, impact wheat supply chains, there is a growing push to integrate alternative grains into flour production. This was the focus of the panel discussion at the AFMASS FOOD EXPO Eastern Africa edition 2024, titled "Innovating with Composite Flours in Africa: Critical Success Factors & Opportunities." The panel featured insights from key industry leaders, including David Nolte, Head of Operations & R&D at Stern Ingredients East Africa; Sanjay Yenugwar, Head of Production & R&D at Capwell Industries Ltd; Philip Mugo, Head of Operations
at Capwell Industries; Prof. Catherine Kunyanga, Food Nutrition and Processing Technology expert at the University of Nairobi; and Mr. Peter Muni, a Milling Industry Consultant. Together, they explored the challenges and opportunities associated with composite flours in Kenya and the broader African continent.
UNDERSTANDING COMPOSITE FLOURS
Composite flours are produced by blending wheat with other cereals or tubers, such as maize, sorghum, millet, or cassava. This approach not only diversifies diets but also addresses the challenges of wheat supply shortages and rising costs. By incorporating local, more resilient crops, composite flours offer a sustainable alternative
that enhances both food security and nutritional outcomes. Research from the International Food Policy Research Institute (IFPRI) demonstrates that substituting 25% of wheat flour with sorghum can increase dietary fiber by 15% and protein content by 10% (IFPRI, 2022). Such improvements are crucial for addressing nutritional deficiencies and promoting overall health.
Beyond their nutritional benefits, composite flours also present considerable economic advantages. According to the Food and Agriculture Organization (FAO), using alternative grains can reduce flour production costs by up to 20%, depending on the blend ratio (FAO, 2023). This costeffectiveness is particularly important given the rising prices of wheat and the increasing need for sustainable production methods.
David Nolte, Head of Operations & R&D at Stern Ingredients East Africa, highlighted the technical challenges of using composite flours. Wheat's gluten content is crucial for its baking performance, and blending it with other grains requires adjustments to maintain quality. Nolte noted that achieving the desired texture and consistency in baked goods, especially bread, is a significant challenge when using composite flours. He emphasized that while blending can improve nutritional value and reduce costs, the choice of partner grains significantly affects the flour's functional properties, including fiber, protein, and starch content. Stern Ingredients provides solutions to compensate for the different behaviors and characteristics of composite flours.
“Wheat is an exceptional ingredient for baking due to its unique performance and characteristics during baking. However, with the emerging trend in gluten-free offerings and the need to blend wheat with other cereals for healthyconscious consumers, Stern Ingredients provides solutions to compensate for the behaviour of composite flours for different application areas to ensure baked products retain their baking qualities,” said David.
Sanjay Yenugwar, Head of Production & R&D at Capwell Industries Ltd, discussed the market dynamics driving the adoption of composite flours. Capwell Industries has been a pioneer in enhancing nutritional outcomes through innovative products, such as Kenya's first fortified rice. Yenugwar pointed out that the rising cost of wheat has made composite flours an
economically attractive and healthy option for millers.
“At Capwell, our motto is enhancing the lives of the population through nutrition,” Sanjay stated.
Philip Mugo, Head of Operations at Capwell Industries, noted that the company’s local cereal uptake increased from 11% to 20% following the Russia-Ukraine crisis, which heavily affected global grain trade. He also highlighted how Capwell Industries adapted to these disruptions by increasing the use of local wheat, thereby improving supply chain resilience.
Prof. Catherine Kunyanga from the University of Nairobi emphasized the transformative potential of composite flours in addressing Kenya’s pressing challenges. As the country contends with food insecurity and the impacts of climate change, Kunyanga advocates for integrating traditional grains, such as millet, sorghum, and amaranth, into flour production. This approach not only addresses these issues but also aligns with evolving consumer preferences for healthier, gluten-free options.
In addition to economic savings, composite flours contribute to food security. Data from the World Bank indicates that incorporating local grains can decrease reliance on wheat imports by up to 30% (World Bank, 2023). Reducing import dependence is essential for enhancing food security in regions heavily reliant on imported wheat. “We need to de-maize Kenya and focus on climate-resilient grains,” Kunyanga noted.
Traditional grains also offer significant climate resilience. Research by the Consultative Group on International Agricultural Research (CGIAR) highlights that grains like millet and sorghum are better suited to withstand climate variability than wheat. For example, millet can endure drought conditions with only a 10-20% reduction in yield, whereas wheat faces up to 50% yield reductions under similar conditions (CGIAR, 2022). This resilience is vital for maintaining stable food supplies in the face of climate change.
Raising consumer awareness about the benefits of composite flours is essential. Public education campaigns can highlight the nutritional advantages of alternative grains and fortified products. For instance, the Millers for Nutrition Coalition focuses on ensuring the quality of fortified products and educating consumers about the benefits of composite flours.
FLOUR'S FUNCTIONAL PROPERTIES
Professor Kunyanga, in particular, emphasized the potential of incorporating amaranth in flours, citing its high protein content and micronutrient richness. Amaranth offers significant health benefits, including anti-diabetic properties, making it a valuable addition to composite flours. Encouraging farmers and startups to explore amaranth and other underutilized grains can further enhance the diversity and nutritional quality of composite flours.
A key theme of the discussion was the need to strengthen linkages between academia and industry. Prof. Kunyanga highlighted the University of Nairobi's efforts to transfer research into market-ready products. Successful collaborations with multinational companies demonstrate the potential of traditional grains. The University is working with the private sector to integrate research into industry practices, spearheading innovative products from local grains. For example, the "Great Millet Quest" with Unilever aims to promote the use of millet, showcasing the university's role in advancing local grain utilization.
The panel acknowledged several challenges in adopting composite flours. Nolte pointed out the technical difficulties in maintaining the quality of baked goods, while Kunyanga noted the lack of infrastructure for milling traditional grains. Despite these challenges, the benefits of composite flours—such as improved nutrition, cost-effectiveness, and climate resilience— present significant opportunities.
Practical challenges, such as the high cost of blending equipment and infrastructure development, must be addressed. The integration of different grains into existing milling processes requires investment, particularly for small-scale millers. Support initiatives, such as providing affordable fortification solutions and training programs, can help overcome these barriers and facilitate the adoption of composite flours. However, Kunyanga intimates that Sanku, a non-profit organization and strategic partner of Millers for Nutrition is coming up to fill the gap by offering micro-dosing equipment to small scale millers.
Government policy plays a crucial role in
promoting composite flours. Supportive policies, including subsidies for millers and incentives for incorporating alternative grains, can drive adoption. Mr. Muni, a milling industry consultant, emphasized the importance of regulatory frameworks to ensure quality and maintain consumer trust. Policies that encourage public awareness and mandatory fortification could also boost demand for composite flours.
Muni called for researchers and industry leaders to create awareness campaigns that educate the public about new products launched into the market to promote adoption and acceptance. He highlighted the need for government incentives for small-scale millers to ensure compliance with fortification standards, given that the informal sector contributes significantly to the flour supply market.
