DANGOTE S BILLION DOLLAR BET ON RICE

Transcription

1 JUNE/JULY 2017 DANGOTE S BILLION DOLLAR BET ON RICE FOOD SECURITY: INCLUSIVE GROWTH IS A VITAL STRATEGY BRAND ACTIVATION: EXPERIENCE IS THE KEY

2 JUNE/JULY 2017 Publisher Bruce Cohen Mobile: + 27 (0) Advertising Wendy Breakey wendy@fbreporter.com Tel: Mobile: +27 (0) Administration Alice Osburn adminfbr@fbreporter.com Tel: + 27 (0) If you would like a free copy of every issue ed directly to you, please send a request to: adminfbr@fbreporter.com Published by AO Media 2nd Floor Oakfin House 367 Oak Ave Randburg Johannesburg South Africa PO Box 2082 Pinegowrie 2123 South Africa CODING & LABELLING INNOVATION SIRIUS LITE LABELLING SYSTEM Enhanced Control System Colour touch-screen user interface. Modularised Transmission System Single point speed adjustment. Motion Control System Increased labelling accuracy with absolute speed matching. Technical Specifications ications 200 products per minute label l application. Product height 20mm to 250mm. Versatility Handles a wide variety of product and label shapes. Electrical Controls Greater flexibility for upgrades. CALL US TO HELP YOU SAVE TIME & COST! Cape Town Johannesburg Durban Port Elizabeth /7 Helpline: BEYOND EXCELLENCE 2 JUNE/JULY 2017 FOOD PROCESSING AFRICA

3 INVESTMENT Dangote s billion $ rice bet Nigeria s Alhaji Aliko Dangote is not used to doing things small. Africa s richest man with diversified interests in industries such as cement, oil, real estate, foodbev and agricultural production, has now set his sights on becoming one of the world s leading rice producers. His Dangote Group recently announced a fiveyear investment pledge of at least $1 billion to grow and process rice in seven Nigerian states, bringing sub-saharan Africa s biggest importer of the grain closer to its goal of self-sufficiency. Dangote Rice Ltd., a unit of the Lagos-based company, plans to increase cultivation of paddy, or raw rice, to hectares (371,000 acres) and harvest an annual 1.7 million metric tons by Most of the output will be grown by medium and smallholder farmers through an outgrower scheme that would see Dangote Rice providing equipment and training, according to project director Robert Coleman. Ultimately, at harvest, Dangote guarantees to buy the farm produce back from the farmers at an agreed/prevailing market price, Coleman says. Dangote s $1billion investment in rice farming has the capacity to create at least new jobs and could significantly reduce the price of locally produced rice which is a staple for Nigeria s 180 million people. As a high Company set to harvest 1.7m tons by 2019 yield crop, the return on investment for rice farming is high and it takes just four months to plant and harvest rice. Nigeria imports about 2.1 million tons of rice annually. In a bid to boost its food self-sufficiency, Nigeria capitalized the state-owned Bank of Agriculture Ltd. to lend to farming projects at less than half the commercial rate. It s also working with the African Development Bank and World Bank to provide staple crop-processing zones with the electricity and roads needed to attract more private-sector money. Dangote: ambitious outgrower scheme to ramp up production. The company, which is investing in the northern states of Jigawa, Kano, Zamfara, Niger, Sokoto, Kogi and Adamawa, is also planning to build mills to transform the paddy into an estimated annual 1 million tons of highquality parboiled rice by A first set of imported mills is expected to be delivered by early December and be functional by July 2018, says Coleman. Nigeria spent more than 1 trillion naira ($2.7 billion) importing food in 2015, according to the National Bureau of Statistics. FOOD PROCESSING AFRICA JUNE/JULY

4 TRADE Nigeria expo proves its worth Organized by the German trade fair specialists fairtrade, agrofood & plastprintpack Nigeria closed on a very positive note. During the three-day exhibition in March at the Landmark Centre in Lagos, visitors (+15% compared to 2016) visited the show and discussed their business with 110 exhibitors from 20 countries (+28%), making it a record participation. The importance of this annual event for the Nigerian agrofood and plastprintpack industry was underlined by speakers from politics, trade and industry at the official session under the slogan Adding value to the modernization of the Nigerian agrofood and plastprintpack industry. Exhibitors were very satisfied with the fair, with 85% saying would recommend it. Andreas Kruger, Country MD West Africa of GEA West Africa, said: We participated at agrofood Nigeria 2017 to show our market presence and were satisfied with the quality of the professional visitors. Added Daryl De Swardt, Sales Manager from MACADAMS: We have met many decision makers. For the first time Germany hosted an official Pavilion. The French agrofood association Adepta led its third delegation of French companies, and Italy and China made their presence felt. The next edition is scheduled for March JUNE/JULY 2017 FOOD PROCESSING AFRICA

