UNGA GROUP
CEO Joseph Choge on scaling new foodtech paths for growth and outstanding customer experience
COMPANY
Scaling new food-tech paths for growth and outstanding customer experience
MILLERS CORNERJOSPHAT CHIDOMA
Josphat Chidoma on what it takes to succeed in Africa’s milling industry
• Olam Agri contemplates expanding wheat flour and pasta production capacity in Cameroon
• Kenyan government receives greenlight to import 125,000MT of duty free edible oil
• Russia negotiates deal with Türkiye and Qatar to boost grain exports to African countries
• Kellogg receives board approval to split into two companies: Kellanova and WK Kellogg Co
• Kapa Foods enters the noodle market with launch of Nala Instant Noodles
Grain demand booms in eastern Sub-Saharan Africa, creating trade and business opportunitiesGrain demand booms in eastern Sub-Saharan Africa, creating trade and business opportunities
A
• IMAS introduces polymer-based roller mill chassis
• Novozymes partners Bactolife to enhance piglets
health
• Buhler unveils Food Park Concept at 2023 African Milling School graduation ceremony
• Symaga launches new sensor models to optimize silo effectiveness
Your Team for Great Flour
flour fortification: The Flourists, a team of experienced technologists who develop customized and highly stable vitamin-mineral premixes. They help the world’s millers to ensure a secure supply of essential micronutrients with consistent sensory and application-specific flour properties. The result: Flour of the highest quality that plays an essential role in supplying the world’s population with vital micronutrients.
MILLING
MIDDLE EAST & AFRICA
Year 2 | Issue No.5 | Aug-September 2023
FOUNDER & PUBLISHER
Francis Juma
SENIOR EDITOR
Paul Ongeto
EDITORS
Martha Kuria | Wangari Kamau
BUSINESS DEVELOPMENT DIRECTOR
Virginia Nyoro
BUSINESS DEVELOPMENT ASSOCIATE
Hellen Mucheru
HEAD OF DESIGN
Clare Ngode
CINEMATOGRAPHER
Newton Lemein
ACCOUNTS
Jonah Sambai
Published By: FW Africa
P.O. Box 1874-00621, Nairobi Kenya
Tel: +254725 343932
Email: info@fwafrica.net
Company Website: www.fwafrica.net
It's time for the milling industry to consolidate
The milling industry is ripe for consolidation. These are not my own words, but those of industry experts who believe that such a move is necessary for the survival and competitiveness of the sector.
The first time I heard about this line of thought was during an interview with Joseph Choge, the CEO of Unga Group, one of Kenya's largest milling companies. During the interview, Choge made it clear that Unga is transitioning into a total food company. This means that the company will expand its portfolio to include a wider range of products, beyond the usual offerings of wheat, maize, or millet-based products.
My educated guess is that Unga, similar to the intelligent mice -Scuff and Scurry -in the bestselling motivational business fable "Who Moved My Cheese" by Spencer Johnson, has noticed the cheese in the Milling station, particularly in the maize category is gradually shrinking in size, and is now actively seeking new cheese in other stations.
noted that the milling sector was indeed ripe for consolidation. Our market report analysis is based on this report, which highlights the trade and business opportunities created by the grain boom in Eastern Sub-Saharan Africa.
Milling Middle East & Africa is published 4 times a year by FW Africa. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken on the basis of information published.
One thing I learned about Choge is that beyond his amiable and charming character, lies a man defined by purpose and determination. His theme for this year is to be intentional with everything he does including work and that is reflecting on Unga's recent moves in the food industry which we have tried to capture in this edition's special feature story.
The drums of consolidation weren't beaten by Choge alone. A recent report by Rabobank, a financial services provider that focuses on the food, beverage, and agribusiness sectors, also
In this issue, we introduce Millers Corner, where we give industry experts an opportunity to share their insider's opinion on Africa's milling industry. Josphat Chidoma, the Head Miller at Happy Life Industria, one of the leading milling companies in Angola, is our first interviewee, and he has a lot to say about the milling industry in Africa.
Elsewhere in the magazine, we feature the latest news and innovation from that industry and a number of insightful analytical pieces that will hope will be worth your read.
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Egypt’s edible oils maker Afia International secures US$20M loan from EBRD
EGYPT – The European Bank for Reconstruction and Development (EBRD) is bolstering Egypt’s agribusiness sector with a US$20 million loan to Afia International, a prominent manufacturer of edible vegetable oils and ghee in the country.
Afia International is part of Saudibased agribusiness enterprise Savola Group. The group has a strong presence
in the Middle East and North Africa region and Türkiye.
Through this initiative, the EBRD intends to support the oilseed sector, whose prices have increased considerably on world markets, due to the Russian-Ukrainian conflict.
This financing will primarily support Afia International to boost its working capital needs and raw material
procurement, including bulk crude vegetable oil, thereby contributing to diversifying the company’s funding sources.
According to EBRD, the financing will also help the company diversify its financing sources by providing approximately 15 percent of what it needs annually.
Olam Agri contemplates expanding wheat flour and pasta production capacity in Cameroon
CAMEROON – Olam Agri has announced its intention to invest in Cameroon’s wheat flour and pasta production to meet the changing food consumption patterns, promote economic development, and contribute to efforts to improve food security in the country.
Mr. Veeresh Mallikarjun Hiremath, Olam Agri’s Senior Vice President and Country Head for Cameroon, was speaking to Business Cameroon about Olam Agri’s operations, contributions, and significant investments in Cameroon through its wheat milling business.
According to Hiremath, Olam Agri has planned to increase their milling capacity in the country and venture into pasta production to meet the growing demand for high-quality pasta products.
The wheat milling industry in Cameroon has experienced substantial growth and transformation in recent years. Olam Agri is currently one of the market leaders in the flour category in Cameroon.
Olam further aims to tap into the growing milling sector, recognizing that Cameroon occupies a pivotal position where agriculture and modern food processing intersect.
Tanzania to build a US$116M industrial park to boost cashew nut processing
TANZANIA – The Tanzanian Government is implementing a sustainable cashew nuts processing strategy that aims to add value to the crop through the establishment of an industrial park.
President Samia Suluhu Hassan revealed the plan while addressing Mtwara residents at Nangwanda Sijaona
Stadium on her first day of tour of the Mtwara Region.
According to the latest reports from the Cashewnuts Board of Tanzania (CBT), the industrial park, which is estimated to cost US$116 million, will be built in Nanyamba District, Mtwara Region in an area covering 1,500 hectares.
The park will accommodate factories with a total processing capacity of 300,000 metric tonnes of cashew nuts annually, she revealed
The Head of the State said in the next two years the country will no longer be exporting raw cashew nuts because the government is working on a plan to construct cashew nut processing plants.
Kenyan government receives greenlight to import 125,000MT of duty free edible oil
KENYA – The government is now at liberty to import 125,000 metric tonnes of cheap edible oil after the High Court lifted the orders that suspended the importation, Citizen Digital has reported.
Justice John Chigiti ruled that the suit filed by the Law Society of Kenya (LSK) challenging the importation and distribution of duty-free edible oils was premature and premised on illegally acquired confidential government documents.
“I am satisfied that the case is premature because a court that admits and determines a dispute based on illegally obtained evidence is a court
that acts without jurisdiction. The court lacks jurisdiction on that premise and strikes out the suit,” ruled Chigiti.
The government approved the decision in November last year to stabilize cooking oil prices after a prolonged drought that led to a shortage of household supplies and higher food prices.
The import plan was however stopped after The Law Society of Kenya (LSK) moved to court to challenge the decision by the government to import duty-free edible oils, saying that constitutional procedures were not followed.
Algeria and Morocco turn their backs on French wheat supplies
NORTH AFRICA
– Algeria and Morocco, two of the largest wheat importers in Africa, have significantly reduced their imports from France, leaving Europe’s largest wheat exporter with huge surplus.
Algeria was traditionally France’s top wheat export destination outside the European Union, accounting for 40% to 50% of all exports to non-EU countries.
Souring diplomatic relations between the two countries has since seen Algeria find new trade partners particularly in the Black Sea where Russia is a major player.
Morocco which helped offset largen decline in Algerian exports has also turned its back on France, opting instead to source from Russia.
Alexandre Marie, chief analyst for Agritel (Argus Media France), told the agricultural news daily Terre-Net that France should ship 4.3 million tonnes of common wheat to Algeria and Morocco in 2023/2024.
This is way below the 7 million tonnes
that France used to regularly export to the two North African countries between 2013/2014 and 2019/2020.
Analysts believe that even the projected 4.3 million tonnes is an ambitious target and will depend on French exporters offering competitive prices throughout the campaign, in order to win back these two traditional markets.
As it currently stands, this would be a tall order as French wheat is not as competitive as it was before.
“Between May and July, French wheat was not competitive. Far from there. The differences sometimes exceed US$40/tonne in favor of Russian origin. French wheat was not capable of filling export order books to third countries,” explained Mr. Marie.
Russia negotiates deal with Türkiye and Qatar to boost grain exports to African countries
RUSSIA – The German newspaper Bild recently reported that Russia, Turkey, and Qatar are preparing a grain export agreement to supply Russian grain primarily to African countries.
Citing correspondence between Ankara and Moscow officials, the report indicates that the emerging deal puts Türkiye in charge of the agreement’s organization, while Qatar will be the chief financial backer.
The report adds that Turkey is trying to link grain exports from Ukraine and Russia and mutually secure them.
According to Bild, the new deal between Türkiye and Qatar could be finalized by the weekend in Budapest.
Meanwhile, President Vladimir Putin
has assured Turkey’s Tayyip Erdogan that Russia is open to discussions about the Black Sea grain deal- an initiative that helped get Ukraine’s grain to market and ease a global food crisis.
Russia withdrew from this deal in
July, one year after its establishment through the United Nations and Turkey, citing challenges to its food and fertilizer exports and a perceived shortfall in distributing Ukrainian grain to nations requiring assistance.
Nigeria secures US$163M from AfDB to boost wheat production
Shettima said 50,000 hectares in Jigawa State and 10,000 hectares in Kebbi would be utilized as part of the wheat project, which would be launched November in line with government’s commitment to agriculture and food security.
Nigeria, with a population of about 217 million people, has the largest market in Africa,is one of the largest importers of wheat in Africa despite its substantial arable land area.
According to the US Department of Agriculture’s Foreign Agricultural Service, the country spends billions of dollars each year on imports to meet the growing demand, which was expected to reach 6.06 million tons in the 202223 season.
wheat sufficiency program helping the government sustain wheat production which is already in an upward trend.
In a recent forecast, the United States Department of Agriculture projected a production of 156,000 tonnes of wheat
NIGERIA – The federal government of Nigeria has obtained a US$163 million loan from the African Development Bank to boost wheat production, Nigerian Vice President Kashim Shettima has revealed.
The government has however rolled out a wheat self-sufficiency program with plans to cultivate about 250,000 hectares of wheat during the 2023-24 cropping season.
The funding from AfDB will boost the
for 2023-24, up 42% from 202223, from a harvested area of 130,000 hectares, an increase of 30%.
NIGERIA HAS ROLLED OUT A WHEAT SUFFICIENCY PROGRAM THAT AIMS TO CULTIVATE ABOUT 250,000 HECTARES OF WHEAT DURING THE 2023-2024 SEASON.
KALRO to distribute 2.5M palm seedlings in push to cut edible oil import dependency
distribute 2.5 million palm seedlings to farmers as it seeks to enhance local edible oil production.
The initiative is spearheaded by its KALRO Alupe center located in Busia country where farmers have been urged to venture into palm farming to boost their incomes.
seeds suits the region urging farmers to embrace the project.
KENYA – The Kenya Agriculture Research and Livestock Organization (KALRO) has rolled out a drive to
India imposes 20% export duty on parboiled rice to protect local supplies
INDIA – The Indian government has imposed a 20% duty on exports of parboiled rice , a move that could further reduce shipments from the world’s largest exporter and lift global rice prices, which are already trading near their highest levels in 12 years.
The recent ban prompted some buyers to increase purchases of parboiled rice and lifted its prices to record highs, according to a Mumbaibased dealer with a global trade house.
“With this duty, Indian parboiled rice would become as expensive as supplies from Thailand and Pakistan,” the dealer said.
Additionally, the government is expected to notify a minimum export price (MEP) for basmati rice, pegged at US$1,200 (Rs 99,000) a tonne.
All these moves are meant to slow down shipments and allay any fear of short supply in the domestic market, although there has been only a marginal increase in retail prices of rice in the past year.
Earlier, the government had banned the export of broken rice non-basmati rice, and wheat as well.
According to KALRO, the institute has 100,000 palm seedlings planted so far ready for sale to farmers and is in the process of producing 2.5 million palm seedlings for the project.
The director of the Institute, Patrice Mudavadi, said that the type of palm
According to data from the Nuts and Oil Crops Directorate under the Agriculture and Food Authority (AFA), Kenya produces only 34 percent of its edible oils and fat requirements, the deficit is imported mainly from SouthEast Asian countries.
“Kenya has been importing edible oils. But through this project, we hope that we can be able to be self-sufficient and even supply to the external market,” Patrice said.
Kellogg receives board approval to split into two companies: Kellanova and WK Kellogg Co
USA – Kellogg Company has received board approval to split into two independently traded companies, spinning off their global snacking business into Kellanova and North American cereal brand into WK Kellogg Co.
The company unveiled the new names in March 2023, but the company's board of directors approved the plan to separate in September.
Kellanova will include the company's popular collection of cereal brands − Kellogg's, Frosties, Zucaritas, Special K, Krave, Miel Pops, Coco Pops, and Crunchy Nut.
The portfolio for WK Kellogg Co will also include Kellogg's, as well as Frosted Flakes, Froot Loops, Mini-Wheats, Special K, Raisin Bran, Rice Krispies, Corn Flakes, Kashi, and Bear Naked.
