Cold storage and Logistics in Kenya
Supermarkets have become a normal feature of Kenyan life. There are more and more Kenyan consumers which buy frozen ready-made products. Moreover, the growing population in the entire East African continent means that there is a need for a proper cool chain.
This is is one of the main reasons for Wilco Hendriks to come with BCS to Kenya. BCS decided in 2017 to actively look for opportunities to expand the company. Possibilities for expansion in the Netherlands and Western Europe in general are limited due to the mature market. Therefore, BCS looked at expanding to emerging markets. BCS decided to open-up in Nairobi, Kenya. They did this by making use of the Dutch Good Growth Fund.
How did DGGF assist you with setting up your business?
By offering BCS Kenya BV in the Netherlands a loan and facilitating a guarantee for a loan from I&M Bank to BCS Kenya LTD.
Holding Beemsterboer B.V. was founded in 78 years ago in 1943 and is the 100% Shareholder of Beemsterboer Coldstore Services B.V. (hearfter BCS). The holding is still a Family-owned company. The cold stores meet the highest possible standards when it comes to conditioned storage and logistics. This has in 2017 been rewarded with acquiring Sanquin Bloedbank (now called ‘Prothya’) as a customer after a long and thorough auditing process. Prothya, is the Dutch non-profit organization charged with meeting the health care needs for blood and short-life blood products.
Finding fitting solutions for the local market
BCS set out to develop a cold storage which meets the demands of the Kenyan market and they developed a tailor made, comparted cold store.
The cold store is flexible in operating in terms of how the surface is divided in chilled space and freezing space. It is 100% climate controlled, which makes it suitable for a wide variety of products (from flowers to food items). For their operations in Kenya they believe that it is important to invest and train employees, in order to provide reliable services. BCS uses track and trace methods to guarantee optimal flow for goods streams. They also look after and check products, provide the accompanying documentation, and handle the import duties.
What makes the Kenyan market interesting and where do you see opportunities?
The Kenyan market has scarce cold storage solutions hence leading to food waste and post-harvest losses. There are several opportunities for BCS, related to: (a) importers and exporters of fresh produce, (b) farm produce from farmers for local distribution. (c) Pharma companies (d) meat proccessors companies, etc. For an impression of their operation in the Netherlands you can find the BCS Corporate Movie: https://youtu.be/5yV9tL36dU0. You can also check their website via: www.bcskenya.co.ke
Would you like to learn more about our activities or do you have any questions? Please send an email to nai-lnv@minbuza.nl. We give regular updates on developments in the agriculture sector in Kenya on this website and on our Twitter @NLAgriKenya.