The Dairy Hub concept goes to the heart of food safety and dairy development, by helping our customers in developing countries to access better quality, locally produced milk.
Total global demand for milk is set to overtake supply within the next decade, fuelled by population growth, rising prosperity and urbanisation in Africa, Asia and Latin America. In the long term, the dairy industry is facing the emergence of a persistent gap between supply and demand – a supply deficit.
Many developing countries have a long tradition of milk production, but only a small portion of locally produced milk is collected, processed and packaged due to lack of infrastructure, cooling and processing capabilities. A lot of the milk is lost in the early parts of the supply chain.
The overall aim of Dairy Hubs is to secure a long-term supply of locally produced quality milk without increasing the cost of collection and, at the same time, to help smallholder farmers move from subsistence farming to running milk production as a profitable business. Investment in a Dairy Hub project is a long-term commitment by the dairy processor.
The concept is based on linking farmers in a specific area – covering a certain number of villages, smallholder farmers and cows – to a dedicated dairy processor. The processor sets up milk collection stations with cooling tanks where farmers deliver milk twice a day. Farmers benefit from the transfer of knowledge and expertise – which leads to healthier animals and increased productivity and profit – as well as access to proper infrastructure and guaranteed twice-daily milk collections all year round. Processors are able to tap into a reliable supply of locally produced, high-quality milk and gain better control over the supply chain. And at the same time, public access to safe and affordable milk is increased.
Nearly 1 billion people live on dairy farms, smallholdings or in landless households keeping one or a few animals. The milk and dairy industry holds huge potential and opportunities to create jobs and increases incomes for all the people along the value chain – farmers, dairy processors, distributors, shopkeepers and other stakeholders.
Equally importantly, milk has the potential to improve nutrition for hundreds of millions of people in developing countries. It is one of the most complete foods: an important source of dietary energy, protein and fat, as well as around 20 essential vitamins and minerals.
Drawing on our world-leading knowledge of food processing, packaging and distribution, combined with the products and services offered by our sister company DeLaval that cover every step in the milk production process, we have the knowledge and expertise to support development of the entire dairy value chain – from cow to consumer. Today there are successful Dairy Hubs in Bangladesh and Nicaragua, and new projects are under way in a number of other developing countries.
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Together with our customers we make food safe and available, everywhere. Since the start in 1951 we have taken pride in providing the best possible processing and packaging solutions for food.