Steve Cahillane, will assume new responsibility as chairman and chief executive officer of Kellanova while Gary Pilnick while assume the role of CEO of WK Kellogg once the split is
effected in October 2.
On shelves, consumers can still expect the Kellogg's brand packaging for both companies around the world.
While the new companies will have different logos, they will still maintain the recognizable red color text with iconic "K."
Cargill agrees to sell stake in Russian grain terminal to Delo Group
RUSSIA – Cargill, a leading global player in the agriculture and food industry, has finalized a deal to divest its stake in a grain terminal situated on the Black Sea to Delo Group, a prominent transport and logistics entity in Russia.
The deal for undisclosed terms relates to Cargill’s 25% stake in the KSK grain terminal in Novorossiysk, a port city on the Black Sea in southern Russia.
Confirming the sale, Cargill stated, “In line with Cargill’s earlier announcement to stop the export of Russian grain in July 2023, we can confirm we have reached an agreement with Delo to sell our 25% stake in our KSK grain terminal in Novorossiysk.”
KSK in a statement made in July, reported handling 7.6 million tonnes of grain during the 2022-23 season,
reflecting a substantial 46% increase from the previous season.
Cargill revealed that the sale of its stake in the grain terminal is contingent upon approval from the Russian government but will not impact any other ongoing operations of Cargill within the country.
A representative for Delo said the reviewing of the deal was expected to take no more than a month
Delo Group commenced grain transshipment activities at the KSK terminal in 2007 and has significantly invested in its development, amounting to over 9 billion rubles (US$93.5 million). FUNDING
SOMABIS secures IFC funding to build new biscuit factory in Mali
is also supporting the project to a tune of EUR 2 million (US$2.14M) according to officials.
Once the unit is installed, it will be the second biscuit factory that SOMABIS has in Mali after the first which is also located in Bamako, in the suburb of Baco-Djicoroni.
MALI – Société Malienne de Biscuiterie (SOMABIS), an established biscuit manufacturer in Mali, has secured US$4.3M from the International Finance Corporation (IFC) to build a new factory.
According to IFC, a new state-ofthe-art production line with a capacity to produce 1,200 kg of biscuits per hour (which is close to double the current capacity of 650kg per hour) will be installed at the new factory.
The new facility will also include a production line of wafers with a capacity of 500kg per hour, which will be a new business segment for the Company.
SOMABIS revealed that the factory will be situated in the Banancoro industrial zone located south of Bamako and will host two warehouses for the plant and an administration building.
IDA20 Private Sector Window Blended Finance Facility (IDA PSW BFF)
THE FACTORY WILL HAVE A PRODUCTION LINE WITH CAPACITY TO PRODUCE 1,200KG OF BISCUITS PER HOUR AND ANOTHER WITH CAPACITY FOR 500KG OF WAFERS PER HOUR.
J. M. Smucker enters US$5.6B deal to acquire Hostess Brands
USA – The J. M. Smucker Co., a leading consumer foods company, has signed a definitive agreement to acquire Hostess Brands for a total enterprise value of approximately US$5.6 billion.
The transaction includes the Hostess Brands sweet baked goods brands (Hostess Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins and Fruit Pies) and the Voortman® cookie brand.
JM Smucker will also take over manufacturing facilities in Emporia, Kansas; Burlington, Ontario; Chicago, Illinois; Columbus, Georgia; Indianapolis, and Indiana.
A manufacturing facility in Arkadelphia, Arkansas (which is currently under construction) and a distribution facility in Edgerton, Kansas will also become part of the Ohio-based company.
Kenya develops low-cost, high-quality hybrid maize seed to boost production
KENYA – The Kenya Agriculture Research and Livestock Organisation (KALRO) in collaboration with the Seed Production Technology for Africa (SPTA) have developed a low-cost high-quality hybrid seed variety with improved yields.
Given its relatively affordable cost, KALRO is hopeful that its adoption will lower production costs for farmers while at the same time simplifying the complexity of producing seed for breeders.
Explaining the new technology, Dr Eliud Kireger, Director General at KALRO said that the technology, Seed Production Technology for Africa (SPTA) eliminates the need for detasseling, a highly intensive process that accounts for up to 40 percent of the cost of hybrid maize seeds.
Detasseling is the process of removing tassels from the top of the maize plant to deter self-pollination that may lead to inbreeding.
Farmers are expected to have access to affordable hybrid maize seeds as soon as next year, according to the Director
General of KALRO.
Other partners in the project are Corteva Agriscience, the Agricultural Research Council of South Africa (ARC), Qualibasic Seed (QBS), and the International Maize and Wheat Improvement Centre (CIMMYT).
ZimbaSeed to roll out drought-resistant maize varieties in Zimbabwe
Additionally, approximately 3,000 employees will join the Company in conjunction with the transaction.
In a statement, J. M. Smucker noted that the acquisition expands its offering into growing categories and accelerates its focus on convenient consumer occasions.
“The acquisition adds Hostess Brands iconic snacks and innovation in the sweet baked goods category to the company’s current offering of beloved brands,” JM Smucker said.
ZIMBABWE – ZimbaSeed plans to introduce its new drought-resistant maize varieties on the market before the onset of the summer cropping season and just in time for the El Nino weather pattern.
The new varieties being introduced to the market are ZMS405, an early maturing variety that takes about 130 days to mature, and ZMS623, a medium maturity variety that takes about 138 to 145 days.
Speaking in an interview with
The Herald, Mr. Maxwell Mataka, the operations manager of ZimbaSeed said that the exemptional varieties were on trial last season and will be commercially rolled out to farmers, adding to the already existing three varieties from the firm.
He believes the drought-tolerant varieties will help mitigate the adverse impact of climate change-induced adverse weather conditions while ensuring better yields in light of the looming El Nino weather pattern in the next season.
Kapa Foods enters the noodle market with launch of Nala Instant Noodles
KENYA – Kapa Foods Innovations Limited, a Kenyan-based joint venture company between Sojitz Corporation (“Sojitz”) and Kapa Oil Refineries Limited (KOR) has made its foray into the Instant Noodle market in East Africa with the launch of ‘Nala Instant Noodles’.
According to the manufacturers, Nala was developed based on preliminary market research to create a product that meets the preferences of local consumers.
Nala instant noodles will initially be available in chicken flavour , which the
manufacturer believes the product will give it an easy market penetration since chicken is the most popular flavor in the East African region.
According to a news release by Sojitz in June, the joint venture’s hopes to capture a 20% share of the East African instant noodle market by 2026.
To achieve this, Thai President Foods Public Company Limited (“TPF”), the largest manufacturer and seller of instant noodles in Thailand, was picked to be the technical partner to guide manufacturing technology and quality control.
Eni Angola to start vegetable oil production in 2024
ANGOLA – Italian multinational oil and gas company Eni has revealed its plans to establish an “agro bio” business, an agro-industrial complex that will focus on large-scale production of vegetable oil in Angola starting next year.
The announcement was made by Guido Brusco, the company’s Natural Resources Director at the Angola Oil &
Gas conference held in Luanda.
Brusco revealed that the company has already identified an area to implement the project, with gains for the economic diversification process adopted by the Government.
“Eni is moving forward with a new business, producing agro and bio-raw materials in Angola. We are already preparing the planting campaign that
will begin in the coming months and we have already identified the area for the construction of the first industrial complex of the country”, Brusco told RNA.
The move follows Eni’s achievement in Kenya where it managed to successfully produce and transporting its first cargo of vegetable oil biorefining to its Gela biorefinery in Italy.
TANZANIA - Yara Tanzania has introduced top-of-the-range animal feed formula, as the international fertilizer manufacturer bets to raise livestock productivity in the country.
Winstone Odhiambo, Yara Tanzania managing director noted Yara International produces top-quality animal nutrition products with an advantage over other traditional animal feeds.
“The introduction of animal nutrition is therefore a commitment by Yara to bring prosperity to millions of livestock keepers throughout the republic.” Mr.
Odhiambo noted.
“We are excited about this new journey and look forward to working closely with livestock and poultry farmers to improve the quantity and quality of milk and beef production in Tanzania.”
Mr. Odhiambo noted that Yara’s foray into Tanzania animal feed sector demonstrated the company’s commitment to supporting the livestock sector as well as raising the fortunes of millions of livestock farmers.
Tanzania becomes the third country in Africa where Yara has introduced animal nutrition products after South Africa and recently Kenya.
WHAT’S ON SHOW AT
Unga Group
Scaling new food-tech paths for growth and outstanding
Unga Group has been Kenya's home of human and animal nutrition solutions for over a century. On April 5th of this year, the company celebrated 116 years since the first bag of wheat flour rolled out of its inaugural mill located on Sadler Street (now Koinange Street). The company has had a checkered history but has remained steadfast in its mission to provide superior human nutrition, animal nutrition, and animal health products and services to East Africans. The company once had operational mills in Kenya, Uganda, and Tanzania.
The mill in Tanzania was nationalized in 1967, while the business in Uganda met a similar fate in the same year.
Kenyan operations have, however, remained steadfast, and today they account for 95% of the company's total revenues. Jogoo Sifted Maize Meal and Exe All Purpose Wheat Flour are popular brands nationwide, often evoking nostalgic memories of childhood when the late President Moi was in power. Current Group CEO, Joseph Choge, is among a generation of new leaders who enjoyed meals prepared by these brands while growing up. It may have motivated him to respond positively when the recruiters came calling.
In an exclusive interview with Milling Middle East & Africa Magazine, Choge admits that he did not apply to become the Group Managing Director of Unga. "Somebody called me and asked if I would consider working for the Group," he says. "Having grown up with Exe chapati, Jogoo as my Maizemeal, and Fugo for animal feeds, this was an opportunity I was not willing to let slip away." The chance to work in a listed company with such a rich heritage was, however, what sealed the deal for him. Unga Group has been listed on the Nairobi Stock Exchange (NSE) since 1956. Seaboard remains a significant shareholder, controlling a 35% stake in Unga Holdings Limited, which serves as the Holding company for the Nairobi Commercial Street-based company. Unga Group shareholders own the remaining 65%. As one of the largest food companies listed on the NSE, the manufacturer of the Hostess premium maize meal brand reported annual sales of over KES18 billion (US$130 million) and controls assets valued at more than KES10 billion (US$71 million), as per the latest audited full-year results (FY2022).
Choge, who previously served as the CEO of Premier Foods, the manufacturer of popular Peptang sauces and jams, was well aware of the intense competition in the industry when he accepted the new job offer. By his admission, competition in the milling industry has gotten stiffer by the day, with over 50 new millers joining the fray in the period he has been in charge at Ngano House. To secure its future, Unga has a new strategy. "We are responding to shifts in consumer purchasing habits by repositioning ourselves as a holistic food company through strategic joint ventures and partnerships," the company says. All of this rests squarely on the easygoing executive who exudes confidence in his ability to lead Unga into a new and potentially
more glorious future.
A LEGACY OF TRUST AND EXCELLENCE
Unga, having been around for more than a century, has been able to build a legacy of trust among its loyal consumers. Jogoo, which has been a part of Unga Group since 1963, nourishes many families daily as maize meal is a staple in Kenya. Choge tells us that the secret behind its success, as well as that of other brands in the Group, is Unga's zero tolerance for any deviation from quality. “We've anchored ourselves around quality and safety leadership, which assures every consumer that if they partake in Unga products, they are partaking something of exceptional quality and whose safety is at its peak.”
Assurances are not made by word of mouth, though. Unga has a fully-fledged lab where quality tests are carried out to guarantee safety. “We use the top-of-the-range equipment to check our raw material, work in progress, and finished product so that whatever goes to the consumer has been quality assured,” Choge reveals, adding that the lab recently won an award as the best in all of Seaboard's facilities globally. In addition, Unga's operations are all ISO 22000:2018 certified, and the company employs a HACCP-based Food Safety Management System to ensure products and safe and exceed customer expectations. Quality checks do not start at the lab. “It starts at the point of picking the raw material from the farmer,” Choge explains. "We would never want to fall short or negatively impact Kenyans by causing diseases."
Unga also complies with all relevant statutory standards to further assure consumers of product safety, and all its products hold the appropriate Kenya Bureau of Standards (KEBS) certification. In its 2022 report, the company introduced onsite aflatoxin analysis to ensure compliance with KEBS specifications. "Furthermore, we have implemented new methods in our ISO-accredited laboratory, resulting in a reduction of turnaround time from 24 hours to just 5 hours," the report states. "This also helped improve our laboratory accuracy level from 0.8 to 0.58."
ENTERING A NEW PHASE AS A HOLISTIC FOOD COMPANY
Although Unga's primary focus is on the milling sector, the company has always aspired to be a holistic nutrition partner for its consumers. A casual look at its long history reveals efforts to diversify into other food products. The household brands that have been part of Unga throughout
history include Proctor & Allan, a breakfast cereal maker (1953-1999), Elianto, an edible oil brand (1973-1998), Elliots bakery (1961-1994), Ufuta, a vegetable cooking oil brand (1986-1999), and Ennsvalley Bakery (2015-2021).
Faced with new competition in the milling sector, the company is once again expanding its product range beyond traditional maize meal and wheat flour. "Every day, we strive to be a proper food company," Choge explains. "Now we have rice and pulses under the brand name Amana, which we have recently relaunched."
Amana was initially introduced in 2014, offering Basmati and Pishori rice varieties. Its expansion into pulses has introduced green grams (ndengu) and various bean varieties, including black beans (njahi), yellow and rose-coco beans. Just before we went to print, Unga expanded the Amana range to include premium packaged white sugar. Although a new player in this segment, Choge
IN NUMBERS
NUMBER OF YEARS THAT UNGA HAS BEEN EXISTING AS A BUSINESS.
assures that every batch is produced with the same strict quality standards for which other Unga Group brands are known. After a successful launch, the plan is to have Amana achieve the same national status as either Exe or Jogoo. "We want to ensure that it reaches every home within the country," he says.