Mr. Mugo noted that, following the recent government mandate requiring millers to blend 10% of their daily flour production, companies have been adjusting to comply with the new rule. The initiative, aimed at making under-utilized crops more competitive in the value chain, improving nutrition, and creating employment opportunities, presents challenges. Mugo noted that the high cost of imported blending equipment poses a significant hurdle for millers. However, the milling industry is adapting to these changes to comply with the government’s regulations through the incorporation of traditional grains.
Academic institutions are pivotal in advancing the composite flour agenda. Professor Kunyanga stressed the role of universities in developing technologies for processing grains and supporting small-scale millers with training. Research on optimized formulations and processing techniques is essential for improving the quality and nutritional value of composite flours. Kunyanga highlighted the importance of pre-processing traditional grains, such as fermentation, sprouting, and other methods to reduce anti-nutrient compounds, which can be applied both at small and large scales to effectively exploit the health benefits of these grains.
“By fostering innovation and supporting local grain utilization, Africa can enhance food security, improve nutrition, and reduce dependency on imported wheat. With strategic investments and collective commitment, composite flours can play a transformative role in creating a more resilient and self-sufficient food system for the continent,” she stated
Nurturing lactating mums: The inspiring journey of Mama’s Gold
Mars takes a US$36B Leap: The game changing acquisition of Kellanova P.50
Baking additives in Africa balancing innovation with safety concerns P.52
Lilian Nyareru, the Founder & CEO of Mama's Gold is an advocate by profession but a passionate entrepreneur by calling. Her company Mama's Gold makes lactatig cokies and granolas in Kenya. She talks about her deep-seated desire to support new mothers and her mission to make a significant impact on maternal health through her company.
BY MARTHA KURIA
Breastfeeding is one of the most effective ways to ensure a child's health and survival. However, contrary to WHO recommendations, fewer than half of infants under six months old are exclusively breastfed. Mama’s Gold has emerged as a beacon of innovation, offering a lifeline to breastfeeding mothers across Africa with products designed to boost milk production for lactating women. The Milling Middle East and Africa Magazine team had an opportunity to talk with Lilian Nyarero, Founder & CEO of Mama's Gold. An advocate by profession but a passionate entrepreneur by calling, Lilian detailed her deepseated desire to support new mothers and her mission to make a significant impact on maternal health.
Lilian’s journey into the world of lactation products began unexpectedly. As a practising advocate, she never envisioned herself in the business sphere, let alone baking. However, her personal struggle with breastfeeding her first child ignited a spark that would soon turn into a full-fledged business.
“I tried everything from reading, supplements, and even homemade remedies, but nothing seemed to work. That’s when I began experimenting with lactation-boosting ingredients,” Lillian recalls.
Her determination to find a solution led her to create lactation cookies, a novel idea inspired by research and experimentation in her own kitchen. Though her first batch was far from perfect, the noticeable improvement in her milk supply fueled her drive to refine the recipe.
“When I first tried baking these cookies, they were quite disgusting,” Lillian said, recalling her early days. “But I noticed a difference in my milk supply, and that’s when I knew I was onto something.”
What started as a personal quest to increase her milk supply quickly transformed into a business venture. After sharing her homemade lactation cookies with family members, who also reported positive results, Lillian realized there was a market for her products. Mama’s Gold was born out of this realization, driven by a deep understanding of the challenges many mothers face during breastfeeding.
Founded nearly four years ago, Mama’s Gold started as a small operation in Lilian’s home kitchen.
The company has since grown steadily, producing a range of lactation products, including cookies, nursing tea, and granola.
The products use oats which contain fibre, protein, vitamins, minerals and antioxidants. according to Lilian, these cookies are not just normal cookies. They use oat flour and incorporate galactagogues-ingredients that help boost milk production, like specific seeds and herbs.
These products are designed to help breastfeeding mothers increase both the quantity and quality of their breast milk, which is in line with the World Health Organization's recommendation of exclusive breastfeeding for the first six months of a child’s life.
Her mantra remains that one cookie at a time is the solution to mothers' struggle with breastfeeding.“It’s clear that many women struggle with breastfeeding, especially during the first year. Exclusive breastfeeding for six months is challenging, with mothers dealing with the stress of childbirth, issues with milk production, and postpartum depression. Many clients have told me that my products have saved them from depression because being able to produce milk for their baby is the most important thing for a mother”.
While formula milk has its place, especially for mothers who cannot breastfeed for medical reasons, it cannot replace the benefits of breast milk; Mama’s Gold products are designed to increase breast milk supply naturally. Moreover, they’re cost-effective. A can of formula might cost around KES 2,000 (US$15.50) and last just three days, whereas with the cookies, once your milk supply reaches the desired level, you don’t need to keep taking them.
“We advise mothers to pump to maintain milk supply so it doesn’t diminish. When it comes to cost and effectiveness, our products are unmatched.”
Like any entrepreneurial journey, Lilian’s path has not been without challenges. One of the key challenges Mama's Gold addresses is the stigma and misinformation surrounding breastfeeding. "Many mothers feel pressured to give up breastfeeding due to societal expectations or lack of support," Lilian explained. "Our goal is to provide products that boost milk supply and educate mothers on the benefits of breastfeeding, empowering them to make informed decisions."
In addition to providing the products, "Our vision is to create a world where every mother has access to the support and resources they need to successfully breastfeed their children."
Another big hurdle has been scaling production to meet the growing demand for Mama’s Gold products. Initially, Lilian could only produce a limited number of orders using her home oven.
“The home oven was very small, and at any given point, I could only make two orders at a time,” she explained.
However, the increased demand prompted her to seek help from the Kenya Industrial Research and Development Institute (KIRDI), where she could move to a commercial kitchen and significantly increase production capacity. This experience was crucial as it allowed her to refine her recipes and ensure they met quality standards. With KIRDI’s support, she transitioned from small-scale home production to commercialscale manufacturing, which enabled them to expand their market reach.
Nevertheless, one of the biggest hurdles has been the lack of resources to scale the business further. “Being in an incubation program has been beneficial, but it also comes with limitations on how much we can expand within that environment,” Lilian explained
Another challenge has been educating the market about the benefits of lactation cookies.
“Many people didn’t understand why they should take a cookie to increase breast milk. It took a lot of effort to explain
that these are not regular cookies; they are infused with special ingredients called galactagogues, which help boost milk production,” Lilian explains.
Despite these challenges, Mama’s Gold has received rave customer reviews, with many mothers reporting significant improvements in their milk supply and quality.
“Nine out of ten of our clients come back with very positive reviews,” Lilian proudly stated. The testimonials are not just about increased milk supply but also about improved milk quality, which, in turn, helps babies gain weight and thrive. These testimonials have been crucial in building the brand’s reputation and customer base. For her, Mama’s Gold is not just a brand; it’s a testament to the power of innovation and determination.