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6 OPINION Junk status a bonus for SA s poultry industry? The international credit rating downgrade of South Africa to junk status might actually be a windfall for the country s threatened poultry industry, says Chris Coombes, CEO of Sovereign Foods, SA s fourth largest poultry producer. On the one hand, it opens a window of opportunity for new market access and exports, and on the other hand, along with recent developments in the global poultry industry, it will help to facilitate a short term clamp-down on cheap imports which are currently hurting and destabilizing the local industry, says Coombes. In relation to existing and future exports to foreign markets and new market access, Coombes says Rand depreciation which has been predicted to accompany the downgrade will benefit the industry. A weaker rand opens up opportunities to increase market share abroad as South African bone-in whole and value-added chicken exports become a more affordable alternative to poultry imports from markets with stronger currencies. Coombes says he s optimistic about new market access through bilateral trade agreements, but cautions that to bring South Africa perfectly in line with global compliance for exports will take at least two years and is an urgent priority for government to pursue. Global developments also offer a breath of relief for the industry, Coombes notes. To a certain degree the downgrade offers some respite for local producers that compete against imported equivalents and it presents an opportunity for import replacement. A scenario of a depreciating currency as well as the recent outbreak of Avian flu in Europe and the recent meat scandal in Brazil will possibly increase demand for locally produced chicken as the import pipeline becomes disrupted and demand for EU and Brazilian chicken imports comes under pressure. Coombes says the short-term crises in global poultry production territories open up at least a four- to six-month window period for government and local industry to find solutions and introduce swift and decisive measures to stabilise the effect of cheaper imports on the market. Coombes acknowledges, however, that a weaker currency will have the effect of increasing costs. A weaker rand will increase inputs into the poultry supply chain such as maize, soya, vaccines and medications, fuel, plastics and capital equipment which are either priced at import parity or are dependent on raw materials priced world-wide in USD or EUR, he says. But he believes that local consumer demand for poultry will not be disrupted by the downgrade. A scenario of increased inflation and tougher economic times as a result of downgrades will have an effect on the consumer s food basket. However, previous empirical data showed that South African poultry consumption remained relatively stable and in a much better position in relation to red meat producers during depressed economic times. This is because chicken remains the protein staple in South African households. In less socio-economically privileged households, 20% of the monthly food bill goes to chicken and that figure increases to 27% in middle to higher income groups. In a report by the Department of Agricultural, Forestry and Fisheries which examined the consumption pattern of selected agricultural products during the 2008 recession, consumption of beef declined by 4,9%, mutton fell 1% and pork increased marginally by 0,3%. On the other hand, consumption of poultry increased by 1,3%. Coombes notes that chicken price increases had remained well below the All Food Index during the 2008 recession and was accessible for poorer households. In the higher segment of the market, ready-to-eat meals and pre-packaged convenience foods have a displacement effect on restaurant dining. For poultry producers with a strong value chain of diversified products serving especially retail, this is a potentially positive development, Coombes says. A downgrade of this nature is not necessarily the final nail in the coffin of a country s economy or the local poultry industry. It could inspire sensible and positive policy changes,. 6 JUNE/JULY 2017 FOOD PROCESSING AFRICA

