Milling Middle East & Africa - Issue 7 by FW Africa

MILLING & GRAINS | BAKING & SNACKS | ANIMAL FEED & PET FOOD | PLANT-BASED FOODS

MILLING MIDDLE EAST & AFRICA

YEAR 2 | ISSUE NO. 7 | DECEMBER - JANUARY 2024

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TOP 10 Soybean Producers in Africa EVENT REVIEW AFMASS Tanzania Food Expo 2023 COMMODITIES UPDATE Soybean in Africa TECHNOLOGY FOCUS Starch in Baking COUNTRY FOCUS Kenya

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CONTENTS

YEAR 2 | ISSUE NO. 7 | DEC-JAN 2024

EVENT REVIEW - IAOM MEA 2023

33rd Annual IAOM MEA Conference & Expo

ON THE COVER - Ali Habaj, IAOM Regional Director, welcomes delegates to the IAOM Conference that took place in Cairo Egypt in November 2023 WWW.MILLINGMEA.COM

EVENT REVIEW - AFMASS TANZANIA FOOD EXPO 2023

A review of the happenings at the second edition of AFMASS Tanzania Food Expo 2023 edition DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

CONTENTS YEAR 2 | ISSUE NO. 7 | DEC-JAN 2024

4 6

Editorial News Update: • • • • • • • •

Dantata Foods to build food storage facilities in Kano Zimbabwe surpasses self-sufficiency in wheat, records 25% year-on-year surge YARA Cameroon will now operate under HYDROCHEM following acquisition by NJS Group Bakhresa Group cleared by Commission Tariff Commission 7 years after entering Zimbabwe India permits shipment of 650,000 tonnes of broken rice to Africa EFSA launches novel tool to screen proteins linked to celiac disease Oman Flour Mills inaugurates state-of-the-art feed mill in Muttrah Bakeries in Nigeria shutting down as the cost of production bites

COMMODITIES UPDATE - SOYBEAN IN AFRICA From understudy to star player: Soybeans take center stage in Africa's agricultural scene

40 42 44 52

TOP 10 - SOYBEAN PRODUCERS IN AFRICA COUNTRY FOCUS - KENYA Weaving a future of plenty

TECHNOLOGY FOCUS - STARCH IN BAKING Supplier News & Innovations: • • • • • • •

Bühler unveils new optical sorter for small and medium businesses InVivo to open new office in Saudi Arabia Mootral unveils breakthrough technology for methane reduction in confined and grazing cows Depart to distribute Mega Dryers’ grain drying systems Enorm Biofactory unveils Northern Europe’s largest insect factory Skretting, I&V Bio collaborate to launch new Skretting aquaculture supplement Ingredion to divest South Korean business to Sajo Group

DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

44 WWW.MILLINGMEA.COM

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EDITORIAL

MIDDLE EAST & AFRICA

Year 2 | Issue No.7 | Dec-Jan 2024

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

OUR PUBLICATIONS

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.

elcome to Issue 7 of Milling Middle East & Africa Magazine, arriving just as the festive spirit takes hold! This time of year, across our region, wheat flour takes center stage. From fluffy Chapatis to sweet Mandazis and everything in between, families weave culinary magic with love and warmth. East Africans, and Kenyans in particular, know that Chapatis might be the trendy treat this season, but our beloved Ugali will never be dethroned. It remains a constant comfort, a favorite of baby boomers and millennials alike, completing every meal with its satisfying presence. And what better pairing for this iconic dish than Nyama Choma, another festive staple? Speaking of staples, our millers are gearing up for one of their busiest seasons of the year. They've just returned from the IAOM Middle East and Africa Conference & Expo, brimming with knowledge on the latest trends in flour improvement and milling. This fresh expertise promises to elevate the quality of products hitting the market, ensuring even more delectable festive feasts. Don't worry if you missed the Cairo event! Our cover feature offers a captivating glimpse into the three-day affair, highlighting key takeaways and innovations that will shape the future of milling. Elsewhere in this issue, we delve into the Kenyan grain industry, exploring its vibrant production, consumption

We hope that you enjoy your read.

Paul Ongeto Senior Editor FW Africa

MILLING

Food Business Africa www.foodbusinessafrica.com

patterns, and exciting future prospects. We also navigate the African soybean market, identifying the top 10 players, analyzing consumption trends, and revealing a US$1.2 billion import substitution opportunity for the continent. And since baking is bound to be in full swing this season, we take a deep dive into the crucial role of starch in crafting perfect pastries and breads. As always, you'll find the latest news and innovations from the grains and milling industry sprinkled throughout this edition, keeping you informed and inspired.

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FOOD SECURITY

Côte d’Ivoire earmarks US$26M to boost rice sector in 2024 CÔTE D’IVOIRE – The Ivorian government, through the Ministry of Agriculture, plans to dedicate 15.7 billion CFA francs (US$26 million) to the Rice Promotion Program in 2024. According to Ecofin Agency, this envelope represents 5% of the budget allocated by the executive to the Ministry of Agriculture and Rural Development which amounts to 311.1 billion CFA francs (US$511 million). While the production of milled rice in the country is expected at 1.4 million tonnes in 2023, the executive planning to increase this volume to more than 2.6 million tonnes to achieve its self-

sufficiency target set for 2025. For the implementation of this program, the priority actions concern improving access of small farmers to quality seeds, developing rice growing areas, and improving the level of processing of paddy rice. According to Kobenan Adjoumani, the Minister of Agriculture, one of the biggest challenges to the development of the rice sector remains mechanization. Indeed, the targeted equipment utilization rate by 2025 is 30% compared to a level below 10% currently, in a context where rice cultivation currently covers more than 710,000 hectares.

INVESTMENT

Dantata Foods to build food storage facilities in Kano NIGERIA – Dantata Foods, a privately owned Agricultural and Food Products Company has contracted Blumberg Grain to construct state-of-the-art food security and storage facilities in Kano, Nigeria. The Dantata Foods project is slated to begin construction during the first

quarter of 2024 and provides for the establishment of facilities dedicated to cereals, fertilizers, and seeds as well as a specialized onion storage center. Additionally, this project is designed to address hardships for Nigerian farmers due in part to climate change which has damaged Nigerian agriculture

increased post-harvest losses, and decreased crop yields. Blumberg Grain’s experience and technology in grains, produce, and perishables will provide us with the tools we need to grow,” said Tajuddeen Dantata, President and Founder of Dantata Foods.

MARKET UPDATE

Zimbabwe surpasses self-sufficiency in wheat, records 25% year-on-year surge ZIMBABWE – According to data from Zimbabwe’s Rural Agricultural Advisory Services, wheat harvest in 2023 stood at 468,000 tonnes, a yearon-year increase of 25%. The country, whose annual wheat consumption needs to amount to 360,000 tonnes, can now count on a production surplus of 108,000 tonnes to support its ambitions in the export segment in 2023/2024. The stock erased the previous 6

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production record of 375,000 tonnes in 2022. In addition, the area sown this year increased by 11% to 90,186 hectares. In detail, the province of Mashonaland West, the main growing area, supplied 138,000 tonnes of wheat, or around 30% of national production, followed by the provinces of Mashonaland East (18.4%) and Mashonaland Central (18.4%). 3%). The rest of the harvest comes from the Midlands, Manicaland, Matabeleland Southern, and Masvingo provinces.

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COMMODITY UPDATE

Egypt’s wheat ending stocks to drop to its lowest level in 20 years EGYPT – Egypt’s wheat ending stocks in marketing year 2023-24 are forecast to drop to their lowest level in 20 years as the country grapples with a smaller crop. This is according to a Global Agricultural Information Network report from the Foreign Agricultural Service of the US Department of Agriculture (USDA). The USDA attributes the dip to increased demand and a shift in trade flows due to Russia’s ongoing conflict with Ukraine. Smaller ending stocks have also been attributed to year-on-year decline in wheat production due to the area harvested decreasing to 1.35 million hectares compared to 1.45 million in 2022-23, the FAS said.

INVESTMENT

First wheat flour processing factory in Angola’s south-central region

ANGOLA – The first wheat flour factory in the south-central part of Angola has opened in the town of Chinguar in Bié Province. Owned by farmer Alfeu Vinevala, the manufacturing unit with a processing capacity of 60 ton per day has already started operating on an experimental

basis and will be fully operational in September 2024. According to Alfeu Vinevala, who did not elaborate on the value used, all the raw material for transforming wheat into flour is produced on the Vinevala farm. He said that plans are in place to put up pasta, bakery, and seed processing factories, once the corn factory is fully operational in September. He pointed out that, by September of next year, direct and indirect jobs at the company will have increased from the current 4,000 to about 5,0000. Alfeu Vinevala therefore requested the Government to install an electrical energy transformation station (PT) in this CLOD area, to enable industries to work regularly.

DIVESTMENT

REGULATORY

Ukraine intensifies crackdown on illegal grain exports UKRAINE – The Ukrainian government has implemented stringent measures to combat shadow grain exports and ensure foreign exchange revenue returns to Ukraine. Approximately 20% of Ukrainian grain is estimated to be exported under grey schemes, according to Think Brave, a Kyiv-based consultancy. Typically, this involves purchasing grain from farmers in cash by fly-bynight companies, exporting it under fake documents, and then liquidating the business to avoid returning foreign exchange revenue to Ukraine. Under a recent decree, the export of grain and oilseeds is now restricted to legally established companies. 8

DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

YARA Cameroon will now operate under HYDROCHEM following acquisition by NJS Group CAMEROON – Yara International Cameroon, a global leader in plant nutrition, will now operate as HYDROCHEM Cameroon after NJS Group completed its acquisition from Yara International ASA. According to NJS Group, this complete takeover of the company – which has received approval from relevant authorities - paves the way for ambitious plans to expand its activities. Yara Cameroon makes a significant contribution to the country’s agricultural productivity by importing and distributing its own NPK compounds and calcium nitrate fertilizers, ensuring high yields and high quality for food and export crops. To consolidate their collaboration, Yara International ASA and the NJS Group have entered into an exclusive distribution agreement for the high-end NPK fertilizers YaraMila and YaraLiva

Nitrabor Calcium Nitrate. With this agreement, the NJS group and its subsidiary HYDROCHEM guarantee Cameroonian farmers and agricultural retailers the supply of these key products. Yara International ASA will provide technical and operational support to the NJS Group. WWW.MILLINGMEA.COM

COMMODITY TRADING

India permits shipment of 650,000 tonnes of broken rice to Africa AFRICA – The government of India, the world’s leading rice exporter, on November 30 indicated that it had granted export permits for 650,000 tonnes of broken rice to three African countries, specifically Senegal, Mali, and Gambia. In detail, Senegal will obtain 500,000 tonnes of the cereal while Mali and Gambia will receive cargoes of 100,000 tonnes and 50,000 tonnes respectively. These volumes are expected to be delivered within the next 6 months through the National Cooperative

Exports Limited. This approach is the latest exemption in favor of the continent after the announcement last October of an exemption for the export of nonbasmati white rice to Guinea, Ivory Coast, Seychelles, and Cameroon. India accounts for 40% of global rice trade with a list of outlets that includes more than 150 countries. Since September 2022, however, the country applied restrictions on several categories of cereal demanded on the international market to control domestic price surges.