As Mama’s Gold continues to grow, Lilian has big plans for the future. “We’re also planning to introduce more products for breastfeeding moms,” Lilian revealed. In addition, the company is working towards entering supermarket chains, a move that will require the brand to scale its production capabilities significantly.
To achieve this, Mama’s Gold is in the process of setting up its own factory, a milestone that will enable the company to meet the demands of larger retail outlets.
providing mothers with the support they need to successfully breastfeed their children.
In addition to expanding production, Lilian is also focused on diversifying the product range. Mama’s Gold currently offers a variety of flavors including plain butter, chocolate, and gluten-free cookies. The company is also in the process of developing new products, including gluten-free and sugar-free options, to cater to mothers with specific dietary needs.
“Entrepreneurship is a calling,” she said thoughtfully. “There are times when things will get tough, and what will make you not quit is your vision. So my advice is to have a clear vision, know what you want to do and why you want to do it.”
With a clear vision and a growing customer base, Mama’s Gold is well on its way to becoming a household name in Kenya’s baking industry,
Lilian believes that with the right strategies and partnerships, businesses can expand beyond local markets and tap into regional or even global opportunities. The key is to continue innovating and adapting to the needs of mothers and infants, ensuring that products remain relevant and effective.
She added that, as businesses in this space grow, so too does their ability to create jobs, support communities, and drive economic development. This is particularly crucial in regions like Kenya, where unemployment is a significant challenge. By employing individuals in various capacities—from shop attendants to factory workers, these businesses contribute to the economy and change lives. Each job created has a ripple effect, impacting the families and communities of the employees. This commitment to job creation is a testament to the broader impact that maternal and infant ventures can have on society.
Reflecting on her transition from the courtroom to the kitchen, Lilian shares her hard-earned wisdom with aspiring entrepreneurs who are ready to follow their passions into the unknown.
“Entrepreneurship is a calling,” she said thoughtfully. “There are times when things will get tough, and what will make you not quit is your vision. So my advice is to have a clear vision, know what you want to do and why you want to do it.”
With babies being born every day, the demand for products tailored to mothers and infants remains ever-present. The opportunities in this sector are abundant because, as Lilian aptly puts it, “You can't go wrong with anything baby and mommy-related.”
As Mama’s Gold continues to grow, it raises important questions about the role of small businesses in maternal health and the broader economy. What does the future hold for maternal entrepreneurship in Kenya and beyond? MAMA’S GOLD PRODUCTS ARE DESIGNED TO INCREASE BREAST
BY MARTHA KURIA
Mars Incorporated has boldly cemented its dominance in the global snacking market by acquiring Kellanova for a staggering US$36 billion, equating to US$83.50 per share in cash. Best known for iconic products like SNICKERS® and M&M’s®, Mars is now zeroing in on the burgeoning snacking industry as a major growth opportunity.
According to Mars, acquiring Kellanova aligns with its broader strategic goals of diversifying its product offerings and tapping into the rapidly growing snacking sector. The snacking industry represents a substantial opportunity for growth, with markets like salty snacks and crackers valued at over US$100 billion globally. According to Statista, the global snack market is projected to grow by 6.33% annually from 2024 to 2029, with an expected market volume of US$341.30
billion by 2029. Mars sees Kellanova's strong presence in developed and emerging markets as a valuable asset that can drive international expansion for its snack portfolio.
This deal, set to close in the first half of 2025, is designed to create a more comprehensive and diversified snacking portfolio that caters to evolving consumer preferences for indulgent and healthier snack options. The transaction represents a significant premium of approximately 44% over Kellanova’s 30-day average stock price. This premium reflects the value Mars places on Kellanova’s established brands and market reach. Mars plans to finance the acquisition through cash reserves and new debt, with financial support secured from Citi and J.P. Morgan. The acquisition has received unanimous approval from Kellanova’s Board of Directors, and significant shareholders, including the W.K. Kellogg Foundation Trust,
have committed to voting in favour of the transaction.
The acquisition of Kellanova by Mars marks a significant shift in the snacking industry, uniting two iconic companies with complementary strengths. This transaction allows Mars and Kellanova to leverage their combined resources to drive growth and adapt to the evolving needs of consumers worldwide. By integrating Kellanova’s well-known brands into its portfolio, Mars is poised to strengthen its position in the global snacking market, aiming to innovate and thrive in an increasingly competitive landscape.
Poul Weihrauch, CEO of Mars, expressed his enthusiasm for the acquisition, stating, “In welcoming Kellanova’s portfolio of growing global brands, we have a substantial opportunity for Mars to develop further a sustainable snacking business that is fit for the future.” He emphasised Mars' commitment to honouring Kellanova’s legacy while utilising both companies' combined strengths to offer consumers more choices.
On the other hand, this acquisition also allows Mars to capitalise on Kellanova's established brands, international presence, and innovation capabilities. Steve Cahillane, CEO of Kellanova, highlighted the potential benefits of merging with Mars, noting that it would accelerate Kellanova’s transformation into a leading snacking company and create new opportunities for employees, customers, and suppliers. “This transaction maximises shareholder value through an allcash transaction at an attractive purchase price,” Cahillane added.
Andrew Clarke, Global President of Mars Snacking, reinforced this vision: "This is an exciting opportunity to create a broader, global snacking business, allowing Kellanova and Mars Snacking to achieve their full potential.” Beyond expanding its product portfolio, Mars aims to address the growing consumer demand for healthier snacks by leveraging its brand-building expertise to nurture Kellanova’s brands and focus on innovation to meet evolving consumer preferences.
Kellanova emerged as a standalone company in October 2023, following Kellogg Company's decision to split its operations into two independent entities: Kellanova, focusing on global snacking and plant-based foods, and WK Kellogg Co., concentrating on the North American cereal business. This decision was driven by a strategic desire to enhance operational focus and agility, allowing each brand to capitalise more effectively on growth opportunities in their respective markets.
Steve Cahillane, Chairman and CEO of Kellanova, emphasised the rationale behind the spin-off, stating, “After more than a year of comprehensive planning and execution, we are more confident than ever that the separation will produce two stronger companies and create substantial value for shareholders.”
However, despite the optimistic outlook and the strategic benefits envisioned, Kellanova encountered significant challenges in the aftermath of the split. In the first half of 2024, the company reported a 4.5% decline in net sales compared to the same period in 2023. This decline was driven by several interrelated factors that underscored the difficulties faced by Kellanova in its new, independent form, partly due to adverse currency factors and reduced volumes across the business. The strength of the U.S. dollar against other currencies diminished the value of international sales, contributing to the decline in net sales. In addition to currency challenges, Kellanova experienced reduced business volumes across its operations and Operational difficulties. Nevertheless, Mars sees immense potential in revitalising Kellanova’s brand and business. With Mars’ vast resources and industry expertise, the company is well-positioned to address these challenges and capitalise on growth opportunities in the snacking sector.
