“We have built a unique distribution system across the country. We have got 13 distribution points serving about 5,000 shops of which about 80% are agrovets and therefore sell veterinary products and agrochemicals. So we decided to leverage on the distribution system. Crop was definitely a nice fit… and we are trying to grow the crop portfolio.”

Kunyiha reckons poultry is “a growth market” in Kenya citing the expanding middle class and popularity of chips and chicken outlets.

“There is growing demand for chicken,” he says. “The population is growing… and it is urbanising. One thing with urban people is that they have more cash. In Kenya it is not fish and chips [that is popular], it is mostly chips and chicken.”

He notes that Cooper K-Brands sees the poultry business as “a big opportunity going forward”. The company is focusing on producing vaccine and nutrition products that will help farmers manage diseases and ensure that their poultry attains the standard 1.2kgs in 36 days as opposed to 42 days as is common in Kenya.

“Here you find people losing 10%-20% of their flock and that is expensive. You can’t afford to do that. The main things are hygiene and nutrition.”

Overcoming hurdles

One of the challenges Cooper K-Brands faces is dealing with multiple levies charged by Kenya’s 47 counties. Devolution kicked off in Kenya last year, creating 47 counties which have powers to impose taxes.

“When our truck goes to Mombasa (on the Kenyan coast) we have to pay four counties. We have a truck that is branded so we have to pay the counties for advertising. These charges are so many. Some counties even charge you for entry.”

Kunyiha adds that as most of Kenya’s polytechnics transform into universities, the pool of people with technical skills – who are badly needed in the industry – is shrinking. Accessing well trained and experienced personnel to support its regional business is also a challenge.

“We are trying to grow in Africa and we have opened up in Rwanda, Uganda and Tanzania. We need human resource to work there. It has been a bit of a challenge to do work in those countries.”

Growing with the market

He explains that “Kenya is a bit sophisticated in the dairy industry” in terms of market development and the chain of distribution. However, in neighbouring countries, the market is not yet fully commercialised.

“The [founders of Cooper] who came here in 1906 did not come because milk production was high. They came and grew with the market. So our approach is to grow with those markets as urbanisation increases, the middle class continues to grow and demand for food goes up.”

Cooper K-Brands is keen to expand into Ethiopia where it sees great potential. However, Kunyiha is worried about the language barrier, the different culture and government control in some industries.

“Ethiopia has 80m people and is one of the fastest growing economies in the region. They have the largest livestock population in Africa although the productivity is not that good. So there is a lot of opportunity. However, having said that, Ethiopia is a huge mountain to climb unlike other East African countries.”