BIO lends 3 Million € to Sedima SA,Senegal, for a wheat mill project

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BIO finances 3 Million € as part of an  investment in a wheat mill. The sponsor of the project is Sedima SA, a well-known agri-business company in Senegal. Previously BIO had already financed Sedima with a 700,000 € loan  as part of the investment in an animal food processing unit.

Mr. Ngom, the founder of Sedima is an entrepreneur who started his business in 1976 by raising 120 chickens.  Business which he expanded to 250,000 chickens. For his own use he created in 1988 a small chicken food transformation factory with a capacity of 1 Ton/hour (2,000 Ton/year). The capacity was gradually expanded to reach 50,000 Ton/year, as such Sedima could sell quality food to aviculture farmers.

The old unit was replaced in 2010 by a new unit of 100.000 Ton/year, co-financed by BIO The new unit produces food for aviculture and cattle. This unit is expandable to 300,000 Ton/year.

Current businesses of Sedima:
•    Reproduction farm of 50,000 chickens (meat and laying chicken)
•    Hatchery with an annual production of 14 million chickens which are sold as one day chicken
•    An elevation farm for 100,000 meat chicken
•    Egg capacity of 250,000 laying chicken
•    Food transformation factory for aviculture and cattle
•    Selling of aviculture equipment

In sales, the company grew from 3,2 million € in sales to 19,5 million € in the last 10 years. The company is market leader in Senegal with a market share of 35% in one day chickens and a market share of 29 % for animal foods.

The current project is the set-up of a wheat mill with a production capacity of 250 Ton/day.  The final products are bakery flour, patisserie flour and wheat bran. Bread is the most important food in Senegal. As often, African countries have to import what they consume and export what they produce. All the wheat has to be imported to be transformed locally to flour. This process is similar for other crops s as rice and maize.

The wheat mill project has an added advantage for Sedima as wheat bran (outside of the grain) can be used for Sedima’s animal food processing unit. As such Sedima can vertically integrate its activities.

More information about the project.