Sunday, April 18, 2021

Bokomo applies to Competition Authority for 50 percent stake in Irvine’s

Bokomo Botswana, the local distributors of fast-moving consumer goods (FMCG), said this week it has lodged an application with the Competition Authority in a bid to acquire a 50 percent stake in Irvine’s, the distributor of broiler chickens.

“An opportunity presented itself when Irvine’s was required to expand its local production of day old broiler chicks as part of a directive from the Ministry of Agriculture (MoA) in 2011,” Bokomo said.

Government stopped the importation of day olds in a bid to encourage local production towards Botswana being self-sufficient in this sector.

Up to that point Irvine’s locally produced only 25 percent of the hatching eggs required for the production of its 200 000 day-old broilers per week that it supplied to the local market with the balance of 75 percent coming from South Africa.

“In order to maintain its market share of 45 percent and abide by the new MoA regulations Irvine’s needed to expand its Botswana operations. The estimated expansion value is in the range of 28 Million Pula. Irvine’s felt it needed a technical and investment partner to raise these funds,” Bokomo added.

The desire to acquire the Irvine’s shareholding by Bokomo Botswana is based on good business practices and to ensure that Botswana consumers continue to get superior value products.

Bokomo is not new to the poultry sector with a current output of ┬▒ 50 000 broilers per week out of its Richmark subsidiary.

The company is also a shareholder in Notwane Eggs which produces table eggs.

“The opportunity to purchase equity into the Irvine’s operation was based on a multitude of synergies between Bokomo and Irvine’s. The potential partnership would bring to Botswana a 28 million pula investment, close to 40 new permanent jobs and most notably meeting the objective of the MoA to move Botswana closer to self sufficiency,” it added

“Irvine’s brings to Botswana the Cobb 500 Broiler Breed via the investment of state of the art equipment”, said Craig Irvine, “this broiler is one of the most efficient breeds in the world with a large following in Europe, the USA and Brazil.”

The efficiencies of this bird will result in lower production cost which can only be good for the final consumer in the competitive environment we are in.

For Bokomo Botswana the potential investment into Irvine’s further expands its production footprint in Botswana.

Beyond just being an importer of goods, Bokomo has over the years invested heavily in Botswana to produce goods locally. Thus White Star Maize Meal, Pure Sugar Sukiri and Bokomo Flour amongst other products are now fully produced locally.

“We are more than just a distributor of great brands in Botswana. We are also a producer of proudly Botswana products’, says Piet Van Wyk CEO of Bokomo Botswana.

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