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: 20 April 2016; Hits: 7002

All Weetabix wheat to come from British farmers

British cereal company Weetabix has renewed its pledge to source all its wheat from British farmers.

In this regard, Weetabix announced that it will exclusively source wheat for its biscuits from two local wheat merchants, Gleadell and Fengrain.

The company had in 2010 vowed to source 100 per cent of its wheat from local (British) farmers as a way of guaranteeing the quality of its product, while supporting its growing rural economy.

However, a wheat shortage in the UK has from time to time forced the company to import the raw material.

Acquisition and Expansion

In 2012, Bright Food – China’s second largest food manufacturing company – bought 60% of Weetabix for £1.2bn as it looked to feed the growing demand for cereal in Shanghai, Guangzhou and Nanjing.

Weetabix currently has a presence in 80 countries around the world, among them Kenya, and is now looking to penetrate further in the East African market as it expands into West Africa.

The Weetabix whole grain biscuits are popular among the urban dwellers in Kenya.

Competition

Recently, the UK company had to go to court to fend off threats by Kenyan biscuit maker Manji Food Industries, who were out to market their own brand of whole-grain biscuits branded Multibix.

In its complaint, Weetabix claimed that Multibix was an imitation of its products, arguing that the name was aimed at tricking buyers into purchasing Manji’s products at the expense of Weetabix’s.

Manji denied the allegations, saying that Multibix was not intended to confuse Weetabix’s customers as it was a different brand.

In March 2015, the High Court Manji to stop selling and withdraw Multibix from until the trade name dispute with UK firm Weetabix was heard and determined.

Later, in April of the same year, the two companies agreed to settle the dispute out of court.

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: 20 April 2016; Hits: 5819

Local fish labs to boost Kenya exports

Kenya is set to increase its fish exports thanks to a partnership with the Spanish government to build a Sh1b fish quality lab, insulating the country from long waiting periods for fish quality tests, which are normally done outside the country.
The lab, to be erected on a five-acre piece of land in Nairobi, but with branches in Kisumu and Mombasa, will be operation in the next 12-18 months and will have the capacity to serve over 1m metric tonnes of fish per year. Its impact will not only be felt in a reduction in waiting times but also enhance the quality of fish both for export and local consumption.
Production capacity
In August last year, the European Union lifted a ban it had imposed on fish especially from Lake Victoria, citing quality and health standards. The lake produces close to 111,868 tonnes per year, accounting for over 70 per cent of fish produced in the country. Other key sources of fish includes ponds with a capacity of 20,000 tonnes while Indian Ocean and Lake Turkana produce 8,000 and 6,000 tonnes annually, this according to a data by the ministry of Agriculture Livestock and Fisheries.
Huge post harvest waste
Kenya produced 193,000 metric tonnes of fish last year with a market value of Sh10b but could not export especially to the high demand market in Europe due to low quality standards. With little access to the export market and a low domestic demand considering decimal 3.7kg fish consumption per person every year in the country, most of fish produced go to waste, hence losses to farmers. The Fisheries Department estimates that at least a third of fish produced per year in the country go to waste
Good prices
The fish quality lab is however expected to increase fish quality testing efficiency, allowing farmers to export more to the now opened rich EU market, earning them double returns.
A kilogram of fillet goes for at least Sh800 in the export market double the amount fish farmers are earning from the low demand domestic market.

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: 20 April 2016; Hits: 6377

Kenya at a good place to bridge France's dire need of pineapples

Kenyan farmers can fill the international pineapple deficit, which has resulted in a sharp price surge in consumer countries like France.

The shortage has been attributed to a decline in production of the crop in 2015 from source countries such as Kenya, Philippines and Thailand.

Pineapple farming in Thailand, one of the world's leading supplier of the crop, has reportedly been abandoned for rubber and rice, which are more lucrative.

At the same time, Del Monte, which is Kenya's leading exporter of the fruit recorded low harvests last year, a situated linked to land-lease wrangles between the company and the Murang'a and Kiambu County Governments .

Further, the low productivity by Del Monte, and other global pineapple sources, was also linked to harsh weather, resulting from climate change.

Deliveries to major retail outlets in France are running dry, even as concentrate pineapples remained scarce in major supermarkets.

According to International Trade Centre, a publication on global business trends, suppliers in France have put up with high prices to avail the product to their customers.

Concentrate

For instance, Système U and Métro are parting with €0.95 per litre (Sh106/ litre) rather than the usual €0.55 per litre (Sh62/litre).

Pineapple is mainly sold in form of fresh juice or concentrates. Pineapple concentrates have least liquid content for longer shelf life.

The European country's main pineapple distributor, La Laiterie Saint-Denis de l'Hôtel Manadig Director Emmanuel Vasseneixsaid the pineapple juice concentrates shortage may persist until June-July.

Del Monte, Florida Products and Dole have slowed processing the fruit into concentrates and other products to meet the demand for fresh juice, Vasseneix said.

Florida Products processes food ingredients from fruits. Dole is the world's largest producer and marketer of fresh fruit and vegetables.

Both Dole and Florida Products are US companies.

Prices

Last year concentrate prices doubled from $1,500 per tonne (Sh153, 495 per tonne) to $3,800per tonne (Sh388, 852 per tonne) in the international market.

Pure juice rose from $850 per tonne (KSh86, 980 per tonne) to $1,500 per tonne (Sh153, 494 per tonne).

The Thai Pineapple Industry Association says the country exported about 1.437 million tonnes of pineapples in 2015. The country on average produces around 2 million tonnes of fruit per year.

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