NEWS UPDATES

COMMODITY UPDATE

Australian wheat quality surges amid production decline AUSTRALIA – The ongoing dry weather during the growing season has led to a reduction in Australia’s wheat output this year, but the majority of the crop boasts higher protein content. As the world’s second-largest wheat exporter, Australia has faced challenges in 2023 due to hot and dry weather conditions, reducing the expected wheat harvest to approximately 25-28 million tons from the record 40 million tons reaped in the previous year. Ole Houe, from agriculture brokerage IKON Commodities in Sydney, mentioned that the dry and hot weather has accelerated the harvest, which is already over half complete. IKON estimates that around 60% of the crop in Australia will be hard or premium white wheat with a protein content above 10%, a notable increase from the 40% recorded last year. Analysts and traders suggest that premiums earned by farmers for superior quality grains will help offset the lost income resulting from the smaller crop.

REGULATORY

Bakhresa Group cleared by Commission Tariff Commission 7 years after entering Zimbabwe

ZIMBABWE – Bakhresa Zimbabwe is now at liberty to operate locally as BlueRibbon Industries (BRI) after meeting all the conditions set by the Commission Tariff Commission (CTC) during the acquisition bid seven years ago. Bakhresa took over Blue Ribbon and all its subsidiaries in January 2016 and invested US$20 million towards the resuscitation of the company. Bakhresa Zimbabwe is owned by a Tanzanian family-owned multinational company, the Bakhresa Group. However, the CTC conditionally approved Bakhresa’s acquisition of

Blue Ribbon after concerns were raised during the assessment of the acquisition bid, resulting in the deal being approved subject to certain conditions being met. Upon approving the deal CTC said, “At least 80 percent of the wheat and maize products to be sold and utilised by the merged entity (Bakhresa Zimbabwe), all its subsidiaries and its successors in title, shall be produced in Zimbabwe”. In its periodic assessment, CTC found that none of the products were being produced by any of Bakhresa Zimbabwe’s sister companies in Tanzania. The commission also noted that to guarantee continued production of flour in Zimbabwe, a new flour milling plant was installed at Blue Ribbon’s Msasa plant and the company’s maize milling plants in Harare and Bulawayo were also operational. “Based on information gathered during investigations, it can be concluded that Bakhresa Zimbabwe is complying with the conditions of approval.”

INVESTMENT

A new US$22M wheat flour mill opens in Domiz, Iraq IRAQ – The Kurdistan government in partnership with the private sector, has inaugurated the Distar Factory, a cutting-edge wheat flour mill located in Domiz, Duhok Governate, Iraq. The prime minister of the Kurdistan Regional Government, Masrour Barzani graced the inaugural ceremony where he said that the new flour mill would provide job opportunities for hundreds but also strengthen our agricultural backbone. Kurdistan is an autonomous entity governed by the Kurdistan Regional Government within Iraq and is bordered 10

DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

by Iran, Turkey, and Syria. The US$22 million project has a storage capacity of 52,300 tonnes of wheat and can produce up to 500 tonnes of flour per month. Speaking during the ceremony, Barzani urged investors in the Kurdistan Region to explore opportunities in agriculture and industry, adding that this will not only bolster our regional economy but also reduce our reliance on external sources. He added that the mill will provide farmers with a reliable platform to sell their products and encourage ongoing cultivation and production. WWW.MILLINGMEA.COM

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INVESTMENT

Post Holdings to invest US$100M in pet food operations in 2024 USA – Post Holdings, Inc. is set to inject up to US$100 million into its pet food operations in 2024, as the company looks to further capitalize on the success of its recent foray into the pet food category earlier this year. The announcement comes as part of the company’s report on its fourthquarter and full-year fiscal 2023 earnings, released on Nov. 16. Post Consumer Brands, which encompasses the company’s pet food, cereal, and peanut butter divisions, reported a significant boost in net sales for the fourth quarter, reaching US$1.01 billion, marking a substantial 71.5% year-over-year increase. Pet food sales played a pivotal role, contributing approximately 40% of the quarterly revenue with a total of US$404.5 million.

COMMODITY TRADING

Saudi Arabia issues tender to buy estimated 715,000 metric tons of wheat SAUDI ARABIA – Saudi Arabia’s state wheat buying agency GFSA has issued an international tender to purchase 715,000 metric tons of milling wheat. Delivery was sought in a range of dates between February and May 2024, said GFSA governor Ahmad Al Fares in a statement. The deadline for submissions of price offers in the tender is Friday, Dec. 15, the GFSA said. Some 12 consignments of 12.5% protein wheat mostly of 60,000 tons are sought sourced from optional origins, the agency said. Traders said that four consignments totalling 240,000 tons were sought for arrival in Jeddah between Feb. 1-15 and May 1-15. Three consignments totalling 180,000 tons are sought for arrival in

Yanbu between Feb. 1-15 and April 1-15. Four consignments totalling 240,000 tons are sought for arrival in Dammam between Feb. 1-15 and April 1-15. One of 55,000 tons is sought for arrival in Jizan between May 1-15. The agency said it reserves the right to buy 10% more or less than the standard 60,000 ton size of consignment sought.

INNOVATION FOOD SECURITY

WACOT, GAIN and WFP launch fortified rice in Nigeria NIGERIA – WACOT Rice Nigeria Limited, a subsidiary of Tropical General Investments (TGI) Group has partnered with the Kebbi State government to launch a fortified rice as part of the national strategy for combating micronutrient deficiency in the country. The launch was held recently in Abuja following the successful fortified rice pilot under the Promoting Rice Fortification in Nigeria (PRiFN) project. The project aims to support the realisation of the Federal Government’s goal in combating micronutrient deficiency in the country. It was done in collaboration with the Global Alliance for Improved Nutrition (GAIN) and the United Nations WFP. 12

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EFSA launches novel tool to screen proteins linked to celiac disease

EUROPE – The European Food Safety Authority (EFSA) has unveiled a tool named “preDQ,” designed to screen proteins in food and food ingredients that may trigger symptoms in individuals suffering from celiac disease. This innovative tool, initially devised to assess the allergenicity of genetically modified (GM) plants, holds promise in diverse food safety applications.

Within the EFSA working group, Professor Frits Koning and his team crafted a mathematical model and an application—preDQ—to forecast how gluten from food binds to these receptors, a phenomenon known as ‘peptide binding.’ This tool facilitates the assessment of proteins from various sources before their inclusion in the diet. While initially applied to GM plant assessments, preDQ showcases its versatility as a screening tool applicable to any protein intended for human consumption. EFSA’s experts are actively employing preDQ in the evaluation of GM plants, and the tool’s potential extends to screening proteins in novel foods, food/ feed enzymes, contaminants, and GM food or feed. WWW.MILLINGMEA.COM

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NEWS UPDATES

INVESTMENT

Oman Flour Mills inaugurates state-of-the-art feed mill in Muttrah

OMAN – Oman Flour Mills Co. (OFMC) celebrated a significant milestone on December 13 with the official

COMMODITIES UPDATE

Russia commences free grain shipments to Africa RUSSIA – In fulfillment of President Vladimir Putin’s commitment made during the Russia-Africa Summit in July, Russia has initiated the delivery of free grain shipments totaling up to 200,000 tonnes to six African nations, according to a report by Reuters. Agriculture Minister Dmitry Patrushev recently announced that vessels bound for Burkina Faso and Somalia have already departed from Russian ports, with additional shipments scheduled for Eritrea, Zimbabwe, Mali, and the Central African Republic in the near future. The shipment comes hot on the heels of Russia’s withdrawal from the Black Sea Grain Initiative. During the summit, President Putin expressed dissatisfaction with the Black Sea Grain Initiative, emphasizing that the previous year had seen Russia export approximately 60 million tonnes of grain. 14

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inauguration of its new feed mill in Muttrah. The state-of-the-art facility, boasting a production capacity of 20 tonnes per hour, marks a significant advancement in the country’s efforts to bolster local animal feed production and reduce dependence on imports. Construction of the mill commenced in November 2022, and the ceremony attracted industry leaders, government officials, and stakeholders. The Times of Oman reported on the event, highlighting the strategic importance of the new feed mill in Oman’s agricultural and livestock sectors. Haitham Mohamed al Fannah, Chief

Executive Officer of OFMC,explained that the facility incorporates cuttingedge technology such as robotics for streamlined packaging and advanced control systems for real-time adjustments. “Our robots not only simplify packaging but also cut costs,” Fannah said. “This ensures uniformity and precision.” The facility also features a 6-tonnesper-hour pre-mix unit, adding versatility to its capabilities. The incorporation of these technologies aligns with OFMC’s vision to enhance efficiency, reduce production costs, and maintain the highest standards of quality.

MARKET UPDATE

AFEX secures US$20M from BII, to allocate US$5M for agricultural trading NIGERIA – British International Investment (BII), the United Kingdom’s development finance institution (DFI) and impact investor, has announced a significant commitment of US$26.5 million to AFEX, Africa’s leading commodities platform. The funds from BII will be used to establish 20 modern warehouses in strategic locations within Nigeria, Kenya, and Uganda. The new warehouses will provide an additional storage capacity of 230,000 metric tons, opening access to lowcost storage for up to 200,000 more farmers. Additionally, investments will be directed toward warehouse technology and advanced software to capture postharvest pricing, preserve crop quality, and increase food supply. The announcement follows AFEX recent commitment to set apart up to US$5M for agricultural trading and storage investments in Côte d’Ivoire. “The project involves establishing

in Côte d’Ivoire a core of physical infrastructure, warehouses, and storage facilities for agricultural products. We have initially planned six warehouses, in the southwest for cocoa value chains and the north for maize. This infrastructure will form the basis of our work to aggregate smallholder farmers, along with input financing and marketing support,” Ayodeji Balogun, GCEO of AFEX said in a LinkedIn post. WWW.MILLINGMEA.COM

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INVESTMENT

United Capital Fertilizer to invest US$700M in Zimbabwe ZIMBABWE – The agrochemical company United Capital Fertilizer (UCF), a subsidiary of the Zambian industrial group Wonderful Group of Companies Limited, plans to inject US$700 million into the fertilizer sector in Zimbabwe in 2024. The project involves the construction of a compound fertilizer manufacturing plant at US$200 million while US$500 million will be allocated to the establishment of a second plant dedicated to the production of urea. The investment follows a recent move by Zimbabwe Phosphate Industries, which announced plans to invest US$2.2 million towards the establishment of a granulation plant to ramp up basal fertilizer production in the country. The investments seek to meet the executive’s 2025 sufficiency target. MARKET UPDATE

Ethiopia kickstarts summer wheat planting, covers 800,000 hectares in 3 months ETHIOPIA – 800, 000 hectares have already been covered with wheat seeds as part of the current Ethiopian fiscal year summer irrigation development activities according to Minister of Agriculture, Girma Amenti. On the occasion, Minister Girma Amenti stated the nation also targets 117 million quintals of wheat during this season. On her part, Aisha Mohammed, the Minister of Lowlands and Irrigation, said that the ministry has identified 10 million hectares of land that could be developed through irrigation.

DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

ECONOMY

Bakeries in Nigeria shutting down as the cost of production bites

NIGERIA – The economic crisis in Nigeria is forcing bakery owners to shut down, due to their inability to meet up with the increasing cost of ingredients leaving bread prices on the high side. Mr. Abayomi Olorunfemi, a baker noted that apart from shutting down

business, some bakery owners are reducing the sizes and increasing the prices of bread to make ends meet. “This country’s economy is really dealing with businesses. Many of my colleagues in the business are shutting down. Those who have three to four bakeries now have two,”Olorunfemi lamented. According to him, this year, bakers have increased the prices of bread over three times due to the pressing effect of the depreciating currency coupled with the Russian-Ukrainewar, which has resulted in the unavailability of enough flour all around the world The decry comes at a time when the USDA has slashed Nigeria’s wheat consumption and imports by 10% and 9% respectively owing to a weakening naira.