7 CONVEY DUMP UNLOAD FLEXI-DISC Tubular Cable Conveyors gently slide fragile foods and non-foods through smooth stainless steel tubing routed horizontally, vertically or at any angle, over short or long distances, dust-free. Single or multiple inlets and outlets. FLEXICON Manual Dumping Stations allow dust-free dumping of bulk material from bags and other containers. Automatic reversepulse filter cleaning allows continuous, efficient operation. Available with integral bag compactors for total dust containment. BULK-OUT Bulk Bag Dischargers unload free- and non-free-flowing solids from bulk bags automatically. Allows untying, discharging, retying and collapsing of bulk bags all dust-free. Available with weigh batching controls. CONDITION FILL CONVEY BLOCK-BUSTER Bulk Bag Conditioners loosen materials that have solidified during storage and shipment. Variable height turntable positions bag for hydraulic rams with contoured conditioning plates to press bag on all sides at all heights. SWING-DOWN, REAR-POST and TWIN-CENTREPOST Bulk Bag Fillers can fill one bulk bag per week or 20 per hour at the lowest cost per bag. Numerous performance options. Available to industrial or sanitary standards. FLEXICON Flexible Screw Conveyors transport free- and non-free-flowing bulk solid materials from large pellets to sub-micron powders, including products that pack, cake or smear, with no separation of blends, dust-free at low cost. No bearings contact material. Easy to clean quickly, thoroughly. CONVEY PNEUMATI-CON Pneumatic Conveying Systems move a broad range of bulk materials over short or long distances, between single or multiple inlet and discharge points in low to high capacities. Available as dilute-phase vacuum or positive pressure systems, fully integrated with your process. TIP TIP-TITE Container Tippers dump bulk material from drums (shown), boxes or other containers into vessels up to 3 metres high. Dust-tight (shown) or open chute models improve efficiency and safety of an age-old task. SUCCEED The FLEXICON Lifetime Performance Guarantee* assures you of a successful result, whether you purchase one piece of equipment or an engineered, automated plant-wide system. From initial testing in large-scale laboratories, to single-source project management, to after-sale support by a worldwide network of factory experts, you can trust your process and your reputation to Flexicon. SOUTH AFRICA sales@flexicon.co.za +27 (0) USA UK +44 (0) GERMANY SPAIN AUSTRALIA +61 (0) SINGAPORE CHILE Flexicon Corporation. Flexicon Corporation has registrations and pending applications for the trademark FLEXICON throughout the world. *See full guarantee for details. FF FOOD PROCESSING AFRICA JUNE/JULY

8 MARKETING BRAND ACTIVATION Nothing is real until it s experienced Activation strategies are the most effective route to building brands in Africa, says Colin Mandell People remember only 20% of what they see (billboards, print), 35% of what they see and hear (radio, TV) and an overwhelming 90% of what they experience. This is particularly relevant in the food & beverage category as food and drink are multisensory experiences that can never be replicated, copied or digitised. Strong F&B brands are rich and emotional, often with heritage and have great stories to tell. Great brands are all about great stories. That story is the brand experience and the ONLY thing a brand can really own. Activating the brand experience has proven very successful for many brands in Africa. The best of them are brands that have lived in the homes and hearts of Africans for decades. A brand has only two objectives: 1. Build the Brand through a clear differentiator that stands out and builds longer term loyalty. 2. Build the Business through activation, leading to sales, growth and market share. Experiential Activation achieves both of the above. Food and Beverage experiences are especially sensual, memorable and have proved very successful across the continent. Many brands have established and built themselves through this method of direct engagement. The challenge remains that the F&B activation space is incredibly busy and noisy, so creating something of a standout activation is always a challenge. Like everything, Experiential Marketing has evolved and now uses myriad media to engage consumers - often a combination of them. After many years working in many different markets, I really believe the key lies in the design and execution of the Brand & Consumer Experience. From huge events to one-on-one engagements it s the first and lasting impression that the brand experience leaves behind that creates demand. Here are 5 of the many learning s I have picked up over the years and the ones I always keep top-of-mind when I write strategies for brands. 