Fish feed. (Photo: Aller Aqua Group)
Aller Aqua builds fish feed factory in Zambia
(DENMARK, 3/31/2016)
Dutch environmentally friendly fish feed producer Aller Aqua Group is building a new factory in Zambia as part of its plan to further implement their proactive growth strategy.
To carry out the initiative Aller Aqua has partnered with tilapia aquaculture firm Yalelo Limited, which has commenced an expansion project to increase production to 20.000-30.000 tonnes of tilapia within the next few years.
The new company and factory will be called Aller Aqua Zambia Limited, and will have a capacity of 50.000 tonnes of feed per year.
For his part, Henrik Halken, Group Vice President and responsible for the company’s activities on the African continent, explained the investment is approximately USD 10 million.
Both companies see great prospects in the collaboration as it will ensure Yalelo access to the best feed on the market – and thus enable the company’s continued growth.
To Aller Aqua Group, Yalelo’s offtake provides commercial security, which enables a larger initial investment in building a world-class fish feed factory from inception.
The fish feed factory gives Aller Aqua a great basis for expansion in Zambia, a country which aims to be self-sufficient with farmed fish – but also able to export to neighboring countries such as: Angola, Zimbabwe, Mozambique, Botswana, Namibia, Malawi, Tanzania and Congo.
“The factory will be situated near the town Siavonga, on the shore of Lake Kariba, and is expected to be ready mid-2017, provided that the final commitments and permits are given from various authorities and institutions as expected,” Halken pointed out.
Demand for affordable protein is growing quickly in Africa, which is one of the world’s fastest growing regions by both population and income. Aquaculture is expected to play a significant role in African food security and lakes such as Kariba, Victoria and Volta offer high potential.
“With the great potential in Africa it is important that we are present. Aller Aqua needs to make the most of the momentum we have created over the last few years. We have experienced significant growth in Egypt in 2015 and created two new sales subsidiaries in both Kenya and Nigeria, both of which contribute positively to the company’s growth. The feed for these two markets comes from our European factories and contribute positively here,” Halken highlighted.
The executive concluded that in Zambia and the region they plan to replicate their experience of supporting smallholder fish farmers through training in the use of more efficient commercial fish feeds.
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