BY YEGON KIPNGETICH
Since ancient times, baked products have been integral to the human diet. Over time, technological advancements have transformed baking from a simple art to a commercial industry capable of producing goods that stay fresh longer and offer improved taste, texture, and appearance. This progress is largely due to the use of food additives—substances added during processing or preparation to achieve specific technological or functional purposes. Additives play various roles, such as preserving freshness, enhancing flavour, improving texture, and ensuring food safety. Common baking additives include emulsifiers, enzymes, preservatives, and thickeners, widely used in Africa's diverse and growing baking industry. However, despite their unique roles, the safety of these baking additives in Africa is a pressing concern that demands immediate and ongoing attention due to concerns about their potential health risks, necessitating more stringent regulatory measures.
Baking additives are substances incorporated into baked goods to achieve specific effects, such as improving texture, extending shelf life, and enhancing appearance. In Africa, several additives are commonly used in baking. Baking powder, for instance, acts as a leavening agent, helping dough rise by releasing carbon dioxide when mixed with liquid. Sodium benzoate is a preservative that inhibits microbial growth, extending the shelf life of baked goods. Calcium propionate is another important additive; it prevents mould and bacterial growth in bread, ensuring its freshness over a longer period.
Ascorbic acid, also known as vitamin C, functions as a dough conditioner and antioxidant, which improves dough stability and quality. Emulsifiers, such as soy lecithin, blend ingredients that typically do not mix well, like fats and water. These additives are selected for their effectiveness in enhancing product quality and longevity, making them essential components in the baking industry.
Despite their benefits, baking additives have raised several safety concerns in Africa. One of the most significant issues involves potassium bromate, a common dough-strengthening additive linked to cancer.
In Ghana, an investigation by the Department of Science Laboratory Technology at Accra Technical University in January 2024 revealed concerning levels of potassium bromate in locally produced baked goods. The study found that while bread samples from the Volta and Ashanti regions tested negative for potassium bromate, some positive samples exceeded the recommended limits set by international standards. However, the hazard quotients for the analysed pieces of bread remained below acceptable reference limits, indicating no immediate carcinogenic risk for consumers. This discovery has spurred calls for stricter enforcement of food safety regulations and better monitoring of baking processes to safeguard public health.
In addition, Cameroon also banned the use of potassium bromate in bread production due to its carcinogenic effects. Charles Booto à Ngon, head of the Standards and Quality Agency (Anor), Stated, according to an article by Milling Middle East & Africa, "Maintaining the ban on potassium bromate in bread production is a crucial step towards safeguarding public health. As bakers, we must prioritise consumer safety over cosmetic appeal and ensure that our products do not pose any health risks." -. The Standards and Quality Agency (Anor) has cautioned bakers against defying the ban, emphasising that some dishonest bakers use potassium bromate not only to give the bread a golden colour but also to increase the apparent weight of the product.
Despite these concerns, potassium bromate remains legal in the United States, where the Food and Drug Administration (FDA) has not reviewed it since at least 1973. However, the Environmental Working Group (EWG) has identified over 130 products in the US containing potassium bromate, including bread, tortillas, and cookies. California and other states have stepped up to address this issue, with the California Food Safety Act banning the state's manufacture, sale, and distribution of foods containing potassium bromate.
In Kenya, safety concerns have emerged regarding artificial colourants. The Kenya Bureau of Standards (KEBS) reported that some artificial colourants in baking could cause allergic reactions and other health problems. A KEBS spokesperson emphasised, "Our primary concern is ensuring that the additives used in food products are safe and do not pose a risk to consumers."
According to an article in Business Daily titled "The Danger That Lurks in Food Colorings," researchers have warned about the health risks of artificial food colourings. These additives provide no nutritional benefits and may contain harmful substances. Dr Julias Onyango, a retired oncologist, highlighted that specific food colours, mainly yellow and red, contain compounds linked to cancer and may also negatively affect children's behaviour and health. He advocates for using
natural colouring agents, such as turmeric and tomatoes, and advises caution against consuming brightly coloured roadside foods that may pose significant health risks.
Regulations concerning baking additives in Africa demonstrate significant variation across the continent. Many African countries have established regulatory frameworks to govern the use of food additives to ensure food safety and quality.
In South Africa, the South African Bureau of Standards (SABS) manages food safety, including additive regulation. The SABS enforces standards that adhere to international guidelines to ensure the safety of food additives through regular inspections and testing. These regulations are developed under the Foodstuffs, Cosmetics and Disinfectants Act No. 54 of 1972 and align with the General Standard for Food Additives (GSFA) set by the Codex Alimentarius Commission, which specifies the maximum allowable amounts of various additives in food.
Kenya has established comprehensive regulations governing food additives through its Food, Drugs and Chemical Substances (Food Labelling, Additives and Standards) Regulations, which prescribe detailed standards for food contents, particularly food additives, and the preparation and processing of raw food materials; these stringent regulations include positive and negative lists for approved food additives, labeling requirements specifying the common chemical names for certain additives like oxidants, sweeteners, colorants, curing agents, flavor enhancers, flavorings, or preservatives, highly restricted use of additives in baby food products, alignment with Codex Alimentarius standards
where Kenya lacks specific guidelines, and enforcement by the Kenya Bureau of Standards (KEBS) which examines food for microbial and chemical contamination, including from additives, underscoring Kenya's commitment to maintaining high-quality and safe food production standards through a robust regulatory framework.
In West Africa, countries have made strides in establishing regulations for food additives, particularly in baking. The Economic Community of West African States (ECOWAS) has been instrumental in harmonising food safety standards across member states. For instance, countries like Ghana and Nigeria have implemented regulations that align with Codex Alimentarius standards, which include permissible levels for various baking additives such as leavening agents and emulsifiers. These regulations often emphasise the importance of food fortification, mandating the addition of vitamins and minerals to certain food products, including flour used for baking. The focus on fortification is driven by public health initiatives to combat micronutrient deficiencies in the region.
In contrast, Central Africa has less comprehensive regulatory frameworks for food additives, including those used in baking. Countries like Cameroon and the Central African Republic have regulations that reference international standards but often lack the specificity found in West African regulations. For example, while there may be guidelines on using certain baking additives, the enforcement and implementation of these regulations can be inconsistent. Additionally, there is less emphasis on fortification requirements, leading to a potential gap in nutritional quality compared to West African counterparts. The overall regulatory environment in Central Africa tends to be less developed, which can impact food safety and quality in baking and other food sectors. This necessitates
BAKING ADDITIVES ARE SUBSTANCES INCORPORATED INTO BAKED GOODS TO ACHIEVE SPECIFIC EFFECTS, SUCH AS IMPROVING TEXTURE, EXTENDING SHELF LIFE, AND ENHANCING APPEARANCE.
a focus on stronger regulatory measures, increased consumer education, and safer industry practices to ensure public health.
