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Expanding the milk market in Mozambique

Partner firm Agromaco has launched an ambitious expansion plan to produce sterilized milk and animal feeds. Their new factory, which is under construction, will have a capacity of 7 tons per hour. 2SCALE helped link the company to four dairy cooperatives as potential suppliers to Agromaco.

Agromaco will buy milk at 20% above market price, given the higher retail price it expects for sterilized milk. It also leads the farmer training program on feed and fodder production that will enable farmers to keep their herds healthy and productive even in the dry season, when fodder is scarce.

2SCALE in addition facilitated (ongoing) discussions with two other partners: the PUM program in the Netherlands, to provide technical expertise on feed formulations; and development investor Norfund, which will provide funds to Agromaco in exchange for an equity stake.

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