MARKET UPDATE

DRC turns to cassava in a move to reduce the cost of production of bread, wheat imports DRC – The Democratic Republic of Congo (DRC) has launched the “Cassava Value Chain Development Project”, an initiative aimed at reducing the cost of production of bread and wheat imports. With a total cost of $6.5 million, this program funded by the United States Agency for International Development (USAID) will be implemented over the period 2023-2027 in collaboration with the International Institute of Tropical Agriculture (IITA). Désire Nzinga Birihanze, Minister of Agriculture graced the launching ceremony in Kinshasa on November 2. For the Congolese Minister of Agriculture, cassava is central to the government’s efforts to develop the agro-industrial sector and broaden the economic base to help achieve its development objectives.

Interventions will focus on promoting the use of cassava flour in breadmaking and pastries. According to executives, this aligns with the ambitions of the executive which wishes to substitute 10 to 20% of the wheat flour used in baking with cassava bread flour with a view to reducing the cost of production of bread and wheat imports which currently averages US$87 million each year. WWW.MILLINGMEA.COM

AFRICA

Co-located with:

BUSINESS

SUMMIT The Africa CEO & Leadership Forum OCTOBER 2-4, 2024 | Nairobi, Kenya

The Africa CEO Leadership & Sustainability Forum Africa Business Summit is * The the ground-breaking executive level conference and expo on the future of strategic leadership, entrepreneurship, sustainability & african transformation

Sustainable Business & ESG Digitalisation & Tech Innovation

program at the 3-day Summit * The comprises of a number of premium sessions such as Leadership Dialogues, CEO Roundtables, Plenary and Panel Discussions and a B2B Deal Connect Service as well as presentations by influential people and change makers who are making waves – and inspiring the next generation of leaders in Africa

SCAN ME

Human Capital Development

Strategic Leadership

KEY AGENDA

Pan-African & Global Trade

Financing, Investing & Financial Inclusion

Supply Chain & Logistics Transformation

Industrialisation & Infrastructure Development

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NEWS UPDATES

COMMODITY UPDATE

RESEARCH

Research identifies potential link between white bread and colorectal cancer

SWITZERLAND – A recent study examining the relationship between dietary habits and colorectal cancer (CRC) risk has identified a potential association between white bread consumption and an increased likelihood of developing the disease. The findings, published in the journal Nutrients, were part of a

broader investigation led by Dongqing Jin and a team of researchers from the Department of Colorectal Surgery at The First Affiliated Hospital, Zhejiang University School of Medicine in Hangzhou, China. The researchers focused on establishing connections between specific dietary components and CRC risk, providing valuable insights into potential preventive measures. White bread emerged as the only food product with a positive association linked to an increased risk of colorectal cancer, alongside alcohol intake. On the contrary, several nutrients, including dietary fiber, calcium, magnesium, phosphorus, and manganese, were found to have a negative association with CRC risk. The researchers emphasized the significance of their findings, stating, “Our results show that higher intakes of alcohol and white bread are associated with increased CRC risk, whilst dietary fiber, calcium, magnesium, phosphorus, and manganese are inversely associated.”

REGULATORY

Innovative FEED Act proposes regulatory pathway for animal feed additives in the US

EUROPE – The European Food Safety Authority (EFSA) has unveiled a tool named “preDQ,” designed to screen 18

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proteins in food and food ingredients that may trigger symptoms in individuals suffering from celiac disease. This innovative tool, initially devised to assess the allergenicity of genetically modified (GM) plants, holds promise in diverse food safety applications. Within the EFSA working group, Professor Frits Koning and his team crafted a mathematical model and an application—preDQ—to forecast how gluten from food binds to these receptors, a phenomenon known as ‘peptide binding.’

This tool facilitates the assessment of proteins from various sources before their inclusion in the diet. While initially applied to GM plant assessments, preDQ showcases its versatility as a screening tool applicable to any protein intended for human consumption. EFSA’s experts are actively employing preDQ in the evaluation of GM plants, and the tool’s potential extends to screening proteins in novel foods, food/ feed enzymes, contaminants, and GM food or feed. WWW.MILLINGMEA.COM

AFRICA FUTURE FOOD SUMMIT JUNE 10-11, 2024 Nairobi, Kenya www.africafuturefoodsummit.com

WELCOME TO

THE CEO SUMMIT ON THE FUTURE OF SUSTAINABLE FOOD SYSTEMS IN AFRICA FOOD NUTRITION & SUSTAINABILITY

FOOD PRODUCTION

INVESTING IN & FUNDING FOOD ENTERPRISES

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FOOD MARKETS, TRADE & LOGISTICS

FOOD TECHNOLOGY

Events info@fwafrica.net +254 725 343 932

38 AFMASS TANZANIA EXPO REVIEW

he recently concluded second edition of the AFMASS Tanzania Food Expo, held at the Serena Hotel in Dar es Salaam, was an outstanding success, leaving a lasting impression on attendees and exhibitors alike. This Expo affirmed its status as a premier event for the food manufacturing industry in Tanzania and Eastern Africa. The expo brought together a diverse range of participants the food manufacturing, retail and HORECA industry in Tanzania, with attendees from the commercial capital Dar es Salaam, to other important economic hubs such as Arusha, Mwanza, Iringa, Moshi, Morogoro and Dodoma to learn, network and do business at the two-day event. The event, which comprised a high-level conference and trade exhibition, brought together about 500 participants over the course of the two days, with attendees from over 15 countries - with the sole aim of facilitating the transformation of the food industry in Tanzania. The exhibitor list included world-leading companies that showcased their cutting-edge technologies and products including Buhler, GEA, Bosch, Endress+Hauser, YGT Khunshan, Atlas Copco, Epiroc, Merck and Jema Chemicals. Beyond the Expo, AFMASS Tanzania Food Expo provided a platform for business executives to explore potential opportunities across various sectors, including grains, dairy, beverages, coffee, tea, meat, fruits and vegetables and other food products. There were also discussions around investment opportunities in the hotels, restauramts and catering (HORECA) sector. Notable companies represented at the event included representatives from all the major food companies such as the Bakhresa Group, METL Group, Amsons Group, AB InBev (Tanzania Breweries Ltd), PepsiCo, NutriGroup, Motisun Group, Hill Group, Milkcom, Happy Sausages, among many others. The success of the second edition of the AFMASS Tanzania Food Expo stands as a testament to the thriving food manufacturing, retail and HORECA industry in Tanzania, where impressive economic growth, rising agricultural production, emerging formal retail and changing demographics and consumer tastes and preferences have faciliated the growth in demand for packaged food products in the country. The country has also become a significant exporter of packaged food products into Eastern and Southern African countries such as DRC, Rwanda, Burundi, Kenya, Malawi, Zambia and Uganda. The next edition of AFMASS Tanzania Food Expo is expected to be held in March 2025 in Dar es Salaam. For more information about the event please visit www.afmass. com/TZ 20

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23-24 NOVEMBER 2023, DAR ES SALAAM, TANZANIA

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40 AFMASS TANZANIA EXPO REVIEW

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23-24 NOVEMBER 2023, DAR ES SALAAM, TANZANIA

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42 AFMASS TANZANIA EXPO REVIEW

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23-24 NOVEMBER 2023, DAR ES SALAAM, TANZANIA

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33RD ANNUAL IAOM MEA Conference & Expo

BY PAUL ORINA

rom November 12th to 15th, the bustling streets of Cairo, Egypt, transformed into a hub of knowledge and innovation as the prestigious IAOM MEA Conference and Expo 2023 unfolded. Organized by the International Association of Operative Millers Middle East & Africa (IAOM MEA), with Taj Flour Mills serving as the Local Host, this event served as a pivotal platform for global industry leaders, experts, and enthusiasts to convene and delve into the intricacies of grain processing and milling. The event attracted over hundreds of delegates from approximately 50 countries, showcasing the truly international reach and impact of the IAOM MEA organization. Around 100 exhibiting companies filled the expo floor, presenting cutting-edge technologies, equipment, and services that are shaping the future of the grain processing industry. This review delves deeper into the events that transpired during the three days in Cairo, offering a glimpse into the groundbreaking discussions, thought-provoking presentations, and the unparalleled networking opportunities that were the hallmark of the IAOM MEA Conference and Expo 2023 WARM EGYPTIAN HOSPITALITY SETS THE STAGE FOR SUCCESS As is customary with all IAOM MEA events, attendees were welcomed to Egypt on Sunday, November 12 with a spectacular welcome

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reception at the iconic Royal Maxim Palace Kempinski hotel. This elegant setting provided the perfect backdrop for guests to sample the rich and diverse cuisines that Egypt has to offer, while forging new connections and friendships with fellow industry professionals. This warm Egyptian hospitality set the tone for the event, fostering a sense of camaraderie and collaboration that permeated throughout the three days. DAY ONE PANEL HIGHLIGHTS EFFECTIVE MILL WHEAT PRICING STRATEGIES Starting Monday, November 13, the three-day conference and expo featured a diverse and informative program, encompassing a wide range of topics relevant to all aspects of the grain processing and milling value chain. Sessions covered vital areas such as Management, Technical/What's New, Feed Milling Technology & Trends, and Trading. Renowned speakers from both international and national domains delivered insightful presentations, sharing their expertise and perspectives on the latest advancements and challenges facing the industry. The first day of the IAOM MEA Conference and Expo 2023 kicked off with a critical panel discussion: "Managing Risk: Beyond Wheat – Currency and Geopolitics." As global wheat prices fluctuate amidst geopolitical tensions and currency volatility, the discussion explored strategies for mills to navigate this complex landscape. Renowned experts from diverse backgrounds

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EVENT REVIEW: IAOM MEA 2023

graced the panel: Ahmed Hammouda, CEO of Astra Group (Egypt), Eduard Zernin, Chairman of RUSGRAIN UNION (Russia), Oga Venkat, Manager – Middle East & Africa Desk at Cargill International SA (Switzerland), and Pieter Defoor, Marketing Manager Middle East and North Africa (MENA) at Viterra (Netherlands). Each brought their unique insights, spanning regional market expertise, risk management strategies, and global supply chain analysis. Moderated by Indrek Aigro, Head of Grains at Copenhagen Merchants (Denmark), the discussion delved into practical strategies for millers. Aigro's skillful moderation ensured a balanced and engaging exchange, allowing each speaker to share their perspectives and foster insightful debate. This dynamic panel discussion set the tone for the conference, emphasizing the crucial role of effective risk management in today's volatile wheat market. It provided valuable insights for millers seeking to navigate uncertainties and ensure sustainable operations in the long run. ADDING MORE VALUE TO FLOUR Following the panel discussion were presentations on how millers can boost

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efficiency, optimize product quality, and unlock new business opportunities. Dr. Lutz Popper, renowned enzyme expert from Mühlenchemie GmbH & Co. KG (Germany), kicked off the session. His presentation explored

how strategic enzyme use can unlock hidden potential within flour, enhancing baking properties, improving yields, and ultimately reducing costs for mills. Mariam Al-Hazaa, Business Development Manager of Al-Hazaa

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Investment Group (Jordan), took the stage next. Drawing on her extensive experience, she shared practical insights on how millers can unlock value from integrated milling operations. Closing out the day with, Andreas Hummel, Director of Termico (Germany), and Sunil Maheshwari, Vice President Specialty of Siemer Milling Company (USA), presented complementary approaches to heat treatment. Hummel shed light on innovative solutions for optimizing heat treatment, while Maheshwari shared his expertise in implementing effective heat treatment strategies for flour quality and hygiene. GLOBAL WHEAT MARKETS: INSIGHTS FROM KEY REGIONS Day Two of the IAOM MEA Conference and Expo 2023 kicked off with a crucial session diving into the diverse landscapes of global wheat markets. Renowned experts from key producing regions shared their insights, equipping millers with the knowledge to navigate evolving trends and make informed business decisions. Roland Guiragossian, Algeria & Middle East Manager for Intercereales (Egypt), kicked off the session with a deep dive into the French market. He explored current production dynamics, export opportunities, and potential challenges affecting this crucial wheat source. Next, Ian Flagg, Regional Vice President of U.S. Wheat Associates (Netherlands), took the stage. He provided a comprehensive overview of the US market, analyzing recent WWW.MILLINGMEA.COM

