$35 Million Investment Boosts East Africa's Dairy Sector and Food Security
Source: The DairyNews
A significant $35 million investment has been secured to fortify the dairy industry and food security in East Africa, particularly benefiting Uganda and Kenya.
This financial infusion, provided to Pearl Dairy Farms Ltd by the International Finance Corporation (IFC) and Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO), aims to enhance the dairy processing capabilities in the region and improve market access for smallholder farmers.
The funding will be used for critical upgrades to Pearl Dairy Farms Ltd’s powdered milk plant in Uganda and for acquiring a new packing facility in Kenya. These enhancements are expected to bolster the company’s production capacity and expand its reach across East African markets.
Amit Sagar, CEO of Pearl Dairy Farms Ltd, emphasized the investment’s role in driving sectoral growth and sustainability. "This facility is not just an investment in Pearl Dairy Farms but a leap forward for the entire region’s dairy sector. It will enable us to support over 15,000 farmers by providing essential training and resources, thereby increasing their productivity and profitability," he stated.
The investment is part of a broader strategy by Uganda's Dairy Development Authority, which introduced the Dairy Policy Action Plan in 2022. The plan addresses various sector challenges, including fluctuating milk supplies, underutilization of processing facilities, and the need for higher quality standards to meet international trade demands.
Bart Turtelboom, Chairman and CEO of Delphos, which facilitated the financing, highlighted the economic benefits of modernizing the dairy value chain. "Investments like these not only enhance food security but also create substantial economic returns, driving inclusive growth across communities," Turtelboom explained.
The funding is expected to have a transformative impact on the regional dairy market, improving food security and stabilizing the dairy supply chain against economic fluctuations. This development comes on the heels of Pearl Dairy Farms Ltd's expansion into the Kenyan market, where they have partnered with the Kenya Development Corporation to invest in local dairy operations.
Overall, this $35 million investment is set to play a pivotal role in advancing sustainable agricultural development and economic growth in East Africa’s dairy sector.
The funding will be used for critical upgrades to Pearl Dairy Farms Ltd’s powdered milk plant in Uganda and for acquiring a new packing facility in Kenya. These enhancements are expected to bolster the company’s production capacity and expand its reach across East African markets.
Amit Sagar, CEO of Pearl Dairy Farms Ltd, emphasized the investment’s role in driving sectoral growth and sustainability. "This facility is not just an investment in Pearl Dairy Farms but a leap forward for the entire region’s dairy sector. It will enable us to support over 15,000 farmers by providing essential training and resources, thereby increasing their productivity and profitability," he stated.
The investment is part of a broader strategy by Uganda's Dairy Development Authority, which introduced the Dairy Policy Action Plan in 2022. The plan addresses various sector challenges, including fluctuating milk supplies, underutilization of processing facilities, and the need for higher quality standards to meet international trade demands.
Bart Turtelboom, Chairman and CEO of Delphos, which facilitated the financing, highlighted the economic benefits of modernizing the dairy value chain. "Investments like these not only enhance food security but also create substantial economic returns, driving inclusive growth across communities," Turtelboom explained.
The funding is expected to have a transformative impact on the regional dairy market, improving food security and stabilizing the dairy supply chain against economic fluctuations. This development comes on the heels of Pearl Dairy Farms Ltd's expansion into the Kenyan market, where they have partnered with the Kenya Development Corporation to invest in local dairy operations.
Overall, this $35 million investment is set to play a pivotal role in advancing sustainable agricultural development and economic growth in East Africa’s dairy sector.
