Economy
Research Shows Leaders In Africa Dairy Product Market by Revenue
By Modupe Gbadeyanka
According to a market research report titled ‘Africa Dairy Products Market Outlook to 2020 – Inclining Demand for Yoghurt and Ice Cream across Africa to Boost Dairy Product Market’ by Ken Research.
Growing purchasing power parity and gross domestic product (GDP) of various African countries which majorly include Uganda, Sudan, and Kenya are the major factors which have driven the market for dairy products in Africa.
However, declining annual per capita consumption of dairy products which majorly includes milk powder, butter, and cheese in other major economies of the continent including South Africa, Nigeria, Tanzania, Ethiopia, and Algeria is restraining the market.
Dairy market in Uganda is largely unorganized with the presence of large number of small scale dairy farmers.
Processed milk is observed to dominate the Uganda dairy product industry owing to increased demand as an effect of government effort to remove problem of malnutrition in the market.
Uganda has a highly fragmented market with the presence of large number of small scale players with few global giants operating in the market.
Cows are the main milk producer in African countries but in Ethiopia a small proportion of milk contribution is done from camels and goats too in the pastoralist areas.
The dairy market in Ethiopia is facing few major constraints such as rapidly increasing population compared to livestock population in the nation, inferior feed quality and poor management of milk producing animals creating fertility problem and low disease resistance among cattle.
The growing trend among people to consume yoghurt as a substitute of dessert owing to its low sugar content is one of the major factor contributing towards growth of the segment. High prevalence of diabetic population in the continent has also increased the demand for yoghurt as dessert in Africa.
Additionally, the efforts by the market players to provide yoghurt to customers in diverse flavors and small packing as per their needs in economically sensitive countries of Africa further augment the sales of yoghurt.
Processed milk has a high nutrition value and is the only form of food which can provide complete nutritious diet to any individual. The fact makes the product most favourable and highly demanded dairy product in Africa as the continent is fighting against the problem of malnutrition among the children.
Tiger brands followed Unilever in the South Africa butter market owing to its affordable price range. Low labour costs and skilled workforce helped the company in providing butter at low price compared to its competitions in the market.
Wagasi is the most popular cheese made by the Fulani people from fresh cow milk. This type of cheese is most popular in the populated nations of Africa such as Nigeria, Guinea, Mali, Niger, Cameroon, Chad and South Sudan owing to its local production and habit of the taste among the people.
Ayibe cheese market is majorly driven by its high popularity in Ethiopia. Additionally, its own unique flavour had helped the food product gain status of complementary food item in the course of high class people of Africa to soften the effect of spicy food, hence driving the market.
High production of vanilla in African nation like Uganda has provided abundant natural raw material for ice cream manufacturing. Moreover, coco production is also high in the nations such as Ghana and Nigeria. High availability of natural raw material results in high manufacturing of vanilla and chocolate ice creams in various nations of Africa, making them dominating segments in the overall ice cream market.
South Africa dairy product market is a well-established market with the presence of recognized brands such as Parmalat, Dairybelle, Clover, Unilever, Nestle and Danone.
The established market players are recommended to setup their own manufacturing units across various nations in Africa and should fix the certain quantity of production exclusively for South African market which will help them to increase their market share in the nation by offering their dairy products at an affordable competitive price range hence, overcoming the local competition.
The dairy product market in Africa is speculated to have an increased number of organized players in future due to which market competition in various segments of dairy products will get more intense and competitive.
The impact of new entrants in the market would impact price of the products. It has been forecasted that the price of various milk powder would decrease in the future due to which market share for milk powder in the overall dairy product market in Africa is speculated to decrease.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its stay in the south for the fourth consecutive session after it shed 1.18 per cent on Friday, March 13.
The unlisted securities market recorded a loss despite closing without a price decliner, and ending with two price gainers led by Geo Fluids Plc, which gained 1o Kobo to sell at N3.10 per share compared with the previous day’s N3.00 per share. Industrial and General Insurance (IGI) Plc appreciated during the session by 2 Kobo to trade at 54 Kobo per unit versus Thursday’s closing price of 52 Kobo per unit.
When the market closed for the day, the market capitalisation lost N29.83 billion to close at N2.489 trillion compared with the N2.519 trillion it finished a day earlier, and the NASD Unlisted Security Index (NSI) crashed by 49.84 points to 4,160.46 points from 4,210.31 points.
Market activity improved yesterday, as the volume of transactions rose 179.5 per cent to 10.4 million units from 3.7 million units, but the value of trades declined by 68.4 per cent to N29.9 million from N95.0 million, while the number of deals weakened by 11.5 per cent to 46 deals from 52 deals.
Central Securities Clearing Systems (CSCS) Plc remained the most active stock by value on a year-to-date basis with 38.4 million units worth N2.4 billion, Okitipupa Plc followed with 6.4 million units traded at N1.1 billion, and FrieslandCampina Wamco Nigeria Plc transacted 6.3 million units for N584.3 million.
