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SPX Leveraging Dairy Processing Expertise in Africa

SPX has been active in the African dairy industry, helping customers such as the Coega Dairy near Port Elizabeth, South Africa produce high quality milk. In a recent expansion of the plant, SPX helped Coega Dairy install an APV-branded Enhanced UHT Sterilizing Plant system – an innovative, cost-effective one-step UHT process line.

SPX is also leveraging its dairy expertise to assist customers in other developing countries in the Sub-Sahara region of Africa. For example, last year SPX helped Varun Beverages Limited, a subsidiary of RJ Corp Limited, build a new dairy facility in Lusaka, the capital of Zambia. The plant was designed to process milk, yoghurt and maheu, a popular traditional non-alcoholic beverage from Southern Africa.

The dairy processing plant is sourcing its milk from local small-scale farmers. Milk is added to the maheu produced, which enhances the nutritional value. Varun is also producing various flavored milk and yoghurt products. A filler machine is capable of filling 500 bottles (300ml) per minute and all plant machinery is centrally controlled, which helps the company quickly identify issues if they occur. The plant, which opened in the second half of 2013, had an original capacity of producing 15,000 litres of milk per day but by the end of the year, was expected to increase that capacity to 40,000 litres per day.

“Our Varun dairy engagement is evidence of the opportunities we believe SPX has for further expansion in the African dairy market,” notes Geert Verbeemen, Sales Manager SPX Flow Technology. “We continue to leverage our deep dairy processing expertise and global capabilities to help customers establish new and enhanced dairy production facilities around the world.”

According to a article published in December 2013, the Milk Producers Association (MPA) of South Africa, demand for UHT milk is growing at 8.3%. Developments in South Africa are typically taken as indicative of a wider trend. For example, in Africa and the Middle East, demand for packaging used in UHT production “has witnessed growth rates of up to 35% per year” since 2001. Milk and milk product markets are most strongly established in Southern and Eastern Africa. In West Africa, however, the majority of white milk is sold in powdered format, while other dairy products like fermented milk, flavored milk and drinking yoghurt are hugely popular.

“As reports, the sub-Saharan African population is projected to grow from roughly 900 million people today to 1.2 billion by 2025, and to 2 billion by 2050,” adds Verbeemen. “With our deep expertise in dairy processing, we are well-positioned to capitalize on the significant opportunities in emerging markets in Africa and other continents where demand for liquid and powder dairy is growing due to population growth and the expansion of disposable incomes.”

SPX has long been a leader in providing appropriate solutions for developing dairy processers in emerging markets. To learn more about SPX’s ability to help design and establish dairy production facilities that deliver safe, nutritious dairy products, please click here.

Certain statements in this article, including comments relating to future market opportunities in Africa, are forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and are subject to the safe harbor created thereby. Our filings with the Securities and Exchange Commission identify important risk factors and other uncertainties that could cause actual results to differ from those contained in the forward-looking statements. Although we believe the expectations reflected in our forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Statements in this article speak only as of the date of this article, and we disclaim any responsibility to update or revise such statements.