Dairy Business Africa Magazine - Issue 1

Page 1

Dairy Business AFRICA

YEAR 1 | ISSUE NO. 1 JAN-MAR 2024 WWW.DAIRYBUSINESSAFRICA.COM AFRICA’S NO.1 DAIRY FOODS & BEVERAGE INDUSTRY MAGAZINE
Kenya Dairy Board launches Dairy Sustainability Vision for Kenya
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Francis Juma

Paul Ongeto

Mary Wanjira | Catherine Odhiambo | Francis Watari

Virginia Nyoro BUSINESS DEVELOPMENT

Vivian Kebabe HEAD OF DESIGN

Clare Ngode CINEMATOGRAPHER

Newton Lemein

Jonah Sambai

Published By: FW Africa

P.O. Box 1874-00621, Nairobi Kenya

Tel: +254725 343932

Email: info@fwafrica.net

Company Website: www.fwafrica.net

New publication, same mission

Welcome to the inaugural issue of Dairy Business Africa!

We launch during February, the month of love, because, well, what's love without a delicious bar of chocolate? And for many, especially those who often receive chocolates during this time (not just "ladies"), no chocolate is sweeter than one infused with the creamy taste of milk.

Many of you are familiar with our sister publication, Food Business Africa, and our flagship event, AFMASS Food Expo Eastern Africa, taking place this June 12-14 at the Sarit Expo Center in Nairobi. This year promises to be even bigger, with more exhibitors, attendees, and lively competitions celebrating Africa's food manufacturing excellence.

Now, in our 12th year of impactful publishing, we're excited to launch a magazine specifically tailored for the African dairy industry. Why? Because this sector is at a critical growth phase, where innovation and value addition are driving progress more than simply increasing milk production.

More milk is being delivered for processing than ever before, and in countries like Kenya and Uganda, where dairy contributes significantly to agricultural GDP, governments and the private sector are investing millions of dollars to further modernize the industry.

At FW Africa, our mission is to catalyze sustainable business growth, hence the birth of Dairy Business Africa. With this magazine, we pledge to provide timely, actionable information and analysis of the African and global dairy markets, empowering you, our readers, to make informed decisions that turbocharge the growth of your business and the industry as a whole.

We hope you enjoy your read.

on the basis of information published.

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Year 1 | Issue No.1 | Jan - March 2024 Milling Middle East & Africa is published 4 times a year by FW Africa. Reproduction of the whole or any part of the contents without written permission from the editor is prohibited. All information is published in good faith. While care is taken to prevent inaccuracies, the publishers accept no liability for any errors or omissions or for the consequences of any action taken
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2 JAN-MAR 2024 | DAIRY BUSINESS AFRICA Contents Uganda Dairy Sector thrives despite trade sanctions from its largest export market Kenya Whole Milk Powder Growth Hits Pause, But Importance Remains for Underserved Markets High-Protein Beverages Take Center Stage in Health and Nutrition Managing Food safety & quality in yoghurt Processing COUNTRY FOCUS - DAIRY INDUSTRY IN UGANDA MARKET UPDATE -WHOLE MILK POWDER PRODUCT FOCUSYOGHURT 32 38 42 48 Milking Success: Kenya dairy board's vision for sustainable growth Urban Dairy Farmer Cultivates Success in Nairobi's Heartland FEATUREKENYA DAIRY BOARD FEATUREMIARE DAIRY FARM 19 27 In Every Issue Editorial News Updates Suppliers News 1 4 52 32 42 48 38 27 19 MARKET TRENDS - HIGH PROTEIN BEVERAGE YEAR 1 | ISSUE NO. 1 | JAN-MARCH 2023 WWW.DAIRYBUSINESSAFRICA.COM
SARIT EXPO CENTRE, NAIROBI, KENYA JUNE 12-14, 2024 Dairy AFRICA MANUFACTURING EXPO www.dairymanufacturingafrica.com SCAN ME Africa Dairy 2.0 - Taking Africa's Dairy Industry into the Next Level through Innovation & Sustainability AFRICA’S NO.1 DAIRY INDUSTRY TRADE SHOW & CONFERENCE SIGN UP TO ATTEND , SPONSOR & EHIBIT

Danone invests US$109.06M in Mexico to strengthen market presence

USA – Danone, a global dairy giant has announced a US$109.06 million investment in Mexico in a bid to fortify its presence in the Mexican market.

The announcement was made by Emilio Aguilar, Vice President of Public Affairs for Danone, during a press conference held to mark the company’s 50th anniversary in Mexico.

According to the Vice president, the substantial capital injection underscored Danone’s commitment to its Mexican operations, with a primary focus on sustaining production lines and driving innovation.

“To grow our legacy, we are going to continue innovating, continue growing, and continue investing in our business,” Aguilar stated highlighting the company’s dedication to growth.

“The investment is a testament to

Danone’s confidence in the Mexican market and its enduring presence in the region.”

He added that Danone’s strategic approach to the Mexican market includes recent ventures into the plant milk sector with “Bye Bye Muu” and sustainable initiatives for its Bonafont brand.

While specific details about upcoming products were not disclosed, Danone remains committed to adapting to consumer trends and fostering innovation.

Looking ahead to 2024, Aguilar expressed confidence in maintaining sustained growth despite potential challenges posed by upcoming elections.

