Nearly 750 million people live on dairy farms, smallholdings or in households that keep a few dairy animals. According to the International Farm Comparison Network, of the 920 million tonnes of milk produced globally, 377 million tonnes are currently produced by smallholder farms. Much of that milk is not formally processed, and is lost, limiting smallholder farmers' access to market. The milk and dairy industry thus has significant potential to contribute to UN SDG 8, Decent work and economic growth, by creating jobs and increasing incomes for all people along the value chain.
Our Dairy Hub model aims to secure a long-term supply of locally produced, quality milk, without raising the costs of collection in emerging economies. It does so by linking smallholder farmers to a dairy processor, with Tetra Pak offering the technology and ‘hands-on’ practical knowledge and training.
This directly supports UN SDG 2, Zero Hunger, with the mission to end hunger, achieve food security and improved nutrition and promote sustainable agriculture. Through farmer training and capacity building as well as supporting our customers to source more quality milk, we support building sustainable value chains in these areas. We measure the results and report progress on smallholder farmer income increase and improved productivity.
We have seen around the world how this model increases locally produced milk supply and enhances the stability of dairy supply chains. For example, smallholder farmers involved with Dairy Hubs in Bangladesh have seen their cows' milk yield increase 143 percent, from 4.45 to 10.8 litres, and their monthly income has risen by an even greater percentage, from $100 to $144.