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USAID hands over modern dairy processing plant to Kenyan co-operative

KENYA – Kenyan dairy farmers have received a modern dairy plant from the United States Agency for International Development (USAID) which is set to boost milk production.
Located in the Makueni county, Eastern region, the fully installed dairy processing plant has a capacity to pasteurize 1000 litres of milk per hour.
The project was developed through a partnership by the International Livestock and Research Institute (ILRI) USAID and the local country government.
According to the Dairy Farmers Cooperative Society chairman Stephen Kyonda, the plant is a step towards achieving their vision of being the leading cooperative in producing quality and quantity milk in Ukambani.
“Guided by our vision of being the leading Dairy Cooperative Society in producing quality and quantity milk in Ukambani, we have no doubt that this plant is not at the right place,” Kyonda stated.
Speaking during the handover ceremony, Dr Romano Kiome, Chief of Party at ILRI urged the dairy farmers in the region to increase milk production in order maintain steady supply of milk to the plant for meaningful processing.
This comes at a time when the country is set to adopt new regulations that will see dairy farmers receive payment based on the milk quality as opposed to the payment based in weight.
The new payment system seeks to integrate all actors along the milk value chain in order to streamline milk production operations and ensure quality milk.
In Kenya, small scale milk producers account for up to 80% of the total milk produced in the country which is more often than not sold directly into the informal market by retailers.
The country is a high milk producer which according to the Kenya Dairy Board, milk production stands at 5.2 billion litres annually with consumption at the household level amounting to 1.4 billion litres while 2.5 billion litres is supplied in the informal market.
However, post-harvest losses is a major change in the sector causing loss of more than 500 million litres every year.
Other challenges experienced in the sector include high cost of production, low utilisation capacity, seasonal fluctuations, substandard commercial feeds, low quality of milk, weak infrastructure and informal milk trade.
According to Kenya Dairy Board the country boasts of 25 large-scale licensed milk processors with a capacity to handle approximately 650 million litres per year.

Ethiopia recalls and partially bans importation of Rani Mango juices

ETHIOPIA – Food & Drug Administration Authority of Ethiopia has banned the import of one-litre Rani Mango juice after it had earlier removed the product from all food shelves in the market.

Addis Fortune has reported that the newly structured authority took the action following a public alarm that the colour of the juice packaged in plastic bottles changed before the expiry date.

According to Abinet Wondimu, inspection head for the Food, Health and Healthcare Institutes at the Authority, the import ban followed the company’s failure to bring documents and an explanation regarding the issues, after the authority’s repeated requests.

They directive did not however affect importation of the juice products bottled in 0.25lt and 1.5lt canned and plastic containers.

Rani is a brand of fruit-based beverages manufactured by the Saudi Arabia based Aujan Coca-Cola Beverages Company (ACCBC) but is primarily sold in the Middle East.

The juice drink comes in three categories Rani Float, Rani Fruit Drink and Rani Refreshing, available in cans, glass bottles, pet bottles and fiber brick.

FDA restructuring

The Food & Drug Administration Authority, previously referred to as Food, Medicine & Health Care Administration & Control Authority was recently restructured by transferring some of its responsibilities to the federal and regional health bureaus.

With the restructuring effective beginning this fiscal year, the new authority’s main mandate will be controlling food and medicine.

Tasks which the former authority has been dealing with, including quality and standard control of healthcare institutes, issues related with health care professionals and control and follow up of hygiene and sanitation have been allocated to the Ministry of Health and regional health bureaus.

DuPont announces expansion plans for the R&D team with a new clean label hub facility

DuPont announces expansion plans for the R&D team with a new clean label hub facility

 DENMARK – DuPont Nutrition & Health, a Danish bio-based company, has announced it is expanding its R&D team by creating a “clean label hub” at the Brabrand facility.

According to the company, it intends to boost its project pipeline in healthy nutrition and clean label texturant offerings, six new employees will join the existing team to focus on both ingredient and process development.

The hub will feature experts with backgrounds in clean label and sustainability – two fields that often work together and serve related purposes.

Working closely with existing project teams, the hub will bring products to market quickly and help grow the existing project pipeline.

With the ability to utilize the broadest capabilities in terms of natural raw materials access, processing, across fruits, vegetables, seaweeds and nutritional science, DuPont Nutrition & Health has huge potential to develop functional ingredients that meet consumer expectations.

The hub will help customers continue to navigate clean label trends in a proactive and sustainable way.

DuPont Nutrition & Health is seeking creative scientists and engineers to identify ways to convert sustainable and natural raw materials into clean label solutions that meet consumer demands for simplicity and authenticity, all without compromising taste, texture and nutritional qualities.

“Clean label is about creating foods and beverages with ingredients that consumers recognize, feel good about putting into their bodies, and that respect the Earth and its resources,” said Gerard Lynch, R&D Leader, Systems & Texturants, Emulsifiers & Sweeteners.

“Our ingredients are already used in many applications that consumers consider clean label, but there are tremendous opportunities to innovate – creating ingredients that are even more sustainable, using a larger part of the natural raw materials, while providing health benefits to consumers.

Committing to this innovation is critical for our ongoing success and growth.”

Planned to be in place by early 2019, the clean label texturants team will have the opportunity to tackle exciting projects to provide texture and stability for multiple food applications.

“We are excited to launch this hub and put additional team members into place that will help us advance our innovation strategy to support our customers,” said Mikkel Thrane, Global Sustainability Lead, DuPont Nutrition & Health.