To address safety concerns, regulatory frameworks need strengthening across Africa. Countries like Kenya have recently introduced new standards to regulate the use of food additives, including baking ingredients like yeast, sucralose, and baking powder. The Kenya Bureau of Standards (KEBS) emphasizes the importance of quality and safety specifications and the need for food businesses to adhere to good manufacturing practices and safety systems such as Hazard Analysis and Critical Control Points (HACCP) to ensure consumer safety. However, consistent enforcement remains a challenge across many regions.
In South Africa, food additives are regulated under the Foodstuffs, Cosmetics, and Disinfectants Act, which aligns with global standards set by the Codex Alimentarius Commission. This regulatory alignment helps maintain high safety standards and ensures additives undergo rigorous testing before market approval. Despite these frameworks, there is a need for enhanced monitoring and enforcement to ensure compliance across the continent.
The industry, however, must overcome the fact that public knowledge about baking additives and their potential risks remain low, especially in rural areas. This disparity leads to higher consumption of products containing potentially harmful additives in rural communities.
For example, additives like potassium bromate, which is banned in many countries due to its carcinogenic properties, is still used in some parts of Africa. This underlines the need for increased public education about the health risks of such additives and clearer labelling practices to help consumers make informed choices.
Future efforts should focus on adopting safer alternatives, such as natural and functional ingredients, which align with global health trends and the growing demand for plantbased and vegan baked goods. For example, some regions are exploring alternatives like replacing artificial colourants with natural ones derived from fruits and vegetables to reduce health risks.
KENYA – Broadway Bakery has unveiled its latest product, FourSquare bread, designed for easy sharing among families, friends, and colleagues. This innovative bread comes pre-sliced in 4 quarters, ensuring everyone receives an equal share of this delightful treat. Over the years, Broadway Bakery has grown from a small operation to one of the largest bakeries in the region, serving a diverse range of products that cater to the evolving tastes of its
customers. The launch event occurred at the bakery’s headquarters in Thika, Kenya, on August 9, 2024, and attracted numerous local food enthusiasts and media representatives.
FourSquare bread is introduced at a time when community and togetherness are more important than ever. This resonates deeply with consumers looking for convenient yet enjoyable food options that foster connections. In addition, the bakery, established in
Kenya during the pre-independence era revealed that the FourSquare bread is not just about convenience; it’s also about quality. Made with carefully selected ingredients, the bread is soft, fluffy, and perfect for a variety of occasions. The launch of FourSquare bread is the latest step in the bakery’s commitment to meeting consumer needs while maintaining the high standards that have made it a household name, the company is renowned for the 50/50 bread, among other range of convenient brands such as Broadways Mando Bites – ready-to-eat mandazis – and Maicho Donuts which are soft, fluffy and delicious ready-to-eat donuts. With its convenient design and delicious taste, it is poised to become a favorite among consumers looking for easy and enjoyable ways to share food.
INDIA – Britannia Industries, the renowned biscuit, dairy, and bakery products maker, is in talks to acquire a majority stake in Kishlay Foods, a Guwahati-based company known for its diverse range of snacks, biscuits, sweets, potato chips, noodles, and tea. According to a report by The Economic Times, the deal, valued at an estimated Rs 600-700 crore (approximately US$71.5 million— US$83.4 million), is currently in the due diligence phase.
Kishlay Foods, established in 2001 by Sandeep Bajaj and Krishna Bajaj, started as a biscuit manufacturer and has grown into one of the leading snack food producers in Northeast India. The company offers popular brands such as Non-Stop, Kishlay, and Mamooz. According to a report by Tracxn, Kishlay Foods generated an annual revenue of Rs 350 crore (approximately US$41.6 million) for the financial year ending
on scaling its domestic and international operations, particularly now that the snacks market is expanding at a doubledigit pace and competition from regional and direct-to-consumer brands is continually intensifying significantly. If the negotiations are successful, Britannia, under the control of Nusli Wadia, will secure a strong foothold in the Northeast market and expand into categories like noodles and tea, where it currently lacks presence. ACQUISITION
March 2023.
During the pandemic, regional brands faced production setbacks due to supply chain disruptions but have since bounced back, benefiting from lower commodity costs and improved last-mile delivery through quick commerce platforms. For Britannia, which posted a 3.74 percent year-on-year sales growth for the quarter ending June, with revenues reaching Rs 3,967.38 crore (US$472.5 million), the move aligns with its focus
SOUTH AFRICA – PepsiCo’s bakery brand, Sasko, has temporarily ceased bread production at its South African facility following a distressing complaint from Nombulelo Mkumla, a Durban resident who discovered the remains of a rodent in a loaf of bread she purchased on August 27, 2024.
The incident has sparked outrage among consumers and prompted an investigation into the company’s food safety practices. Mkumla described her experience as “traumatic and disgusting.” She recounted, “I made toast after work and ate the bread. Then, on the morning of August 31st, I took the bread out of the fridge to make toast
and noticed something disgusting and scary.”
In response to Mkumla’s complaint, PepsiCo launched an immediate investigation. Cornel Vermeulen, General Manager of Bakeries at PepsiCo South Africa, acknowledged the seriousness of the situation. “We want to assure our consumers that we immediately launched a thorough investigation of the complaint,” he stated.
The company engaged external thirdparty service providers to examine the production facility associated with the contaminated batch comprehensively. Despite these efforts, PepsiCo has claimed that its investigation has not revealed any signs of rodent infestation
or failures in its food safety protocols. “The investigation has to date not revealed any visible signs of rodent or any other infestation,” the company communicated.
Meanwhile, many have expressed disbelief that such incidents could occur in established brands like Sasko. The fallout from this incident could have lasting implications for PepsiCo’s reputation in South Africa. As they work to address public fears and implement enhanced quality control measures, consumers remain vigilant about ensuring that their food meets the highest safety standards.
TANZANIA - The Tanzania Bakers Association (TBA) has urgently appealed to the government to reconsider its value-added tax (VAT) exemption policy on baking equipment and essential products like bread. This request was made during the Baker’s Dinner Gala and Awards Night on August 28, 2024, in Dar es Salaam, where TBA Chairperson Francisca Lyimo highlighted the significant challenges facing the baking industry. She stated, “Numerous tax charges present significant obstacles for the baking industry and impede the growth of small business owners while also contributing to the failure of many enterprises.”
The TBA argues that removing VAT would alleviate financial burdens on bakers and enhance public access to quality baked goods. Since its
establishment in 2021, the association has grown from 30 members to 305, with approximately 1,500 individuals trained
in baking skills. Lyimo emphasized the importance of supporting small businesses, suggesting that “the government should have incubation for small-scale businesses in order to develop a base of future taxpayers.”
External factors such as currency fluctuations and rising wheat prices further complicate the industry’s challenges. Joel Laiser from Azania’s Group of Companies noted these difficulties but acknowledged infrastructure improvements. Deputy Minister of Home Affairs Daniel Silo recognised the vital role of bakers in providing nutritious food. It encouraged them to voice their concerns to authorities, stating, “We advise you to utilize the tax committee by submitting all the challenges that hinder your business from thriving.”