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EVENT REVIEW: IAOM MEA 2023

the crucial Black Sea market. He analyzed the geopolitical landscape, production forecasts, and export dynamics that shape this major influencer on global wheat prices. Day Two continued the momentum with a focus on cuttingedge technologies designed to boost efficiency and quality in animal feed production. Chadi El Halabi, a seasoned engineer at Bühler, unveiled their revolutionary Pelletring Pro technology. This gamechanger slashes energy consumption while guaranteeing consistent, high-quality pellets for optimal animal nutrition. Lu'ay Alhajaj, Head of Sales for Haver & Boecker/ Behn+Bates, shared their innovative approach to bagging. He explored how their system seamlessly combines open mouth bags with valve bag filling, streamlining the process and minimizing dust and spillage.

yield figures, trade policies, and their impact on global wheat availability. The session then headed south with Olivier Bougamont, Senior Wheat and Barley Trader at Cargill International SA (Switzerland), offering his expertise on the Australian market. He delved into the impact of weather patterns, domestic demand, and international trade agreements on Australian wheat production and exports. Concluding the session, Indrek Aigro, Head of Grains at Copenhagen Merchants (Denmark), shared his insights on 30

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NEXT LEVEL MILLING INNOVATIONS Day Two hosted a special session showcasing game-changing technologies poised to propel the milling industry forward. Malcolm Holman of Brabender shared his company’s revolutionary quality assurance solution takes the guesswork out of whole meal flours, ensuring consistent taste and texture for delighted consumers., while Nicolas Sulblé from AIT Ingredients armed millers with solutions to conquer inconsistent wheat and guarantee consistent flour performance. Andrea Nicolini of Cesco unveiled a revolutionary design that seamlessly integrates silos and structures for optimized process buildings, while Eng. Andrea Nardo of Mulmix S.R.L. WWW.MILLINGMEA.COM

shed light on the latest advancements in industrial and port cereal storage. Sassan Khaladjnia of Bühler showcased their cutting-edge grain monitoring solution, while Renato Dall'Agata of Fava shared his tips on conducting research that leads to groundbreaking results. Peio Touyarou of Eurogerm highlight his company’s diverse pasta solutions, and Tobias Diener of Agromatic AG enlightened millers on the art of safe and efficient grain storage. Finally, Pietro Barbalarga of Omas Industries captivated the audience with his flour extraction booster technology, promising unprecedented yield gains. Ashok Sarkar, Senior Advisor at Cereals Canada, led a fascinating exploration of roller milling and pre-treatments in pulse flour processing. His knowledge shed light on using technology to unlock the full potential of these nutrient-rich flours. EFFICIENCY ENGINEERED - A DEEP DIVE INTO MILLING MACHINERY AND AUTOMATION Day Three of the conference shifted gears, delving into the heart of milling operations: machinery and optimization.

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EVENT REVIEW: IAOM MEA 2023

From roller mill advancements to automation solutions, the day's presentations promised to equip millers with the tools to reach new heights of efficiency and profitability. André Kunadt, Head of Technology at Bühler, kicked off the session by unlocking the secrets of next-level roller mill performance. His insights offered millers a roadmap to squeeze every ounce of efficiency from their existing equipment. Mehmet Yilmaz, Area Sales Manager for Alapala Africa, followed suit with a dazzling showcase of their 14 groundbreaking milling systems. Each innovation promised to tackle specific challenges and redefine milling possibilities. Önder Şeker, Marketing Manager at Imas, took the stage to champion the power of polymer base construction for roller mills. He explored how this innovative approach translates to unparalleled reliability and extended durability, minimizing downtime and boosting productivity. Stepping outside the machinery realm, Vivian Iroanya of S&P Global Commodity Insights offered invaluable insights into price trends and market relationships. Her expertise equipped millers with the knowledge to navigate market fluctuations and make informed decisions. Issam Baydoun, Field Sales Manager at Premier Tech Systems and Automation, brought the day to a resounding close with a focus on the future. His presentation showcased cutting-edge weighing, bagging, palletizing, and securing lines, painting a picture of a seamlessly automated milling operation. UNLEASHING THE POWER OF ERP Day Three delved into the critical realm of ERP and digitalization, equipping millers with the knowledge to navigate the future of their operations. Abdulla Fatayer, Consulting

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Manager at ABS, started the conversation by demystifying ERP and digitalization. He shed light on their potential to streamline operations, boost efficiency, and unlock new avenues for profitability, while also acknowledging the risks and considerations involved. Javier Lozano Díaz, Product Manager at Bühler, took the stage next. He showcased Bühler's cutting-edge ERP solutions, demonstrating how their integration can drive tangible progress in milling operations, from enhanced data management to optimized production processes. The day reached its peak with a dynamic panel discussion titled "ERP and Digitalization – How Millers Can Benefit?" Moderated by industry veteran Martin Ellegast, CEO of Advactory AG, the session brought together a diverse group of experts: Ibrahim Al-Hazaa, Executive Director of Al-Hazaa Investment Group; Abdulla Fatayer; Javier Lozano Díaz; and Faradjallah Ndagano, Corporate Manager of Bakhresa Grain Milling. The panelists dissected the challenges and opportunities of ERP implementation, sharing practical tips, real-world examples, and valuable insights that not only answered pressing questions but also sparked a deeper understanding of the immense potential digitalization holds for the future of milling. EXPERIENCING EGYPT Beyond the bustling conference and expo, IAOM curated two unforgettable dinners for participants to dive into the heart of Egypt's rich culture. On Monday evening, attendees had the chance to experience the Pyramids Sound & Light, a multimedia spectacle that brings the ancient history of the pharaohs and their pyramids to life. The iconic pyramids of Giza, Khafre, and Menkaure were illuminated with vibrant colors and projected images, giving all present an awe-inspiring visual feast. The WWW.MILLINGMEA.COM

dinner was further enhanced by a dramatic soundtrack that blends traditional Egyptian music with modern orchestral elements. A second dinner was arranged on day courtesy of the local host, Taj Flour Mills with participants having another bite of delicious Egyptian cuisines. These carefully curated events were more than mere sideshows; they were the threads that wove together the IAOM experience. They offered a chance to step outside the conference space, to connect with the local community, and to create lasting memories of Egypt's unique charm. It is this commitment to providing a holistic experience, beyond the diverse innovations and insightful presentations, that solidifies IAOM's position as a must-attend event for anyone in the region's flour milling industry. We are proud to have been the official media partner for this premier event in the region. We look forward to joining you again next year in Dubai for the 34th edition of the IAOM Middle East & Africa Conference and Expo! DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

MARKET UPDATE: SOYBEAN IN AFRICA

SOYBEAN

in Africa W

From understudy to star player: Soybeans take center stage in Africa's agricultural scene BY WANGARI KAMAU

hile maize and wheat have long reigned supreme in African fields, a quiet revolution is brewing. The unassuming soybean, once a bit player, is now rapidly transforming into a major crop, crucial for both food and feed. Production has skyrocketed, outpacing global averages by a staggering 48% since 1961. This meteoric rise, documented by a University

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of Illinois study, is fueled by two main forces: a burgeoning poultry industry with an insatiable appetite for soybean meal, and a growing human demand for protein-packed soy products like chunks, oil, margarine, flour, and even drinks. This article delves deep into the soybean's remarkable ascent in Africa. We'll explore the factors driving production and consumption, analyze shifting market trends, and peer into the future of this versatile bean.

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SOUTH AFRICA LEADS THE WAY IN AFRICAN SOYBEAN PRODUCTION Soybean production in Africa is relatively low compared to other continents, but it has been steadily increasing in recent years. According to FAOSTAT, the soybean production level in Africa has been growing at an average rate of 6.84% per annum. Africa is estimated to have produced at least 4.68 million tons in 2021, an almost four fold increase from the 1.5million tonnes produced in 2007. South Africa is the continent's leading producer, contributing around 39% of the total output. The country has experienced an upsurge in soybean plantings over the past 20 years with USDA reporting a near nine-fold expansion in soybean area. The main factors contributing to this positive trend in soybean planting, include investments in new oilseed processing plants, an improved affinity by farmers to use soybeans as a rotational crop with corn, and better soybean prices. USDA’s Foreign Agricultural Service (FAS) Post in Pretoria sees this growth trend in soybean plantings continuing in marketing year (MY) 2023-24 with area and total production reaching a historically high level of 1.18 million hectares and nearly 2.76 million tonnes, respectively. Nigeria comes in second, accounting for WWW.MILLINGMEA.COM

approximately 25% of the continent’s production. For MY 2023/24 (October-September) FAS Lagos forecasts Nigeria’s soybean production at 1.15 MMT, an 8 percent decrease from the USDA official MY 2022/23 estimate of 1.25 MMT. The reduction is due to armed violence against smallholder farmers and the adverse effects of climate change. The area harvested is estimated at 1.15 million hectares (MHA), a 4 percent decrease compared to the USDA official MY 2022/23 estimate of 1.2 MHA. Post also attributes the reduction in area harvested to challenging macroeconomic conditions leaving farmers with no incomes to expand their fields. Zambia which produces approximately 11% of the continent’s production is forecasted to produce around 475,000 tonnes of soyabeans in MY2023/24. The other 21 countries, where data are available, together produce 25% of Africa’s total soybean production. Annual production remains below 1,000,000 bushels (about 27,216 tonnes) for 15 of the 24 countries for which data exists. EGYPT SHINES IN YIELDS PER ACRE Although a small producer, Egypt, leads all of Africa in terms of average soybean yield at 48 bushels (1.30 tonnes) per acre, about 0.2 tonnes more than the global average. Ethiopia

Soybean forms such as chunks are emerging as popular low-cost protein alternatives.

IN NUMBERS

4.68MMT AFRICA'S SOYBEAN PRODUCTION IN 2021.

