The new partnership with DOB Equity will further give Countryside Dairy access to the world-renowned dairy processing technical capabilities in the Netherlands.
NAIROBI, Kenya, Dec 15 – Dutch DOB Equity fund is investing in Countryside Dairy Ltd the Nyahururu-based dairy-processing firm, to allow the firm to scale up its production capacity and expand its reach across the lower income market.
DOB Equity has taken up a stake in the dairy at a publicly undisclosed value as part of a commitment to increase social impact investment deals in Kenya.
By investing in Countryside Dairy, the Private Equity fund – which has offices in Kenya, Tanzania and the Netherlands – will be seeking a slice of the Sh100billion Kenya Dairy sub-sector.
Countryside Dairy is an integrated milk processing company with a high-quality processing plant and an installed processing capacity of 100,000 litres daily.
The dairy company’s business model is based on serving the underserved low-income segment of the populations.
This latest investment will expand DOB Equity’s current equity portfolio in the regional dairy sector, where it already holds a stake in Tanga Fresh, the Tanzania-based dairy processor.
“Our latest deal in the East African dairy sector will allow Countryside Dairy to beef up its supply chain and offer better purchase prices to farmers while guaranteeing product traceability,” said Brigit van Dijk-van de Reijt, CEO of DOB Equity.
Countryside Dairy currently distributes its flagship Countryside Dairy Fresh milk product to markets in Nairobi, Eldoret and Nakuru. It also has plans for retail milk products that would guarantee low-income consumers access to high-quality, fresh milk products at lower prices.
Dairy Managing Director of the dairy company, George Mwangi, said the entry of DOB Equity will help to further boost the firm’s efforts to enhance value for Kenyan Dairy farmers.
“DOB Equity’s investment has come at a crucial growth stage for Countryside Dairy and will allow us to create innovative marketing concepts for dairy products aimed at the low-income segment of the population stressing that low-cost, high-quality milk plays an essential role as a key part of a healthy diet.”
The new partnership with DOB Equity will further give Countryside Dairy access to the world-renowned dairy processing technical capabilities in the Netherlands.
Saskia van der Mast, Investment Manager at DOB Equity, said the formal market for processed milk is still in its infancy and valued at only $570 million, with an estimated potential value of $2.8 billion annually as the dairy market matures.
“Currently, only 13% of total milk products are traded formally,” said Van der Mast.
