Commercial dairy production

 Project Description
This project entails a community-based commercial dairy production plant on an impact investment model. The plant will pur¬chase milk from the farmers who will be given dairy cows and will manage them under supervision, and the milk will be purchased exclusively for the plant in which, as an incentive for loyalty, the farmers will have a share in. Thus, value will be added to farmers’ raw milk by pasteurizing it, which will then be packaged and sold to end consumers.
The farmers will own part of the shares of the processing compa¬ny thereby earning dividends from profits and part of their earn¬ings from the processing company will be saved in a local savings cooperative to be formed as part of the project.
The project will produce wholesome fresh milk, yoghurts and juices. Participating farmers will be grouped into functional and formal cooperatives that will own the dairy cattle. The coopera¬tives will also own 20% shares in the processing plant and any sub¬sequent value addition activity based on the cooperative activities.

Project Location
Chiradzulu District

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 will be discussed.

Availability of Pre-Feasibility Studies, Feasibility Studies, and other Studies
Feasibility study is underway.  

Estimated Cost of the Project
US$3.1 million.