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MARKET UPDATE: SOYBEAN IN AFRICA

and Zambia, the number two and three yield leaders average 33 (0.89 tonnes) and 27 bushels (0.73 tonnes) per acre, respectively. Angola has the highest CAGR for soybean yield at 5.3% per year. Cameroon and Cote d’Ivoire follow at 4.92% and 2.88%, respectively. These three countries, though achieving relatively high annual growth rates in yield, are advancing from a low base producing less than 1.4 million bushels combined. South Africa, Africa’s soybean leader, averages 26 bushels (0.7 tonnes) per acre. To address the country’s low output, the South African government introduced a statutory seed levy prompting seed companies to introduce higher yielding cultivars. These efforts seem to bear resuts. For MY 2022/23, USDA estimates yield at 2.36 metric tons per hectare (t/ha), up 18 percent from the five-year average. The same is not replicated in the rest of the continent with yields remaining below 15 bushels (0.4 tonnes) per acre for 15 of the 24 African countries for which data exist. Low productivity can be attributed to a number of challenges. Access to high-quality seeds remains a primary concern, impeding farmers' ability to achieve optimal yields and resistance to pests and diseases. Furthermore, the insufficient state of agricultural infrastructure, including transportation and storage facilities, leads to post-harvest losses, which restrict the effectiveness of the soybean value chain. Climate change also introduces a layer of unpredictability,

with fluctuating weather patterns affecting soybean crops. Pests such as aphids and pod borers, along with diseases like

Ethiopia - 2.8% Uganda - 3.0% Ghana - 4.0%

Benin - 5.4%

Zambia - 8.8%

TOP 10 SOYBEAN PRODUCERS

South Africa - 50.8%

Nigeria - 21.7%

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rust and bacterial blight, pose significant threats to crop yield. The vulnerability of small scale soybean farmers, who account for majority of production, is further exacerbated by limited access to affordable credit, which hinders investment in essential inputs and modern farming practices. Insufficient availability of extension services exacerbates these challenges, impeding the dissemination of vital knowledge and best practices among soybean farmers. This hampers the adoption of improved farming techniques, which in turn hinders the overall productivity of soybean cultivation. Market access issues and price volatility also impact farmers' income, influencing their decisions on further investment in soybean cultivation. Additionally, the lack of substantial investment in research and development restricts innovation, hindering the development of highyielding and disease-resistant soybean varieties customized to local conditions. ANIMAL FEED DRIVES CONSUMPTION In Africa, just as it is in the rest of the world, the major processed soybean product is soybean meal, which is used for animal feed. Soymeal is incorporated into feed rations of poultry, dairy cows and aquaculture at different levels and percentages. Soybean is also used to produce food products for human consumption. This is WWW.MILLINGMEA.COM

particularly common in Malawi, Nigeria, and Kenya where soy pieces are considered an attractive and low cost substitute for meat. According to data from Statista, Africa consumes approximately 9 million tonnes of soybeans annually, close to double its annual production. To meet demand, Africa imported soybean valued at about US$3.5 billion from the rest of the world in 2021, according to Trade Maps. This period coincided with a peak in poultry production across the continent, with Egypt and South Africa, two of the continent’s largest poultry markets, producing 2.2 million tons and 1.57 million tones of chicken meat respectively. Unsurprisingly, this also marked one of the continent’s highest demand for soybeans with the two countries, which account for over half of Africa’s total demand, consuming a total of of 5.7 million tonnes of soybean. Unlike South Africa, Egypt’s local production is neglible.The North African country was thus forced to import about 3.7 tonnes of soybeans in 2021. The economic fallout from the war in Ukraine which spiked international prices higher and generated a foreign currency crunch in Egypt however significantly impacted consumption forcing the FAS Cairo to revise MY 2022/23 consumption of soybeans by almost 48.4 percent. The USDA department forecasts Egypt’s soybean consumption in MY 2023/24 to

Poultry sector is the single largest consumer of soybean in Africa.

ANIMAL FEED IS THE SINGLE LARGEST DRIVER OF SOYBEAN

CONSUMPTION

IN AFRICA ACCOUNTING FOR OVER 85% OF DEMAND .

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MARKET UPDATE: SOYBEAN IN AFRICA

Soybean Consumption in Africa in 2022 decrease compared to the USDA official MY 2022/23 estimate. The marginal decrease in consumption is due to the increasing prices of soybean and the challenging business environment for poultry farmers and processors.

recover slightly to roughly 2.54 million metric tons (MMT), due to an anticipated pick up by the crushing sector amid availability of more beans to crush. Soybean meal is the most important protein used by feed manufactures in South Africa and represents more than 75 percent of protein meal usage. The 38

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country is forecast to consume about 1.5 million tonnes of soybean in 2022/2023 with imports droppint to about 360,000 MT as the country replaces soybean meal imports with one produced locally. In Nigeria, USDA forecasts soybean consumption in MY 2023/24 at 1.2 million metric tons (MMT), a 2 percent

US DOMINATES SOYBEAN TRADE WITH AFRICA US is the major exporter of soybean to Africa. Aggregately, the US supplied over 63% of the total imports to Africa. Industry sources cited by USDA report that meals produced from U.S.-origin soybeans show better uniformity, less fiber, and higher protein content than that of other origins. U.S.-origin soybeans also have higher oil content with superior quality, making them highly prefereed by buyers across the continent. Other major exporters include Argentina and Brazil, which together with the US, constitute the top 3 largest producers of soybean in the world. Uruguay, Ukraine, Canada, Paraguay, and Romania also export some small amounts of soybean to the continent. South Africa, Togo, Ethiopia, and Malawi are Africa’s top exporters of soybeans, accounting for more than 60% WWW.MILLINGMEA.COM

of total exports in Africa. South Africa gained net exporter of soybeans recently after its production exceeded crush capacity. In MY2023/24, South Africa is expected to export about 750,000 tonnes of soybeans mainly to its neighbours Mozambique, Zimbabwe, Malawi, and Zambia. The country also exports significant volumes to Malaysia and Thailand and also recently completed export protocals with China, opening the market for exports to the world’s largest soybean market. Togo seeks to ramp up its soybean output to 500,000 t per year by 2028, a move that might see its share of Africa’s soybean exports grow. Uganda, Nigeria, Ghana, are other notable soybean exporters from the continent. FUTURE OUTLOOK AND GROWTH DRIVERS While production remains challenging in Africa, the future of soybeans in the continent presents growth opportunities, driven by various factors. According to Torq Commodities, the soybean industry in Africa is expected to have a volume growth rate of 1.154 million tonnes per year from 2022 to 2027. Growth is mainly driven by a robust animal feed sector that accounts for over 80% of soybean consumption in the continent. The USDA projects that soybean and soybean meal feed usage in the region will increase by 59% and 35%, respectively, through 2029. The poultry sector, which is the single largest consumer of soybeans in Africa, has experienced growth of 20% per year and is expected to grow at a CAGR of 4.7% from

a current valuation of US$25bn, according to estimates by the Netherlands-based Rabobank. Human consumption, in forms such as soy chunks and soy products such as ‘Yummy Soy’ and ‘Sossi’, account for the remaining soybean consumption. Its also a fast--growing sector mainly driven by a large untapped market of low- income consumers with latent demand for low--cost dietary protein that could be easily addressed by soybean processors. As soybean demand grows across the continent, forecasts using currently available data portend a continent where domestic production is insufficient in the medium term. Imports will therefore remain an important feature for meeting Africa’s soybean, soybean meal, and soybean oil needs. A report by the Africa Center for Economic Transformation sees an opportunity in this supply gap. “Africa imports constitute a US$1.2bn substitution opportunity for African producers and processors that can match the price and quality of imports,” the report reads in part. To develop a robust soybean processing industry to meet the continent’s current and future needs, policy--makers need to undertake a detailed understanding of local production and consumption potential for the full range of key soybean and soybean--related products, and develop an approach that can foster the development of an infant industry that may, despite indications of emerging price competitiveness of African production, face some price competition in its development phase before reaching minimum efficient scale.

National Soybean Yields, 3-Year Average (2015-2017) WWW.MILLINGMEA.COM

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TOP 10 SOYABEAN PRODUCERS IN AFRICA

SOUTH AFRICA - 2,755,000 MT

South Africa is currently the largest soybean producer in Africa, contributing about 0.7% to global soybean production and nearly 40% of the continent's production. According to the USDA estimates, production is projected to increase slightly to 2,800,000 MT in the 2023/24 marketing year.

NIGERIA - 1,180,000 MT

Soybeans are an important crop in Nigeria, and the country has had an average yield of 1,090,000 MT over the past five years, thanks to government investments in soybean production. The estimate for the 2023/24 marketing year is slightly lower at 1,150,000 MT, mostly due to a decrease in acreage compared to the previous year.

GHANA

NIGERIA

BENIN

ZAMBIA - 475,000 MT

This year's production is higher than the yield for the 2021/23 marketing year of 411,000MT due to an increase in acreage. Production in the 2023/24 marketing year is estimated to remain at 475,000 MT.

BENIN - 295,000 MT

The soybean yield has been consistent in the last five years at 1.2 tons per hectare, yielding an average of 264,000 metric tons. This year's production improved slightly on an increased acreage, with 291,000MT produced in MY 2021/22. The same trend continues to MY 2023/24, with production estimated at 310,000 MT.

Source: USDA GHANA - 215,000 MT

The production in Ghana increased slightly from 210,000 MT in the previous marketing year due to an increase in acreage. In the 2023/24 marketing year, there is expected to be a relative increase in acreage and a corresponding increase in production, estimated at 225,000 MT.

UGANDA - 200,000 MT

Uganda dominates East African soybean production, with an average of 163,000MT over the past five years. This marketing year, production remained unchanged despite a slight increase in acreage caused by unfavorable weather. The acreage is expected to remain the same in MY 2023/24, as well as the yield and production volume

EGYPT

ETHIOPIA - 150,000 MT

A similar trend is evident in Ethiopia, with a yield of 2.5 MT/ha for the past three years. The production in the marketing year 2023/24 is expected to remain the same, based on the same estimated acreage as well.

ETHIOPIA UGANDA

TANZANIA

ZAMBIA

ZIMBABWE - 75,000 MT

Soybean is not a major crop in this country, with production significantly below 100,000 MT. The production in MY 2022/23 increased slightly from the 71,000 MT recorded in the previous marketing year, primarily due to a slight increase in acreage. In MY 2023/24, the acreage will remain the same, and the production is estimated to remain unchanged as well.

MALAWI

ZIMBABWE

EGYPT - 56,000 MT

While Egypt appears almost at the bottom of this list, the country leads all of Africa in terms of average soybean yield, with over 3 metric tonnes per hectare. The average production in Africa is 1.3 metric tons per hectare. Egypt invests significantly in irrigation-fed agriculture, including the cultivation of soybeans. The USDA estimates that production will reach 85,000 metric tons in MY2023/24.

SOUTH AFRICA

TANZANIA 25,900 MT

Soybean production in Tanzania was 25,900 MT in 2022, according to a study by ReportLinker, a research and development organization. It is estimated that soybean cultivation will reach 32,310MT by 2026, growing at a compound annual growth rate (CAGR) of 4.5% per year, thanks to government investments.

COUNTRY FOCUS: KENYA

Weaving a future of plenty BY MARTHA KURIA

enya, straddling the equator in East Africa, plays host to a vibrant grains industry. Despite only 20% of its land being arable, agriculture forms the backbone of the nation's economy, contributing significantly to its food security and employment. Maize is the most important grain grown in the country, but the country is also a notable producer of wheat and rice though its annual output is far below demand, hence the need for imports. As the seventh most populous country in Africa, Kenya faces the crucial challenge of feeding its growing population amidst the realities of climate change and volatile global

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markets. This report delves into the intricacies of the Kenyan grains industry, exploring its current state, future potential, and the key challenges that lie ahead. MAIZE STATUS AS MAIN STAPLE IS SLOWLY FADING AWAY Maize is the principal staple food in Kenya with per capita consumption estimated at 60kg (5kg per person per month), according to the 2019 Kenya Maize Flour Market Report. The status it previously enjoyed as a main stay at many dinners is, however, slowly fading away as many consumers diversify their meal options. According to a Kenya Agricultural Value Chain Enterprises report by USAID, per capita WWW.MILLINGMEA.COM

maize consumption has been on a steady downward trend from about 90 kilograms in 2003 to 67.5 kilograms in 2012. The report projected consumption to decline further to 56.3 kilograms in 2022, as consumers increasingly substitute cooking bananas, Irish potato, sweet potato, and cassava in place of maize as a result of increasing incomes, and higher urbanization rates. In the coming 2023/24 season, corn consumption is expected to recover to over 3.9 million MT from 3.7 million MT the year before due to increased local supply as more acreage is dedicated to corn. Kenya’s feed manufacturing sector – which has largely stagnated due to an inadequate supply and high cost of raw materials- is forecasted to utilize about 200,000 MT of the country’s total grain demand. MAIZE PRODUCTION LAGS DEMAND Although per capita consumption is declining, population growth is contributing to a modest (1% per year) overall increase in aggregate demand for maize (including human consumption, animal feed, and other industrial uses), according to the USAID-KAVES Maize Value Chain Analysis.