Innovation has also been rife in the core maize meal and wheat flour business segment. Unga's maize meal portfolio comprised grade 1 sifted meal Jogoo and its premium counterpart Hostess for an extended period. “We now have a maize meal brand called Hodari and have recently introduced Pendo for our wheat flour.” It does not end there. “We've recently launched an easy cake mix for the people who love baking.”
CARING FOR ANIMALS AND PETS
Just like in Human Nutrition, Unga Group has a long history in Animal nutrition and health, dating back to the 1940s when the company first manufactured animal feeds. This portfolio includes livestock feeds, cattle minerals, feed premixes, customer-specific formulations, feed concentrates, acaricides, dewormers, vaccines,
antibiotics, and analytical services. Operating as Unga Farm Care East Africa Limited, this division of the Group's business has become the leading manufacturer and marketer of a wide range of high-quality Animal Nutrition and Health products in the region.
Regarding animal nutrition, Choge says that quality is determined at the farm. “We don't judge our quality; the performance and productivity of the animal at the farm determines whether we are offering quality or not.” Having grown on a farm and once sold milk from cows fed by Fugo, Unga's flagship brand, Choge is happy that even under his watch, the company continues to deliver quality feeds that farmers have come to associate it with for decades. “We've proven to our farmers that we are the center of quality in the country, and that's why we're the market leaders.”
As the CEO, Choge provides the overall strategy for the business, the responsibility for achieving these goals rests with Dr. Wilfred Kamau and other highly qualified staff at Unga Farm Care. Wilfred, a veterinarian by training, currently serves as the Business Development Manager at Unga Farm Care. Part of his daily
duties includes formulating recipes that would deliver the utmost nutrition to animals. "At Unga, we don't simply mix feeds; we think carefully about the animal we need to feed, its nutrient requirements, and what the farmer wants to achieve with the animal,” Kamau explains. Once
process contributes to safe and quality feed at the end of the line.”
Dr. Kamau boasts about Unga's ability to produce feed for any farm animal. From poultry to ruminants to fish and even to crickets, Unga has a formulation that is specifically tailored to each of these animals' nutritional needs. “We are also feeding lab animals at the request of some of our customers.” With pet ownership in the country rising, especially during the Covid-19 period, Kamau confesses that they received numerous requests from customers who have known the company for its safety and quality track record for a product that caters to the nutrition needs of pets. "In response to this demand, we have our own pet food brand," Dr. Kamau explains. Sold under the K9 brand, Unga pet food is available in 3 varieties, K9 Puppy, K9 Adult, and K9 Senior, and is tailored to meet unique nutritional needs at different development stages of dogs.
A SUSTAINABILITY-MINDED BUSINESS
the recipe has been formulated, Kamau explains that the company “goes the extra length of analyzing them in our labs to make sure they are wholesome for the animal.”
While touring the animal feed facility, we noticed an exceptional level of hygiene; one could easily mistake it for a facility that handles human food. “We have to live up to the standard of our marketing tagline: Alama ya Ubora (mark of excellence),” Kamau explains. The high hygiene standards also apply to the type of raw material received at the factory. “We have a whole quality control and quality assurance department that ensures we only receive raw materials that conform to the high internal standards that we have put in place.” Kamau adds that this team of professionals also monitors the entire process to ensure that every stage along the production
As a responsible corporate citizen, Unga Group aims to contribute more to the environment than it consumes in its operations. In 2022, the company commissioned One Carbon World, through the Kenya Association of Manufacturers (KAM), to review its data and recommend best practices for achieving carbon neutrality. Even as it awaits recommendations, the company has been taking internal measures to minimize its carbon footprint. "I'll start with the electricity," Choge says. "As we speak, we are in the process of installing solar panels across our various plants. By September of this year, we anticipate having enough solar panels installed to reduce our energy consumption by 30%.” Additionally, the company is implementing changes to its energy usage, such as using energy-efficient bulbs and lights equipped with motion sensors. This will ensure that lights are only activated when necessary.
Beyond electricity, the company is considering minimizing its transport carbon footprint. "We make an effort to minimize the number of trucks on the road through consolidation, which, in my opinion, is an effective method to reduce emissions released into the atmosphere," Choge reveals. "We have also partnered with Kenya Railways to transport our human nutrition products from our facility in Eldoret to Nairobi, as well as animal nutrition products from Nakuru." This partnership has resulted in a significant reduction in emissions and a cost reduction of up to 70%, which is beneficial for the company's
financial performance.
Working with farmers, especially in light of climate change and disruptions in the global supply chain, is also a key component of Unga's sustainability agenda. Choge reveals that the journey started in 2022 when Unga did an aggregation program with the farmers and attempted to stock a significant amount of grain to mitigate shortages. Beyond aggregation, Unga has been contracting farmers and providing them with support to ensure they achieve higher yields. "We have contracted agronomists who visit farms to assist our farmers adopt better farm practices that result in higher yields," Choge explains. Support goes beyond agronomy and includes partnerships with suppliers of the necessary seeds and fertilizers. Choge also reveals that the Group connects farmers with banks, allowing them to access funding for their farming activities. For farmers growing soybeans and other pulses, Unga is also collaborating with partners to develop irrigation systems to ensure optimal production, even in the event of insufficient rainfall.
Having experienced significant wheat shortages, with the limited supply being sold at record-high prices due to the war in Ukraine,
the Unga group is also exploring the possibility of cultivating hard wheat locally. "We are conducting experiments with farmers in Uasin Gishu to determine if this particular variety of wheat can be successfully cultivated locally and yield desirable results," Choge reveals. With local production, Unga can reduce its dependence on expensive imports, as the resurgent dollar continues to strengthen against the shilling. "The forex losses that we are incurring are massive, so the more we can source locally, the better for us," Choge reveals.
Employees are also a fundamental pillar of Unga's success in maintaining a sustainable business. Choge, the team leader, is aware of
AT UNGA, WE DON'T SIMPLY MIX FEEDS; WE THINK CAREFULLY ABOUT THE ANIMAL WE NEED TO FEED, ITS NUTRIENT REQUIREMENTS, AND WHAT THE FARMER WANTS TO ACHIEVE WITH THE ANIMAL.Dr. Wilfred Kamau, Business Development Manager, Unga Farm Care.
US$ IN NUMBERS
6.26M
AMOUNT UNGA PAYED IN EMPLOYEE BENEFITS AND REMUNERATION IN 2022.
this reality. "I firmly believe that if you take care of your employees, they'll take care of your business," Choge says. Unga excels exceptionally in this area. In 2022, the company paid nearly 1000 employees a remarkable KES 884 million (US$6.26 million) in employee benefits and remuneration. The benefits of being an employee of Unga Group extend beyond salary packages. “We try to invest as much as possible in improving the skills of our employees,” Choge reveals. "We also strive to provide a better environment for them and keep them challenged, so that they can enjoy their time with us to the fullest."
Unga is also working to ensure greater representation of women. “Our middle management is 46% female, and those reporting to middle management is about 40% female as well,” Choge reveals. Overall, the percentage remains low at just 26%, and there is a valid explanation for this. "Most of our work involves carrying heavy bags, so it may not be suitable for female employees," Choge explains. Despite this, Unga remains committed to raising this number to at least 30% by 2025.
A FORWARD-THINKING BUSINESS
With its extensive range of specially formulated feeds, unga is able to feed any farm animal.
For over 116 years, Unga has been providing our families with high-quality food. It has survived so long by constantly innovating to keep up with changing market needs while remaining true to its core values of quality and safety. As the milling industry becomes increasingly competitive and consumer needs continue to evolve, Unga finds itself at another pivotal moment that could
potentially alter the trajectory of its history. The company has made several investments to ensure its future, including modernizing its wheat mills in Nairobi and Eldoret, and revamping its maize meal equipment. The company has also commissioned a new soybean mill and extruded fish feed plant to meet the rising demand for
these products.
In 2022, Unga entered into a 50/50 joint venture with a Dutch producer of animal nutrition, fish feed and processed meat products, Nutreco. Under the joint venture, Unga Group is expected to enhance its fish feed business in Kenya, and its previously idle mill in Uganda will be utilized as part of Tunga Nutrition Uganda Limited. In June, the Kenyan subsidiary of the joint venture opened and launched a state-of-theart fish feed extruder with an increased capacity of tons per hour. This facility will further cement Unga Group's presence in Kenya's fast-growing fish feed market.
Unga is also investing in technology to enhance efficiency at its facilities and foster greater interaction with customers. "We have automated most of our plants," Choge reveals. He adds that the plant in Eldoret is technologically advanced, with milling operations being conducted primarily from a programmable logic controller. It is considered the best site on the continent in terms of technology and efficiency. Choge has nothing but praise for advancements in food-tech in the milling sector. "With technology comes efficiency, and the more efficient you are, the more you can pass on the affordable cost to the consumer," Choge says. He adds that he
sees technology playing a more significant role in Unga Group's future. "The mill here in Nairobi is a bit older, so the first plan is to maximize its utilization. Afterward, we can consider investing in new state-of-the-art machinery."
As e-commerce slowly gains traction in Africa's retail market, Unga has expanded its presence in this sector through partnerships with platforms such as Jumia, Twiga, and Kapu. With e-commerce, Choge reveals that the company is not only able to reach customers more efficiently but also gains access to crucial data that can inform its future innovation. "I was looking at some statistics and noticed that the pasta business is growing," he reveals. "That is a shift you would never have noticed if technology were not available," he continues. "You might find yourself one day unprepared, stuck with your allpurpose wheat flour while the market has moved on to pasta."
Even as the company transforms, Choge stresses that their customer will always remain king. "We have managed to secure our market share by meeting our customer's needs, and we will continue to strive for excellence to ensure that we continue keeping our customers happy,” he promises.
WE HAVE PARTNERED WITH KENYA RAILWAYS TO TRANSPORT OUR HUMAN NUTRITION PRODUCTS FROM OUR FACILITY IN ELDORET TO NAIROBI AS WELL AS ANIMAL NUTRITION PRODUCTS FROM NAKURU.
JOSPHAT CHIDOMA
ON WHAT IT TAKES TO SUCCEED IN AFRICA’S MILLING INDUSTRY
Josphat Chidoma is the Head Miller at Angola’s Happy Life Industria. In an interview with Milling Middle East & Africa Magazine, Josphat shares with us his milling journey spanning two continents, highlighting the challenges and what he believes African millers should do to remain competitive in a technologically advanced world.
MMEA: What would you say has been your most significant achievement as a miller?
Chidoma: I have made significant strides in my career within the milling industry, starting as a trainee miller and gradually advancing up the corporate ladder. In Zimbabwe, I progressed from being a trainee miller to becoming a qualified miller. Through hard work and commitment, I was promoted to the position of senior miller and eventually became a head miller.
My career also took me beyond my home country Zimbabwe, giving me the opportunity to gain international experience and exposure in Oman. Working in Oman allowed me to interact with diverse cultures and cuttingedge technologies in the milling industry. It quickly became evident that the technological advancements in Oman surpassed those I had experienced in Africa, making this move a significant step forward for my career.
Later, when I relocated to Malawi, I was promoted to the role of production manager. This promotion placed me at the forefront of operational decision-making meetings, giving me the privilege of contributing ideas to enhance the company's profitability. These experiences in Malawi marked another significant milestone in my career.
MMEA: What would you say has made you better at working with teams?
Chidoma: I have come to realize that there is a significant distinction between someone who enters a management position fresh out of college and someone who has climbed the corporate ladder from the ground up. My personal journey through various roles within the industry has granted me a deep understanding of every aspect and level of operation.
Starting as a trainee, I was intimately involved in all aspects of the milling process, including mundane tasks like cleaning the floors, and this hands-on experience provided me with a comprehensive perspective of the industry's inner workings. As I progressed up the ladder, I became acutely aware of the unique pressures that individuals face at different levels of responsibility.
One of the distinct advantages of advancing in the corporate ranks is
BY WANGARI KAMAUthe ability to bridge the gap between management and the general workforce. I found myself in an intermediary role, facilitating communication between these two critical components of the organization. Having walked in the shoes of those on the shop floor, I could empathize with their challenges and concerns, and I could also communicate the expectations that management had of them. This position allowed me to effectively spot genuine concerns and mediate and address issues raised by employees.
MMEA: What would you say is the biggest challenge facing the milling industry currently?
Chidoma: One of the foremost challenges is the scarcity of technical experts. Many individuals and investors pour substantial capital into milling operations without the necessary guidance and expertise to navigate the intricacies of the industry.
Another critical issue that plagues
the milling industry revolves around the fluctuating prices of wheat. The global wheat market has been destabilized due to geopolitical conflicts, particularly the Russian-Ukrainian situation. As a result, procuring quality wheat has become a formidable challenge, particularly for African nations that rely heavily on imports. The quality and availability of imported wheat are often compromised, posing a serious dilemma for milling companies striving to maintain consistent production standards. Furthermore, certain geographical constraints exacerbate the challenges faced by the milling industry. Take, for instance, the case of Malawi, a landlocked country that lacks direct access to ports. This geographical limitation significantly drives up production costs for milling industries.
MMEA: Have you experienced any challenges in grain sourcing in the course of your milling career?
Chidoma: In some cases, yes. Whether
a country has access to a port plays a significant role in the ease of sourcing grain. When a country is landlocked, like in Malawi's case, procuring grain can be a daunting task. We had to source grain from Mozambique and transport it by road, which led to various issues, including theft during transportation.
