Three new De Heus feed mills are commencing operations in Uganda, India and Kenya, all within a period of just three months.
Three different market needs
Uganda, Kenya and India are all dealing with inefficiencies in their value chains.
In Uganda, fish is a big part of the country's diet. "Aquaculture is growing, but almost all aquafeed is imported, so the price of fish feed is too high,” said Stefan van den Bogaard, group director Technology & Investments, in a press release. “The first step towards a sustainable food supply is domestic production of high-quality aquafeed. That's why we've invested in an aquafeed plant in Njeru, near Jinja, on the north shore of Lake Victoria. By reducing dependence on imported feed, avoiding stock-outs, and providing high-quality extruded aquafeed, we will help lower costs for local farmers and increase their incomes."
Kenya relies heavily on imported raw materials, which is one of the key reasons agriculture has become the government's top priority. "They're also concerned about the health of the population," explained Stefan. The new De Heus factory in Athi River, near Nairobi, is a dedicated animal feed plant and will serve the country's poultry, swine, and ruminant sectors.
The situation in India is slightly different from Uganda and Kenya. "We already produce animal feed at a rental factory in India," said Stefan. The new greenfield project in Rajpura, Punjab, will produce feed for ruminants, swine and poultry.
Cutting-edge factories
All three feed mills will be modern facilities using state-of-the-art equipment. "We import equipment to ensure high production efficiency and stable quality," said Stefan. "Our suppliers include several international companies with whom we've built strong relationships through our operations in Europe and Asia."
In choosing equipment, quality is always paramount. "In Uganda, for example, we could use horizontal dryers, which are generally easier to operate and cheaper," continued Stefan. "But they don't deliver the same superior results as vertical dryers. This is what we learned by experience in other aquafeed plants." Moreover, the Group CAPEX team members design the entire production process in-house, giving the company a major competitive advantage across the globe.
To safeguard feed quality, all three feed mills will also have their own professional laboratory on site. As a result, farmers can rely on a stable quality of De Heus feed consistently, the company said.
Construction challenges and local employment
Building factories in other countries isn't always smooth sailing. A substantial part of the construction materials and equipment is imported from Europe and Vietnam.
“Due to our strong presence in many countries – and because some of our team members have lived abroad – we have preferred suppliers for automation and installation supervision, which we engaged for several projects. That’s the huge benefit of our global presence and network,” said Stefan.
The actual construction is carried out by local contractors and workers, which can present challenges, particularly as attitudes towards construction safety and quality can vary significantly across Uganda, India and Kenya. To ensure high standards and smooth project execution, De Heus assigned experienced project managers and technical specialists to each location.
As well as providing employment for construction workers, the finished factories will be staffed by local people.
The factories in Uganda and India started testing and commissioning in June and are expected to deliver commercial products in August of this year, followed by the Kenyan factory launching in October.
"We have built three new feed mills in relatively new markets, with unfamiliar contractors, in three different countries simultaneously," said Stefan. "That's quite unique and demonstrates what De Heus is capable of as a global organization."
