Glacier Products Ltd

Development impacts

• Local economic growth

  This investment will help modernize and upgrade the production capacity of the largest ice-cream producer in Kenya and the only large-scale chocolate producer in East Africa. With the construction of a state-of-the-art factory that relies on the most modern techniques and machines, the investment will bring substantial quality and efficiency gains.
  
  It will help promote high quality standards in the dairy supply chain, with an extended quality team, several process and product certifications (FSSC 22000/HACCP) and an advisory role to cooperatives on key quality considerations (e.g. milk tank, testing procedures, chilling and cold room specifications).
  

  The investment will increase volumes of milk sourced primarily (around 80%) from local small‑scale farmers by expanding the number of partner cooperatives—from four currently to five—each serving between 500 and 2,500 farmers with herds of 4–50 cows. Through these cooperatives, Glaciers currently reaches around 7,100 small‑scale farmers, a figure expected to grow to 12,425 by 2028, including a significant proportion of women, thereby strengthening aggregation channels and offering an alternative to dominant large‑scale processors and informal market outlets.

  This growth in supply will be underpinned by long‑term, formal contractual partnerships with small- and medium-sized cooperatives, based on annual contracts that define volumes, pricing and quality specifications, alongside the payment of a quality premium (approximately 4%). These arrangements provide cooperatives and their member farmers with greater stability and improved income prospects, while being complemented by quality advisory services and indirect farmer support on quality standards and best practices—sometimes through partner programmes such as USAID—thus securing a reliable supply of high‑quality milk for Glacier.

• Food security & rural development

  By investing in a state‑of‑the‑art factory and advanced quality systems, it raises production efficiency and food safety standards while upgrading the dairy value chain. At the same time, it promotes higher quality and sustainability standards across the sector, reinforcing inclusive rural development and a reliable supply of high‑quality dairy inputs.

• Promotion of ESG best practices

  Further strengthening the E&S management of a company that is already committed to responsible business practices (e.g. E&S policy, food safety certifications) and relevant E&S standards, building on the ongoing improvements related to the ESAP developed by Agri‑Vie, and further supported by BIO’s ESAP. This includes actions aimed at E&S policy consolidation, further formalization of HR‑related aspects—including a 6% yearly increase in wages—improved monitoring of energy and water consumption, and a more detailed and transparent approach to supply chain management.

  As part of the ESAP requirements, the project aims to improve the current procurement policy and develop a robust milk supply chain sustainability policy. This will clarify supplier identification and selection criteria (including objectives, exclusion criteria, minimum requirements, certifications and monitoring) and define a sustainability approach for smallholder farmers, covering pricing mechanisms, quality premiums, capacity building, traceability, and stakeholder engagement, with the ultimate goal of ensuring long‑term relationships with cooperatives and fair benefits for farmers.