With the global demand for milk set to overtake supply within a decade, the dairy industry is facing immense pressure. Through our Dairy Hub model, we help build sustainable value chains by supporting smallholder farmers and connecting our customers to higher-quality milk.
Nearly a billion people live on dairy farms, smallholdings or in households that keep a few dairy animals. Indeed, 339 million tonnes of milk are produced by smallholder farmers out of a total annual production of 819 million tonnes. The milk and dairy industry thus has significant potential to create jobs and to increase 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 "on-hands" practical knowledge and training. We have seen around the world how this model increases locally produced milk supply and enhances the stability of dairy supply chains.
We started a dairy development project in 2012 together with our customer, Centrolac, and the dairy development organisation venture | dairy. In 2016, two new Dairy Hubs were launched.
2016 results (Acopaya region):
- Average milk yield per cow per day: +81 percent
- Weight gain for calves: +124 percent
- Milk quality qualified as Grade A: 81 percent
Working together with our customer PRAN RTL, the Swedish International Development Cooperation Agency and UNIDO, two new hubs were opened in 2016, making a total of four hubs.
2016 results (Chatmohar region):
- Average milk yield/cow/day: +143 percent
- Milk collected in hub 1 per day: +1,950 percent
- Average income per smallholder farmer per month: +144 percent
Through our work alongside our customer Cargills and the German development agency, GIZ, a new hub was launched in 2016.
2016 results (Poonkari region):
- Smallholder farmers trained: 300
- Average milk yield per cow per day: +41 percent
- Average income per smallholder farmer per month: +50 percent
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About Tetra Pak
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.