Challenge
More than one-quarter of Kenya’s population is undernourished and this scarcity of nutritious food has led to stunted growth among almost 20 percent of the country’s children. While limited arable land, high food prices, and increasingly unpredictable weather have all limited food supply, food waste is another significant challenge. By some estimates, as much as 40 percent of all food produced spoils before it reaches consumers, often because of weak supply chains for storage and transportation and limited access to electricity.
Solution and Impact
A $20 million DFC loan will help Victory Farms, the largest producer of tilapia in Sub-Saharan Africa, more than triple production and double its number of distribution branches to expand availability of this affordable and high-protein fish.
Victory Farms uses an innovative process for preserving and quickly transporting fish to keep spoilage below 2 percent, compared to the 25 percent rate of spoilage that is more typical of regional seafood supply chains. Fish are immediately placed into pre-iced boxes when they are harvested, and their temperature is kept extremely low as they are processed. They are transported in large, commercial-grade boxes that are kept cold enough for minimal ice to be required, and this enables Victory to move large quantities efficiently.
Solar panels at the site are generally sufficient to produce ice for cooling without tapping the electricity grid, and because this process does not require consistent electricity, the fish can be transported to markets where grid electricity may be unreliable.
Tilapia is a high-protein fish that is also considered one of the most cost-efficient sources of animal protein since production is less carbon intensive than many animal proteins like chicken, goat, or beef, and equally as affordable in East Africa.
As wild-capture fisheries in Africa have declined, Victory Farms fills a critical need for nutritious, protein-rich food. DFC’s loan will enable it to increase production from about 10,000 tons in 2023 to 35,000 tons and double its number of distribution branches.