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Dairy Does Better

Much of the milk and dairy products sold in Mozambique are imported. We’re working with Agromaco, a medium-sized dairy processor, to develop local producer networks that can compete with imports. Four clusters are operational, located around milk collection centers in Zembe, Gondola, Vanduzi and Amantogas in Nampula province. Three of the clusters have access to a cooling tank, ensuring that quality deterioration is minimal. The goal is to source 15,000 liters of milk per day, from 1,000 smallholder dairy farmers (300 women).

One priority is to expand fodder production to ensure that milk yields do not drop during the dry season, when fodder is scarce. Training programs have helped promote adoption of fodder crops (currently grown on a very limited sale) and production of silage. We’ve also developed templates for a quality based payment system under which farmers will receive higher prices for milk with higher protein and butterfat content, encouraging them to adopt modern husbandry methods. A market study, conducted by 2SCALE teams completed a market study, identifying opportunities in low-income markets. Building on the findings, a marketing plan is being developed to use a network of street vendors to deliver yogurt and pasteurized milk to BoP consumers

Agromaco is installing a new plant with the capacity to produce 1,000 liters of sterilized milk per day; and a dairy meal unit that will make specially formulated feed. The feed will be supplied to Agromaco farmers on credit, to be repaid through deductions from payments for milk supplied.

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