Dairy − Agromaco − Mozambique

About the partnership

Agromaco purchases fresh milk from smallholder producers (in addition to production on its own dairy farm) for processing and resale. The partnership aims to increase local sourcing through improved access to feed and fodder, breed improvement and quality-based price incentives; and to introduce an innovative marketing/distribution model based on street vendors.

Achievements

Develop sustainable feed and forage production systems

Develop supplier management systems to improve business efficiency (field activities, contracts, payments etc), including payment system based on milk quality

Mobilize and train dairy farmers on quality, animal health and nutrition, feed, fodder and silage production, establish forages banks

Provide training on farming as a business (cost-benefit analysis, business planning, contract negotiation etc)

Expand the street vendor model for BoP markets

Introduce livestock insurance scheme

Targets

Involve 1,000 smallholder dairy farmers (300 women) and 25 small and medium enterprises (5 women-led) by 2017.

Market segments

Yogurt, cheese and pasteurized milk for shops/supermarkets, also sold through street vendors.

Project partners

Government agencies (livestock sector)

Norfund (finance), Banco de Oportunidade, Banco Terra Mozambique

Land O’ Lake International (improved heifers)

GAIN (nutrition)

Phoenix Assurance (livestock insurance)