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Bidco Africa partners with Land O'LakesBidco Africa partners with Land O'Lakes

Partnership will facilitate the manufacture of higher-quality animal feed in Kenya and offer new animal nutrition product technologies.

August 15, 2016

3 Min Read
Bidco Africa partners with Land O'Lakes

Land O’Lakes Inc. and Bidco Africa announced a partnership, executed in March, that will capitalize on the growth potential of agricultural markets in Kenya.

The two organizations are leveraging their distinctive and complementary animal feed portfolios to create Bidco Land O’Lakes Ltd., a new joint venture business that will help farmers to substantially improve animal nutrition. Improved feed is fundamental not only for ensuring optimal animal health and wellbeing, but also for generating the improved yields that will foster agricultural productivity and enhanced food security in East Africa.

This is Land O’Lakes’ 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, the announcement said.

Through this deal, Land O’Lakes and Bidco will each assume an equal ownership of the new joint venture, which will combine the animal feed leadership of Land O’Lakes with Bidco’s market knowledge and distribution networks across East Africa, along with its rapidly growing feed business.

Bidco is the largest 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, the announcement said.

“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 of Land O’Lakes.

While Land O’Lakes 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. Its projects help to transform the lives of farmers and enterprises so that they can move out of subsistence farming and towards profitability.

In this venture, Land O’Lakes 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. Bidco Land O’Lakes Ltd. will also explore the development of new value-added feed products and services designed to meet the specific needs of local farmers, the companies said.

“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.”

Founded in 1970, Bidco Africa is East Africa’s leading fast-moving consumer goods enterprise, manufacturing more than 45 different kinds of consumer goods. Its products are marketed efficiently and seamless across the region and to 17 countries in central and southern Africa.

Land O'Lakes, a premier agribusiness and food company, is a member-owned cooperative with industry-leading operations that span the spectrum from agricultural production to consumer foods. With 2015 annual sales of $13 billion, Land O'Lakes is one of the largest cooperatives in the U.S.

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