In a region where aquaculture was still in its infancy, Joseph Rehmann and his partner atarted a journey that would transform the fish farming landscape in East Africa.
As co-founders of Victory Farms, their vision was bold: to establish a thriving aquaculture business that not only defied conventional wisdom but also laid the groundwork for sustainable growth.
Here is their story as told by WoK.
A Crucial Struggle: Finding Skilled Workers
When Victory Farms was first established, the duo faced a monumental challenge that would test their resolve: the scarcity of qualified personnel.
The aquaculture industry was nascent, lacking a substantial talent pool of trained professionals.
Rehmann and his partner recognized that to propel their fish business forward, they needed to create a robust pipeline of skilled workers.
Thus, the Graduate Aquaculture for Learning and Training (GALT) program was born.
Through GALT, 40 trainees were meticulously groomed, half of whom eventually became integral members of the Victory Farms team.
As an integrated aquaculture business involved in fish feed production, breeding, hatchery operations, processing, cold chain distribution, and retail, Victory Farms’ demand for a skilled workforce was paramount.
“Pioneering was the hardest part,” Rehmann recalls.
Challenging the Norms: Overcoming Geographic Constraints
Victory Farms’ ambitions extended beyond personnel development.
They set their sights on the vast waters of Lake Victoria, a location that skeptics deemed unsuitable for aquaculture due to its cold temperatures, shallow waters, and hyacinth infestations.
However, Rehmann and his team conducted meticulous technical research that dispelled these misconceptions, unveiling Lake Victoria’s potential for commercial aquaculture.
Armed with this knowledge, they took a calculated risk and plunged into uncharted waters.
Unlike many start-ups led by entrepreneurs with limited industry know-how, Rehmann possessed over 15 years of aquaculture experience in Africa.
His partner complemented this expertise with technical skills, underpinning the success of their two-pronged approach.
“Some basis of experience can mitigate risks,” Rehmann notes, advocating the power of a well-rounded team.
Mastering the Art of Fundraising
For Victory Farms, raising the initial capital was an arduous feat encountered by many entrepreneurs.
However, their persistent efforts culminated in a mastery of the art of fundraising. Venture capitalists recognized the company’s potential, infusing billions of shillings to fuel its growth.
A pivotal figure in this journey was Hans Den Bieman, founder of Sealand Aquaculture, the world’s largest salmon farm. His endorsement and credibility attracted other investors, validating Victory Farms’ proposition.
Rehmann’s advice echoes the significance of a vertically integrated business model. By controlling the entire value chain—cold chains, processing, and retail—Victory Farms guaranteed quality products, scalability, and optimal asset utilization.
This approach differentiated them from competitors, positioning them as a formidable player in the aquaculture arena.
Charting a Trajectory of Success
The company’s growth trajectory speaks volumes about their resilience and innovation. From an initial production of 100 tonnes of fish, Victory Farms catapulted to producing 7,000 tonnes in 2022.
With an infusion of $35 million in recent funding, the company aspires to scale its Kenyan production capacity to an impressive 20,000 tonnes annually.
This expansion isn’t confined to Kenya; plans for a fully integrated unit in Rwanda are underway, and future investment prospects are being explored in Uganda, Tanzania, and Ethiopia.