Additionally, the price of grain is another crucial factor in sourcing. The price often correlates with the quality of the grain, and companies are primarily focused on making a profit. However, when these decisions are made without the input of the miller, there is a risk of procuring grain of the wrong quality, which can lead to performance issues in the milling process.
MMEA: What role do you envision technology advancements playing in the future of milling?
Chidoma: Technological advancements have ushered in transformative changes within the milling industry. Most notably, they have had a significant influence on our production throughput and the quality of our products. In comparison to the past, our productivity in producing larger quantities of goods per hour has improved.
Secondly, technology has ushered in automation and smart solutions that have streamlined the roles of millers. Automation has significantly reduced human intervention in production processes, thereby decreasing the likelihood of human errors. As a result, we have achieved an impressive level of consistency in the quality of our products. Automated control ensures that every step of the milling process is carried out precisely, minimizing variations in product quality.
Finally, the use of artificial intelligence (AI) offers exciting opportunities. Learning to operate mills remotely from different locations, thanks to AI and automation, is an area where training is essential. This technology opens up new possibilities for millers, who now require specialized training in AI applications.
However, it is crucial to acknowledge that while technological advancements
bring numerous benefits, they also pose challenges, particularly in terms of employment. In the past, multiple employees may have been involved in various aspects of milling. Today, with automation, a single miller can oversee everything from intake to milling and packing.
MMEA: What challenges have you encountered in the adoption of these technological advancements? Has there been any resistance, for example, from your staff?
Chidoma: Absolutely. Firstly, embracing these technological advancements can be a capitalintensive endeavor. Implementing automation and cutting-edge technologies often requires substantial financial investments. Not everyone can easily afford these advanced systems, and this financial obstacle can discourage potential investors from unlocking the benefits of automation.
Another significant challenge is resistance to change. When confronted with challenges in automated systems, some individuals may opt to bypass the technology entirely. Rather than addressing the root cause of the issue, individuals may resort to familiar manual processes.
Moreover, the lack of technical skills required to maintain and troubleshoot these automated systems is a pressing concern.
MMEA: What do you think Africa should do to enhance its competitiveness in the global milling industry?
Chidoma: First and foremost, it is essential for us to acknowledge that we are somewhat behind in terms of technology adoption. To bridge this gap, we should prioritize sending our personnel for training in well-established mills where they can acquire the latest technological skills and knowledge.
In addition, capital investment is critical in Africa. Properly investing in new technology can yield significant returns. While we do have the opportunity to provide employment through conventional means, we must also acknowledge the risks associated with excessive human intervention in production. Therefore, a balance must be struck between job creation and maintaining product quality.
In terms of safety and food quality, we have made progress, but there is still room for improvement. Often, some companies overlook certain safety aspects of the production process and it is imperative to address these oversights
and enhance our practices, particularly in areas such as Hazard Analysis and Critical Control Points (HACCP). We need to cement a safety culture within our industry.
MMEA: What advice would you give to someone who wants to pursue a career in the milling industry?
Chidoma: I have no regrets about choosing a career in the milling industry. To me, milling is an art that demands passion, unwavering dedication, and a complete immersion in the process. For anyone considering a career in milling, I would wholeheartedly endorse it. It's never too late to embark on this path, and it is indeed the right choice for those who have the passion and are willing to put in hard work.
Critical thinking is also an invaluable skill because troubleshooting is a regular occurrence in milling. Each day brings different challenges, and you must be adept at finding solutions.
Moreover, milling is an industry that continues to evolve and innovate, offering new and exciting opportunities for millers to enhance their skills and expand their responsibilities. It is indeed here to stay, with a promising future for those who embrace it.
WE SHOULD PRIORITIZE SENDING OUR PERSONNEL FOR TRAINING IN WELLESTABLISHED MILLS WHERE THEY CAN ACQUIRE THE LATEST TECHNICAL SKILLS.
EASTERN SUB-SAHARAN AFRICA Grains Industry Outlook
BY PAUL ONGETOGrain demand booms in eastern Sub-Saharan Africa, creating trade and business opportunities, but new dynamics and challenges abound to tap into increasing consumption and trade
With twenty-two different economies, the Eastern SubSaharan Africa region is a sizable and growing market for grain trade and milling. In 2022, the region consumed approximately 80.4 million metric tons of key grains and cassava,
as reported by the USDA. Corn was the most consumed cereal in the region, accounting for 39% of consumption, followed by cassava (28%), wheat (20%), and rice (13%).
In a recently released report, Rabobank, a leading food and agricultural sector finance bank, noted that ESSA's population is forecasted
to reach 705 million by 2035, up from the current 520 million. The bank noted that the population growth boom, combined with low local production and yields, is expected to drive demand for imports, creating new opportunities for trading grains.
Although the region is rife with opportunities, it's important to understand that ESSA is a dynamic region comprising twenty-two different economies with diverse consumption patterns. In this market update report, we highlight the new dynamics, challenges, and opportunities that players in the grains industry need to be aware of in order to maximize their business potential in the region.
WHEAT TRADING IS A GLOBAL BUSINESS
Local wheat production in ESSA is insufficient to meet the increasing demand. The region, therefore, relies on global markets to meet demand. Russia and Ukraine are the largest wheat source markets, accounting for 46% of the total wheat imports into the region. Other major suppliers include the European Union (20%), Argentina (12%), the USA (8%), and Canada (6%).
Rabobank projects that the region will continue to rely on imports, as local wheat yields have historically been low, often below 3 metric tons per hectare. The climatic conditions in the region are also not the most suitable for this crop. When combined with drought, this can significantly impact yields or even lead to volatility.
Kenya and other countries where the above statement is true are therefore expected to increase wheat imports by at least an additional 2 to 3 million metric tons by 2035, according to Rabobank. "This will trigger trade opportunities for several global wheat-exporting countries. EU, Danube region, and Black Sea region countries will benefit due to their strategic proximity to ESSA, depending on the resolution of the war in Ukraine in the medium term," the bank added. However, some countries, such as Zambia, Zimbabwe, and Ethiopia, may gradually reduce their imports as their local production improves. "Ethiopia, the largest wheat producer in ESSA, benefits from high altitudes and has gradually and steadily increased wheat yields to 45% in the last decade," observed Rabobank. "With the Ethiopian government strongly encouraging local production, the country has potential to make even further improvements in the next decade, but we do not expect it to become self-sufficient by 2035.”
KENYA MAKES ATTEMPT TO BOOST CORN PRODUCTION
Kenya is the largest importer of corn in the ESSA region, averaging 0.6 million metric tons per year. This is close to half of the amount of total corn imports which amount to 1.3 million metric tons per year. A steady decline in local production has exposed the country to fluctuating global prices, triggering a hike in local maize meal prices. In 2022, maize prices reached their highest level in history, with an average price of a 2KG maize meal packet retailing at KES 230. This prompted the government to intervene with a subsidy program, which later proved to be costly.
The new Kenyan government, established in September 2022, aims to improve food security through ambitious policy measures aimed at enhancing local production. Improving farm irrigation through the construction of dams in the eastern part of the country is one of the measures the government is currently exploring. The new project aims to increase corn production by expanding irrigation to up to 400,000 acres in the next two years. "This will be hard to achieve in such a short time, but it can happen by 2035,” notes Rabo Bank.
Kenya has also opened its doors to importing and producing genetically modified (GM) corn, which has the potential to significantly impact
1.3MMT IN NUMBERS TOTAL CORN IMPORTS FOR EASTERN SUBSAHARAN AFRICA.
the market in the near future. Currently, there is an ongoing lawsuit regarding the cultivation and import of genetically modified (GM) commodities, which is hindering the implementation of this plan.
Beyond Kenya, corn production is a priority for several countries in the region, many of which subsidize the sector. However, many countries are not self-sufficient and rely on Tanzania and South Africa to meet their local demand. White corn is primarily used for food consumption, but
it is also used to a lesser extent in animal feed. As the population grows, there will be a greater focus on producing white maize for human consumption. Rabobank notes that the feed sector, which is growing and driven by demand, particularly from poultry, will create a new trading opportunity for grain handlers. "By 2035, the trade of yellow corn from outside ESSA could become interesting due to the rapidly increasing demand for feed and limited local availability of feed grains," the bank projects.
ETHIOPIA MILLING INDUSTRY LARGEST IN THE REGION
According to Rabobank, ESSA has a sizeable milling industry with a total capacity of 60 million metric tons. Corn is the most processed grain across the region, accounting for around 47% of the region's milling. It is followed by wheat (23%), cassava (19%), and rice milling (12%). Feed grain outlets are still limited and account for only around 8%.
Ethiopia has the largest milling industry by far, with an estimated processing capacity of around 17.5 million metric tons of corn, wheat, and rice, according to Rabobank. It is also one of the fastest-growing industries, with a compound annual growth rate (CAGR) of 5.1% from 2011/12 to 2021/22. Unlike corn, Rabobank notes that the wheat milling industry is not well-developed, is highly fragmented, and has a capacity utilization rate of less than 50%. This presents an opportunity for investors as the Ethiopian government also has a ten-year development plan (2020 to 2030) to improve the share of locally produced products
and stimulate the industry's competitiveness.
MILLING INDUSTRY IN KENYA RIPE FOR CONSOLIDATION
Kenya and Tanzania have the next largest and most developed milling industries, processing 10 million and 6 million metric tons of grain, respectively. Rabobank notes that corn milling is highly fragmented, similar to other countries where milling is characterized by limited installed capacity and domestic processing. The wheat milling industries in both countries have suffered from overcapacity in recent years due to the impact of COVID-19 and the war in Ukraine.
However, unlike Kenya, Tanzania's heat milling industry is highly consolidated, fully liberalized, and enjoys healthy margins. As a result, Rabobank expects consolidation to start in Kenya in the medium term. "Some local players are better positioned to act as consolidators compared to international investors," the bank adds. "Other wheat millers will opt for diversification into feed and corn businesses.”
Meanwhile, geographical expansion is a strategic option for wheat millers, but it is not the only option. Rabobank opines that diversification into the feed industry could be a key strategic step for others. Rabobank, however, believes that there is room for further geographic expansion, as only two of the top ten players are currently operating in more than five countries in the region. "This strategic option can be broadened to further leverage the synergies between markets," Rabobank notes.
OPPORTUNITIES TO LOOK OUT FOR
Rabobank notes that the widening gap between growing demand and limited local supply will present new business opportunities for wheat importers and traders, and create a demand for trade and commodity finance products. The bank further projects that the increase in wheat imports will necessitate investments in storage capacity and infrastructure improvements in the major ports of Kenya, Mozambique, and Tanzania. Inland investments are needed to improve post-harvest storage infrastructure in order to capitalize on years with favorable climatic conditions and high yields.
In milling, an increase in product demand will lead to a need for capacity expansion by local companies that are active at either the national or regional levels. Rabobank, however, notes that in certain markets, new market entrants will provide additional capacity. It further notes
that strategies aimed at geographical expansion, diversification, and/or consolidation will trigger a demand for mergers and acquisitions.
Small, fast-growing poultry markets are gradually driving demand for feed grains, creating a new opportunity in the feed industry that some millers could consider. Import of yellow maize is also expected to rise to meet this new demand for feed, further creating new business opportunities for importers.
THE BUCK STOPS HERE
ESSA's projected grain demand is undisputed. The population is certainly bound to rise, and this metric alone is sufficient because more people essentially means more mouths to feed. Private players can only do so much, but the buck stops with national governments. It is their responsibility to implement the necessary policies that will support the production and easy movement of grains within the region.
Rabobank suggests that these strategies should begin at the farm. "Improving farming is key to increasing local production," the bank notes. To boost production, the bank advises national governments to support the adoption of agronomic practices such as mechanization and irrigation, crop rotation, and ensure better access to farm inputs in order to improve yields.
Governments are also required to boost investments in transportation infrastructure (railways, roads, and rivers) to facilitate the smooth movement of grains and improve access to farm inputs and fertilizers.
If governments fulfill their responsibilities and create enabling environments for businesses to thrive, then the numerous opportunities envisioned by Rabobank in its report will certainly be realized, benefiting the region's food security.
KENYA AND TANZANIA HAVE THE NEXT LARGEST AND MOST DEVELOPED MILLING INDUSTRIES, PROCESSING 10MILLION AND 6 MILLION METRIC TONNES OF GRAIN RESPECTIVELY.
TOP 10 WHEAT PRODUCERS IN AFRICA
EGYPT – 9,500,000 MT
Egypt is the largest wheat producer in Africa, averaging at 9.07MMT per year. The 9.5MMT yield in MY2022/2023 slightly dropped from the 9.8MMT produced in the previous marketing year.
ETHIOPIA – 7,500,000 MT
Currently the largest wheat consumer in Africa, Ethiopia had a record production of 7MMT in 2022/23, up from 5.5 MMT in 2021/22. The country did not import any wheat in 2022 and plans to become wheat self-sufficient and a net exporter by 2025/26.
ALGERIA – 3,300,000 MT
At 3.3 MMT, Algeria takes the third spot in wheat production in Africa. This yield is an improvement over last year’s drought-impacted crop, a notch higher than the 2.5 million tonnes of wheat produced in MY202122.
02 03 04
MOROCCO – 2,700,000 MT
In MY 2022/23, Morocco produced approximately 2.7 MMT of wheat. The yield is forecasted to increase by over 60% in the MY 2023-24. This bullish estimate is because the West African country has experienced five consecutive seasons of drought that diminished its wheat output.
01 05
SOUTH AFRICA – 2,100,000 MT
The 2.1MMT production in South Africa is a 6.5% drop from the 2.257MMT produced in MY 2021/22. South Africa is a net importer, with a consumption level of about 3.3MMT.
