Earlier this year, the American family-owned private equity firm acquired a 45% stake in Ethiopian dairy company MB, which trades under the brand name Family Milk. At the time the company processed just over 20,000 liters of fresh milk a day but this has since tripled. SGI is investing in the purchase of new machinery; Family Milk is also set to unveil a new product line by next year.
“Only about 5% of Ethiopia’s milk is produced and sold commercially. So that means 95% of the milk is being consumed at a farmer level. If you go to a supermarket in Addis Ababa in the late afternoon you will find there is no pasteurised fresh milk, so you are forced to buy imported UHT milk at a cost of US$4 per litre,” says Abebe. “We have always been interested in doing a deal in the dairy industry. The problem for us was finding a company that could take the amount of capital we wanted to invest because there are only few players in the dairy industry and most of them are small.” Read more. Source | How We Made It In Africa