EGYPT - Kellanova, a major U.S.-based snack manufacturer, has finalized the sale of its majority stake in Bisco-Misr, a leading Egyptian biscuit producer, to HSA Group, a conglomerate from the United Arab Emirates. This transaction, completed on September 10, 2024, signifies a strategic shift for Kellanova as it aims to streamline its operations in the Middle East.
Founded in 1957, Bisco-Misr operates production facilities in Cairo and Alexandria, producing popular brands like Bisco Tea Nice and Kaak. Kellanova had acquired the company in 2015 for approximately US$125 million to enhance its regional presence. However, the financial specifics of the recent sale remain undisclosed.
Muneer Hayel Saeed, a board member of
HSA Group, expressed optimism about the acquisition, stating, “We believe that our partnership today will unlock significant growth for Bisco-Misr.”
He emphasized HSA's commitment to investing in Egypt and enhancing the brand’s potential in the market.
Robert Chanmugam, Managing Director of Kellanova’s regional operations, highlighted Egypt's strategic importance for Kellanova. He noted that they have been dedicated to local investments and innovations since entering the market. This divestiture comes amid Mars, Incorporated's announcement of a US$36 billion acquisition of Kellanova. Pending regulatory approvals, the deal is expected to close in early 2025, marking a pivotal moment for both companies as they navigate the evolving snack food industry landscape.
USA - Eleven months after being spun off from Kellogg Co., WK Kellogg Co. has emerged as a smaller but nimbler company better positioned to leverage its iconic brands and drive growth in the ready-to-eat cereal market, top executives said at the Barclays Global Consumer Staples Conference.
The transaction splitting Kellogg Co. into two public companies — WK Kellogg Co. (the North American cereal business) and Kellanova (the global snacking, international cereal and noodles, plantbased foods and North American frozen food businesses) — was completed on Oct. 2, 2023
Gary Pilnick, chairman and chief executive officer of WK Kellogg, stated, “The spin logic, we believe works. We’re even more confident today that it was the right decision, and we’re looking forward to the future.
Eight months into its first fiscal year, WK Kellogg is “performing largely as we expected,” Pilnick said.
Net income for the 2024 first half ended June 29 climbed 21% to US$64 million. The company upheld its previous fullyear outlook of adjusted net sales ranging from down 1% to up 1% and adjusted EBITDA growing 3% to 5%.
WK Kellogg is also bolstering its brands, with 9 of its 11 biggest brands growing at or faster than the category.
The company has launched a new campaign for Special K called “Special for a Reason” to highlight the brand’s variety of nutritional benefits.
SWITZERLAND - Swiss food manufacturer Hero Group has acquired UK healthy food brand Deliciously Ella, announced on September 16, 2024. The financial terms of the deal were undisclosed, but the acquisition marks Hero Group’s entry into the UK healthy snacks market.
Founded by Ella and Matthew Mills in 2012, Deliciously Ella began as a plantbased recipe website and has since evolved into a multimillion-pound brand. Its product range, including energy balls, oat bars, and breakfast cereals, is stocked by major UK retailers like Tesco and Sainsbury’s. In 2023, the company generated £24 million in revenue and secured profitability.
Ella and Matthew Mills will continue to lead Deliciously Ella under Hero’s ownership, while retaining control of their separate Plants brand, which
includes soups, yoghurts, and a vegan restaurant. The couple emphasized that Hero’s long-term, family-owned approach aligns with their vision.
Hero Group, based in Lenzburg, Switzerland, is known for its focus on natural and healthy foods, with brands like Organix and Beech-Nut.
The acquisition of Deliciously Ella supports Hero’s strategy to expand its core categories. Hero Group, which generated annual revenue of CHF
1.2 billion (US$1.45 billion) in 2022, operates in the baby & toddler, spreads, and snacking categories with brands such as Corny, Schwartau, Organix, Beech-Nut, and Semper.In 2023, Hero’s Organix brand nearly doubled in size, generating £40 million (US$52.9) in the UK.
The deal is set to help Deliciously Ella reach more global consumers, further cementing its presence in the healthy food market.
BY WANGARI KAMAU
hile a substantial portion of global oat production is used in the animal feed industry, their popularity for human consumption has also surged recently. Once a humble whole-grain cereal, oats (Avena sativa) have become a powerhouse ingredient. They are celebrated for lowering blood sugar, supporting weight loss, and delivering a potent mix of dietary fibre, protein, iron, vitamins, and carbohydrates.
The global oats market, valued at USD 7,547.8 million in 2023, is projected to reach USD 9,510.1 million by 2030, with a CAGR of 3.3% during the forecast period of 2024-2030, according to Business Growth Reports. This growth is driven by the increasing recognition of oats' health benefits and their adaptability in food products. In Africa, South Africa, Algeria, and Ethiopia are the primary consumers, accounting for 87% of the continent's total oats consumption, according to market research by IndexBox.
Despite rising demand, oats production in Africa remains relatively low due to climatic conditions and agricultural practices favouring crops like maize, rice, sorghum, and millet. Oats require cooler temperatures and well-drained soil, less common in many African regions. Nevertheless, oats are enjoyed across the continent in various forms, such as oatmeal, granola bars, oat-based beverages, and as a flour substitute in
baking.
According to Fortune Business Insights, the global breakfast cereal market, valued at US$36.38 billion in 2023, is projected to grow to US$58.35 billion by 2032, reflecting a steady compound annual growth rate (CAGR) of 5.47% over the forecast period. Breakfast cereals, typically made from grains like wheat, oats, and barley, are available in ready-to-eat and ready-to-cook formats, making them a staple in households worldwide. The rising demand for convenience and ready-to-eat foods continues to fuel the market's growth.
However, traditional ready-to-eat cereals, often high in sugars and carbohydrates, are declining in popularity as consumers become more aware of the health risks associated with high sugar intake and processed foods. This shift drives demand for low-calorie, sugarfree alternatives and home-cooked meals. Manufacturers are expanding their product lines to include healthier options that align with this growing health consciousness.
Oats, known for their lower sugar content and health benefits, are increasingly favoured as a healthier breakfast cereal option. The rising aversion to processed, sugar-rich foods and the adoption of diets like flexitarian, keto, and vegan are particularly influencing the European market. Cereals made from natural ingredients with higher fibre content are gaining popularity, prompting both private-label companies and major manufacturers to launch products marketed as "high protein," "plant-based," "clean label," and "gluten-free."
Research supports the health benefits of oats, particularly in appetite control. A 2016 study by Rebello et al., for example, found that oatmeal suppresses appetite, increases satiety, and reduces energy intake compared to readyto-eat cereals (RTEC). The study attributes these effects to the higher content, molecular weight, and hydration levels of β-glucan in oatmeal, which creates greater viscosity in the stomach, enhancing satiety.