Source: USDA ALGERIA TUNISIA LIBYA MOROCCOTUNISIA – 1,230,000 MT
Tunisia has been battling drought and will increase its import dependency in the coming year. The USDA forecasts a 0.8MMT production level in the MY2023/24. Wheat consumption is approximately 3MMT, and the country depends on exports to meet the excess demand.
SUDAN – 476,000 MT
This yield in 2022/23 was a 30% drop from the 0.676MMT recorded in 2021/22. This drop was mainly due to the high cost of fertilizers in the global market, affecting wheat productivity in the country. This production is expected to recover in MY2023/24 to 0.65MMT
KENYA – 275,000 MT
The USDA forecasts that wheat production in Kenya will jump to 0.31 MMT in MY 2023/24. Kenya imports more than 2MMT of wheat to sustain its local demand. Consumption has been dwindling due to high prices, disruptions in global supply chains, and Kenya’s worsening exchange rate.
LIBYA – 2500,000 MT
Wheat is one of the two main grains grown in Libya (the other being barley). Wheat production has remained unchanged from MY 2021/22, and the USDA forecasts that it will remain unchanged at 0.2MMT in MY 2023/24.
ZAMBIA – 235,000 MT
06 07 08 09 10
In MY2022/23, wheat production in Zambia increased by 14% from 0.206MMT in MY 2021/22. The USDA predicts the yield will reduce slightly in 2023/24 to 0.2MMT. Zambia is wheat self-sufficient and a net producer, exporting its surplus to Tanzania, Zimbabwe, and South Africa.
LIBYA EGYPT SUDAN ETHIOPIA KENYA ZAMBIA SOUTH AFRICACOMPOSITE FLOURS
A Solution to Skyrocketing Wheat Prices
BY MARTHA KURIANo doubt, wheat is a good source of calories, but it is considered a poor cereal because it is deficient in essential amino acids, namely lysine and threonine. Despite its lack of certain essential nutrients, wheat is a highly sought-after commodity with some 793 million metric tons consumed in the 2021/2022 market year, according to Statista. Improving the nutritional profile by partially substituting wheat with nutritionally superior non-wheat flour to create composite flours has been identified by the United Nations Food and Agricultural Organization (FAO) as one of the ways to enhance nutrition for millions of people worldwide.
FAO spearheaded the global adoption of composite wheat flour as early as the 1960s, but there was limited global adoption reported. A convergence of high wheat prices and a persistent gluten-free trend is renewing interest in composite flours.
In this article, we will examine the factors behind the resurgence of composite flour in the global baking industry and explore the options available to millers and bakers who want to take advantage of this exciting new trend.
A BUSINESS CASE FOR COMPOSITE FLOURS
FAO suggests that the use of composite flours can be a cost-effective solution for managing the expenses related to importing wheat flour in developing countries that do not cultivate wheat due to unfavorable climatic conditions.
Extensive research has indicated that it is possible to create acceptable wheat products by substituting up to 20-40% with purified starches, 10-30% with rice flour, 5-20% with cereal and root flours, or with 3-15% of proteinaceous flours.
Previously, there was reluctance to adopt composite flours because wheat was relatively affordable. However, the Russian invasion, the pandemic, and a prolonged period of drought have affected global wheat production, resulting in higher prices in the global market. Russia's refusal to continue participating in the Black Sea Grain deal has further upset the wheat market. The International Monetary Fund (IMF) warns that global grain prices may jump by 10-15% as a result.
As the price of wheat continues to rise, millers and bakers are now considering the use of composite flours as a strategy for managing costs. FAO estimates that substituting 20% of wheat flour with non-wheat flour for the production of bakery products would lead to an estimated annual savings of US$320 million. At a 30% substitution rate, the savings would amount to US$480 million per year.
Composite flours also help to address the gluten problem that is associated with every wheat product. Gluten consumption can result in various gluten-related disorders, including coeliac disease, dermatitis herpetiformis (a skin manifestation of coeliac disease), gluten ataxia, and non-coeliac gluten sensitivity. Consumer awareness of the adverse effects of gluten has led to gluten-free products worldwide. According to Grand View Research, the global market size for gluten-free products was estimated to be USD 6.45 billion in 2022. It is projected to experience a compound annual growth rate (CAGR) of 9.8% from 2023 to 2030. Composite flours that are gluten-free present manufacturers with an opportunity to expand their revenue streams by tapping into this fast-growing category.
The convergence of cost management and health is certainly an attractive proposition for the milling industry. For the African milling industry, in particular, this sustainable approach can provide a pathway to achieving greater independence from the unpredictable conditions of the global markets. It can also help reduce the cost of raw materials and introduce new, functional composite flours with a regional flair. This is a statement that many industry experts agree with. "Whereas the addition of non-wheat flours from local sources used to be seen as a compromise, the new generation of composite flour products will be able to assert itself much more confidently,” says Jannes Peemöller, Mühlenchemie's area sales manager.
WHAT COMPOSITE FLOURS ARE AVAILABLE AND VIABLE?
With the dramatic rise in food insecurity, the food industry has become increasingly interested in the potential of using composite flour to produce affordable bread and other baked products. A significant amount of research has been conducted to investigate the potential of various composite flours in producing baked goods that are appealing to the senses. Composite flours made from wheat and cassava flour were among the first to be explored, with the Nigerian government at one time directing wheat millers to incorporate 10% cassava in the flours they produce. Although the policy was later abandoned in 2017, it proved that it was possible to use locally sourced ingredients to partially replace wheat imports in the production of baking flour.
While the Nigerian project was primarily government-led, in Kenya there have been efforts to promote private sector-led adoption of composite flours. In the East African nation, a
46.45B
combination of wheat flour and orange-fleshed sweet potato flour appears to be the most popular option. The International Potato Center (CIP) is leading the effort to incorporate Orange Fleshed Sweet Potatoes (OFSP) into baking flours. "We have developed breads in which 45-50% of the wheat flour has been replaced with OFSP puree," CIP says. "This makes the flour a good source of vitamin A while reducing the amount of sugar and oil that bakers use. It also helps to cut production costs by reducing the need for oftenimported flour."
At times, a composite can comprise more than two flours. In Ethiopia, research led by Masresha Gebeyehu Ewunetu explored the
possibility of using three different types of flour in bread making. The study published in the Hindawi Journal in March 2023 showed that bread of acceptable quality can be produced from a composite flour made of wheat, carrot, and banana. This innovation has the potential to increase nutrition and prevent malnutrition.
In other scenarios, it is possible to completely replace wheat, resulting in the creation of glutenfree products, which, as discussed earlier, are currently trending. The potential of these products in Africa was highlighted recently during MC Mühlenchemie's Composite Flour competition. Yusuf Olamide Kewuyemi, a doctoral student at the University of Johannesburg in South Africa, was the winner of the Awards, receiving €5,000 for his development of 3D-printed crackers made from processed whole-grain flour derived from African-grown peas and quinoa. The second prize went to Abdulhakim Endris from Jimma University in Ethiopia. His study, titled "Optimizing the Process Variables for the Production of Oat Compound Biscuits," investigated the ideal combination of wheat and oat flour for biscuit production.
"The submitted research projects demonstrate the enormous potential of composite flour to make the future of our food production sustainable," said Dr. Lutz Popper, the scientific director of MC Mühlenchemie and chairman of the jury. "They demonstrate that with intelligent and innovative methods, we can reduce our dependence on wheat without having to give up taste and quality.”
BAKING WITH GLUTEN-FREE FLOURS IS NOT EASY
Despite the growing trend of eliminating gluten from baking recipes, baking is more of a science than an art. The removal of gluten from cerealbased baked goods has a negative impact on the process of making bread and its sensory characteristics. It also presents technological difficulties in producing high-quality leavened bread. The utilization of non-gluten raw materials alters the rheological characteristics of glutenfree dough, potentially leading to variations in processing efficiency and the resulting bread's quality after baking. Gluten-free bread tends to have poor visual texture characteristics, low nutritional value, reduced mouthfeel and flavor, as well as a shorter shelf life.
Due to the lack of gluten, alternative ingredients must be used to preserve the texture, volume, satisfactory crumb, shelf life,
and sensory quality. These include the use of hydrocolloids, emulsifiers, sourdough, and enzyme preparations.
Emulsifiers, such as lecithin, mono- and diglycerides of fatty acids, and esters of fatty acids with lactic acid, are used to facilitate the processing of dough and to make the crumb softer. Milk, egg yolk (except for bread), soy protein, sunflower, and lupine flour can also be used for this purpose. Hydrocolloids, on the other hand, swell and form a gel that thickens the dough, creating a structure for gas bubbles and preventing the loss of gas released during whipping, leavening, or from raising agents. After baking, hydrocolloids stabilize the crumb structure, bind water, and prevent rapid starch retrogradation.
The addition of fiber affects the quality of the bread through its hydration. Studies have shown that, in addition to its beneficial health effects, fiber also improves texture, specific volume, apparent viscosity, consistency, sensory quality, and shelf life. This is due to its ability to bind water, form a gel, and thicken.
Even with all of these additional ingredients, the formulations must be correct in order to create products that meet the required standards. Even for companies specialized in flour treatment, the process of determining the right formulation can be highly complex, as each non-wheat flour has different product attributes. Stefan Creutz, the strategic applications development manager at Mühlenchemie, faced a similar challenge
IN EAST AFRICA, THE INTERNATIONAL POTATO CENTER HAS DEVELOPED BREADS IN WHICH 45-50% OF THE WHEAT HAS BEEN REPLACED WITH OFSP PUREE. THIS MAKES THE FLOUR A GOOD SOURCE OF VITAMIN A WHILE REDUCING THE AMOUNT OF SUGAR AND OIL BAKERS USE.A baker showcases freshly baked buns made from OFSPWheat composite flour.
while developing solutions to improve flour for composite flour. "The high starch content of cassava shortened the shelf life of the bread," Creutz said. "Certain varieties of millet produced a very intense taste, and in some cases, the use of maize flour resulted in a yellowish or granular crumb structure."
AFRICA MAKES MORE INQUIRIES ABOUT COMPOSITE FLOUR
As baking with composite flour can be challenging, millers and bakers in Africa are turning to flour improvement specialists such as Mühlenchemie to ensure success in their first bake. Having worked with composite flours for decades, flour improvement specialists have developed products that make it easy for millers and bakers to switch to composite flours. Take Muhlenchemie, for example, which, after many trials, has managed to develop mixed enzyme systems that allow for the inclusion of up to 20% of non-wheat flour without compromising on processing characteristics or product quality.
Muhlenchemie further notes that its new enzyme systems, known as Compozym, deliberately exclude the
compensating for the poor viscoelastic properties of the wheat substitutes,” Creutz said.
Globally, there are other solutions available. In North America, Arva Flour Mills, based in Canada, has recently introduced a line of glutenfree products under the Arva Flour Brand. This move is aimed at keeping up with the growing demand for gluten-free flour. Washington-based Continental Mills Krusteaz offers a gluten-free allpurpose mix that includes rice flour, whole grain brown rice flour, whole sorghum flour, tapioca starch, potato starch, cellulose, xanthan gum, and a blend of vitamins and minerals. This mix is designed for the production of cookies, cakes, brownies, muffins, quick bread, and pancakes. Among other composite mixes available in the market, there are Measure for Measure Flour from King Arthur Baking Company and Antimo Caputo Gluten Free Pizza Flour.
COMMERCIAL SUCCESS STORIES
It's true that many products that were highly successful during the research and development phase never make it to the market. This reality also applies to many products made from composite flour. Bakers can, however, have confidence in the commercial viability of this trend, as there are a significant number of success stories that are dotting our supermarket shelves. South Africa probably has the most success in this field with Woolworths, one of its leading supermarkets, stocking over 22 different baked products made from composite flours, including breads, scones, and crackers. In our home market, Kenya, baked products made from composite flours are also very common. Thanks to the work by CIP, the OFSP-wheat flour composite has gained considerable market acceptance. Naivas, Kenya's largest supermarket by number of stores, even stocks own-label breads produced using this flour.
The presence of these products on our shelves proves that products made from composite flours are commercially viable. It's only a matter of time before alternative grains become mainstream, as wheat prices continue to rise and bakers struggle to keep the prices of their products affordable for consumers. Liezel Huysamen, a flour improvement specialist at Mühlenchemie, has already observed this trend. “We are receiving more and more inquiries from customers about how to replace part of the wheat with starch products from local sources,” Huysamen said.
COMPOZYM OFFERS AN EXCELLENT MEANS OF COMPENSATING FOR THE POOR VISCOELASTIC PROPERTIES OF WHEAT SUBSTITUTES.
ANIMAL FEED MEA
NEW TECHNOLOGIES, MARKET TRENDS & FORMULATION OF ANIMAL FEED & PETFOOD PRODUCTS
Advances in ANIMAL FEED TECHNOLOGY
Why Automation Should Be a Natural Progression for Feed Manufacturers
BY MARTHA KURIABy 2050, the world's population is projected to reach about 9.7 billion, according to United Nations projections. We certainly expect the demand for animal protein to rise in tandem with population growth, unless everyone suddenly becomes a vegetarian (which is highly unlikely!). According to the United Nations Food and Agriculture Organization (FAO), the consumption of animal protein is projected to rise by 73%, and dairy consumption is predicted to grow by 58% by 2050.
As animal protein consumption rises, the feed required to sustain animals until they reach maturity is also expected to increase in demand. As a result, the global demand for animal feed is expected to increase to 1.5 billion tonnes in 2050, with the majority of the growth occurring in Asia
and Africa.
To meet the increasing demand for feed, manufacturers will need to produce a larger quantity of feed. The challenges faced by feed manufacturers today, such as product quality, safety, process reliability, and low operational costs, will become more pronounced as demand increases. Therefore, a new approach to the entire feed manufacturing process is necessary. Luckily, advancements in animal feed technology have enabled the integration of automation into the production process, allowing for increased production rates without sacrificing quality.
