Colombia’s dairy sector is of great relevance to the country’s economy. According to Minagricultura (2021), it currently represents 2.3% of the national GDP and 24.3% of the agricultural GDP, in addition to generating more than 700,000 direct jobs. They furthermore state that Colombia has positioned itself as the fourth largest milk producer in Latin America with an approximate production of 7,821 million litres in 2021, surpassed only by Brazil, Mexico and Argentina.
Teaming up to improve productivity
Despite the above, productivity is still low compared to international benchmarks. While in Colombia, it stands at 4.5 litres per cow per day, it is 17 in New Zealand, 16 in Uruguay and 36 in the United States 36 (IFCNC, 2020). According to the FAO (2023), of all the milk produced in Colombia, nearly 50% is formally collected and the remaining percentage is used for self-consumption or informal sale, which constitutes an additional challenge for the country’s dairy industry. This challenge is more critical in the case of Cauca Department, where the informal milk collection sector represents almost 90%.
The government of Sweden – through the Swedish Embassy and the Swedish International Development Agency (Sida) – has joined the Food and Agriculture Organisation of the United Nations (FAO), Tetra Pak Colombia, Tetra Pak Food for Development, and local dairy processors Alpina and Alival in a public-private partnership. The goal is to improve the economic conditions of smallholder farmers by providing technical training and access to the formal market through Tetra Pak’s customers.
Marcela Velásquez, Managing Director of Tetra Pak Andina, highlights the value of this initiative. "We are proud to be part of this Dairy Hub project for Cauca for many reasons, including the important social component it has. Through it, we are contributing to the construction of peace and the recovery of the social fabric in a region that has experienced armed conflict. This proposal seeks to integrate and strengthen the efforts of the ethnic and rural livestock farming communities in this region, generating equal opportunities for women, empowering young people and ensuring the economic sustainability of the dairy industry".
A step towards economic and environmental sustainability
This collaborative effort marks the launch of a 3-year Dairy Hub project in Cauca Department to support the development of its dairy sector. The region was selected to run this project because of its potential in dairy farming and the challenges it faces in overcoming conflicts, ensuring food security, and improving the livelihoods of its people while managing natural resources and protecting the environment. In Cauca, many smallholders depend on dairy farming as a secondary source of income, and there is great potential to increase the source of income by providing knowledge and formalising the dairy value chain.
Helena Storm, Ambassador of Sweden in Colombia, says, “This alliance is also very important for Sweden, which this year celebrates 150 years of diplomatic relations and has been a partner for peace and sustainable development with Colombia. This joint program promotes sustainable cattle farming which avoids deforestation and improves the quality and productivity of milk, thereby improving the quality of life of indigenous and peasant communities in a conflict-affected region, while promoting stable suppliers for the dairy industry”.
The first phase of the project has been initiated, and the baseline data has been collected from 338 farms, of which 174 belong to indigenous families and 42% are led by women. These farms are located in 4 municipalities within the Cauca, including Cajibio, Puracé, Silvia and Sotará, with plans to expand to a larger scale. The objective at the end of the project is to increase farm productivity and income by 20%.
Transforming the industry one territory at a time
Tetra Pak Food for Development team has started with the training program sessions on data collection and reporting, the basics of dairy farming and farm evaluation tools for the FAO extension team.
According to Diana Marcela Sánchez, a milk producer from the municipality of Cajibío (The Territorial Development Programmes), “This initiative has been important in the region. I highlight it especially because it promotes teamwork, thinking in terms of the territory, and reflecting on livestock farming and the impact it’s having on the farms. These are processes of transformation.”
"We are proud to have formed this very important partnership with the Swedish International Development Agency (Sida), FAO, and customers Alpina and Alival to boost productivity and the economic conditions of smallholder farmers which improves their livelihoods and increases the local supply of quality milk in the region," says Rafael Fabrega, Vice President, Food for Development.
