Dina Farms, Egypt's leading producer of fresh milk, expands its dairy capacity with the recent acquisition of 1,900 new heifers (pregnant cows).
Dina for Agricultural Investments SAE (Dina Farms), the agricultural arm of Gozour, the integrated regional multi-category consumer foods platform established by leading MENA private equity firm Citadel Capital, has recently announced that it has taken receipt of 1,900 new pedigree Holestien heifers from North America.
The purchase 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. Dina Farms now has a total herd of 11,000 milking and non-milking cows.
With an expected annual production capacity of 46,000 tons of milk in 2009 and 60,000 tons by 2010, Dina Farms is the country’s leading producer of safe, high-quality milk. Recent public concerns about the safety of the milk supply have underscored the importance of increasing the capacity of large reputable producers like Dina Farms who can provide the local market with reliably healthy products. Total domestic production currently covers about two-thirds of Egypt’s total milk consumption, the deficit is supplemented by powdered milk imports.
“By doubling its milk production, Dina Farms will continue to supply Egypt’s major dairy manufacturers in addition to other Gozour subsidiaries with safe, superior-quality milk, a highly sought after commodity on the local market,” said Citadel Capital Managing Director Hisham El-Khazindar. “The expansion will also create a variety of new jobs for farm workers, technicians and veterinarians.”
To accommodate the new heifers, two new milking stations have been constructed and a third is in the process of being completed. Dina Farms has already purchased state-of-the-art milking equipment from the Swedish multinational DeLaval, a leading global supplier of tools and machinery for the dairy industry, to upgrade its existing facilities as well as outfit the new parlors.
“We are very proud of the operation that we have built thus far. Today Dina Farms is perfectly positioned for future growth as the country’s largest and most efficient dairy farm,” said Gozour Agro CEO and Managing Director, Ahmed Seddik.
Dina Farms is the largest private farm in Egypt with 10,000 feddans of prime land directly off the Cairo-Alexandria Desert Road. In addition to its world class dairy facilities, Dina Farms also includes 1,700 feddans that are dedicated to the cultivation of grapes, citrus, mango, peaches and strawberries. Other crops including potatoes, wheat, onions, corn and clover are being cultivated on another 4,300 feddans using a pivot irrigation system.
Future plans for Dina Farms’ dairy operation include the potential doubling of its herd within the next 3-5 years.
Citadel Capital is the leading private equity firm focusing on building regional platform investments throughout the Middle East and Africa in selected industries through acquisitions, turnarounds, and greenfields executed via Opportunity Specific Funds. Citadel Capital’s 19 OSFs now control Platform Companies with investments worth more than US$ 8.3 billion in 14 industries, including mining, cement, transportation, food and energy. Since 2004, the firm has returned more than US$ 2.2 billion in cash to investors, more than any other private equity firm in the region.
For more information, please contact:
Ms. Ghada Hammouda
Head of Corporate Communications,
Citadel Capital (S.A.E.)