In this article we highlight the benefits of automation to animal feed producers and why it should be a natural progression for any forwardthinking business.
DOING MORE WITH LESS VIA AUTOMATION
Producing more certainly has its challenges, particularly in getting the feed formulations right. Mixing, in particular, is considered to be one of the most critical and essential operations in feed manufacturing. Lack of proper mixing can lead to reduced diet uniformity, affecting not only animal performance but regulatory compliance as well. Further, feed processing is becoming an increasingly challenging task
due to the emergence of new raw materials and technologies, as well as the growing need for advanced research to control rising feed costs.
This is a problem that Martijn van Eijk, sales manager at Dutch equipment manufacturer KSE Process Technology, believes can be easily resolved through automation. "The need to increase productivity is among the reasons automation has become more necessary in feed mills," he observes.
"The requirements and regulations for animal nutrition are rapidly increasing, and formulations are becoming more complicated. The industry bar is set higher when it comes to the tracing of ingredients and proportioning and ingredient quality.”
Van Eijk believes plant automation will become increasingly more important in the next few years, as the requirements and regulations set to animal nutrition rapidly evolve and formulations become more complicated.
Luckily for millers, many technology providers have introduced new tools to monitor critical parameters of the feed processing process, especially, batching, mixing, and pelleting. This kind of automation enables mill operators to have a reliable and flexible process, producing optimal quality with the lowest energy usage. A benefit for millers is that the automated system ensures that no feed is wasted by adding precisely the
required amount into the mixer. Automation also creates a consistent system for completing tasks, which eliminates the need for additional labor. This can be a challenge for feed producers looking to scale, as the costs of hiring and training new employees can be a pain point.
PELLETS JOIN THE AUTOMATION BANDWAGON
As pellet feeds grow in popularity due to their high digestibility, many feed manufacturers are prioritizing the production of pellet feeds. Naturally, automation is following this trend, and there are solutions available that can help millers
PTN'S new energy efficient monorail pellet press can help millers achieve higher output rates.
AUTOMATION ENABLES MILL OPERATORS TO HAVE A RELIABLE AND FLEXIBLE PROCESS, PRODUCING OPTIMAL QULITY WITH THE LOWEST ENERGY USAGE. AN ADDITIONAL BENEFIT IS THAT AUTOMATION ENSURES NO FEED IS WASTED.
1.5BMT IN NUMBERS
ESTIMATED GLOBAL DEMAND FOR ANIMAL FEED IN 2050.
increase their capacity to produce high-quality pellets. Swiss supplier of milling technology solutions Buhler is a leader in this field. The company recently introduced a new PelletingPro smart pellet moisture control technology. This technology utilizes sensor and automation systems, along with cloud data availability, to enable feed millers to operate pelleting lines under stable process conditions. It also ensures maximum efficiency and reliability.
Technology Netherlands (PTN), PTN's new MonoRoll pellet press, which is a single-roll pellet press, is unique in its design and concept. It can help feed mills achieve significant energy savings and deliver higher output. When used, the press can deliver a 20% to 25% increase in energy efficiency versus conventional pellet mills.
Automation of batching and mixing processes substantially reduces error and variation. With an easily re-programmable controller, millers can adjust recipes without significant downtime and reduce waste, significantly reducing expenses. The correct automation solution has been seen to solve the problem of precision and consistency by scale weighing ingredients quickly and to correct amounts ensuring automatic distribution according to pre-programmed recipes.
POWERING PREDICTIVE MAINTENANCE
Automation has also made predictive maintenance a no-brainer, which has in turn saved millers huge costs normally associated with frequent downtimes. Through sensor technology, millers are able to collect data which not only shows when components are approaching failure, but it also provides plant managers at feed manufacturing facilities with insight to save budgets and reduce waste by switching to condition-based maintenance.
Danish-based Andritz Feed & Biofuel also has the 3-roll automatic roll adjustment system for the Paladin 2000 pellet mill which enables different distances to be set between the die and the rolls. According to Andritz, the automatic system provides feed manufacturers with the capability to choose the optimal distance between the roll and die for various recipes on a single pellet mill. This ensures a higher-quality and more stable product, as well as a wider range of by-products.
AUTOMATION DELIVERS HUGE SAVINGS
Production costs are one of the challenges that feed mills encounter due to the increase in energy costs and the need duty to operate sustainably in the face of climate change. According to Willem de Vaan, the managing director at Pelleting
Andritz is one of the technology suppliers offering solutions for predictive maintenance. The Metris Vibe is a wireless vibration and temperature sensor that can monitor the health status of mechanical equipment, regardless of the original manufacturer. “Durable and wireless, the sensor works in all rough environments and delivers lower operating costs through predictive maintenance as well as increased uptime, reduced maintenance, higher production reliability, and improved safety,” the company says.
Sensor technology isn't limited to the mill. Feed supply chain automation provider BinSentry has developed a sensor solution to determine the feed levels in on-farm feed bins and use the data to place feed orders from its reordering platform. “This visibility into what's happening on-farm has huge downstream benefits, from resource planning to production scheduling to more efficient transportation for deliveries,” says Randall Schwartzentruber, CEO and co-founder, BinSentry. With BinSentry, Randall assures farmers of optimized feed ordering that ensures the right feed arrives to the right bins at the right time — eliminating late orders, overfills, and feed transfers.
Getting it right with FEED FORMULATIONS
What manufacturers should know when seeking to formulate cost-effective, high-quality feeds
BY MARTHA KURIAThe feed production process has evolved from mash feeding in the 18th century to production of highquality pelleted feeds. One thing has, however, remained constant: the oversized contribution of feed to the overall expenses of animal production. Currently, feed accounts for up to 70% of total production expenses. With costs increasing every day, the cost of producing livestock is becoming almost unsustainable.
This reality is putting pressure on feed manufacturers to develop new formulations that can assist animal farmers in producing more
with less feed. The solution to this problem is to find ways to minimize feed wastage, which is a common issue due to the high proportion of fibrous materials with low digestibility used in feed manufacturing.
TECHNOLOGY AS A SOLUTION
Thankfully, scientific innovation is developing solutions that can be embraced to overcome challenges with feed conversion. Near-infrared (NIR) spectroscopy has become particularly useful in determining variability in feed ingredients.
NIR measures how near-infrared light is
reflected by a certain material and can detect the vibrations of organic molecules. Depending on the method of vibration, it can identify various components of a specific feed ingredient, such as protein, fat, and water levels. NIR technology, when used in conjunction with data management, automatic formulation, and process automation, can assist manufacturers in preventing problems related to over or under formulation. These issues often lead to the production of low-quality feeds that do not meet desired performance standards.
"If it's overformulation, you could be saving costs because you're putting more nutrients in the feed than is really required," says Vinicius Chiappetta, Global Commercial Director at Cargill Digital Solutions.
“Or, if you put in more nutrients, this can also impact the digestibility of the animals, because there is a precise level of nutrients that they can absorb. So, even overformulating doesn't mean that you are going to have a better performance on the farms. Or you can underformulate; if the nutrients come with a lower level of protein, for example, the feed is going to have lower levels of protein, and this is also going to impact the productivity at the farm.”
Recently, Cargill Animal Nutrition entered into a strategic partnership with Si-Ware Systemsowned NeoSpectra platform. This platform analyzes the nutrient content of feed and feed ingredients quickly and accurately, enhancing capabilities in the analysis of forages, feeds, and feed ingredients for farmers in North America.
"We are very excited to partner with NeoSpectra to bring this innovative nutrient analysis platform to the dairy industry," stated Kristen Burkhardt, Cargill's dairy marketing specialist.
“We are committed to providing our customers with the best quality feed to reach their goals, and this partnership will help us to continue to deliver on that promise with real-time, accurate insights,” he added.
Those in search of simpler technologies can try SCiO, a pocket-sized micro-spectrometer that analyzes feed in real time. It is also the world's first NIR Spectrometer that fits in your pocket. Despite its size, the tool can help feed manufacturers and farmers get instant real-time nutritional analysis anywhere on the farm, in the silo, grain bin, feed mixer, or field.
Nutrigenomics is an advanced technology that can be helpful in optimizing feed formulations. This technology reveals the relationship between feed nutrients and gene expression, enabling
the industry to identify feeds that can help animals reach their genetic potential by directly influencing the genes responsible for growth rate, meat quality, and disease prevention.
FOR PROCESSORS, ENZYMES ARE THE FUTURE
As most raw materials have poor digestibility, enzymes serve an especially important role in the feed industry, thanks to their ability to break down nutrients. Hydrolytic enzymes are particularly popular because they aid the digestion and absorption of nutrients that are not easily available, or in removing antinutritional factors from the diet.
BASF Natupulse TS is one such enzyme that is available in the market. According to BASF, Natupulse TS contains the enzyme mannanase, which degrades non-starch polysaccharides (NSP) such as mannans. "Natupulse TS helps monogastric animals like poultry and swine to better digest nutrients –making animal protein production more sustainable. It particularly improves the nutrient digestibility of feeds containing raw materials with a high ß-mannan content: soybean meal or guar meal etc,” says BASF.
Alltech also has its own enzyme known as BioMos, which has been shown to be effective in improving feed quality.
"In a meta-analysis of laying hens, Alltech's proprietary yeast mannan oligosaccharide, increased hen-day production and livability, while decreasing the feed conversion ratio (FCR),” Alltech says. "This improved performance implies that approximately 27 tonnes less feed
Buhler and Entocycle have partnered to enhance adoption of insect protein in feed formulations.
would be required to produce 1,000 tonnes of eggs, equivalent to 5.6 hectares of land saved from soya cultivation."
Because animal diets consist of multiple substrates, which contain a mix of anti-nutritional factors and inaccessible nutrients, it is crucial to utilize a product that offers multiple enzyme activities. Alltech, however, advises against using multiple single enzymes or a blended enzyme product, as this can lead to inefficiencies and non-performance results in feed. "Enzymes in a blend can compete for substrates and inhibit or inactivate each other. Enzymes produced in a single complex work in synergy with the animal's digestive tract," Alltech says.
To optimize nutrient utilization, Alltech recommends using a multi-enzyme complex that effectively breaks down the challenging components commonly present in poultry feed, such as non-starch polysaccharides (NSPs) and phytic acid. One such solution is Allzyme Spectrum, which has reportedly demonstrated efficacy in laboratory research, university trials, and commercial settings. "This extensive work has shown that Allzyme Spectrum can save 90 calories per kilogram of feed in nonorganic poultry diets," according to Alltech. "This efficiency gain provides flexibility in reformulation through the use of alternative raw materials, helping producers save money."
Lowering mycotoxin levels in feeds is also another area that has demonstrated effectiveness. A recent meta-analysis of 25 broiler studies demonstrated the impact of mycotoxins on productivity, highlighting how the dietary inclusion of a yeast cell wall extract (YCWE) such as Mycosorb could ameliorate some of these impacts. The study found that across 100,000 broilers, mycotoxin consumption could increase emissions by 46.62 tonnes of CO2e. This increase is primarily attributed to poorer feed efficiency and higher bird mortality rates. Including YCWE during a mycotoxin challenge significantly improved both FCR and mortality
TO OPTIMIZE NUTRIENT UTILIZATION, ALLTECH RECOMMENDS USING A MULTIENZYME COMPLEX THAT EFFECTIVELY BREAKS DOWN THE CHALLENGING COMPONENTS COMMONLY PRESENT IN FEED SUCH AS NON-STARCH POLYSACCHARIDES.
ITS TIME TO CONSIDER ALTERNATIVE SOURCES
With costs of traditional feeds rising, its time for feed millers to also consider using cheaper alternative sources. There is a wide range of sources that millers could choose from depending on the nutritional needs of target livestock.
Millers could for instance consider Plasma powder which is a highly digestible animal protein source that is used to improve feed palatability and gut health in livestock. Seaweeds could also provide another cheap alternative. Adoption could be as easy as seaweeds, which are already being used in livestock feed by coastal populations. Another advantage of using seaweeds is that they are typically abundant in potassium, sodium, calcium, magnesium, and phosphorus, as well as containing traces of micronutrients like iron, manganese, copper, cobalt, zinc, and selenium.
New studies also show that certain insects are highly suitable to be used as feed due to their high nutritional value and their natural inclusion in some livestock diets. Insect farming is gaining traction around the world as one of the key solutions to reducing waste in the environment and creating sustainable sources of animal feed, particularly for aquaculture. The black soldier fly larvae are especially popular in the insect category. Recently, Bühler and Entocycle, an insect technology company, have partnered to enhance the adoption of large-scale black soldier fly (BSF) farms. Their goal is to provide solutions and expertise to better serve customers in this segment.
A more novel solution is the use of egg powder in animal feeds. Studies show that adding egg powder to the feed of young animals, such as calves, can boost their immunity and also provide them with lecithin, an emulsifier that improves digestion and increases milk production in breastfeeding mothers. Egg powder is a sustainable alternative to vegetable protein in livestock feed as it has a long shelf-life, has a high concentration of protein, and reduces transport and storage costs.
THE FINAL WORD
Feed costs skyrocketing is a reality that we cannot run away from. Harnessing low-hanging fruit in improving feed conversion ratios could, however, unlock a major breakthrough in taming feed costs. Through the utilization of various strategies, such as the use of NIR to add precision
to feed formulation and enzymes to improve digestibility, millers have demonstrated the ability to make the same amount of feed deliver more at the farm level. In addition to helping farmers save on costs, these technologies are helping minimize wastage which in all honesty is good for the planet.
Having read all the above, one question remains: Have you optimized your feed formulation process yet?
Enymes enables animals to better digest nutrients which boosts productivity at the farm.