1. Budgeting is a bitch Simple can work but always have a hook Budgets are continually a challenge and procurement is a dirty word. But often this in fact forces creativity. Activations needn t be complex or expensive but must stand out no matter how simple. A big idea doesn t automatically mean a big budget. Example: DIAGEO Smirnoff Nigeria wanted to get their Smirnoff Vodka Brand to be seen as a base for building cocktails. The idea was to get people to sample Screwdrivers, Bloody Mary s Vodka & Coke etc. and choose Smirnoff for its versatility. But this was a challenge in noisy crowded bars with no activation space. Idea: The brand ambassador IS the experience Identical Smirnoff Twins ARE the experience mobile and self-contained All we had to work with were the brand ambassadors, so we created an experience around them. We recruited sets of identical twins who were trained and costumed as the inseparable Smirnoff twins One dressed as Smirnoff Vodka and one as Orange/ Tomato/Coke. They were fully mobile with Rocket backpacks for juice/mixer and holsters for vodka, ice bucket and sampling glasses. We taught the girls to sing, rap and dance and they were a real hit with the thousands they entertained. Thousands of consumers were sampled at clubs, restaurants and bars and they had a unique Smirnoff experience. Continued on Page 10 8 JUNE/JULY 2017 FOOD PROCESSING AFRICA

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10 MARKETING We also captured content and created a link to social media in real time to get a far better Cost Per Contact The activation created a buzz and Lagosians actually followed us to check out the Twins. 2. Be consumer-centric rather than brand-centric. Example: BLUE BAND ZAMBIA/MALAWI Unilever s Blue Band margarine is a favourite brand in South-East Africa and has now been fortified with vitamins, minerals and omegas. Unilever are always challenged by competing metoo brands and price wars and Blue Band is continuously taken on. They needed to push Blue Bands taste and nutrition credentials in an ever-competitive spreads market. Idea: Taste the Growth in class project and essay competition where kids wrote about their aspirations. Children and their future are key emotional triggers for all families. It is important to them and any brand who can be part of that, is shown loyalty. Linked to a Blue Band pack collection, kids were taught how they achieve health, wellbeing and success by making the right nutrition choices everyday. It also links to volumes through the Pack Collection Mechanic. There was an essay competition on the subject and schools, classes and kids won prizes for their content. The campaign was very successful and it is now in its third iteration, with hundreds of schools participating in on-going pack collection-based variations. 3. Be real and relevant especially with the elusive youth market Example: COCA-COLA EXPERENTIAL SAMPLING Coca-Cola has always based its engagement on experiential sampling but the trick is how to keep it fresh and exciting for an increasingly overstimulated and distracted youth market. I have done many sampling campaigns for Coke and other youth brands over the years and I know that one needs to craft campaigns that are designed with, for and by the youth. When we selected and trained our (and Coke s) brand ambassadors for a 2 million plus teen sampling campaign across 34 African countries, we chose and mentored ambassadors who really reflected this target audience; they were part of the scripting. The ambassador clothing and each script and outfit was slightly different and unique. The response from a typically cynical teen audience was remarkable, as thousands saw the brand as cool and the campaign as refreshing. We used the same methodology in the hugely successful Share-A-Coke campaigns in Kenya and Nigeria. 4. Don t re-create audiences, rather tap into existing sub-groups Example: KENYA, ROYCO GITHERI Ladies groups are everywhere and we used the concept of Taste Overs as an occasion to invite people over and enjoy Royco-inspired dishes prepared and presented by Royco ambassadors. This was a very successful activation and consumer-created content (recipes) created a viral campaign of note. 5. Inch Wide, Mile Deep Quality will always trump quantity Example: Johnnie Walker Mentorship Kenya, Nigeria, Ghana. Johnnie Walker Black Label is a premium brand in Africa, constantly being chased by a huge mob of equally high quality whiskey blends. Johnnie Black has a unique flavour profile and the only way to engage and convert traditionally loyal consumers is by creating a compelling and sensual brand experiences. The Johnnie Walker Keep Walking mantra has proven to be the inspiration. Success and progress being top of mind, we employed and worked with bank managers, lawyers, DJ s and other professionals who really loved the brand. They were very easy to work with as they were already passionate about the Johnnie Walker brand. We took them through a Walker University brand immersion and they were hugely impactful as top end Brand Interface Ambassadors to a highly aspirational East and West African audience. Colin Mandell has been writing strategies, creating activations, events and training courseware for big brands across Africa for more than twenty years. He was Group Strategist for Exp, and specialised in Experiential Mentorship, Courseware Strategy and Events as well as Behaviour Change Communication. He now owns and runs SkillBridge, a consultancy grown out of this vast Experiential Marketing experience. colin@skillbridge.co.za SOUTH AFRICA S LEADING FOODBEV INDUSTRY MAGAZINE & Reporter GET A FREE COPY ED TO YOU Visit for more info. 10 JUNE/JULY 2017 FOOD PROCESSING AFRICA