The trend toward consuming whole-grain foods for their health benefits, such as reduced risks of cardiovascular diseases, is driving market growth. Manufacturers are incorporating whole grains like oats to meet the growing demand
for nutritious foods. The American Journal of Clinical Nutrition recommends consuming whole grains rich in phytochemicals and other bioactive compounds over refined products. This trend, coupled with urbanization and improving education levels, pushes manufacturers to develop innovative oat-based products.
As much as the breakfast cereal market is growing globally, research shows significant consumption differences across Africa. According to SagaCube's 2023 report, the breakfast cereal market is more developed in Anglophone African countries, with South Africa leading with a penetration rate of 69%, followed by Botswana (60%), Zimbabwe (57%), Ghana (43%), and Nigeria (41%). The strong market presence in these countries reflects a growing trend among urban populations seeking convenient and nutritious breakfast options.
In contrast, Francophone African countries exhibit lower breakfast cereal penetration rates, with traditional breakfast foods remaining more prevalent. In North African countries like Algeria, Egypt, and Morocco, breakfast cereal penetration rates are below 20%, with traditional foods such as bread dominating the breakfast table. This disparity highlights the cultural and regional differences in food consumption patterns across the continent.
The availability of other whole grains, such as wheat, barley, sorghum, and quinoa, which offer similar nutritional profiles, poses a challenge
OATS, KNOWN FOR THEIR LOWER SUGAR CONTENT AND HEALTH BENEFITS, ARE INCREASINGLY FAVOURED AS A HEALTHIER BREAKFAST CEREAL OPTION. THE RISING AVERSION TO PROCESSED, SUGAR-RICH FOODS AND THE ADOPTION OF DIETS
IN NUMBERS
US$58.35B
GLOBAL BREAKFAST CEREAL MARKET BY 2032
to the oats market. These grains, also rich in fibre, vitamins, and magnesium, are available at lower prices. Barley, for example, is widely incorporated into breakfast meals for its digestive benefits and antioxidant properties, which reduce cardiovascular disease risks, creating competition that may impede market growth for oats.
Oat-based beverages are another oats product that is rapidly gaining popularity across Africa. Initially developed as a milk substitute for the lactose intolerant, these drinks have become staples in many diets. According to TetraPak South Africa, the global oat-based beverage market is projected to reach USD 6.8 billion by 2026, with an annual growth rate of 13.4%. This surge is driven by health-conscious consumers who are increasingly opting for nutritious alternatives, and oat beverages are becoming a preferred choice due to their health benefits. Furthermore, the sustainability of oats compared to other crops appeals to environmentally conscious consumers.
A global shift towards plant-based diets and veganism has also fueled the demand for oatbased beverages. These drinks are valued for their nutritional content and are increasingly
fortified with additional health-enhancing ingredients. According to Global Market Insights, the organic segment of the oat-based beverage market generated around USD 392.6 million in revenue in 2022. Consumers seeking healthconscious and environmentally friendly options drive the demand for organic and non-GMO oat beverages. That same year, the plain/original segment accounted for 60% of the oat-based beverage market share, driven by consumers looking for versatile, dairy-free alternatives.
Oat beverages' naturally sweeter and creamier taste also contributes to their rising popularity, making them more appealing than other non-dairy alternatives. This has helped oat beverages establish a strong presence in Africa's diverse market. However, challenges, such as fluctuations in the availability and cost of oats and maintaining consistent product quality due to variations in crop and processing methods, pose significant hurdles for producers.
While the oat-based beverage industry is often praised for its sustainability compared to dairy, it faces scrutiny regarding its environmental impact. For example, a study by the
Environmental Working Group found glyphosate in 43 of 45 foods that contained conventionally grown oats. Additionally, the Pesticide Action Network reported in 2019 that 94% of oats tested contained more than one pesticide residue. Such findings raise concerns about the use of harmful chemicals in oat production.
Moreover, while oat milk produces three times less greenhouse gas per litre than dairy milk, according to the University of Oxford, it’s essential to consider that it generates more carbon dioxide than dairy milk on a per-gram-of-protein basis. Critics argue that comparing oat milk to dairy milk on protein content alone is misleading, as consumers typically do not choose oat milk for its protein. As a previous Loma Linda University postdoctoral fellow and current Director of Sustainability at Opsis Health, Andrew Berardy noted, “Unless you can convincingly argue that people drink oat milk for its protein content, it's not fair to compare it to dairy milk on that basis.”
Berardy also emphasized that greenhouse gas emissions are just one aspect of a product's environmental impact. Land use, water use, resource depletion, and various forms of toxicity also play crucial roles in evaluating the overall sustainability of food products. It’s essential to consider the full range of environmental impacts reported in life cycle assessments, including land, water, and energy usage, human and environmental toxicity, acidification, and eutrophication.
As sustainability takes centre stage in different industries globally, one brand that has positioned itself as both a leader in the oat-based beverage market and a global sustainability advocate is Oatly. Under the leadership of Tony Petersson since 2012, Oatly rebranded itself in 2014 with a bold, sustainabilitydriven message. The brand's packaging became a powerful tool for communicating its values, featuring slogans like “It’s like milk but made for humans” and highlighting the environmental impact of its products. This strategic use of packaging underscored Oatly’s stance against the dairy industry and sparked widespread social media discussions, reinforcing the brand's commitment to environmental transparency.
Beyond its innovative packaging, Oatly has embraced its role as an activist brand, challenging the dairy industry and advocating for environmental policies. For instance, in 2019, Oatly launched a petition in Germany to mandate CO2 labeling on food products, drawing significant public and media attention. Although the law wasn’t passed, Oatly's efforts set a precedent in the industry. In 2021, the company successfully challenged European Amendment 171, which restricted the use of dairy-related terms for plant-based products, by mobilizing public support through a petition that garnered over 450,000 signatures.
The rise of snack culture is significantly boosting the oats market. Oat-based snacks like bars, granola, and cookies
are increasingly popular among those seeking healthy, convenient options. These snacks offer a satisfying crunch and diverse flavours, as well as the nutritional benefits of oats, including their gluten-free variants, which cater to those with sensitivities. For example, in Kenya, brands such as Mama’s Gold and Mommie’s Choice are leveraging oats to create lactation products for African mothers, combining nutrients and lacto glucans to appeal to this niche market.
The trend of “snackification” reflects today's on-the-go lifestyle, where people prefer quick, nutritious snacks between meetings, during commutes, or before workouts. Global market research company Mintel’s 2019 report highlights that 95% of adults snack at least once daily, with 70% snacking at least twice daily, especially among Millennials. This shift in eating habits has driven demand for innovative snack options and opened new opportunities in consumer-packaged goods.
This growth aligns with the broader trend toward “betterfor-you” products. Traditional oats have been reimagined as modern, convenient snacks, bridging the gap between traditional consumption and contemporary convenience. Oat bars, for example, blend traditional oats with current snacking trends, offering a quick, portable option that maintains the nutritional benefits of oats. Their aesthetic qualities also enhance oat bars' appeal.
The consumption trends of oats in Africa and beyond reflect an evolving market influenced by health awareness, urbanization, and dietary habits like snackification. While challenges exist, the increasing demand for nutritious, convenient, and versatile food options positions oats as a significant player in the African food market.
