As part of its ongoing plans to expand and upgrade its dairy facilities, Dina Farms has purchased an additional 850 pedigree Holstein heifers
Dina for Agricultural Investments SAE (Dina Farms) has announced that it has concluded a deal to import an additional 850 Holstein heifers from the United States and is expected to take receipt of the new cows by the middle of 2010. The total herd of milking cows at Dina Farms, Egypt’s largest dairy producer, is expected to reach 10,000 by 2012.
The news comes as Dina Farms, the agricultural arm of integrated regional multi-category consumer foods platform Gozour, continues to expand and improve its existing facilities, which supply Egypt’s major dairy manufacturers with safe, superior-quality milk.
The company has also announced that it has signed a US$ 2 million agreement to acquire a state-of-the-art equipment for its dairy facility. The high-tech climate control system, which is the first of its kind in Egypt, will increase milk productivity by 10% from late spring through early fall, when temperatures peak.
According to Dina Farms Managing Director Mohamed Waeer, a leading regional dairy expert, the new investment in climate control will pay for itself in a period of less than two years. “We are targeting better overall efficiency by mitigating the effect of heat stress on the cows,” added Waeer.
With an annual production capacity of 50,000 tons of milk, Dina Farms is Egypt’s largest dairy producer. In early 2009, Dina Farms purchased 1,900 new pedigree Holstein heifers from North America. The acquisition was part of an EGP 150 million dairy expansion plan that has seen Dina Farms’ herd of top-quality, internationally certified milking cows grow to 6,000 from the 4,000 animals that were in place at the end of 2008.
“We are not only expanding production at Dina Farms by acquiring more cows and building more dairy stations, we are also interested in running the most efficient operation possible. The investment in the new state-of-the-art equipment will allow us to make better use of the capacity we already have in place,” said Gozour Agri’s Chief Executive Officer and Managing Director Ahmed Seddik.
Commenting on the dairy operation’s growth potential, Seddik added, “All these initiatives are in line with Dina Farms’ strategy of not only getting bigger, but also getting better.”
Dina Farms, located on the outskirts of Cairo, is both the largest privately owned farm in Egypt and the country’s leading dairy producer. Dina Farms also produces a diverse range of fruit and vegetable products for sale locally and regionally.
Gozour was established by Citadel Capital and a consortium of leading regional co-investors as a holding company for an integrated regional multi-category consumer foods platform. The group includes three primary lines of business: agri-foods and dairy (Gozour Agro), fast-moving consumer goods (FMCG, Gozour Foods) and intermediate goods such as corn, sugar, flour, maize and skimmed milk powder (Gozour Intermediate). Gozour companies include Dina Farms, El Aguizy, Rashidi El-Mizan, Enjoy, El-Misriyyeen, Mom’s Food and a stake in the National Company for Maize Products.
Citadel Capital (CCAP.CA on the Egyptian Stock Exchange) is the leading private equity firm focusing on building regional platform investments throughout the Middle East and Africa in select industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 18 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 countries spanning 15 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has generated more than US$ 2.4 billion in cash returns to co-investors and shareholders, more than any other private equity firm in the region. Citadel Capital is the largest private equity firm in Africa by PE assets under management (2004-2009, as ranked by Private Equity International). For more information, please visit www.citadelcapital.com.
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