International dairy companies target African market

Dutch dairy processor Friesland Campina recently acquired Olam International’s Ivory Coast dairy business for US$25 million. The goal of this action is to strengthen its presence in West Africa. Friesland Campina already has a manufacturing plant in Nigeria. According to Friesland Campina, they plan to export milk powder from the Netherlands to the Ivory Coast. They have identified West Africa as an area of interest for expanding their business.

This follows closely on Danone’s announcement that they bought a 40% stake in Brookside Dairies, the largest milk collector in East Africa. Danone has invested more than €1 billion (R1,5 billion) in Africa in the past two years. According to Emmanuel Marchant, in charge of Danone’s development in international markets outside Europe, Japan and the US, Danone continues to look for opportunities to expand in Africa.

Commenting on international companies’ increased involvement in Africa, MPO CEO Mr Bertus de Jongh said international companies are targeting Africa for further investment and expressed the hope that South African dairy processors will also explore the opportunities.