Zebu backs South African poultry company
The Africa Food Security Fund has closed its investment in Elgin Free Range Chickens Holdings (EFRCH).
EFRCH is a South African vertically integrated free-range poultry operation, capturing the ever-increasing conscious consumerism market of sustainably sourced products from farm to fork. The independent farming and food processing operation takes pride in meeting rigorous quality and ethical standards and currently supplies free range chickens to South African retailers, food service companies, restaurants, and its own retail outlets.
The Africa Food Security Fund, which is the sophomore fund of Zebu Investment Partners, focuses on food production and processing throughout Africa.
As a way of providing ethically raised chicken, free of antibiotics and growth promoters, founder Jeanne Groenewald initially started supplying chickens to her family and friends in 1996. Since then, she has meticulously grown and developed the business into a leading supplier of the top retailers in South Africa and has also successfully launched the company’s own retail outlets in the Western Cape. At about 60%, poultry is the most consumed animal protein in South Africa, and with the CAGR for free-range chicken expected to continue in the double digits, there is still abundant scope and opportunity for the company to drive further penetration.
Zebu senior managing partner, Dennis Matangira, commented on South African consumer consumption patterns, “The pandemic came at a time when the global food system was already under strain. In Africa, this exposed numerous vulnerabilities within our food value chain, and influenced more consumers to seek healthier and more sustainable food sources. Poultry is the leading animal protein consumed in South Africa, and we want to play an active role in developing the free-range segment of this market, and by doing so, increasing access to all.”
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