Developing the Dairy Value Chain

Nov 3, 2016 10:00 AM ET
Tetra Laval’s international Dairy Expert Morgan Tinnberg with dairy farmers in Sri Lanka

The Dairy Hub concept goes to the heart of food safety and dairy development, by helping strengthen the dairy value chain in developing countries. The goal of Dairy Hubs is to help our customers in developing countries access better-quality, locally produced milk. At the same time, it helps smallholder farmers become profitable dairy producers, raising income and improving nutrition in areas that need it most. Already active in Bangladesh and Nicaragua, our Food for Development team recently launched a new project with local partner Cargills in Jaffna district in northeast Sri Lanka.

Two years on from the initial set up, and the project is delivering significant results. For Cargills, it has provided a way of increasing volumes in a country where demand currently far exceeds supply, while farmers have seen a dramatic increase in returns.

One farmer sums up the impact of the project on individuals and their families: “We are finally able to stand on our own two feet and provide for our children adequately without being in debt. The project has been a godsend to us.”

Tapping the potential
Nearly 1 billion people live on dairy farms, smallholdings or in landless households keeping one or a few animals. The milk and dairy industry therefore holds huge potential to create jobs and increase incomes for farmers, dairy processors, distributors, shopkeepers and other stakeholders.

Read more about our work to develop Dairy Hubs