11 EXPANSION Afrox in big Mozambique push Afrox, sub-saharan Africa s leading industrial gases and welding company, has expanded its operations in Mozambique to support current customer demand and to position itself to service the country s fledgling gas resources sector. Driving Afrox s strategy is a new 8 600sqm headquarters hub which will be the backbone of operations with a sales centre, storage facilities for cylinders and hard goods and filling facilities for oxygen. The hub opened in the Machava Industrial Area in Matola, Maputo Province in May and offers full sales service, stock, equipment and technical support for Afrox s branches in Beira and Tete. As the leading gases and welding company in Africa, the new hub in Maputo Province reflects our commitment to fostering long-term relationships with our customers in Mozambique, says Prince Tsuro, MD of Afrox Mozambique, who added: There are further plans to expand services Prince Truro, spearheading Afrox s growth strategy for Mozambique. to include a workshop for cylinder inspection, maintenance and painting, as well as filling services for argon in the near future. The new Afrox headquarters hub also includes plans for a demo centre which will be used to showcase product usage or applications, and while bulk and compressed gases and hard goods are imported from South Africa, the site includes sufficient space for future expansion. The hub employs 20 people and expects to enhance customer experience right across the board, from the sales centre through to collection of hard goods and loading of cylinders. It will offer all of the same comprehensive services available from other Afrox branches in southern Africa, including a full range of largevolume on-site installations and bulk gases, cylinder gases, scientific gases, refrigerants, packaged chemicals and helium, CO2, medical gases and medical products, hospitality gases, gas equipment, welding products and ancillary safety products. Afrox, which celebrates 90 years in business in 2017, says it is dedicated to capitalising on expansion opportunities in other sub-saharan African countries, with indicators suggesting these economies will far outperform South Africa in terms of growth and inward foreign investment. FOOD PROCESSING AFRICA JUNE/JULY

12 OPINION By Xikombiso Mbhenyane, and Irene Labuschagne The richer and more developed countries become, the less likely they are to be food insecure. Governments in rapidly growing economies have more resources to dedicate to improving food security and nutrition. But this does not necessarily translate into food for all. For example, just over a quarter of South Africa s population is food insecure despite sufficient food being produced at the national level. The highest food and nutrition insecurity in southern Africa was reported during 2008 and 2009 when the region experienced its most acute drought with more than 22 million people classified as food insecure. Although the absolute number of food insecure population is decreasing, the proportion of chronically food insecure population remains high. Africa s success in achieving long-term food and nutrition security will depend on several key national and regional drivers. These include committed political leadership and good governance, quality policies and strategies in the food and agricultural sector, a sound macro-economic environment, inclusive economic growth and increased economic integration. According to the Food and Agriculture Organisation, the prevalence of undernourishment in sub-saharan Africa declined from 33% to 23% between 1990/92 and But in fact the total number of undernourished people increased during this period from million to 220 million. This was partly due to an expanding population. Economic growth and wealth is necessary to make progress in reducing poverty and hunger, especially in the face of an expanding population. But governments need to do more than pursue economic growth. The key factor in ensuring food security is inclusive growth growth that promotes access for everyone to food, assets and resources. Governments need to adopt an integrated approach to effectively reduce hunger, food insecurity and malnutrition in sub-saharan Africa. They also need to implement a mix of complementary and comprehensive food security and nutrition policies and programmes. Inclusive growth is the key to