SIGMA FEEDS

Helping farmers get the most out of every animal, every time

BY PAUL ORINA

The Kenyan animal feed sector is characterized by a large number of small, unregistered feed millers who combined accounted for about 50 - 60% of the domestic demand for animal feeds in 2020. 2020 was however not a good year for many of these millers with USDA reporting the closure of at least 30 feed mills and a reduction in milling capacity utilization due to steep price increases for feed ingredients.

Sigma Feeds survived that difficult period just like it had weathered many other storms that have hit Kenya’s industry during the close to 40 years that the company has been in existence. The secret? Catering to the needs of each and every animal that could possibly exist in a conventional farm in Kenya be it a cow, goat, duck, or even chicken. “We manufacture an extensive range of livestock feeds to meet the various demands of farmers across the country, from dairy, swine, poultry, and aqua” reveals Sanket Shah, Chief Operations Officer at Sigma Feeds Ltd.

A Pioneer In The Fish Industry

Producing an extensive array of feeds for different animal species did not occur overnight. It’s the result of a gradual and strategic diversification process that retains its market driven focus, from the early days in 1978, when Kirtesh Shah, the founder of the company, set up a small, manual operation in the Karen suburb to manufacture animal feed products, and which was largely sold to his neighbours.

According to Sanket, the company’s constant

IN NUMBERS pursuit for better technologies, advancement in nutrition standards and diversification strategies have been at the core of its success in the sector. The company pioneered the technology for the production of aqua feed to stimulate fish farming activities in Kenya back in 2010.

Catering for a new animal species is not a straightforward process. “Every species’ s nutritional needs are significantly different. Fish feeds, in particular, present much greater complexities as different growth phases demand drastic changes in nutrition until the fish get to a mature size of approximately 400 grams,” he explains.

Furthermore, this requires feed producers to create a multitude of products to cater to the different stages of growth. The process is quite complex because different pellet sizes are required at each stage in addition to other factors like density, expansion, starch gelatinization, and protein denaturation. “It requires a highly skilled and knowledgeable team to operate the plant to ensure all desired parameters to create the best product for the market are met.”

As pioneers in the market, Sanket reveals that the company has benefited greatly from a team of international nutritionists who’ve been instrumental in creating exceptional products. “The benchmark set by our clients is already very high and what they’re looking for is nothing short of excellent - hence we are constantly exploring ways of creating the lowest feed conversion ratio to give maximum value and profits to our customers,” he says.

Keeping Up With Pet Owner Demands

With pet ownership on the rise, demand for quality pet food has also emerged. Importance of pets wasn't fully realized in Kenya until recently. If we go back in time, most people kept dogs for security and not necessarily as companions. But that has changed dramatically because the benefits derived from owning a pet go beyond anything imaginable. “We have an important role in ensuring we create an ultra premium food line yet keep it affordable for the mass market,”

Sanket reveals. “For this reason, we have developed a multitude of premium brands which contain high value ingredients and superfoods that are sourced from different parts of the world. Together with our team of nutritionists from Europe, we have successfully managed to address several pet health-related issues in this region. I do believe that over the next decade, Kenya will witness quite a substantial rise in pet ownership with an ever-growing need for various nutrition solutions.

A Sector Reliant On Imports

With local cereal production not enough to meet the demand for human food, the animal feed sector is forced to rely on imports to sustain production. “To source most of our raw materials requirements, we have to look outwards to East Africa, whether it's Tanzania, Uganda, Malawi, or Zambia,” Sanket reveals. Other specialty ingredients such as vitamins and complex proteins are however not available regionally and have to be imported from either Europe, North America, or Asia.

Without a reliable local supply, the sector is however exposed to global supply chain issues such as the recent war in Ukraine which disrupted wheat supplies, sending prices to new historic highs. “The hope is that Kenya will be in a position one day to produce these products that are heavily required but are currently unavailable. And we hope that farmers will be encouraged or there's a plan to allow these ingredients to be sourced locally.”

Priority On Continuous Investment

Sanket admits that when he joined the company, the operations were not as optimal as he would have desired. “It was quickly realized that some machines were outdated and something had to be done,” he says. Even though capacity was sufficient to meet demand, the technology did not deliver the desired level in terms of efficiency and running costs. “It is paramount for me to ensure that this business continuously invests in new innovation and better technology,” he says.

As part of the new investments, the company has invested in new pelleting technology from Andritz, a leading global supplier of milling technology. “Ever since we upgraded our facilities, we have seen a significant improvement in our running costs, milling efficiencies and overall production output. More importantly, downtime has reduced significantly.” He notes