Into Africa
ALLER Aqua is expanding its African business with the construction of a new feed plant in the Zambian town of Siavonga, on the shores of Lake Kariba. The Danish feed firm has already established a firm foothold on the continent, with a fast growing operation in Egypt, and sales bases in Nigeria, Kenya and Ghana.
The family owned group, with headquarters in Christiansfeld, exports to more than 60 countries worldwide, from factories in Denmark, Poland and Germany, as well as the facility in Egypt. It is also building a US$10 million feed factory in China, due to be completed this year.
The latest development in landlocked Zambia follows an agreement with the country’s biggest tilapia producer, Yalelo, owned by Oakfield Holdings, which has a licence to farm 30,000 tonnes over the next few years.
This will provide a base for the feed plant to grow and supply the surrounding area. With a production capacity of 50,000 tonnes a year, it will be the most technically advanced fish feed factory in Southern Africa, says Aller Aqua.
Zambia has the resources to be the leader in regional fish production, according to Yalelo, and Siavonga could emerge as the aquaculture capital of sub-Saharan Africa.
Henrik T. Halken, vice chair of Aller Aqua Zambia, said the group has a clear and expansive strategy for Africa. The company has invested US$10 million in the African factory, which should be completed by September this year.
‘With the investment in Zambia, we will be the market leader in Africa in terms of modern and environmentally friendly fish feeds for aquaculture,’ he said. ‘This will enable us to expand our sales not only in Zambia but also the surrounding countries.’
Aquaculture in Zambia is developing at a rapid pace, backed by government support, with the creation of the new Ministry of Livestock and Fisheries, as well as the Aquaculture Development Association of Zambia.
But exporting feed from Europe is ‘simply too expensive’, so it made sense to supply the burgeoning industry from a local source. About 95 per cent of the raw material – mainly soy and corn - for the feed facility is produced in Zambia, said Halken.
‘There are a lot of smallholders in Zambia but the problem is there is no good quality of fish feed and if there is no good feed then you are not able to grow many fish.
‘The Zambian government has a huge focus on growing more fish because there are a lot of imports coming from China and they want to produce their own in Zambia.
‘They prefer to have fresh fish rather than frozen – that’s their market. And if you can grow more fish you can put more people into work, if you can get more people out of poverty then I think we have a very good case in Zambia.
‘The country has about 15 million inhabitants but the surrounding countries will also be served from the new factory.’
The government has a huge focus on growing
Zambia aims to be self-sufficient with farmed fish and also export to neighbouring countries such as Angola, Zimbabwe, Mozambique, Botswana, Namibia, Malawi, Tanzania and Congo.
Aquaculture is expected to play a significant role in African food security and lakes such as Kariba, Victoria and Volta offer great potential.
The African market is expected to grow significantly in the coming years. The number of inhabitants is rising quickly and the population will need healthy food which is high in protein. Fish farming and locally produced fish is part of the solution for this, and fish farming can further help people get a livelihood and get out of poverty.
Based on their success in Egypt, Aller Aqua Zambia will demonstrate the cost efficiency of its extruded feed to potential clients.
‘Our feed is better but it’s more expensive and you have to utilise it in the best possible way,’ said Halken. ‘We meet the clients and explain how things work. We have to do the calculations for them and show that maybe instead of growing x amount per hectare of ponds they can grow x times two if they have the right feed.
‘In Egypt we have set up a trial farm testing our feeds against the less environmentally friendly feeds and showing that it’s worthwhile investing more money in the feed because they can grow fish faster.’
Aller Aqua will also set up a trial farm in Zambia and people are welcome to see the Yalelo farm in action, said Halken.
‘In Egypt we are growing capacity with a third feed line. We have been training people and supporting the clients, we have been able to produce more fish with less feed. It’s more cost efficient. The way we are working in Egypt, and the way we are working in Africa in general, is exactly the same as what
we’re going to do in Zambia.
‘There is a lot of direct contact with clients, a lot of seminars and basic training to bring them up date and to use the feed in the right way.’
He said the construction of the Zambia factory is on schedule and ‘a fantastic team’ is in place, including a manager from South Africa, Leon Gunter, who will oversee 70 to 80 employees.
‘Obviously, there are many challenges when building in Africa compared to Denmark,’ said Halken, pointing out the political problems in neighbouring Zimbabwe.
‘It’s not a walk on the beach! There was a huge devaluation of the currency in Egypt, and also a big devaluation in Nigeria. People don’t have enough foreign currency to pay out for raw materials.
‘But the strength of the Aller Aqua Group is if we see opportunities we take them. We are quick in making decisions.
‘There will be some bumps on the road but we will overcome these. Bear in mind that when we started in Egypt we had a revolution a few years later!’
Africa is going to be a core market for the Aller Aqua Group in the future, he said.
‘We are quite certain, as in Egypt, if you produce the right quality, support your clients and teach them how to use the feed, then we will be successful. I’m quite convinced this is going to take place in Zambia as well.’