|Credit to Aller Aqua: A visual representation of the factory in Zambia|
In Zambia the Aller Aqua factory is now under construction, and staff members have started filtering through. The company has also reported entering the African market from several strategic positions.
Yalelo has plans to grow the production of Tilapia to 30 thousand tonnes in Zambia within the next few years. This rapid expansion will help secure the company’s success in the African country. The new factory will have a production capacity of 50 thousand tonnes of fish feed per year and will be the most technically advanced fish feed factory in Southern Africa.
Clear and expansive strategy
Henrik Halken, Chairman of Aller Aqua Egypt explains, “Aller Aqua Group is in rapid expansion. Since the company began producing fish feed for aquaculture more than 50 years ago it has achieved constant growth. In addition to the factory in Denmark, the company has built factories in Poland in 2001, Germany in 2007 and Egypt in 2015. Currently, the company is building in both Zambia and China, and has just extended the capacity in Egypt with a third production line. This has increased the capacity in Egypt substantially. Both of the new factories are expected to be inaugurated in 2017. In Zambia we are investing a total of US $10 million, as well as a significant amount in Egypt.”
He continues, “With the investment in Zambia, we will be the market leaders in Africa in terms of modern and environmentally friendly fish feeds for aquaculture. This will enable us to expand our sales not only in Zambia but also the surrounding countries.”
He goes on to say that, “The African market will, without a doubt, grow significantly in the coming years. The number of inhabitants is rising quickly and the population will need healthy food which is high in protein. Fish farming and locally produced fish is part of the solution for this, and fish farming can further help people get a livelihood and get out of poverty. In Zambia, approximately 95 percent of the raw materials we will use comes from the local market, which is a great advantage. The build of the factory is Zambia is ongoing and on schedule. Obviously, there are many challenges when building in Zambia compared to Denmark. But we have a fantastic team and management whom will ensure that we succeed and overcome these challenges.”
In January 2016 Aller Aqua took the consequence of the increased activity in the African countries and appointed Niels Lundgaard Commercial Director of Africa. Niels focuses entirely on expanding the business in the Sub-Saharan countries, and have during recent years helped Aller Aqua Group start sales companies in both Nigeria, Ghana and Kenya.
“With the subsidiaries in Nigeria, Ghana and Kenya we have strong bases for the rest of the region. Recently a distributor agreement was signed in Rwanda, and there are Aller Aqua agents in both Benin, Tanzania, Cameroon and Senegal. To countries such as Uganda and Madagascar, Aller Aqua sells feed directly from its German factory. This gives us a wide reach in the area. We have highly skilled teams in place, and enter the markets with our usual approach; We want to grow with the customers and help them increase the output on their fish farms. We do this by providing extruded fish feed, advice and training. We further hold seminars and participate in local events and exhibitions.” Niels explains.
As a result of Aller Aqua’s growth in the markets in Sub-Sahara, the company will participate in the World Aquaculture 2017 event as Gold Sponsors.
Hans Erik Bylling, CEO and owner of Aller Aqua points out, “We have a solid set-up in Europe, whereas we in Sub-Saharan Africa see that we have big impact now. The rising incomes and developing economies in countries like Nigeria, Kenya and Ghana support this potential, and has had the effect that we have opened subsidiaries in all three countries. This, combined with our operations in Egypt and Zambia, made it an obvious choice to support the World Aquaculture 2017 event, which takes place for the first time in Africa.”
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