Milk is big business in Africa – driven by a rising economy, changing consumer tastes and increasing demand for protein
The dairy processing value chain – from farmers, distributors, processors, retailers and suppliers – are critical in the growth of many economies in the Continent, providing critical employment and nutrition to hundreds of millions of consumers in Africa everyday.
The demand for fresh and UHT milk products, fermented products (yoghurt, traditional varieties), cheese, butter, ghee, dairy drinks and other products are increasing in sub-Saharan Africa at a significant rate, most often in double digits per year.
The region is also a big importer of milk powder for direct consumption or to be reconstituted into packaged milk to meet shortfall in local production of milk, despite the increasing investments in the milk production and processing across the Continent.
High value products including yoghurt, cheese, dairy drinks/blends and butter offer excellent growth potential as consumers adopt new consumption habits, which are partially driven by the emergence of international retailers, hotels and foodservice players in the Continent.
AFMASS Conferences & Expos provide the dairy industry in sub-Saharan Africa with a one-stop shop to source solutions that reduce costs of and simplify formulations; improve efficiency of production, packaging, and supply chain; increase food safety and regulatory compliance; and reduce environmental impact of the industry.
Apart from locally-owned dairy companies, a number of international giants including Danone, FrieslandCampina, Nestle, Fonterra and Parmalat are active in a number of countries in the Continent. It is expected that their entry and growth will drive further sophistication of the sector and investments in the region, going forward. Acquisitions of local dairy companies by multinationals is expected to continue to increase significantly in the next few years, as the giants jostle to meet Africa’s rising demand for dairy products.
While the traditional giant, Kenya’s dairy industry, has realised a lot of value from local processing – but where huge opportunties to drive value still exist – countries like Uganda, Zambia, Sudan, Nigeria, Tanzania, Ethiopia, Ghana, among others, have in the last few years seen a rise in investments in production and processing capabilities in the dairy sector – making the dairy industry one of the key industries of interest in sub-Saharan Africa’s food industry.