Information on the Target
The Laiterie du Berger (LDB), founded in 2005 by Bagoré Bathily, a Franco-Senegalese veterinarian, has swiftly risen to become Senegal's second-largest dairy supplier. With a focus on using local milk, LDB was established with the aim of ensuring that the Peul farmers can thrive from their livestock amidst a backdrop where 90% of the country's milk is imported. By 2023, LDB had achieved a remarkable annual revenue growth of 23 times since the entry of Phitrust Partenaires into its capital, currently holding nearly 10% of Senegal's fresh dairy market and serving over 5,500 farmer families.
Industry Overview in Senegal
Despite 30% of Senegal's population relying on livestock farming—approximately 4 million people—the country's dairy sector heavily relies on imports, with local production struggling to meet domestic demand. This situation presents a significant opportunity for growth within the dairy industry, particularly for entities that can innovate and incorporate local resources.
The establishment of LDB was a strategic response to promote local production and improve the livelihoods of livestock farmers. It has effectively mobilized investment to enhance dairy production capabilities, driven by the demand for locally-sourced dairy products.
With the agricultural sector playing a critical role in Senegal's economy, focusing on dairy is a strategic move not only to uplift local farmers but also to create jobs and stimulate economic activity in rural areas. As of 2023, LDB is leading the market in fresh dairy products, setting a precedent for future investments in the sector.
This growth trajectory has the potential to transform the landscape of Senegal's dairy market, making it less dependent on imports and more self-sufficient through sustainable practices and local partnerships.
The Rationale Behind the Deal The decision of Phitrust Partenaires to exit its investment comes after a decade of significant contributions to LDB's growth journey. As the company has r…