SPAIN – Symaga, a global leader in galvanized steel silo manufacturing, has announced plans to implement a significant upgrade in its production process by introducing S450GD steel starting October 1.
This new steel type will replace the current structural steel used in stiffeners and body sheets of its silos, promising to enhance the overall structural quality while reducing the final weight.
The switch aims to provide several benefits, including improved durability and a more efficient supply chain, which aligns with Symaga’s commitment to optimizing its storage solutions for customers.
The adoption of S450GD steel brings
a range of advantages for both the company and its customers. With a higher yield strength, the new steel type will upgrade body sheets and stiffeners from 350N/mm² to 450N/mm², thereby reducing the overall weight of the silos without compromising on structural integrity.
This reduction in weight is expected to lower the costs associated with logistics and assembly, making Symaga’s silos more cost-effective and easier to handle. Additionally, the switch will lead to a more streamlined supply chain by ensuring greater availability of materials and reducing the need for multiple purchasing references.
— Swiss technology giant Bühler Group has announced the acquisition of Esau & Hueber, a German company specializing in hygienic process and fermentation technology across the beverage, food, pharmaceutical, and biotechnology sectors. This strategic acquisition aims to bolster Bühler’s malting, brewery, and sustainable protein businesses by
integrating Esau & Hueber’s innovative technologies into its global operations. “This acquisition aligns perfectly with our long-term strategic objectives. By leveraging Esau & Hueber’s strengths in brewery and sustainable protein areas, we can provide superior solutions to our customers in these sectors,” said Johannes Wick, CEO of the Grains & Food business at Bühler.
Esau & Hueber, based in Schrobenhausen, Germany, is known for its expertise in yeast and fermentation management, hygienic process design, and automation.
With a team of 42 employees, the company supports clients through all phases of project development, from design to high-tech facility construction. The acquisition will enable Esau & Hueber to multiply its reach and influence by leveraging Bühler’s extensive global network.
Ian Roberts, CTO at Bühler, emphasized the significance of the acquisition, noting that the acquisition is seen as a strategic move to fill technological gaps and strengthen Bühler’s position as a leader in food technology innovation.
“We are delighted to welcome Esau & Hueber to Bühler. The acquisition presents a unique opportunity to integrate their capabilities and better meet the evolving needs of our global customers.”
USA—Cargill has announced the acquisition of two feed mills from Compana Pet Brands, located in Denver, Colorado, and Kansas City, Kansas. This marks a strategic expansion into the ag retail and large ranching/farming sectors in the western and central United States.
While financial terms of the transaction remain undisclosed, Cargill expects this move to bolster its presence and growth in the U.S. animal nutrition market.
“These two feed mills are a perfect fit for our Cargill Animal Nutrition and Health business in the U.S., better positioning us for long-term growth of our full portfolio,” said Mariano Berdegue, Senior Vice President for Cargill’s Animal Nutrition and Health Americas business.
The Denver feed mill, which employs 35 people, features dedicated packing lines. Cargill plans to modernize this facility further, aiming to transform it
into a flagship feed mill with expanded capacity and additional investments. Meanwhile, the Kansas City feed mill is conveniently located near an existing Cargill facility, allowing for streamlined operations and continued growth with customers in the region.
“This transaction is mutually beneficial as Cargill will continue to manufacture our product. We are excited to work together in the years ahead, ” Greg Pearson, CEO of Compana Pet Brands said.
“THESE TWO FEED MILLS ARE A PERFECT FIT FOR OUR CARGILL ANIMAL NUTRITION AND HEALTH BUSINESS IN THE U.S.,
USA – Scoular, a global agribusiness company based in Nebraska, has completed a US$20 million expansion of its feed blending facility in Jerome, Idaho. Scoular is a US$9.7 billion global agribusiness that purchases, sells, stores, handles, and processes grain and ingredients.
This Idaho expansion boosts the facility’s production capacity by 35% and its storage capacity by 40%, which promises to enhance feed options for dairy and beef producers in the region.
The milestone was celebrated with a ribbon-cutting event on September 6, 2024, attended by company executives, local officials, and industry leaders. The expansion’s centrepiece is a 120-foothigh concrete feed mill equipped with
advanced technologies that underscore Scoular’s commitment to innovation and customer satisfaction.
Key additions to the Jerome facility include a steam flaking process and a pellet mill. The steam flaking system enhances the digestibility of corn and
barley for cattle by steaming, heating, and pressing the grains into flakes. Meanwhile, the new pellet mill allows for the production of feed pellets, which offer ease of handling and optimised nutrition, particularly for calves and beef cattle.
USA – Fitch Ratings has upgraded Bunge Global SA’s long-term issuer default rating and the long-term debt ratings of its operating subsidiaries from “BBB-” to “BBB+.”
This move reflects Fitch’s increased confidence that Bunge will receive the necessary regulatory approvals to proceed with its merger with Viterra Ltd., a transformative deal expected to reshape the global agribusiness landscape.
Announced in June 2023, the BungeViterra merger is poised to create one of the largest agribusiness companies in the world, placing it in closer competition with industry giants such as Cargill and Archer Daniels Midland (ADM). The merger is anticipated to significantly
enhance Bunge’s business profile, expanding its scale and diversifying its operations across regions and commodities.
Fitch noted that the merger would provide Bunge with greater flexibility and resiliency, particularly in volatile market conditions. Fitch’s upgrade reflects the agency’s belief that regulatory bodies will approve the merger across various jurisdictions.
“This merger is anticipated to materially enhance Bunge’s business profile, creating a leading global agribusiness-focused company with significantly increased scale and greater diversification,” Fitch said in its ratings update.
TURKEY — The Türkiye Ministry of Industry and Technology has officially certified the IFF R&D Center, located in Gebze, near Istanbul.
The ingredients company said the Türkiye Creation and Design Center accreditation will accelerate speed-tomarket and give food manufacturers faster access to innovative solutions. According to the company, Türkiye has a large and sophisticated food and beverage manufacturing sector.
“This certification mªrks a significant milestone in our journey toward
accelerated innovation,” said Armand Engelen, regional creation & design director, AMETI at IFF.
“For our customers, this accreditation significantly streamlines their application process which means faster access to our innovative solutions, helping them to bring new products to market swiftly.”
Engelen observed that the certification is a seal of trust that inspires the group to raise the bar even higher in quality and service as it collaborates with valued customers and research partners.
Meanwhile, the Global food and beverage solutions group has confirmed plans to continue expansion into product ranges for nutrition-conscious consumers, including within the confectionery space. Social listening research by IFF shows that conversations around developing a healthier relationship with food grew by 242 percent in the U.S, while conversations about mindful eating grew by 190 percent globally in the last year.
“THIS CERTIFICATION MARKS A SIGNIFICANT MILESTONE IN OUR JOURNEY TOWARD ACCELERATED INNOVATION,”
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