African food security Improved food security doesn t always translate into food for all. Shutterstock Initiatives like the annual Africa Day of Food and Nutrition Security emphasise the challenges the continent faces. But it also focuses attention on what is being done to reduce hunger and poverty on the continent. According to the New Partnership for Africa s Development, major commitments have recently been made at regional level. These include: Africa s Renewed Partnership to End Hunger by 2025 and the Zero Hunger Initiative for West Africa. In South Africa, a national policy on food security and nutrition seeks to provide an overarching guiding framework for the different strategies and programmes of government and civil society. These and other efforts are already bearing fruit. The proportion of undernourished people in developing regions has fallen by almost half since West African countries have made significant progress by reducing the proportion of hungry people by 60% in 2015 between and In doing so, they have achieved the Millennium Development Goal of halving the proportion of people suffering from hunger. East and southern African countries have also made some progress towards the the goals, but countries in Central Africa are lagging behind. A total of 18 countries out of 40 considered in the Food and Agriculture Organisation s overview of food security in sub-saharan Africa have reached the hunger target. Another four are close. They are expected to achieve the target before 2020 if current trends persist. Of the 40 countries in sub-saharan Africa considered in the report: * Seven achieved both the Millennium Development Goals and World Food Summit targets; * 11 reached the Millennium Development Goal target and made progress on meeting the summit targets; and * 12 countries made some progress in achieving both. The United Nations released the Sustainable Development Goals for implementation from Its targets are to be achieved by The second goal is to end hunger, achieve food security and improved nutrition and promote sustainable agriculture completely. This is more focused than the Millennium Development Goals which looked to reduce the number to 50%. Strategies to meet this goal emphasise investment and interventions in agriculture to ensure sustainable food resources. Given the current drought in South Africa and the accelerating consequences of climate change on the environment reaching this goal may be difficult. The consequence will be ongoing food insecurity, including poor nutrition and the poor health status that results from a lack of food resources. Xikombiso Mbhenyane is Professor and Head of Division of Human Nutrition at the Faculty of Medicine and Health Sciences at Stellenbosch University. Irene Labuschagne is Principle Dietitian at the Nutrition Information Centre at Stellenbosch University. This article first appeared in The Conversation. 12 JUNE/JULY 2017 FOOD PROCESSING AFRICA

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14 PACKAGING A SWEET PARTNERSHIP How Kenafric has grown its confectionery empire with support from Germany s Theegarten-Pactec Kenafric Industries Limited in Nairobi has been serving the East African market in the confectionery sector and other industries for close to forty years. Theegarten-Pactec, specialist in the design and construction of packaging machines for small-pieced confectionery items, has been supporting Kenafric along its continuous growth path with high-performance wrapping systems and responsive service and support. Over time, new products and higher output requirements have made it necessary for Kenafric to invest in new wrapping equipment. As the company has grown, so has the successful collaboration between Theegarten-Pactec and Kenafric. Theegarten-Pactec supplies its customers in the food and confectionery segments around the world with advanced wrapping machines that are easy to operate and developed to run for decades. The company began establishing a sales network outside of Europe in the seventies and has been active in Africa for close to four decades. It guarantees comprehensive technical service to its African customers with ongoing consulting to ensure the best possible equipment efficiencies, trouble-shooting on site within 24 hours,continuous delivery of spare parts even for machines being 50 years old, and even complete equipment retrofitting in Dresden to significantly extend service life. Close to 20 per cent of Theegarten-Pactec s overall business is generated in Africa and the company has successfully established long-term partnerships with its customers all across the African continent. Kenafric is one of Theegarten- Pactec s most important customers for A Theegarten-Pactec wrapping machine in operation at Kenafric. confectionery wrapping machines in