The new joint venture business will help farmers to substantially improve animal nutrition. Improved feed is fundamental not only for ensuring optimal animal health and well-being, but also for generating the improved yields that will foster agricultural productivity and enhanced food security in East Africa, Land O’Lakes said.
Through the deal, Land O’Lakes, Inc. and Bidco each will be assuming an equal ownership of the joint venture. The new business will combine the animal feed leadership of the Land O’Lakes, Inc. business with Bidco’s market knowledge and distribution networks across East Africa, along with its rapidly growing feed business. Bidco is a manufacturer of vegetable oils, fats, hygiene products and laundry detergents in East and Central Africa. While animal feed production will be focused on Kenya, further expansion into other East African countries is expected.
|Chris Policinski, president and CEO of Land O’Lakes, Inc.|
“This investment in Kenya presents an important and exciting opportunity to concurrently expand our international commercial footprint, while creating a meaningful opportunity for farmers across East Africa to access the high-quality feed they need to achieve profit-generating yields,” said Chris Policinski, president and chief executive officer (CEO) of Land O’Lakes, Inc.
In this venture, Land O’Lakes, Inc. will bring proprietary products, quality and food safety expertise, services and insights delivered in the U.S. through its animal nutrition business to complement the existing portfolio that Bidco offers the East African market, Land O’Lakes said. Bidco Land O’Lakes, Ltd. also will explore the development of new value-added feed products and services designed to meet the specific needs of local farmers.
|Vimal Shah, president and CEO of Bidco Africa.|
“This is an exciting new chapter for us, and will allow us to experience meaningful growth in the feed sector, while making a positive impact on local farmers,” said Vimal Shah, president and CEO of Bidco Africa. “Farmers in Kenya need access to critical resources like high quality feed, otherwise, their efforts will be both inefficient and ineffective.”
This is Land O’Lakes, Inc.’s second commercial investment in Africa following a recent announcement about a new joint venture with Villa Crop Protection in South Africa, and reflects the cooperative’s accelerated focus on growing its international business.
While Land O’Lakes, Inc. is just beginning to expand its commercial footprint in Africa, Land O’Lakes International Development, a 501(c)(3) nonprofit affiliated with the commercial enterprise, has been in Africa since 1981. The organization’s projects help to transform the lives of farmers and enterprises so that they can move out of subsistence farming and towards profitability, Land O’Lakes said.
Founded in 1970, Bidco Africa, Ltd. is one East Africa’s largest consumer goods enterprise, manufacturing more than 45 different kinds of consumer goods. Its products are marketed efficiently across the region and to 17 countries in central and southern Africa. Bidco’s aim is ensure customer satisfaction and loyalty by offering quality world-class daily consumer products at competitive prices. Armed with credentials including ISO and HACCP certification, Bidco manufactures and markets high quality and popular products with a vision of becoming the market leader throughout Africa by 2030.