Urbanization Drives RICE CONSUMPTION in Africa
BY WANGARI KAMAUWhile rice has traditionally been a staple food in Asian countries, recent trends reveal a significant increase in its consumption in Africa.
AfricaRice, a rice research and development organization in Africa, reports that the demand for rice in Africa is growing at a rate of more than 6% per year, which is faster than the demand for any other food staple in sub-Saharan Africa. With only 17% of the world's population, Africa accounts for 32% of global rice imports, making it a significant participant in the international rice
trade.
Additionally, the Food and Agriculture Organization of the United Nations (FAO) predicts that African rice consumption could reach 34.9 million tonnes of milled rice by 2025. Moreover, data from FAO further indicates that while the global top 9 rice consumers consist of Asian countries exclusively, the global top 20 includes 8 African countries. These countries are located in two major regions on the continent: Western Africa and the islands off the East African coast. Interestingly, however, rice consumption is below 25 kg per capita per year for the vast majority of
the continent.
WEST AFRICA LEADS IN RICE CONSUMPTION
In Western Africa, which has one of the highest per capita rice consumption rates worldwide, people consume between 50 kg and over 100 kg of rice per capita every year. In the region, Guinea is the largest per capita consumer of rice and ranks 10th globally, consuming 151 kg. Sierra Leone (148.5 kg), Guinea-Bissau (136.9 kg), Ivory Coast (121.1 kg), Liberia (116.5 kg), and Senegal (115.3 kg) all consume significant quantities of rice and are ranked among the top 20 countries globally in terms of rice consumption.
These high consumption rates are only observed in a few other nations off the East African coast, namely Mauritius (54.3 kg), Comoros (117.7 kg), and Madagascar (148.8 kg). These countries also consume a large amount of rice every year.
In these regions and throughout the rest of the continent, there are several interesting trends that have been driving the demand and consumption of rice, particularly in the past few decades. They include population growth, urbanization, changing dietary habits, and
increased availability of rice. Statisticians report that the African population has been growing at an average rate of over 2.45% per year for the past 23 years.
Moreover, the African Development Bank reveals that the urban share of Africa's population has doubled from 19% to 39% over the last 50 years, resulting in more than 360 million new city dwellers. The Organisation for Economic Co-operation and Development further predicts that Africa will be home to more than 950 million urban residents by 2050. Naturally, the changing dynamics of cities on the continent have profound effects on the food that people consume across Africa. Import dependency persists as demand increases
Although rice has been cultivated for more than 3000 years in parts of Africa, the current production levels barely meet the continent's consumption needs. If the current trends continue as predicted by the FAO, African rice production will only be able to meet two-thirds of its demand for rice. This means that more than 12 million tonnes of rice will need to be imported each year, resulting in an annual cost of over US$5 billion by 2050.
Currently, the African continent imports a significant portion of its rice from countries such as Thailand, India, Vietnam, and China. This type of reliance on imports puts African countries at a disadvantage as it leaves their food security in the hands of other nations. For example, the Indian government recently banned the export of non-basmati white rice in order to control the increasing prices and enhance local availability ahead of the upcoming El Niño weather phenomenon.
A lot of African countries, especially in West Africa, depend on India as their main source of rice, and this move by the
IN NUMBERS
AMOUNT OF RICE THAT AFRICA WILL IMPORT TO MEET DEMAND IN 2050.
12M
government of India sets them a step back when it comes to meeting their demand for rice. The ban imposed by India has already caused global supply chain concerns and put approximately US$1 billion worth of rice contracts in India at risk.
LOCALIZATION PROMISES TO REDUCE OVERRELIANCE ON IMPORTS
While it is true that Africa depends on imports to fulfill more than two-thirds of its demand for rice, different governments have put various measures in place to promote local production of rice. For example, Nigeria, currently the largest rice producer in Africa and one of the largest importers, has implemented various policies and initiatives to support rice farmers and improve local rice production.
In 2021, rice production in Nigeria amounted to around 8.3 million metric tons, making the country the leading rice producer in Africa. While its production fell to 5.4 million metric tonnes in 2022, it still accounts for approximately 46% of the harvest in West Africa.
Egypt and Madagascar are also large producers, and in 2021, they followed Nigeria with an output of about 4.8 million and 4.4 million metric tons of rice, respectively, according to data from Statista. The government of Egypt has rice breeding programs to develop earlymaturing and high-yielding varieties, leading to increased water use efficiency, high crop intensification rates, and saving about 30 percent of the irrigation water consumed every year.
However, the government has been regulating and restricting rice cultivation outside of designated areas. Rice, being a waterintensive crop, requires irrigation, and its illegal cultivation negatively impacts the ability of the canal networks to provide the necessary water required by all beneficiaries in the summer.
Therefore, according to Egypt's new law, instituted in 2021, farmers who do not adhere to the designated areas for rice cultivation face either fines ranging between EGP 3000 – 10,000 (US$192 – US$640.20) per feddan (4,200 sqm) or a prison sentence of up to six months. While this is bound to reduce rice production to a certain extent, it is the government's effort to ensure sustainability in production and protect
IN 2021, RICE PRODUCTION IN NIGERIA AMOUNTED TO AROUND 8.3 MILLION METRIC TONS, MAKING THE COUNTRY THE LEADING PRODUCER IN AFRICA. EGYPT AND MADAGASCAR FOLLOW WITH AN OUTPUT OF 4.8 MILLION AND 4.4 MILLION RESPECTIVELY.Nigeria has implemented various policies and initiatives to support rice farmers.
water resources.
TANZANIA STRIVES TO BE THE LARGEST PRODUCER IN THE CONTINENT
In East Africa, Tanzania has made significant investments in rice production and aims to become one of the leading rice producers on the continent. Tanzania benefits from favorable agroecological conditions for both small-scale and large-scale rice farming. In the last few years, there have been significant market prospects for smallholder farmers in Tanzania.
This has led to national self-sufficiency and a substantial surplus for export, making rice one of the country's most important cash crops. Therefore, while the rest of the East African Community (EAC) imports a substantial amount of rice, Tanzania produces enough for domestic consumption and a significant surplus for export, with only a small quantity of rice imported to meet specific consumer demands. According to the Ministry of Agriculture in Tanzania, rice production increased to over three million metric tonnes in 2021, enabling the mainland to export 441,908 metric tonnes of rice.
The country, currently the fourth largest producer, now aims for the top spot. It aims to claim the number one position by implementing
the 2019-2030 National Rice Development Strategy Phase II (NRDS-II). According to the International Rice Research Institute (IRRI), Tanzania's National Rice Development Strategy (NRDS) aims to gradually transform the existing subsistence-dominated rice sub-sector into a commercially viable production system. It aims at sustaining national self-sufficiency while contributing to regional self-sufficiency and becoming a regional market leader. Phase two of the government's NRDS 2019-2030 is now complete paving the way for phase three which aims to boost production to at least 8.8 million tonnes by 2030.
Additionally, another project, the Climate Smart African Rice Project, was launched in 2020. This project aims to develop new rice varieties that are better suited to the changing climate conditions in Africa. It is a collaboration between the University of Copenhagen (UCPH), Sokoine University of Agriculture (SUA), the International Rice Research Institute (IRRI), and the Tanzania Agricultural Research Institute (TARI).
The researchers leading the project are utilizing advanced breeding techniques to develop rice varieties that are more resistant to drought, flooding, salinity, pests, and diseases.
Rice production projects have boosted rice production in mainland Tanzania.
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8.8M
TONNES OF RICE THAT TANZANIA TARGETS TO PRODUCE BY 2030
The new varieties are expected to help farmers increase their yields and income while reducing their vulnerability to climate-related risks. The initiative is part of a broader effort to promote sustainable agriculture and enhance resilience to climate change in Africa.
CLIMATE SMART AFRICAN RICE PROJECT
The Climate Smart African Rice Project is being pursued regionally to address some of the challenges affecting rice production in the continent. Salinity is one of the challenges that affect countries such as Mali, Ethiopia, and Burundi. It arises from the accumulation of salt due to the excessive utilization of irrigation water without proper drainage, along with the utilization of low-quality irrigation water or sodic soils formed from rocks containing salt.
The second major issue is submergence, which affects up to one-third of the rainfed lowland areas in Sub-Saharan Africa. According to IRRI, modern rice varieties are not adapted to these conditions, and farmers in the subregion experience either regular yield loss when they cultivate these varieties or low yield when they persist in growing local landraces.
Thirdly, low germination under anaerobic conditions poses a challenge. Most modern rice varieties either fail to germinate underwater or fail to elongate the coleoptile and develop roots and shoots for further growth under prolonged
oxygen deprivation, leading to partial or complete crop failure. Thus, the development of varieties capable of tolerating flooding during anaerobic germination is critical in both rainfed and irrigated ecosystems.
The solution of the Climate Smart African
Rice Project lies in identifying novel genes that are involved in flood or salinity tolerance of rice. This will be done by using African rice germplasm, such as Oryza glaberrima, and wild relatives to enhance their expression.
According to the project, the knowledge gaps that need to be addressed in order to achieve the overall objective are the understanding of the role of the root barrier in preventing the intrusion of soil phytotoxins and salt through radial O2 loss (ROL), as well as the prevalence of the trait of anaerobic germination. The scientists on the team propose using promising genotypes of wild relatives from wetland habitats to uncover these trait capacities.
REGIONAL BLOCS RAMP UP RICE PRODUCTION IN THE CONTINENT
While individual countries are working on ways to improve rice production within their borders, regional trade blocs have a role to play. One of the most productive initiatives for rice production is the Coalition for African Rice Development (CARD). It was formed by the Japan International Cooperation Agency (JICA) in partnership with the Alliance for a Green Revolution in Africa (AGRA) during the Fourth Tokyo International Conference on African Development in May 2008.
CARD aimed to double African rice
production by 2018 and initiated National Rice Development Strategies (NRDS) in 12 countries, including Tanzania, Cameroon, Sierra Leone, Nigeria, Guinea, Senegal, Mali, Ghana, Kenya, Uganda, Mozambique, and Madagascar. CARD then proceeded to initiate a second phase in 2019, which is expected to run until 2030. In this second phase, CARD partnered with the World Food Programme (WFP) and included nine additional countries in the initiative: Angola, Burundi, Chad, Congo Republic, Gabon, Guinea Bissau, Malawi, Niger, and Sudan.
CARD's projects focus on training smallholder farmers, providing inputs such as seeds and fertilizers, promoting mechanization, managing water resources, facilitating access to credit and markets, and enhancing quality standards. The implementation of these projects is supported by various development partners including the Food and Agriculture Organization, Africa Development Bank (AfDB), International Fund for Agricultural Development (IFAD), and AfricaRice, among others.
OPPORTUNITIES TO OVERCOME PRESSING CHALLENGES IN AFRICAN RICE PRODUCTION
Despite the progress made by various countries, African rice production still faces challenges such as limited access to irrigation, inadequate
THE CLIMATE SMART AFRICAN RICE PROJECT IS BEING PURSUED REGIONALLY TO ADDESS SOME OF THE CHALLENGES AFFECTING RICE
PRODUCTION IN THE CONTINENT.
infrastructure, low mechanization, pests and diseases, and the impacts of climate change. Moreover, challenges such as the affordability, accessibility, and quality control of rice remain. However, efforts are being made to address these challenges and improve rice production throughout the continent. Investing in infrastructure, improving domestic rice production, enhancing post-harvest management, and promoting value addition in the rice value chain are some of the opportunities to meet the increasing demand for rice in Africa.
Researchers suggest that the utilization of wastewater in Africa could solve one of the most formidable challenges: access to irrigation water. The United Nations World Water Development Report by the UN World Water Assessment Programme of UNESCO argues that once treated, wastewater could prove invaluable in meeting the growing demand for freshwater. According to this report, a large proportion of wastewater is released into the environment without being treated, especially in low-income countries, which, on average, only treat 8 % of domestic and industrial wastewater, compared to 70% in highincome countries.
Israel recycles nearly 90% of its wastewater and uses most of it for irrigation, while Europe recycles 60% of its wastewater. Most African countries are, however, yet to tap into the benefits of wastewater treatment for reuse, especially for agriculture. Herein lies an opportunity to create a solution that solves two problems at a go; treating
wastewater and availing the much-needed irrigation water for rice production. It is an especially timely solution in the face of drought and consistently dwindling water resources due to climate change.
Secondly, research and experience have proven that mechanization significantly improves the productivity of rice. According to, Rice Green Revolution in Sub-Saharan Africa a 2023-published book by Keijiro Otsuka, Yukichi Mano, and Kazushi Takahashi, mechanization demand remains low in SSA partly due to farmers' inadequate knowledge of improved cultivation practices. According to the authors, demand for mechanization is inspired by factors such as farming intensification due to population pressure on land and high rice prices as well as farm wage increases due to urbanization and economic growth, prompting farmers to substitute labor with machinery.
However, the machinery utilization rate remains low in SSA because there are fewer production seasons because of the dominance of rainfed agriculture. Additionally, poor road infrastructure in the continent also prevents service providers from reaching break-even utilization rates through extensive migratory services.
Moreover, inadequate and unstable paddy production also hinders investments in modern rice mills, which often need sufficient utilization rates to be profitable. Therefore, shifting from rainfed agriculture and providing the necessary road infrastructure is bound to encourage mechanization in rice production and reduce overreliance on exports. Governments, in collaboration with programs such as CARD, could promote the adoption of technology in production by establishing the necessary infrastructure to ensure its effective utilization.
