Glacier Products Ltd

Development impacts

• Local economic growth

  This investment with 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 and should 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).
  
  An increase in volumes of milk sourced primarily (80%) from local small-scale farmers could be ov (7,100 SSFs reached as of today and 12,425 expected by 2028 – of which a significant proportion of women) through formal contractual arrangements with cooperatives, including price premiums for quality milk, thereby offering them an alternative to the dominant large-scale processors and informal market channels while providing a more stable and better income outlook.
  
  This investment will also promote long-term partnerships with small to medium farmer cooperatives—currently with four and onboarding a fifth, with 500 to 2,500 farmers each and 4–50 cows per farmer—through annual contracts outlining volumes, price and quality specifications, quality advisory services, and the payment of a quality premium (~4%), while indirectly supporting farmers on quality standards and best practices (including, in some cases, partner programmes such as USAID), and thereby securing the supply of high-quality milk required by Glaciers.

• 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. Its core impact lies in increasing secure market access for local small‑scale farmers—primarily through long‑term contracts with cooperatives, quality premiums, and technical support—which improves income stability for thousands of farmers, including many women. 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 proposed 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 (see below).

  As part of the ESAP requirements (still under discussion), 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.