SOUTH African dairy and food processing giant, Clover Group, will invest US$520,000 in the initial phase of its entry into Zambia, which would see the country transformed into a processing and distribution hub for the southern half of sub-Saharan Africa.Clover Africa business development manager, Pieter Uys said the group had decided to enter the Zambian market in order to make Zambia a processing and distribution hub for its products.
At the launch of Clover Zambia in Lusaka on Thursday, Mr Uys said the Clover group wanted to make a footprint in Africa and saw Zambia as a strategic entry point.
We want to grow in Zambia as a dairy production and processing hub for the region and we expect to export dairy products from Zambia to countries like the Democratic Republic of Congo and Malawi, he said.
Mr Uys said the company, which was targeting to capture 20 per cent market share in the first year of operation in Zambia, would also like to contribute to national food security by helping to increase milk production.
He said there was potential for milk processing and consumption in Zambia, where total milk intake was below 20 million litres per annum. According to 2006 figures by Parmalat Zambia, the total milk intake was 19,650,000.
The company has long term plans to set up a fully-fledged plant in Lusaka.
For now, however, Clover Zambia would be importing milk from South Africa and Finta locally, which it would be packaging while INNSCOR would be marketing and distributing the product.
And Clover South Africa executive for brands and marketing, Chris Lerm said there was need to increase the retail distribution of milk in Zambia.
Mr Lerm said the Clover group was also discussing with authorities in Nigeria and Sudan to expand into those markets.
Launching Clover Zambia at Lusakas Intercontinental Hotel, Commerce, Trade and Industry Deputy Minister, Richard Taima said the 19 million litres total annual milk intake was very low because it translated into only 1.3 litres per person per annum.
Mr Taima said there was need to promote intake of milk because it had health and nutritional value, adding that he hoped the coming of Clover into Zambia would help to increase milk intake among Zambians.
The coming of Clover to Zambia is very significant because it will mean increased competition in the sector, which is healthy for emerging markets like Zambia and very healthy for the consumer, he said.
Times of Zambia
Post published in: Economy