Kenya’s Brookside Dairy has acquired a majority stake in Ugandan dairy processor Sameer Agriculture and Livestock, as part of a deal reported to be worth UGX 3.5bn ($1.14m).
Brookside Dairy has taken over the management of Sameer Agriculture and Livestock’s contracted farmers and assets, including production of its market-leading fresh dairy products. The transaction marks the Kenyan company’s first acquisition in neighbouring Uganda, and the first beyond its own national borders.
But the government of Uganda appears to have retained its 49% stake in Sameer Agriculture and Livestock, according to ministry of finance spokesperson Jim Mugaga. “I can confirm that the assets of the government of Uganda have remained to the best of my knowledge. But those of Sameer are the ones that have been transferred to Brookside,” Mugaga said.
The two countries share a 580-mile border and the deal would substantially benefit Ugandan farmers, according to Brookside Dairy’s director of milk procurement.
John Gethi said: “Since we moved in [to the Ugandan market] three months ago, dairy farmers in Uganda have received a total of UGX 20bn from milk deliveries made to us. The payout reflects a 100% increase over a similar period last year.
“The spirit of East Africa holds us together to work as one people. That explains why we have prioritised farmer empowerment in Uganda to encourage growth of the dairy enterprise in the entire region.”
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