Agricultural and food value chains in Africa often lack scale, efficiency and suffer from operational bottlenecks. Amatheon aims to overcome these bottlenecks by connecting different stages of the value chain. The integration includes primary production of livestock feed, cattle rearing and subsequent supply to Amatheon’s food processing businesses.
Since 2000, consumer spending in Sub-Saharan Africa has grown by 4% annually, and the total consumer spending is expected to reach nearly USD 1 trillion by 2020. In addition, population growth in the region is likely to remain among the highest in the world; 2 billion people by 2050 and accounting for 20% of the global total. A 50% reduction in poverty 2020 is also expected, which means that 130 million additional households with an annual spending of USD 1.4 trillion will be entering the market, from around USD 860 billion in 2008.
In 2013, Amatheon Food was established to develop the third pillar of Amatheon’s business strategy. Through its Mergers and Acquisitions department, Amatheon intensified research and due diligence on businesses in the food processing sector, resulting in the acquisition of five meat processing companies in Zambia.