30-day notice: BioFoods and DFCD

This disclosure notice summarises SNV’s support to Bio Food Products (Bio Foods), a leading Kenyan dairy processor that produces fresh milk, yoghurt, fermented milk, creams, and other dairy products. Founded in 1989, the company first specialised in yoghurt and later expanded its product range with backing from equity investors. It is now majority-owned by TBL Dairy Ventures, a Netherlands‑based private equity firm focused on emerging markets. Bio Foods operates an integrated cold chain from farm to consumer, including milk collection and transport, warehousing and chilling, processing, and distribution. It supplies major supermarkets, hotels, restaurants, schools, and hospitals, and is widely recognised for high‑quality and safe dairy products.

The company pays farmers significantly above industry averages, sometimes up to 50 percent higher, and provides technical support that includes training in animal husbandry, feed management, and assistance with on‑farm chilling equipment. Since 2024, Bio Foods has expanded sourcing beyond medium- and large-scale farms to two cooperatives with 4,000 smallholder members, and now aims to reach 12,000 farmers as part of its inclusive sourcing model. Bio Foods is ISO 22000‑certified and a recognised innovator in Kenya’s formal dairy sector. Its planned move into long‑life UHT milk aligns with increasing consumer demand, as UHT represents about 60 percent of the modern trade dairy segment in Kenya.

The project is supported by a €325,000 grant from the DFCD Origination Facility, with an anticipated €4.5 million in leveraged financing. By promoting climate‑resilient farming practices, improving fodder production, and reducing aflatoxin and antibiotic contamination, Bio Foods strengthens farmer resilience and supports safer, more reliable dairy value chains in Kenya.