WWW.MILLINGMEA.COM

Country

Unit

MY 2019/20

MY 2020/21

MY 2021/22

Tanzania

169,435 (63%)

146,873 (66%)

708,978 (97%)

Zambia

8,286 (3%)

6,836 (3%)

10,728 (1%)

South Africa

2,759 (1%)

2,4836 (11%)

2,782 (0.38%)

Uganda

11 (0.001%)

2,629 (0.36%)

Key Corn Exporters to Kenya

Source: Trade Data Monitor LLC

Production is, however, not increasing fast enough to meet demand. In some years, production has actually contracted. In 2021, for instance, the production of maize decreased by 12.8% to 36.7 million bags, mainly due to unfavorable weather conditions in 2021. In 2022, the production volume of maize in Kenya declined further to 34.3 million bags as the country grappled with the worst drought in 40 years. Recent data by the Kenya National Bureau of Statistics (KNBS) reveals that the production of Kenya’s number one staple food, maize, has fallen by a whopping 10.9 million in five years hampering the country’s food security efforts. According to the statistics bureau, maize production fell from 44.6 million bags harvested in 2018 to 34.3 million bags last year- the lowest it has been in over a decade.

Part of the reason for low production volume is reduced production potential of Kenyan soils. Average maize yields have declined from 2.2 MT/ha in the 1990s to 1.6 MT/ha in 2022. One of the reasons for this decline is inadequate use of fertilizers whose price has been skyrocketing well beyond the budgetlimit of many farmers. In addition, smallholder farmers often plant unsuitable varieties, have low use of complementary inputs, and have sub-optimal use of inorganic fertilizers. Added to this are the effects of unpredictable and unfavorable weather patterns compounded by limited access to water for irrigation, and increased pests and disease prevalence such as the Maize Lethal Necrotic Disease and Fall Army Worm. With production contracting, data from the ministry of Agricultura

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COUNTRY FOCUS: KENYA

indicates the country is normally faced with a deficit of around 12 million bags annually. USDA forecasts that MY 2023/24 imports will reach 750,000 MT, unchanged from MY 2022/23. While Kenya’s imports from regional EAC and Common Market for Eastern and Southern Africa (COMESA) countries are expected to remain high due to shortfalls in domestic production, exportable supplies from these countries will likely face limits in MY 2022/23 due to lower-than-average

Monthly Kenya Corn Prices

regional production. Reliance on imports is only expected to go up as population growth is projected to push the demand for maize to 60 million bags by 2025. GOVERNMENT INTERVENES TO TAME SKYROCKETING MAIZE PRICES During the five years, the price of maize flour per kilogram shot up from an average of KES 41.32 per kg in 2018 to KES 71.10 per kg in 2022, and more than

Source: Trade Data Monitor LLC

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KES 100.00 by July 2023. Price hikes were mainly attributed to production shortfalls caused by drought, high fertilizer prices, and insufficient regional imports to stabilize prices. As prices crossed the KES 100 mark for the first time in Kenya’s history, the government was forced to intervene by relaxing duties on imports to plug the deficit and ease pressure on prices. The Ministry of Agriculture, in December 2022 announced that traders would be allowed to import up to 900,000 tonnes of duty-free white maize from February to August 2023 to enable the country to have adequate stocks to last until the July to August 2023 harvest season. The Government of Kenya has put in place various interventions to ensure the availability, accessibility, and affordability of maize in the country. For instance, it recently rolled out fertilizer subsidies in an attempt to reduce the cost of production and enhance its use to increase maize yield. Beyond subsidies, the government also devoted KES 1.1 billion US$8M) for the electrification of the Galana-Kulalu Irrigation Scheme, a multi-billion-dollar irrigation scheme, as it moves to make the national food security project more attractive to investors. Additionally, the government announced that it has earmarked 500,000 acres of the state’s idle land for maize production in 2024. In April 2023, the government of Kenya further announced plans to put three million acres of land under irrigation farming by 2030 to bolster food security. As a strategy to reduce reliance on maize imports, the Government of Kenya also embarked on diversification and floor blending of maize and wheat with sorghum, millet, cassava, and sweet potatoes. The Kenya Bureau of Standards has been mandated to finalize standards, formulated by national, and county governments and development partners, that will guide the certification process of these products. Through the initiative, millers will be expected to mill 10 percent of their daily produce into blended flour. WWW.MILLINGMEA.COM

Country

Unit

2020 (July-Dec)

2021 (July-Dec)

2022 (July-Dec)

Russia

43,1642 (54%)

193,970 (24%)

373,417 (48%)

Lithuania

24,146 (3%)

45,300 (7%)

116,170 (15%)

Australia

1 (0%)

23,727 (3%)

91,408 (12%)

Poland

40,847 (5%)

1 (0%)

51,258 (7%)

Ukraine

14,000 (2%)

255,827 (32%)

44,480 (6%)

Canada

94,688 (12%)

69,259 (9%)

38,500 (5%)

Czech Republic

14,000 (2%)

Egypt

13,713 (2%)

Key Wheat Exporters to Kenya, Year to Date (July to December)

ROADMAP TO MAIZE SELFSUFFICIENCY Kenya’s corn production is expected to increase in 2023-24 as farmers respond to high crop prices by planting more, according to a report from the Foreign Agricultural Service (FAS) of the US Department of Agriculture (USDA). FAS estimates corn production to rise to 3.2 million tonnes in 2023/24 season, up from the new estimate of 2.9 million tonnes in 2022-23. To argument the successes of the 2022/23 market campaign, the government has announced plans to support local farmers through postharvest management to reduce recurring losses.The state recently set aside KES4 billion (US$27M) to purchase maize from farmers through the National Cereals and Produce Board (NCPB). This will not only boost strategic grain reserves but also avoid losses which in Kenya are estimated at between 10 and 12 percent of total production. The government is also encouraging private sector investment in grain warehouses to improve storage quality, and the Warehouse Receipt System Council (WRSC) recently licensed the first private warehouse receipt operator. The country is also at liberty to cultivate and import genetically modified organisms (GMOs) after the Environment Court dismissed the case challenging the same. WWW.MILLINGMEA.COM

32,735 (4%)

19,708 (2.4%)

9,484 (1%)

Source: Trade Data Monitor LLC

Kenya MY Year-to-Date Wheat Imports (July to December)

Source: Trade Data Monitor LLC

KENYA LEADS IN MOST DEVELOPED MILLING MILLS AND TECHNOLOGY IN ESSA After Ethiopia, Kenya has the next largest and most developed milling industry in the Eastern Sub-Saharan Africa Region, processing 10 million metric tons of grain annually followed by Tanzania at 6 million tons, according to Rabobank, a leading food and agricultural sector finance bank. Despite having the most developed

sector, corn milling is highly fragmented where milling is characterized by limited installed capacity and domestic processing unlike Tanzania which is highly consolidated, fully liberalized, and enjoys healthy margins. According to the Cereal Growers Association (CGA), there are 100 medium-scale millers and 23 large-scale millers in Kenya. The installed capacity of the medium-scale millers is between 100-200 MT per day, while for the largescale millers installed capacity averages DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

COUNTRY FOCUS: KENYA

IN NUMBERS

3.9MMT KENYA'S ESTIMATED MAIZE CONSUMPTION IN 2024.

Wheat production in kenya is expected to increase to 310,000MT in 2024.

at 3,600 MT per day. Among the large-scale millers in Kenya include Unga Group Holdings Ltd., Mombasa Maize Millers, Pembe Flour Mills Ltd, Capwell Industries Ltd, and Kitui Flour Mills among others. KENYA FAR FROM WHEAT SELFSUFFICIENCY Retailers and millers cited by USDA note that wheat products such as pasta, cakes, and pastries are increasingly popular in Kenya. This has resulted in wheat becoming the second most important grain crop in the country with an average annual consumption of about 2.4 million MT, according to data from Agriculture and Food Authority. In MY 2023/24, USDA forecasts low wheat consumption at 1.94 million MT. “Despite an expansion of restaurants and bakeries in the Nairobi region, overall wheat consumption has been negatively impacted by high domestic prices, with prices climbing to $446 per MT as of December 2022,” USDA stated in the report. Production is however expected to rebound, benefitting from higher wheat prices. According to USDA, Kenya’s wheat production in MY2023/24 would increase to 310,000 tonnes mostly because of increases in harvested area as farmers plant more wheat to take advantage of high prices. In February 2023, wheat prices stood at US$462 per MT compared to US$417 per

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MT during the same month in 2022. Kenya’s wheat yields however face challenges due to short-term land leases that disincentivize investment in soil and equipment. Production is also negatively affected by seed recycling and occasional outbreaks of Ug99 rust disease. This dims any hopes for Kenya to ever achieve self-sufficiency in wheat production. USDA anticipates that wheat imports in MY 2023/24 will remain unchanged at 1.6 million MT as prevailing conditions such as disruptions associated with the Ukraine crisis, and Kenya’s deteriorating exchange rate in MY 2022/23 are likely to continue. Kenya traditionally sources wheat from a wide array of sources, including Argentina, the Black Sea Region, Australia, and North America. According to traders, most of the wheat is currently bein sourced from Russia due to its competitive price compared to other sources offering wheat of comparable quality. KENYA RACES TO RAISE YIELDS IN RICE AS DEMAND SURGE Since its introduction in 1907 in Kenya, rice has become the third most important cereal crop after maize and wheat. Due to the progressive change in the eating habits of Kenyans, particularly in more urban areas, the annual consumption of rice is increasing at a rate of over 12% in the country. In MY 2023/24, consumption is expected to continue to grow from 800,000 MT to

WWW.MILLINGMEA.COM

KENYA TO INCREASE RICE ACREAGE BY 100,000 IN 5 YEARS As demand for rice skyrockets, Kenya embarked on a 5-year plan to increase the acreage under rice production in the country by at least 100,000 acres as part of its efforts to achieve rice selfsufficiency. The recently completed Thiba dam is a great boost to this program as it is expected to expand the area under irrigation in Mwea by 10,000 hectares. This is expected to raise Kenya's rice production to 250,000 metric tonnes annually. The government has announced plans to revitalize two other rice schemes, Ahero and Budalangi, both in WWW.MILLINGMEA.COM

Tanzania 14%

3% orea K h t u So Thailand - 2%

825,000 MT as individual households and institutions shift to rice as a food staple due to its lower cost and ease of preparation, according to USDA. Domestically grown rice is however generally more expensive than imports, with premium rice from the Mwea Irrigation Scheme averaging US$1595/ MT in 2022 while prices for rice from Pakistan averaged at US$393/MT. Rice production in the 2023/24MY is anticipated to increase to 130,000 MT due to an expansion in area planted following the commissioning of the Thiba Dam in October 2022. Thiba dam supplies the Mwea Irrigation Scheme in Kirinyaga County which accounts for 80-88% of the country’s rice production. With consumption almost 7 times local demand, Kenya relies on imports to meet its huge appetite for rice. In 2022, Kenya sourced its rice mainly from Pakistan (46%), India (34%), Tanzania (US$14%), South Korea (3%), and Thailand (2%). Data by the Kenya National Bureau of Statistics (KNBS) has revealed that rice purchases reached a new record, nearly 120% in the first half of 2023. KNBS reported that traders ordered 702,249 metric tonnes of rice in 2023, a 118.31 percent jump over 321,670 tonnes in the same period last year. In MY2023/24, USDA anticipates imports will decline slightly to 690,000 MT as higher domestic production accounts for a larger portion of Kenya’s rice supply.

