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 Organisation of the Petroleum Exporting Countries and its allies (OPEC+) will likely stick to its existing deal to cut oil output at a meeting on Monday, April 3.
According to Reuters, this was said disclosed by five delegates from the producer group after oil prices recovered following a drop to 15-month lows due to banking fears and demand worries.
Brent crude has recovered towards $80 a barrel after falling to near $70 on March 20 as fears ease about a global banking crisis and as a halt in exports from Iraq’s Kurdistan region curbs supplies.
OPEC+ is due to hold a virtual meeting of its ministerial monitoring panel, which includes Russia and Saudi Arabia, on Monday.
The consensus was that Kurdistan curbs and recent price drops were not sufficiently important to affect the overall OPEC+ policy path for 2023.
Kurdistan’s crude oil exports – around 400,000 barrels per day shipped through an Iraqi-Turkey pipeline to Ceyhan and then on tankers to the international markets – were halted late last week by the federal government of Iraq.
Last week, the International Chamber of Commerce ruled in favour of Iraq against Turkey in a dispute over crude flows from Kurdistan. Iraq had argued that Turkey shouldn’t allow Kurdish oil exports via the Iraq-Turkey pipeline and Ceyhan without approval from the federal government of Iraq.
Talks between officials from Kurdistan and from the Iraq federal government have failed in recent days, but they are set to continue next week.
Three other OPEC+ delegates also told Reuters that any policy changes were unlikely on Monday. After those talks, the next full OPEC+ meeting is not until June.
Last November, OPEC+ reduced its output target by 2 million barrels per day – the largest cut since the early days of the COVID-19 pandemic in 2020. The same reduction applies for the whole of 2023.
Saudi Arabia’s energy minister, Prince Abdulaziz bin Salman, has said OPEC+ will stick to the reduced target until the end of the year.
By Dipo Olowookere
The board of Oando Plc has informed the investing community of its intention to leave the Nigerian and Johannesburg stock exchanges in the coming months.
The reason for exiting the stock market, according to the energy firm, is to become a private company and to achieve this, its core investor, Ocean and Oil Development Partners Limited (OODP), has offered to buy all the shares held by minority shareholders in Oando.
OODP is offering to pay N7.07 in cash or its equivalent in South African Rand (ZAR) for each of the stock, which it said represents a 58 per cent premium to the last traded share price of Oando on Tuesday, March 28, 2023, being the day prior to the date it submitted the scheme application to the Securities and Exchange Commission (SEC).
Oando trades its shares on the floors of the Nigerian Exchange (NGX) Limited and the Johannesburg Stock Exchange (JSE).
This news comes hours after the company announced that it had bounced back into profitability after years of dishing out losses to the frustration of shareholders.
In its unaudited financial results for 2021, Oando reported a profit after tax of N34.7 billion, in contrast to the loss after tax of N140.7 billion of the preceding year.
Before now, Oando has had it rough with regulators in Nigeria, leading to its suspension from the market and a court tussle over allegations that it tampered with its financial statements to deceive investors.
In the notice released this week, Oando said after the acquisition of “the shares of all minority shareholders in Oando,” it would “subsequently be delisted from NGX and JSE and re-registered as a private company.”
At the moment, the energy firm said it has “applied for the SEC’s No Objection to the scheme, noting that the deal is “subject to the approval of the shareholders of Oando at the Court-Ordered Meeting of the company, as well as the sanction of the Federal High Court.”
However, it disclosed that, “The terms and conditions of the transaction will be provided in the scheme document, which will be dispatched to all shareholders following the receipt of an order from the Federal High Court to convene a Court-Ordered Meeting,” promising to update the market “upon receipt of requisite approvals from shareholders and regulators.”
By Adedapo Adesanya
The World Bank Group’s Board of Executive Directors has announced Mr Ajay Banga, a US national, as the only nominee for the position of the bank’s next president and may clinch the post if he passes the next hurdle.
This was contained in a statement issued by the World Bank on Friday.
“The World Bank Group’s Board of Executive Directors today confirmed that, as announced on February 22, the period for submitting nominations for the position of the next President of the World Bank Group closed on Wednesday at 6:00 pm ET.”
“The board received one nomination and would like to announce that Ajay Banga, a US national, will be considered for the position.
“In accordance with established procedures, the Board of Executive Directors will conduct a formal interview with the candidate in Washington D.C., and expect to conclude the Presidential election in due course,” the board said.
US President Joe Biden in February nominated Mr Banga to lead the World Bank, saying he is “well equipped” to lead the global institution at “this critical moment in history.”
No other country proposed an alternate candidate for the prestigious post.
Mr Banga, 63, was born in India and is a naturalised US citizen. He has led Mastercard Inc and now currently serves as Vice Chairman at General Atlantic.
If confirmed, Mr Banga would become the first-ever Indian-American to head either of the two top international financial institutions, the International Monetary Fund (IMF) and the World Bank.
Mr Banga is expected to replace the current World Bank president, Mr David Malpass, who will step down in June, nearly a year before his term is scheduled to expire.
Mr Malpass faced strong criticism over the bank’s commitment to climate action and over his personal views on climate change.