Resourcery Plc ended the trading session as the most traded stock by volume on a year-to-date basis with 1.1 billion units valued at N415.6 million, trailed by Geo-Fluids Plc with 130.8 million units valued at N504.5 million, and CSCS Plc with 38.4 million units worth N2.4 billion.
By Adedapo Adesanya
The Naira continued to claw back some gains against the Dollar in the different segments of the foreign exchange (FX) market, as its value was strengthened on Friday.
In the black market, it gained N10 against the United States Dollar yesterday to close at N1,400/$1 compared with the preceding day’s rate of N1,410/$1, and at the GTBank forex counter, it chalked up N6 to close at N1,385/$1, in contrast to the N1,391/$1 it was traded a day earlier.
Similarly, in the Nigerian Autonomous Foreign Exchange Market (NAFEX), it appreciated against the greenback during the session by N5.28 or 0.38 per cent to quote at N1,366.23/$1 versus Thursday’s closing price of N1,371.51/$1.
It also improved its value against the Pound Sterling in the official market on Friday by N21.81 to settle at N1,812.99/£1 compared with the previous day’s N1,834.80/£1, and gained N13.86 against the Euro to sell at N1,568.03/€1 versus N1,581.89/€1.
Pressure eased further on the FX market as the Central Bank of Nigeria (CBN) continued interventionist operations this week, selling Dollars to banks to boost liquidity after a $500 million boost last week.
This was complemented by inflows from foreign investors, exporters and non-bank corporates, among others, while Nigeria’s gross external reserves remained above $50 billion, the highest since 2009.
The Governor of the apex bank, Mr Yemi Cardoso, also eased fears of a Naira devaluation, saying the country’s financial system has been strengthened by reforms.
Regardless, external pressure looms as the US Dollar strengthened globally due to its war with Iran, now ongoing for three weeks.
Meanwhile, the cryptocurrency market was largely down as traders and investors continue to align with current realities.
The market is adapting to the conflict in real time. Early in the war, every headline produced an outsized reaction because nobody could price the tail risk. Now, traders have a framework where strikes happen, oil spikes and bitcoin dips only to recover again.
Cardano (ADA) depreciated by 3.8 per cent to $0.2623, Dogecoin (DOGE) lost 1.7 per cent to finish at $0.0948, Ripple (XRP) slumped 1.5 per cent to $1.39, Solana (SOL) dropped 1.4 per cent to sell for $87.33, Binance Coin (BNB) went down by 1.3 per cent to $653.58, Bitcoin (BTC) declined by 1.1 per cent to $70,670.63, and Ethereum (ETH) decreased by 0.9 per cent to $2,078.78.
However, TRON (TRX) appreciated by 1.7 per cent to $0.2941, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Adedapo Adesanya
The price of the major crude oil grade, Brent crude oil, closed above $100 on Friday for the second consecutive session, as the Iran war heads toward its third week, with oil tanker traffic through the Strait of Hormuz still effectively at a standstill.
It gained 2.67 per cent or $2.68 during the trading day to close at $103.14 per barrel, while the US West Texas Intermediate (WTI) crude oil grade appreciated by 3.11 per cent or $2.98 to settle at $98.71 per barrel.
Brent futures were up about 10 per cent for the week following the 27 per cent rise seen last week, which marked the biggest weekly gain in oil prices since the COVID-19 pandemic in 2020. WTI futures, which saw their best week since 1983 last week, ended the week more than 8 per cent higher.
US President Donald Trump said American forces launched a major bombing raid on Iran’s strategic Kharg Island, targeting military facilities on the key Persian Gulf outpost while warning Iran that its vital oil infrastructure could be destroyed if shipping in the Strait of Hormuz is disrupted.
The terminal accounts for roughly 90 per cent of Iranian crude shipments, loading millions of barrels per day onto tankers bound largely for Asian markets.
The US and Israel’s strikes in the conflict have largely targeted Iranian military and nuclear infrastructure. Oil facilities elsewhere in Iran have been hit, but Kharg’s massive storage tanks, jetties, and pipelines had remained untouched until the latest strike.
Iran’s new supreme leader, Mojtaba Khamenei, vowed to keep fighting in a message delivered via state television.
There have been a number of attacks on foreign ships in or near the Strait, feeding into concerns that a prolonged war could translate to a global economic shock.
Prices are rising despite the US and its allies rolling out some measures to keep a lid on energy costs.
The International Energy Agency (IEA) has agreed to release 400 million stockpiled barrels, the largest such action in history.
The US has issued a 30-day waiver for India to purchase sanctioned oil from Russia. President Donald Trump is considering loosening rules under the Jones Act that require American ships to transport goods between domestic ports, including oil and gas, in an effort to lower costs.
Traders are continuing to monitor developments in the Middle East.
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