Another way of increasing the production of rice in Africa is by using modern rice varieties. For example, as mentioned before, the Climate Smart African Rice Project in Tanzania is currently working on identifying novel genes that are involved in flood or salinity tolerance of rice. They are using African rice germplasm, such as Oryza glaberrima, for this purpose. Additionally, according to AfricaRice, there are new varieties of rice that can withstand harsh environmental conditions, mature faster, allowing for more harvest seasons, and are tolerant to pests and diseases. For example, the New Rice for Africa (NERICA) varieties are the first wide-scale success of crossing the two
RESEARCH AND EXPERIENCE HAVE PROVEN THAT MECHANIZATIONS IMPROVES RICE PRODUCTIVITY. UTILIZATION RATE HOWEVER REMAINS LOW BECAUSE OF FEWER PRODUCTION SEASONS.
cultivated species: Oryza sativa, known as ‘Asian rice', and O. glaberrima, often called ‘African rice'. Other new rice varieties developed to enhance rice production in Africa include Advanced Rice Varieties for Africa (ARICA), Sahel, STRASA, Orylux, WITAs, and WABs varieties, each developed to do well in certain areas and under different environmental conditions.
Additionally, African rice producers are learning and taking steps to reduce post-harvest losses of rice. One of the ways that these farmers are doing so is by rice parboiling, a process that involves partial boiling of rice in the husk before milling to protect the rice from breaking during milling, preserve nutrition and enhance quality.
According to AfricaRice researchers, if properly carried out, rice parboiling significantly improves the physical, eating, and nutritional quality of the milled rice compared to nonparboiled rice. According to these researchers, the GEM (Grain quality enhancer, Energy-efficient, and durable Material) improved rice parboiling technology produces quality rice, processes large quantities of rice relatively quickly, is energy efficient, and is safer to operate than traditional methods.
Moreover, the utilization of broken rice fractions and rice husk is another way of reducing postharvest losses of rice. The broken rice fractions can be utilized to make rice flour that can make porridge and ready-to-eat (RTE) high-protein extruded snacks. On the other hand, rice bran can be combined with legumes to create animal feed. The husks, on the other hand, are used for energy through a gasification process.
This process converts biomass into a combustible gas by reacting oxygen in the air with carbon present in the biomass during combustion.
CONCLUSION
Rice consumption in Africa has been increasing in recent years, due to changing dietary preferences and urbanization. Researchers indicate that this trend will continue as the African population, especially in cities, increases. However, most of the rice consumed in Africa is imported, which becomes a burden for the continent if production does not increase significantly in the near future. In response to this trend, many African countries are investing in rice production. They are training farmers, introducing new varieties, and providing technologies to enhance production, especially through programs like CARD. Since rice consumption will only increase in the future, it only makes sense that Africa continues to invest in the production of this cereal which is now a staple in the continent.
MC Mühlenchemie launches MC100 collection of milling and baking solutions
improver for baking operations, comprising various enzymes and ascorbic acid, meant to optimize the volume and stability of yeast-raised baked products.
According to MC, industrial and market trials show that the improver is perfect for both low and high sugar recipes and the dosage can be adjusted to yield desired results while using different types of flour.
Meanwhile, Pastazym Pro 100 is an enzymatic ingredient that enhances pasta’s ability to withstand different cooking times and methods.
This solution works well for different cuts and shapes of pasta and in total and partial vacuum conditions as well.
KENYA - Leading flour treatment specialist Mühlenchemie has launched of a new collection of ingredients for the milling and baking industry.
The collection launched at a conference held to celebrate 100 years of understanding flour, on 7th September
2023 in Nairobi comprised of powerzym 100, Pastazym Pro 100 and MCcolour .
Speaking at the conference, Sven Mattutat, the global head of product management at MC, said the three industry-approved solutions would enhance different flour applications.
Powerzym 100 is an all-in-one
In addition, MCcolour 100 is another pasta improvement solution that enhances the organoleptic qualities of pasta. It is a natural strong brilliant lemon-yellow colorant that is bound to improve the general acceptability of pasta among consumers.
Berg + Schmidt expands footprint in the Middle East with new Dubai subsidiary
UAE - Berg + Schmidt Animal Nutrition, a Germany-based company that provides feed additives and customer support, has opened a new subsidiary in Dubai.
Berg+Schmidt has over 60 years of raw materials expertise in oils and fats, gathering experience that has made it a highly competent supplier of essential substances to the feed industry.
The company maintains research and development and applications technology facilities in Germany and Singapore, manufactures in Europe and Asia, and ships from there worldwide.
So far, the animal nutrition expert has subsidiaries in Europe, Asia, the US,
and now the Middle East.
The new subsidiary, Berg and Schmidt Middle East Trading LLC, is designed to help the company respond to the growing demand for its products in the Gulf Cooperation Council (GCC) states.
Its presence will boost the distribution of Berg + Schmidt’s specialty products, such as functional lipids, rumen-protected glucose and amino acids, fat powders, lecithins, trace minerals, and emulsifiers. These products are targeted at the poultry, ruminant, and aquaculture production segments.
Skretting partners International Fish Feed Company to bolster Oman’s aquafeed market
OMAN - Skretting Middle East and Africa has selected Oman’s International Fish Feed Company (IFFC) as its official distributor in the country, in a strategic move aimed at expanding its presence in Oman’s rapidly growing aquaculture sector.
Skretting, a global leader in aquafeed production, aims to capitalize on IFFC’s regional expertise and strong presence to establish a substantial Skretting business in Oman.
Thijs Berkers, General Manager of Nutreco Middle East & Africa Export, expressed the company’s commitment to providing high-quality nutrition for aquatic species while minimizing environmental impact.
“As an authorized distributor
for Skretting, IFFC will now offer a comprehensive range of our feed products to fish and shrimp farmers across Oman,” Berkers stated.
Furthermore, IFFC has plans to construct a fish feed plant in Duqm, with support from Nutreco through a signed
service agreement.
The plant, set to commence commercial production at the end of next year, will boast an impressive annual capacity of 31,200 metric tons, as reported by MuscatDaily.
Brabender introduces new FarinoGraph to enhance quality in baking
testing of raw materials, has introduced a new FarinoGraph with newer features and optimized user friendliness.
Recently acquired by Austrian leading technology firm Anton Paar, Brabender holds a distinguished reputation for its measurement and process engineering solutions, tailored to test a wide spectrum of raw materials and facilitate recipe and process development.
The FarinoGraph, which determines the water absorption capacity of flour and the rheological properties of dough, is the successor to the FarinographTS and features a slim and ergonomic design.
dough to be tested.
The new equipment however comes with a Brabender Predictione feature that checks and calculates the evaluation points during the measurement and predicts the torque curve in real time.
With the help of this live feedback, the measurement can be stopped prematurely, and the predicted values may be used instead.
Brabender also has optimized the AquaInject, that enables automatic and precise titration curves also can be created, saving manual experiments. Additionally, evaluations of the instrument are even more efficient with the EvaluationEditor and SmartCorrelation functions.
GERMANY - Brabender, a manufacturer of measurement and process engineering solutions for the
Like its predecessor models, it consists of a drive unit with infinitely variable speed control and a connected measuring kneader for kneading the
The FarinoGraph is suitable for all types of dough, whether gluten-free, sponge dough, soft and hard wheat according to standard specifications or for harder doughs made from rye flour and hard biscuit dough, for example.
IMAS introduces polymer-based roller mill chassis
TÜRKIYE - IMAS, a publicly traded Turkish machinery manufacturer, has released a new roller mill chassis composed of polymeric material called Polymer Base Construction.
According to the company, unlike traditional roller mill chassis made of welded steel or cast iron, Polymer Base Construction features better vibrationdamping properties that provide higher reliability and extended long-term durability for roller mills.
High machinery vibration levels can disrupt the sensitive operating adjustments of machines, which may lead to inconsistency in the process and product quality.
Therefore, damping the vibration and keeping the resonance under critical
levels is crucial for the durability of machinery and buildings.
IMAS says that the tests and measurements carried out by IMAS R&D center engineers and scientists from Konya Technical University and Necmettin Erbakan University determined that polymeric composite material has nearly 10 times better vibration damping ability than cast iron and 20 times better than welded steel.
Apart from its better vibrationdamping ability, the polymeric composite chassis material has comparatively lower thermal conductivity, higher rigidity, and corrosion resistance properties, and has better production flexibility advantages with reduced production time, cost, and carbon footprint.
Novozymes partners Bactolife to enhance piglets gut health
biosolution Ablacto+.
Ablacto+ is a promising feed additive with potential to stabilize the gut of piglets and reduce the severity of post-weaning diarrhea (PWD) which is one of the biggest challenges in the global swine industry.
PWD is caused by E. coli infections in newly weaned pigs and is estimated to lead to a loss of production of US$1 to 2 billion per year globally.
Additionally, PWD is considered the main driver for antibiotic use in weaner pigs. In Denmark alone, antibiotic consumption among weaners constitutes 49% of the total use of antibiotics in pigs, according to Danish Integrated Antimicrobial Resistance Monitoring and Research Program (DANMAP).
both pigs and humans.
DENMARK - Novozymes and the Danish industrial biotech company, Bactolife, have inked a mutual development and commercialization pact to finish the development and launch of the
Novozymes and Bactolife believe that their new biosolution with its novel mode of action can be a game changer in reducing antibiotic consumption in pigs and thereby reducing the risk of antibiotic resistance development in
“Ablacto+ will support animal welfare and global health as antibiotics use is reduced and animals remain healthy,” says Sandra Wingaard Thrane, CSO at Bactolife.
NOVOZYMES AND BACTOLIFE BELIEVE THAT THEIR NEW BIOSOLUTION WITH ITS NOVEL MODE OF ACTION CAN BE A GAME CHANGER IN REDUCING ANTIBIOTIC CONSUMPTION.
Buhler unveils Food Park Concept at 2023 African Milling School graduation ceremony
graduation ceremony was a specially tailored customer day event for Buhler’s consumer food business.
Leading milling and baking companies from the region were represented at the event which had Vimal Shah, the chairman of Bidco Group, one of the largest food companies in East Africa, as the key note speaker.
KENYA - The food park, a concept that aims at establishing direct linkages from the farm to processing to consumer markets stole the African Milling School with Buhler stating that they are committed to making it happen in the East African region.
According to Buhler, a food park makes better use of space by optimizing infrastructure, equipment, and resources clustered in one location
to meet the needs of future convenient processing.
25 millers graduated from the Apprenticeship program this year with two students ariam El-Sheikh from Bühler Group and Robert Kariuki from Capwell Industries Ltd recognized as “Students of the year”.
Buhler said the two students “outperformed everyone else by scoring the highest marks in the written exam.” Happening simultaneously with the
SCHOOL
MARKET EXPANSION
Bomil expands global foontprint with new distribution agreements in Mexico and Canada Mexican market
AMERICAS - Bomill AB, a Swedish company that supplies sorting technologies for the milling industry, has wheat, has expanded its global footprint with new distribution agreements in Mexican and Canadian markets.
The Mexican agreement is with I.P. Global Tech & Machinery, a leading supplier of processing equipment and services to the grain, food, and seed industries in the country.
“Partnering with I.P. Global Tech & Machinery, an experienced solutions provider in those targeted segments will help us accelerate the commercial
development of BoMill InSight™ in the region,” commented Andreas Jeppsson, CEO of BoMill.
In Canada, Bomill will rely on Nexeed Inc., a reputable provider of grain, food, and seed processing equipment solutions, to bring its solutions to more customers in the country.
The two companies are especially keen on offering Canadian processors the new BoMill InSight by the Swedish equipment manufacturer.
BoMill InSight, the latest innovation from BoMill, is a groundbreaking grain sorting solution, distinguishing itself as the only one of its kind.
25 MILLERS GRADUATED FROM THE AFRICAN MILLING
APPRENTICESHIP PROGRAM WITH TWO EMERGING AS STUDENTS OF THE YEAR.
Symaga launches new sensor models to optimize silo effectiveness NEW PRODUCT
Additionally, it can be easily mounted on silo roofs using a flange support, and it is activated by a drive located at the end of the rod.
Similarly, the SY-DP1 rotative sensor is used to detect and report the maximum grain level when installed on the roof.
It also detects the middle level of the grain if they are installed in the central body of the cylinder, and the minimum level if they are installed in the silo hopper.
According to Symaga, this sensor is supplied with a 1-meter extension kit for roof installations.
SPAIN – Spanish silo manufacturer, Symaga has aunched new models of sensors, the SY-DP1 pendular and SYDR1 rotative, to optimize storage silos for maximum efficiency.
According to the grain storage specialist, the SY-DP1 pendular sensor is capable of detecting the maximum level of storage. It is robust, simple, and does not require any power or maintenance.
The sensors are also ATEX ZONE 20 certified which means they are effective at zones which carry the highest risk of explosion.
Hillenbrand completes Schenck Process Food and Performance Materials acquisition
USA – Hillenbrand Inc., a diversified industrial company, has acquired the Food and Performance Materials (FPM) business of Schenck Process for an enterprise value of approximately US$730 million.
Hillenbrand provides highly engineered, mission-critical processing equipment and solutions to customers in over 100 countries around the world.
The company’s portfolio is composed of leading industrial brands serving large end markets, including durable plastics, food, and recycling.
On the other hand, FPM is a leading provider of feeding, filtration, baking, and material handling technologies and systems for the food, durable plastics, and chemicals industries.
Headquartered in Kansas City, FPM has more than 1,300 employees globally, and has customers in more than 150 countries, with approximately 85% of
revenues generated in North America. First announced in May this year, the acquisition is expected to strengthen further Hillenbrand’s leadership position in these attractive and growing end markets.
“This acquisition further strengthens
our leadership position across attractive, growing end markets and positions us to deliver profitable growth and compelling long-term shareholder value,” Kim Ryan, president and CEO of Hillenbrand, remarked.
INTERNATIONAL CEREALS’ INDUSTRY EXHIBITION
FOOD SOVEREIGNTY : CEREALS ’ CASE
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