KENYA – The Competition Authority of Kenya (CAK) has approved Aaryan Investments Limited’s 50 percent stake acquisition in animal feed joint venture by Bidco Africa and American Conglomerate Land O’Lakes.
AIL controls Bidco Africa Limited which, through its subsidiaries, manufactures fast-moving consumer goods and fruit-based drinks.
“Based on the foregoing, the authority approved the proposed acquisition of 50 percent shareholding in Bidco Land O’ Lakes Limited by Aaryan Investments Limited unconditionally,” said the CAK in a notice to the public.
AIL is buying more stake in the American firm barely a few months after Bidco Africa teamed up with Land O’Lakes to invest US$11.12 million in the upgrade of an animal feed factory in Nakuru city, which is located approximately 157 kilometres from the capital city Nairobi.
At its inception in 2019, the plant was expected to have a processing capacity of 28 tonnes per hour, a move that will raise competition in the industry against existing players such as Unga Group, Pembe Feeds, Sigma Feeds, Mombasa Maize Millers, Pioneer Feeds etc.
According to a study undertaken by the Kenya Market Trust, a non-profit in Kenya working on agriculture market systems, in 2016, there were 209 registered animal feed manufacturers in Kenya and 96 suppliers of raw materials, out of which ninety-four entities engage in both commercial activities.
Distribution zones of the feed manufacturers and suppliers are concentrated in the commercial dairy and poultry regions – Central and Rift Valley.
The new plant produces four products, Pro Calf Starter, Pro Heifer Developer, Pig Starter 4-4-4 and Pro Calf Milk replacer into the Kenyan market and incorporates new technology to test every load of ingredients for quality (aiming for zero aflatoxins or other harmful elements) while ensuring the right mix of nutritional elements.
Bidco, with a presence in 18 African markets said the new products will supplement Bidco Feeds brands that are processed at their Thika-based feed mill which has a capacity to process 48,000 tonnes a year.
Land O’Lakes is based in Arden Hills, Minnesota, U.S., and produces animal feed, dairy products and crop seed and is owned by farmers.