DOB Equity makes add-on investment in Tanga Fresh
Dutch family-backed impact investor DOB Equity has re-invested in Tanzania’s biggest dairy processor, Tanga Fresh.
Founded in 1996 in Tanga, on the Northern coast of Tanzania, Tanga Fresh’s partnership with DOB Equity began in 2007.
This additional investment from DOB will help Tanga Fresh expand its production in the long-life milk market. There has been an increasing trend of East African consumers moving from fresh milk to long-life milk, presenting a potential for market growth, in DOB's view.
Tanga Fresh will use the fresh capital to expand its overall production capacity, providing access to a market for dairy farmers in the Tanga region. “Less than 7 per cent of milk in Tanzania is processed, leaving a lot of room for growth in the market, said Toine Huijbers, CFO at DOB.
“We expect to see increasing demand for higher-quality processed milk in the market. It’s likely this will be largely driven by regulation and consumer awareness around the risks of drinking unsafe, contaminated milk and Tanga Fresh is well positioned to meet this rising demand,” added Huijbers.
One of the key obstacles to growth in the East African dairy sector is the supply and quality of milk from farmers. To address this problem, Tanga Fresh has partnered with Solidaridad, an international civil society organisation based in Utrecht, The Netherlands.
The partnership with Solidaridad will enable Tanga Fresh to provide services and support to 6,000 farmers with the goal of improving quality, yields and sustainability throughout the supply chain.
Tanga Fresh produces products ranging from mtindi (sour milk), yoghurt, and ghee, to fresh and long-life milk. Its production facilities have expanded in recent years, from initially producing 15,000 litres of milk per day to making 80,000 litres per day in a modern high-quality plant.
DOB Equity is also an investor in Countryside Dairy, a Kenyan dairy processor in Nyahururu.