KEY RICE EXPORTING COUNTRIES TO KENYA

Pakistan 47%

India 34%

Western Kenya. These plans have not yet been implemented and no additional production is expected from these schemes in MY 2023/24. Their return to production in future is however expected to boost local production and help offset Kenya’s insatiable demand for imports. In addition to the expansion and rehabilitation of existing irrigation schemes, the government is promoting the introduction of high-yielding rice varieties. Under this program, Paddy rice productivity under irrigation is targeted to increase from the current average of 4.0 to 7.5 t/Ha, rainfed upland from 1.5 to 2.5 t/Ha and rainfed lowlands from 2.0 to 3.5 t/Ha. TRADITIONAL GRAINS TAKING SHAPE With the increasing shockwaves in the common grain industry, the government of Kenya is changing gear towards traditional indigenous grains

such as sorghum and millet in the hope of weaning the country from over dependence on maize. Sorghum is climate resilient crop, making it particularly suitable to Kenya’s increasingly unpredictable weather. As of 2022, the country produced 135,000 metric tonnes of sorghum from 197,440 hectares. Production is expected to rise as more farmers embrace the crop due to its drought tolerant characteristics. Millet production is set to surge as the government moves to implement the Millet Flour Blending program aimed at increasing utilization of climate resilient grains in the country. In 2022, the county recorded a paltry production of 63,063 tons of millet from at least 106,233 ha of farmland, according to the Ministry of Agriculture. As the government pushes millers to increase utilization of the grain, the country’s Millet Production is projected to grow by 2.2% year-on-year, reaching 138,280 metric tons in 2026. DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

TECHNOLOGY FOCUS: STARCH IN BAKING

STARCH:

The Architect of Baked Products BY MARTHA KURIA

he culmination of the breadmaking process lies in baking, the pivotal transformation of dough into bread. While protein often takes center stage in discussions about flour quality, it's crucial to recognize that nearly 70-80% of flour comprises starch, a versatile and indispensable component in baking and breadmaking. Starch’s unique properties contribute to the structural integrity, texture, moisture content, and overall quality of a wide range of baked goods. Different sources of starch, such as wheat flour, contribute distinct characteristics to the final product, allowing bakers to achieve various textures and flavors in their creations. THE SCIENCE OF STARCH The starch polysaccharide comprises monomers of d-glucose joined in α 1,4 linkages. Each starch granule is composed of two homo-polysaccharide fractions (amylose and amylopectin), which make up 98-99% of the dry weight of the granule. The amylose fraction of starch is an essentially linear polymer that is made up of about 99% α-(1→4) linked D-glucopyranose molecules and less than 0.5% α-(1→6) branches. The degree of polymerization of amylose ranges from 1,00010,000 glucose units, which corresponds to a molecular weight of 105-106 . The amylose fraction makes up 20 to 30% of the starch granule while the amylopectin fraction makes up 70 to 80%. By contrast, the amylopectin fraction is a highly branched polymer consisting of about 95% α-(1→4) linked D-glucopyranose molecules and 5% α-(1→6) branches. This makes starch insoluble in cold water. Amylose and amylopectin both have an effect on the dough rheology and therefore on the structure of baked bread. Furthermore, studies report that the amylose content influences the nutritional and technological properties, such as susceptibility to enzymatic hydrolysis and gelling

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WWW.MILLINGMEA.COM

and pasting behavior. THE ARCHITECT OF BAKED PRODUCTS After gluten, starch, which makes up 70 to 85 percent of wheat flour is the second most significant part of wheat flour for bread making. The interaction of starch and gluten in dough creates a stable network that can retain fermentation gas in the dough structure and prevent the collapse of bread during baking and cooling. When the dough is heated, starch granules absorb water, swell, gelatinize, and lose their semicrystalline nature. The linear amylose polymers leach out of the granules leaving amylopectinenriched granules. Starch gelatinization in the crumb causes the formation of a porous crumb structure whereas the higher temperature at the dough surface results in crust formation. Starches contribute to the flavor of baked goods and can also play a role in browning. During baking, the Maillard reaction occurs, where the combination of amino acids and reducing sugars (including those derived from starch) leads to the development of complex flavors and the characteristic brown color of bread crusts. The choice of starch for baking depends on the specific recipe and the desired characteristics of the final product. Different starches can impart varying textures, flavors, and structures to baked goods. Wheat starch is the most commonly used in a variety of baked products. Other starch sources such as corn, tapioca, potato, rice, and cassava have also gained popularity in the recent past.

of starch including milling severity (particle side), grain maturity, drying techniques, water availability, and the time and temperature relationships during baking. The relative quantities of amylose and amylopectin and their molecular arrangement have also been reported to influence gelatinization properties. However, gelatinization does not occur in all baked products, and the degree to which it occurs depends on the availability of water. In low-moisture recipes, such as for biscuits and pastes, the water level is generally too low and the competition for that water is too high for significant gelatinization to occur. FUEL FOR YEAST Starch also provides “food” for the yeast to feed on during fermentation. Enzymes in the yeast break down starch molecules into simpler sugars, such as glucose and maltose, through a process called saccharification. These sugars then serve as the yeast's food, supporting its growth and

STARCHES CONTRIBUTE TO THE FLAVOR OF BAKED GOODS AND ALSO PLAY A ROLE IN BROWNING.

STARCH GELATINIZATION: THE MAGIC IN BAKING Gelatinization refers to the swelling and hydration of starch granules in the presence of water and heat. It is accepted that wheat starch gelatinization starts occurring between approximately 60℃ to 70℃ and a temperature of 75℃ in the oven ensures the successful gelatinization of bread. Gelatinization during baking plays a significant role in the formation of the product structure and the changes that subsequently occur as the product is cooled and stored. During baking, it provides flexibility for loaf expansion. When it comes to the cooling stage, it provides a rigid network to prevent the loaf from collapsing, giving structural and textural properties to the baked product. Many factors can affect the gelatinization WWW.MILLINGMEA.COM

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TECHNOLOGY FOCUS: STARCH IN BAKING

crucial roles in determining the flavor, texture, and overall quality of the bread.

Starch provides "food" for yeast during fermentation.

fermentation activity. As yeast consumes the sugars derived from starch, it produces carbon dioxide as a byproduct. The carbon dioxide gas gets trapped in the gluten network of the dough, causing it to expand and rise. This gives the bread its light and airy texture. However, the quality of the flour used in bread making, which includes the type and amount of starch, can impact the fermentation process and the characteristics of the final bread. The fermentation time and temperature also play

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STARCH'S ROLE IN STALING MITIGATION Fresh bread is a product with a short shelf-life and during its storage, several chemical and physical alterations occur which impact the bread’s quality. As a result of these changes, bread quality deteriorates gradually as it loses its freshness and crispiness while crumb firmness and rigidity increase. Starch retrogradation is a major factor in the staling of bread. Retrogradation is a process that occurs in gelatinized starch as it moves from an initial amorphous state to a more ordered or crystalline state, increasing firmness. Attempts to slow the rate of retrogradation have initiated the development of various enzymes, emulsifiers, oligosaccharides, and polysaccharides in the food industry, particularly in the baking sector. “A new generation of enzymes has been discovered in some of the most amazing locations on Earth,” said Michael Gleason, senior product manager, bakery at Puratos. The company used an enzyme responsible for breaking down plant material into soft, moist elements in the development of a recently launched improver designed to make bread softer. With the new improver, Gleason says that Puratos has stretched WWW.MILLINGMEA.COM

the shelf life for sweet goods in open-air display cases from 8 hours to 36 hours and added three months of shelf life to packaged snack cakes. Kemin also markets an extensive portfolio of ingredients specific to the baking and snack industries. This includes batch packs, premixes, emulsifiers and enzyme blends for tortillas, flatbreads and baked goods. One of the enzyme blends helps prevent retrogradation by breaking down components of the dough, such as fiber, lipid, protein or starch. “Our newly developed cultured dextrose product can be used in breads, rolls, flatbreads and tortillas,” said Art Posch, platform development manager, bakery, Kemin Food Technologies. “It can be used as a 1:1 replacement for synthetic calcium propionate in all types of yeast-raised products where a clean label, non-GMO solution is needed. It comes in both liquid and dry forms.” In 2020, Kemin Food Technologies launched TillaZyme, a new product that expanded its tortilla solutions to include not only mold inhibition but also anti-staling, providing tortilla manufacturers with a label-friendly anti-staling option. “TillaZyme uses a mix of enzymes and gums to slow down the retrogradation process in corn tortillas, this increases shelf life in a clean label way,” said Anita Srivastava, Ph.D., CFS, senior technical service manager, bakery, Kemin. ADVANCEMENTS IN STARCH FOR BAKING EXCELLENCE The formation of a fantastic mixture, the settling of the scrap during baking, and the real degradation of bread quality through staling are all aided by starch. However, native starch may not have the functional properties for food-processing requirements such as thickening and stabilization. Therefore, starches are often modified to overcome undesirable changes in product texture and appearance caused by retrogradation or breakdown of starch during processing and storage. Modified starches are designed to overcome one or more of the shortcomings, such as loss of viscosity and thickening power upon cooking and storage, particularly at low pH, retrogradation characteristics, and syneresis. In general, the modification of starches has been traditionally conducted by physical and/or chemical methods. In contrast, recent advancement in genetic modification of starch employs transgenic technology that targets the enzymes involved in starch biosynthesis and degradation pathways in plants. WWW.MILLINGMEA.COM

Enzymatic modifications have also emerged partly replacing the chemical and physical methods for the preparation of modified starch. Their use has gained popularity because enzymes are safer and healthier than chemical methods for both the environment and food consumers. Recently, Cargill expanded its SimPure starches profile with a new tapioca starch that helps with structure and moisture retention due to its combination of moderate process tolerance and key functionality. SimPure 99600 improves moistness and imparts a soft texture to finished baked goods. Additionally, it has a neutral flavor profile so it doesn’t impact the finished product quality. “As we evaluate new starches, we’re careful to balance process tolerance and functional performance with other critical factors like sensory and consumer acceptance,” said Erin Radermacher, senior technical services specialist, at Cargill. American Key Food Products (AKFP) on the other hand expanded its tapioca product line by launching native waxy tapioca starch, a glutenfree, non-GMO ingredient high in amylopectin. Sourced from AKFP’s Asian production partner, the starch has functionalities that make it an effective stabilizer, thickener, and emulsifier, according to the company. “Our native waxy tapioca starch contains a high level of amylopectin, which serves to retain water during the freezethaw cycle of frozen food products,” said Carter Foss, technical sales director for AKFP.

ATTEMPTS TO SLOW THE RATE OF RETROGRADATION HAVE INITIATED THE DEVELOPMENT OF VARIOUS ENZYMES THAT ARE DESIGNED TO MAKE THE BREAD SOFTER AND ENHANCE SHELF-LIFE.

DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

SUPPLIER NEWS & INNOVATIONS

NEW TECHNOLOGY

Bühler unveils new optical sorter for small and medium businesses medium businesses, helping bring food safety standards, and supporting environmental initiatives around the world. “SPARK Pro is built for industry purpose,” said Bernhard Gabauer, who led the project. “From the camera technology to the saturation value, SPARK processes quickly, easily, and well.”