Africa. Kenafric Industries produces many well-known confectionery brands for the African market, such as Lotta and Fruit Drops, and over time the company has evolved into a large player on the continent in this highly competitive sector. Its confectionary portfolio includes chewing gum, bubble gum, soft caramels, as well as preformed, hardboiled candies and Lollipops. In the 1990s, Kenafric began producing confectionery with machines from Theegarten-Pactec. As the company experienced increasing market demand for these products and steady growth in terms of output, they invested in additional high-speed, high-performance machines and systems. Over the years, Theegarten-Pactec has successfully implemented advanced wrapping systems for cut & wrap products chewing gum, bubble gum, soft caramels as well as systems for preformed and hard-boiled candies. The folding techniques used include typical wrapping styles for the mass production of cut & wrap products in double-twist or Bazooka, and well as hard candies in double-twist. Kenafric currently works with more than thirty machines from Theegarten- Pactec. These include the EW5 and EW8 for packaging bubble gum, the EK2 and EK3 for wrapping hard candies in doubletwist, the WHD2 for chewy candy and the U1-EFC for bubble gum with outputs ranging between 600 and 1,800 units/ min. Since the first machines were purchased in theearly 1990s, output has more than tripled. Kenafric purchased its most recent machines from Theegarten-Pactec in 2013: a WHD with an output of 1,800 chewy sweets in doubletwist, and four U1-EFCs, each capable of packaging 1,000 chewing gums in side-fold wrap with a comic strip insert (Bazooka). CONTINUED ON PAGE JUNE/JULY 2017 FOOD PROCESSING AFRICA

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16 PACKAGING Some of Kenafric s confectionery lines wrapped with Theegarten-Pactec equipment. These five additional machines were purchased to meet increased product demand. Customising equipment for increased wrapping efficiency Theegarten-Pactec s U1-EFC is a high-speed forming, cutting and wrapping machine for products in side-fold with an output of up to 1,000 products/min. It is used to wrap Kenafric s increasingly popular Bazooka chewing gum along with a popular automatic comic strip supplement as inside wrapper which increases the wrapped product s point of saleappeal. Kenafric currently operates 8 U1-EFC machines which Theegarten-Pactec s experts have further fine-tuned over time to significantly optimise efficiencies, while reducing downtime due to interruptions of the wrapping process. For instance, optimisations have included equipping the U1-EFC machines with four wrapping material draw-off devices two for the outer wrapper and two for the comic strip enabling automatic changing of the wrapping material, with the comic strip and outer wrappers coming from separate wheels. Levels of Overall Equipment Effectiveness (OEE) have risen to an impressive 95 per cent. Theegarten-Pactec has proven again and again that they are the right partner for our wrapping operations. They have made a decisive contribution to improving efficiencies and reducing wastage, says Kirtan Shah, Group Managing Director Kenafric Industries. Theegarten-Pactec is supporting us in achieving our objectives with highquality packaging solutions that meet our standards and expectations with service that consistently goes above and beyond. We are delighted to be able to support Kenafric on their growth path and we highly value the partnership we have enjoyed with them over the last decades, says Stefan Liebscher, Theegarten-Pactec Sales Director responsible for the African region. As an innovation leader, Theegarten- Pactec is committed to working with state-of-the-art technologies to continuously develop its systems for its customers worldwide. And of course this includes mastering the special logistics required to serve its export customers around the globe. * Kenafric Industries produces an extensive selection of confectionery and other food products, as well as stationery, footwear and culinary products. The Confectionery Division contributes 65 per cent to Kenafric s overall business, and is enjoying growth of 15 per cent. Kenafric s confectionery products have an estimated market share of 60 per cent in East African Countries. Kenafric s success in Africa is based on product innovation, market reach, a high-profile presence in key markets and of course, investment in state-of-the-art capital equipment. Theegarten-Pactec, a family business in Dresden, Germany, specialises in the design and construction of packaging machines for small-pieced confectionery items. The company combines over 20 different types of packaging with a broadperformance spectrum. Over and above individual machines, the company also offers complete packaging lines as a turnkey partner. The following products can be packed or wrapped: hard candies, toffees, chewy sweets, chewing gums, chocolate products, as well as various other food and non-food products. Theegarten-Pactec is known for innovation and its prompt response to customers wishes for premium quality. Theegarten-Pactec has representatives in over 100 countries around the world JUNE/JULY 2017 FOOD PROCESSING AFRICA

