EXEO Capital in Uganda dairy deal

EXEO Capital, through its Agri-Vie Fund II, has committed $10 million to Amos Dairies, a dairy processor in Uganda.

“Amos Dairies has succeeded in gaining a competitive edge in the market and demonstrated its value as a major player in the value-added African dairy sector. We have, through both the Agri-Vie funds, invested successfully in other dairy processors, including Fairfield Dairies and Fairview Cheese in South Africa and Dairyland in Kenya. We therefore see this recent investment as a decision that will allow us to build on prior investment experience and expand the Fund’s footprint into Uganda and beyond, given Amos Dairies’ growing export capabilities,” says Paul Nguru, partner at EXEO Capital.

Amos Dairies currently manufactures nine products: ghee, butter, casein, skimmed milk powder, whole milk powder, whey permeates, whey concentrate, instant milk powder, and extended shelf-life milk. Its production of casein gives Amos Dairies a significant competitive advantage. Casein is a milk protein that is used in making cheese and many other dairy products.

Currently, around 90% of Amos Dairies’ revenue is derived from exports to markets in Egypt, Kenya, India and America. Seven of the nine products that it currently produces are positioned for the export market, while the other two retail products serve both the export and local markets. This allows Amos Dairies access to dollar revenue, providing a natural hedge to foreign exchange risks both to them and EXEO’s portfolio.