ENGLAND — Bühler is set to launch its newest optical sorter, the SPARK Pro, offering simple operation with reliable performance for small and medium businesses around the world. The SPARK Pro is beginner-friendly, simple to operate, and still produces a reliable yield quality. It works with multiple commodities, including grains, pulses, rice, coffee, spices, and peanuts,

to remove unwanted defects from the product, for example, sticks and stones, helping food processors achieve better yield quality, greater food safety and meet regulation standards. SPARK is not Bühler Group’s topend and most digitally connected optical sorter, instead, it works and works well, in all environments and against most challenges, the company said. SPARK is targeting small to

THE SPARK PRO IS BEGINNER FRIENDLY, SIMPLE TO OPERATE, AND STILL PRODUCES RELIABLE YIELD QUALITY.

MARKET EXPANSION

InVivo to open new office in Saudi Arabia SAUDI ARABIA - Paris-based agribusiness giant, InVivo, is set to open a marketing office in Saudi Arabia early next year, strategically positioning itself in the Saudi port of Damman. The move comes as the cooperative group adapts to evolving global grain demand and seeks to secure new outlets, particularly in the Middle East. In an exclusive interview with Reuters, InVivo CEO Thierry Blandinieres emphasized the significance of the new Saudi office, stating that its primary objective is to secure grain supplies for local feed makers in the rapidly developing country. The Saudi office, to be headed by Aman Sethi, will play a pivotal role in 52

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fostering ties with the Middle East. Sethi, formerly based at InVivo’s Singapore office, brings a wealth of experience to the role. In a related development, InVivo

announced on Wednesday that its Malteries Soufflet unit had successfully completed the takeover of Australia’s United Malt Group, solidifying its position as the world’s largest maltster. WWW.MILLINGMEA.COM

INNOVATION

Mootral unveils breakthrough technology for methane reduction in confined and grazing cows UK- Mootral, a leading company in the field of methane emission reduction, has introduced a groundbreaking platform that promises to be both scalable and cost-effective. This innovative technology, called Enterix Advanced, is designed for application in both housed and grazing cattle. Mootral’s scientists have elevated the effectiveness of their Enterix (formerly Mootral Ruminant) with a new patented technology. Enterix Advanced utilizes iodoform, a compound renowned for its

methane-inhibiting properties. By synergizing iodoform with specific compounds derived from garlic, Mootral aims to enhance the original technology already deployed on commercial farms in the UK. The key breakthrough lies in the powerful synergy between these compounds, which enables significant reductions in methane emissions without adversely affecting dry matter intake and milk yield—a concern associated with high doses of iodoform in the past, according to the developers.

INVESTMENT

Enorm Biofactory unveils Northern Europe’s largest insect factory Carsten Lind Pedersen, co-founder and CEO of Enorm Biofactory, stated at the opening: "Today, we celebrate several years of hard work, where skilled colleagues and numerous partners have made this project possible. Now, the next phase begins, where we need to scale up the production to full operation." The construction of the insect factory has been underway since 2022, with various stakeholders, including the agricultural company, DLG, which is also a co-owner of the venture.

DENMARK - Enorm Biofactory – northern Europe’s largest insect production facility, with the capacity to produce over 10,000 tonnes of insect meal a year. The facility, in Eastern Jutland, covers 22,000 square metres and can process 100 tonnes of larvae per day. At the facility black soldier fly larvae will primarily be fed on byproducts from the food industry. After approximately 12 days, the larvae are processed into oil and protein. DISTRIBUTION

Depart to distribute Mega Dryers’ grain drying systems TURKEY - Depart has entered into a distribution agreement with Mega Dryers that will see the Turkish supplier of milling solutions distribute the Argentina-based company’s grain drying systems. With the addition of grain drying systems, Depart now will offer more comprehensive solutions to the milling and grain industries, said Cengiz Tiryakioğlu, general manager of Depart. “Following the agreement we made WWW.MILLINGMEA.COM

in September, we have almost completed our sales, marketing and operational steps,” he said. “As of end of October, we will be giving a start to our sales activities for our customers who want to increase efficiency in drying, which is one of the most critical steps of grain processing.” With engineering and product support from Alapala Machinery, Depart provides spare parts and after sales services for the milling industry. DEC/JAN 2024 | MILLING MIDDLE EAST & AFRICA

SUPPLIER NEWS & INNOVATIONS

ACQUISITION

Mennel acquires commercial dry mix business from Summit Hill Foods

US - The Mennel Milling Company has announced the acquisition of the commercial dry mix business and production equipment of Summit Hill

Foods, formerly known as Southeastern Mills. Summit Hill Foods will continue to produce commercial dry mix products through January 1, 2024, at which time

we will transition the business to our manufacturing facilities in Caledonia, Ohio and Newton, North Carolina. “This acquisition creates an opportunity to further invest in our bakery mix production capabilities while diversifying our customer base,” said Ford Mennel, President, The Mennel Milling Company. “Growth in our bakery mix and foodservice facilities promotes companywide success – leading to opportunities in our grain, flour milling, and transportation divisions as well.”

DIVESTMENT

Ingredion to divest South Korean business to Sajo Group SOUTH KOREA — Ingredion is divesting its business in South Korea to an affiliate of the Sajo Group. The Sajo Group is a food company with headquarters in Seoul, South Korea. “As we look forward in our business

transformation, we will take actions to sharpen our customer focus and pursue global growth opportunities,” said James P. Zallie, president and chief executive officer at Ingredion. “We believe this transaction is an example of putting our strategy into

action to unlock value and redeploy assets in pursuit of our growth roadmap to create value for shareholders.” Terms of the divestment were not disclosed; however, the transaction is expected to close in 2024.

INNOVATION

Skretting, I&V Bio collaborate to launch new Skretting aquaculture supplement NORWAY - Skretting, a global leader in aquafeed solutions and I&V Bio, a leading biotechnology company announce their strategic partnership to revolutionise artemia enrichment through the application of ORI-N3, Skretting’s cutting-edge nutritional supplement in artemia enrichment. Artemia, often referred to as brine shrimp, serves as a vital component in the early stages of various aquatic species’ life cycles. ORI-N3, developed by Skretting, is a revolutionary nutritional supplement enriched with essential proteins, lipids, 54

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and micronutrients. This advanced formula is specifically designed to boost the nutritional content of artemia, providing a balanced and comprehensive diet for early-stage

aquatic species. With its unique composition, ORI-N3 ensures optimal growth rates, improved resistance to diseases, and enhanced overall health for shrimp. WWW.MILLINGMEA.COM

COMMODITY TRADING

AFEX launches new digital trading platform to enhance commodities trading in Africa NIGERIA - AFEX, Africa’s leading commodities player, has once again reshaped the landscape of commodities trading on the continent with the launch of Africa Exchange, a cutting-edge digital platform. This move comes as a progression from AFEX’s initial foray into digital commodities trading with the introduction of ComX in 2020. Africa Exchange offers a dynamic space where commodities market players can seamlessly interact in both physical and financial markets. The platform, regulated by Nigeria’s Securities and Exchange Commission (SEC), provides users with comprehensive and informed trading experiences, with crucial data and information readily available. The launch marks a strategic transition as Africa Exchange replaces

ComX, which successfully served over 80,000 investors in Nigeria and facilitated trades worth over USD 200 million since its inception in 2020.

Entobel opens Asia’s largest insect protein production plant in Vietnam VIETNAM - Entobel, a global leader in sustainable insect-based ingredients for animal feed and plant nutrition, proudly inaugurated its state-of-the-art black soldier fly (BSF) production plant in Vung Tau, Vietnam. Constructed in an industry record time of 12 months, Entobel’s Vung Tau facility stands out as the world’s most CAPEX-efficient BSF production facility. Boasting 50 levels of vertical rearing, the plant incorporates cuttingedge automation via robotics, advanced sensors, and data analytics to enhance productivity. Fueled by a successful US$33 million Series B funding round in 2022, backed by investors Mekong Capital, Dragon Capital, and The International Finance Corporation (IFC), the plant is Entobel’s second industrial-scale production facility in Vietnam.

R&D

Adisseo releases comprehensive handbook on liquid additive application in feed CHINA - Adisseo, a prominent player in the field of liquid additives and supplements, proudly announces the release of a comprehensive handbook on the application of liquid additives in feed. The handbook serves as a valuable resource for industry professionals seeking in-depth insights into the effective utilization of liquid microingredients in the feed production process. Liquid additives and supplements, often referred to as liquid microingredients, play a crucial role in enhancing feed quality. Typically added at levels ranging from 0.1 to 5kg/metric ton, the handbook details their common inclusion stages,

WWW.MILLINGMEA.COM

emphasizing either during the reception of raw materials or, in the case of feed production, in the mixing or postpelleting phases. The handbook begins by providing a comprehensive overview of the various additives that can be employed in liquid form. It delves into the optimal timing for their introduction during the production process and highlights the key characteristics that must be considered to ensure the right application. One of the handbook’s strengths lies in its practical approach, offering guidance on best practices for equipment design, implementation, and monitoring. It covers crucial steps in the application of liquid additives, with a particular focus on quality control.

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SUPPLIER NEWS & INNOVATIONS

INVESTMENT

Lesaffre expands footprint in the United States on naturally derived molecules to benefit human health. The acquisition will enable the company to expand its capabilities in metabolic engineering for its entity, Recombia Biosciences, and will open new laboratories this month, the company said.

USA - Lesaffre is expanding its footprint in the United States through several capital investments and acquisitions. The company, which primarily focuses on yeast, bacteria and baking ingredients, is expanding into the nutrition, health and biotechnology sectors. With the expansion, the company is investing in both new equipment

and R&D. Lesaffre has added a 10th fermentor for the Red Star Yeast, LLC yeast plant in Cedar Rapids, Iowa. At the same plant, the company also invested in a new dryer for its Phileo, Lesaffre business unit focused on animal nutrition and health customer demand, the company said. In addition, Lesaffre acquired capabilities from a Massachusettsbased bioscience company that focuses

LESAFFRE, WHICH PRIMARILY FOCUSES ON YEAST, BACTERIA AND BAKING INGREDIENTS IS EXPANDING INTO NUTRITION, HEALTH AND BIOTECHNOLOGY

INNOVATION

Vantage Foods unveils clean label cake emulsifier USA -Vantage Food has launched Simply Kake, an alternative to conventional emulsifiers to help food formulators enhance their bakery product quality. The patent-pending ingredient claims to help bakers attain taller, lighter and even textured cakes and sweets with an ideal crumb structure. The product aims to complement food manufacturers’ cleaner label initiatives in the wake of consumer awareness and keen label-watching habits. The Simply Kake emulsifier delivers the baking performance and benefits of traditional, hydrated emulsifiers while avoiding the challenges of working with enzymes, which are delicate to process and have a limited shelf life, details 56

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Vantage Foods. “It offers superior operational tolerance and the ability to increase cake

volume with even, consistent crumb structure,” notes the baking solutions provider. WWW.MILLINGMEA.COM

Danisco Animal Nutrition & Health

Syncra® AVI

AC TIVE PROTEC TION FOR YOU R B I RDS •

Maximises nutrient digestibility

•

Closes the gut borders against threats

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Reduces the energy costs of immune responses

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Creates a favorable nutribiotic state resulting in improved profitability compared to AGPs

PALSGAARD ® SA SERIES

Wow!

Better cakes at a lower cost

We’ve been turning challenges into tastiness for over 40 years. We patented our powdered, whipping-active cake emulsifiers over four decades ago, and to this day they provide a series of benefits to producers of long-life cake manufacturers around the world. Our Palsgaard® SA Series is the perfect alternative to cake gels and shortenings when you’re looking to optimize your cake recipe. They can also help to reduce your egg content – bringing some serious potential cost savings.

BRINGING GOOD THINGS TOGETHER

 Ensures soft, moist and delicious cakes  Convenient powder form – no need for refrigeration  Available from our warehouses across Africa  Produced in Denmark Find out more at www.palsgaard.com/egg-reduction