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18 MAINTENANCE TANK CLEANING Doing it better, faster, cheaper By DEON PERKINS of Monitor Engineering Most people understand and appreciate the benefits of automated tank cleaning cleaner tanks in less time, reduced chemical and water use and improved worker safety. But when it comes to comparing tank cleaning equipment options and techniques, a general understanding isn t enough. There are many tank cleaning devices that have comparable specifications and provide similar performance. The differences between similar units may be the time required for cleaning, the amount of water and chemicals consumed, maintenance requirements and/or total cost of ownership. The information below may prove helpful as you take steps to ensure your tanks are cleaned thoroughly in the shortest amount of time and at the lowest possible cost. Getting started The first step is take a moment and review why you re considering a change: Cleaning level isn t adequate or consistent Cleaning takes too long Water/chemical use and waste water disposal costs are too high Using too much hot water Energy cost is too high Current tank cleaning equipment requires too much maintenance Contamination or quality problem Gathering all the facts early in the process will be very helpful as well. How many tanks require cleaning? What s the tank size? Are there internal obstructions? What residues are being cleaned? What cleaning chemicals are used? What temperature is the cleaning solution? What flow and pressure are used? What size are tank openings and where are they located? How much water, chemicals, energy and labour is being used? How much is your waste water disposal cost per tank? How do you evaluate tank cleanliness? Key concepts in tank cleaning When evaluating tank cleaning equipment, one important consideration is impact, the amount of force the cleaning liquid applies to the tank surface. Not all nozzles are equal. Theoretical calculations are inherently inaccurate because it is assumed that all nozzles used in tank cleaning devices provide the exact same performance. Nozzle performance varies greatly by type and by manufacturer, so theoretical calculations have limited value especially when used for comparison purposes. Test data is more accurate than theoretical calculations; however, it is collected statically, measured while nozzles are in a fixed position spraying on a surface. When tank cleaning nozzles are actually used for cleaning, they rotate in order to provide full coverage of tank surfaces and impact is reduced. Even when nozzles rotate slowly, impact will be decreased at the wall surface. Ways to shorten cleaning time To reduce cleaning time and return tanks to service more quickly you can,: Increase impact by increasing flow and/ or pressure Increase temperature of cleaning liquid Adjust chemical/water concentration Reposition the tank cleaning equipment in the tank Use multiple tank cleaners instead of a single unit Use a more efficient tank cleaner Improving cleaning effectiveness Internal obstructions like agitator shafts/blades, coils, etc. block the spray from hitting the tank wall. The obstructions make it more difficult to achieve complete cleaning but it is certainly possible. It becomes a matter of optimizing the location of the nozzles and keeping operating costs in mind. A powerful tank cleaning machine may be able to provide enough impingement to get around the obstructions and reach tank walls, but it will take longer to clean the tanks and/or require higher flow rates and pressures than other solutions. While higher flow/pressure operation is needed to clean certain areas of the tank, it is overkill for the majority of the tank surfaces. A more efficient approach would be to use two to three smaller, less powerful tank cleaners in different locations to ensure complete coverage. Tanks will be cleaned in less time using less chemicals and water. Avoid operational problems When tank cleaners fail to work properly, you re facing several problems simultaneously: Contamination due to tanks that are not clean Unscheduled downtime/loss of production time Costly repairs and rebuilds Consult with experts Even if you believe your application is straightforward, you should contact a tank cleaning expert. The guidance they can provide is invaluable JUNE/JULY 2017 FOOD PROCESSING AFRICA