“This hub will enable us to continue integrating sustainability and the UN Sustainable Development Goals into our work, and the investment we are making will help us develop healthier, more nutritious and sustainable ingredients for our food supply.”

Zambia’s beverage firm Fairy Bottling invests US$50m in capacity expansion

ZAMBIA – Zambia’s bottling and beverage firm Fairy Bottling Zambia Limited has signed a deal worth US$50 million with the Zambia Development Agency (ZDA) in the expansion project for the manufacturing of plastic containers and production of non-alcoholic beverages, reports Daily Mail Zambia.

The initiative deemed Investment Promotion and Protection Agreement (IPPA) will see cooperation between the company and the agency in promoting trade and investment in the country.

“The project entails expansion of lines that manufacture and produce plastic containers, juices, bottled water, soft and energy drinks,” said Mary Ncube, ZDA chairperson.

The firm will undertake a development project that will involve various development activities geared towards sustainable economic development in Zambia.

“Our desire is to strengthen the bond of friendship and cooperation because we recognise the important contribution investment can make towards sustainable development,” said the company Chief Executive Officer Dr Mohamed El Sahyli.

Dr Sahyli said the company would continue to complement government’s efforts towards creating wealth for the country.

“It is our hope that the investment you will witness here today will create an unforgettable footprint in the respective fields for Zambia in the region.

“We believe that while promoting economic development maybe the government’s sole mandate, it really should be upon all of us to cooperate and support each other,” he added.

In 2017, the company said it invested US$70 million in the buying of equipment and manufacturing of mineral water and drinks from 2009.

Part of the funds were used to advanced machinery for the firm which produces Aquasavana pure mineral water and a wide range of superior carbonated beverages such as American Cola, Bubble up, planet juices and reactor energy drink.

It then said it was exporting its products to the Democratic Republic of Congo and Zimbabwe with plans to increase production capacity and export volumes.

Coca-Cola Company to acquire Costa coffee for US$5.1b

USA – The Coca-Cola Company has announced that it has reached a definitive agreement to acquire Costa Limited, valued at US$5.1 billion, giving it a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion.

Costa Limited, from parent company Whitbread PLC, was founded in London in 1971 and has grown to become a major coffee brand across the world.

According to the company, Costa operations include a leading brand, nearly 4,000 retail outlets with highly trained baristas, a coffee vending operation, for-home coffee formats and Costa’s state-of-the-art roastery.

The company added that upon the closing of the deal, The Coca-Cola Company will acquire all issued and outstanding shares of Costa Limited, a wholly owned subsidiary of Whitbread.

This subsidiary contains all of the existing operating businesses of Costa.

Whitbread will be seeking shareholder approval for the transaction, which is expected to take place by mid-October.

The deal is subject to customary closing conditions, including antitrust approvals in the European Union and China. It is expected to close in the first half of 2019.

Coca-Cola expects the transaction to be slightly accretive in the first full year, not taking into account any impact from purchase accounting.

For the fiscal year 2018 (ending March 1, 2018), Costa generated revenue and EBITDA of US$1.7 billion in revenue and US$312 million in EBITDA.

For Coca-Cola, the expected acquisition adds a scalable coffee platform with critical know-how and expertise in a fast-growing, on-trend category.

Costa ranks as the leading coffee company in the United Kingdom and has a growing footprint in China, among other markets.

Costa has a solid presence with Costa Express, which offers barista-quality coffee in a variety of on-the-go locations, including gas stations, movie theaters and travel hubs.

“Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide,” said Coca-Cola President and CEO James Quincey.

“Hot beverages is one of the few segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market with a strong coffee platform.”

Coffee is a significant and growing segment of the global beverage business. Worldwide, coffee remains a largely fragmented market, and no single company operates across all formats on a global basis.

“The Costa team and I are extremely excited to be joining The Coca-Cola Company,” said Costa Managing Director Dominic Paul.

“Costa is a fantastic business with committed and passionate associates, a great track record and enormous global potential. Being part of the Coca-Cola system will enable us to grow the business farther and faster.

I would like to say a huge thank you to our customers and to everyone in the Costa team who have helped us build the business to this position, and I look forward to the next exciting chapter in Costa’s vision of Inspiring the World to Love Great Coffee.”

According to Reuters, Costa is the world’s second largest coffee chain, and is looking to triple its presence in China, where it’s second to Starbucks.

It added that according to consumer analysts Kantar Worldpanel, the out-of-home coffee market is worth US$7.35 billion a year in the UK alone.

The Guardian also said that coffee is proving hot business with Coke’s deal coming after Swiss food giant Nestlé started a US$7.15bn deal to license Starbucks packaged coffees and teas around the world.

“Coca-Cola is one of the few companies in the world that could justify the [Costa Coffee] valuation,” said Nicholas Hyett, equity analyst at Hargreaves Lansdown.

“Its global reach should turbocharge growth in the years to come, and hot drinks are one of the few areas of the wider beverages sector where the soft drinks giant doesn’t have a killer brand.”

FoodingredientsFirst reported that coffee is trending among Millennial and Generation Z consumers and that more ingredients are made in ways that are more convenient to consume and moving from the coffeehouse to the home.

The coffee sector is undergoing somewhat of a renaissance, with a focus on upscaling premium coffee experiences or remaking them in the comfort of consumer homes and several major acquisitions taking place last year among key manufacturers, including Nestlé and Unilever.

The focus seems to be on upscaling premium coffees, exploiting the growing market for cold-brewed coffee and the sector has experienced dramatic growth in recent years.