08mvw-5187 - Business Plan 'Dairy Processing Plant Vwawa'
Mviwambo is a registered network of seventeen dairy farmers groups in Mbozi district. One of the groups is Vwawa DFG (Dairy Farmers Group) with 69 members (11 females) with a daily milk production of about 750 liters. The planning of The company is based at 1,880 liters per day in year 1 increasing to 4,460 liters per day in year number 10. The figure of 1880 liters in year 1 based on the current situation. This is the calculated available amount of milk surplus (production minus local consumption) based on 2008 production figures from all the relevant DFG’s (BPR added 24-8-09). Vwawa DFG has planned to start a processing plant for the surplus of milk from Vwawa DFG, sister DFG's and non-members. The created advantage for the sister DFG's will be to reduce costs for processing equipment and staff. After the plan had been approved within Mviwambo, it has taken several actions as a follow up. Vwawa DFG has lobbied for and succeeded to get a building plot in Vwawa. Building materials were purchased and additional land was leased for the purpose of fodder production. In 2006 Vwawa DFG was running 5 milk shops and they purchased additional milk from sister DFG's Isangu, Mbimba, Ndolezi and sometimes Mahenje. Vwawa DFG has thus gained considerable experience in processing and marketing of milk. The Company intends to sell only processed milk, yoghurt, sour milk and ghee. The Company is not selling raw milk because of legal restrictions and health risks. The strategy of the Company will be to produce and sell reliable high quality dairy products. Because of the high quality standards that have been put in practice in Mviwambo the last years, the company will be the only supplier who is capable to produce these reliable high quality dairy products. Description of the production process: • Collection of raw milk at 5 village collection centers • Quality control at the collection centers • Storage in cooling tank at the collection centers • Conditioned daily transport to the processing plant at Vwawa • Quality control at the processing plant at Vwawa • Storage in cooling tank at the processing plant at Vwawa • Pasteurization and standardization • Processing of the milk into various products • Packing of the processed milk and storage in cold room • Distribution of the processed milk to the milk shops There is a high and growing demand for milk in the Mbozi District and especially in Tunduma. In the villages there is also a demand for processed milk instead of raw milk taken directly from the farmers. Tunduma is situated at the border between Zambia and Tanzania and at the international highway between Dar es Salaam and Zambia. This situation implies a growth of international trade at Tunduma and therefore the city is growing very rapidly. Increasing demand is to be expected for the wholesale of dairy products, consumption in hotels and restaurants and sales in milk shops and in the street. In 2006 the milk sales show an increase of 175% since 2001. The estimated increase in the next years is 10% per year. The processed milk and dairy products are being sold completely every day. The dairy products will be sold at milk shops in Vwawa and Tunduma. In Tunduma and Vwawa there will also be sold milk by street vendors. In the villages there will be also the opportunity to sell milk and dairy products. Vwawa Dairy Co-op supports the efforts of the dairy farmers community to process and market dairy products. Vwawa Dairy Co-op does so in cooperation with a number of institutes with similar visions. It's vision is to raise the living standard of dairy farmers in the long run.