Commercial Dairy Production

PROJECT DESCRIPTION:

This project entails a community-based commercial dairy production plant using an impact investment model. The plant will purchase milk from farmers who will be given dairy cows and manage them under supervision. The milk will be bought exclusively by the plant, with value added through pasteurization. It will then be packaged and sold to end consumers. Yoghurt and juice will also be produced.

The farmers will have shares in the plant as a loyalty incentive and will earn dividends from profits. In addition, part of their earnings from the processing company will be saved in a local savings cooperative to be formed as part of the project.

Participating farmers will be grouped into functional and formal cooperatives that will own the dairy cattle. The cooperatives will also own 20% shares in the processing plant and any subsequent value addition activities undertaken by the cooperative.

PROJECT LOCATION:

Chiradzulu District

LEAD AGENCY/ PROJECT PROMOTER:

Premier Dairy Limited

CURRENT STATUS/ STAGE OF PROJECT:

Non-operational

ACTIONS REQUIRED/ IMPLEMENTATION ARRANGEMENTS/ CONTRACT TYPE:

The project promoters are looking for financial or equity partners. Shareholding structure to be discussed.

AVAILABILITY OF PRE-FEASIBILITY STUDIES, FEASIBILITY STUDIES, AND OTHER STUDIES:

Feasibility study is available

TED COST OF THE PROJECT:

USD 3 million