“The company remains dedicated to its core functions of production, job creation, and ensuring product availability on shelves for consumers.”

South African dairies embrace solar innovation to counter power challenges

SOUTH AFRICA – South African dairy farms, facing persistent power challenges from State-owned Eskom, are turning to solar solutions to secure a stable electricity supply and reduce operational costs.

SolarSaver, a solar photovoltaic (PV) installation company, has implemented hybrid systems with battery storage at Burnview Dairy and plans to enhance the Creighton Valley Cheese Company’s output by adding batteries to its existing grid-tied installation.

Creighton Valley Cheese Company owner, Hayden Stokes, emphasized the critical need for a consistent power supply to sustain daily operations, especially for milking machines and refrigeration units.

“The immediate success of SolarSaver’s grid-tied solar installation at Creighton Valley Cheese Company in 2020 prompted me to invest in a hybrid

solar and battery system at Burnview Dairy,” explained Stokes.

According to him, power interruptions on dairy farming can lead to decreased milk production and potential health issues for cows, in addition to substantial financial loss.

SolarSaver has previously installed grid-tied and hybrid systems at various locations, totaling just under 700 kW.

The company’s unique rent-to-own model offers grid-tied solutions without upfront capital costs, while clients pay only for the produced green power at rates lower than Eskom.

While grid-tied systems cater to daytime power needs, the addition of battery storage ensures an uninterrupted power supply, crucial for operations that run 24/7.

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SUSTAINABILITY
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UAC Foods Limited announces Ayo Awosika as new General Manager

NIGERIA – UAC Foods Limited, a leading Nigerian food and beverage company, has announced the appointment of Ayo Awosika as the General Manager, Commercial.

With over thirteen years of expertise in Strategy, Sales, and Business Development, Ayo brings a wealth of experience to his new role.

His proficiencies include Strategy Design and Implementation, Route-To-Market Design, Commercial Leadership, Distributor Operations Management, Business Transformation, P&L Management, and Manufacturing Oversight.

The company highlighted Ayo's extensive experience across Sub-Saharan Africa, where he held significant roles in leading multinational companies within the FMCG, Beverages, and IT sectors.

Awosika holds a BSc in Economics and an MBA in Strategic Management from Olabisi Onabanjo University and Babcock University, respectively. He is also an Associate Member of the National Institute of Marketing of Nigeria (NIMN).

Beyond his professional achievements, Ayo is a trained Marketing and Sales Professional, a seasoned researcher, and enjoys playing Golf and spending quality time with his family.

These leadership changes coincide with UAC Nigeria Plc's remarkable financial performance for the fiscal year 2023.

The company reported a pre-tax profit of approximately US$9.14 million, rebounding from a pre-tax loss of approximately US$3.17 million in 2022. The impressive financial results reveal a 9% growth in revenue, reaching approximately US$85.5 million in 2023.

Bio Foods, USAID partner to battle aflatoxins in the dairy value chain in Kenya

KENYA – Kenya-based dairy company Bio Food Products and USAID have unveiled an initiative aimed at safeguarding consumer health and fortifying the economic resilience of Kenyan dairy farmers by managing the threat of aflatoxins in the dairy value chain in the country.

This collaborative effort dubbed “Safe Milk Kenya – Know your Milk – Improve your Health” responds to the alarming reality that over 80% of dairy products in Kenya harbor aflatoxins, imperceptible toxins linked to a significant cancer burden in the country.

The partnership has received a substantial commitment of US$240,000 from USAID, complemented by Bio Foods’ investment of nearly US$300,000.

US Ambassador to Kenya, Meg Whitman underscored the initiative’s strategic approach, emphasizing the imperative to equip Kenyan dairy farmers with knowledge and tools to produce safer, higher-quality milk.

“I am very passionate about agriculture and smallholder farmers. The partnership is between us and Bio Foods, not just about business. We intend to ensure every Kenyan has access to safe food,” she said.

Joachim Westerveld, Executive Chairman and CEO of Bio Foods expressed the company’s commitment to upholding the highest global standards for the benefit of both farmers and consumers.

“Together we will sensitize and train Kenyan Dairy Farmers to produce aflatoxin safe milk. We will also role out a national sensitization campaign to make Kenyan Consumers aware of Safe Milk to empower them to make better choices for their health,” he said.

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Nigeria Customs seizes expired milk in an anti-smuggling operation

NIGERIA – The Nigeria Customs Service, Federal Operations Unit, Zone B, Kaduna, has announced the impounding of a consignment of expired milk and juice powder, among other items, seized between January and February 16, 2024.

In a statement, the Unit Controller,

Comptroller Dalha Wada Chedi, revealed that the total Duty Paid Value of the seizures amounted to an impressive N1.98 billion (US$1.23m)

Chedi detailed an interception on February 11, 2024, along Tsafe-Funtua Road in Zamfara State, where operatives

discovered 75 cartons of expired foreign jolly juice powder and 8 sacks of foreign expired milk powder.

These items, found to have expired in 2019, were concealed with sacks of dried hides and skin. Chedi emphasized the potential harm to society.

The seizing came a few weeks after the country’s National Agency for Food and Drug Control Administration (NAFDAC) sounded an alarm over the sale of counterfeit Arla Dano Full Cream Milk Powder – 14g sachets across various markets.

Meanwhile in Kenya, the Kenya Dairy Board has also issued a stern warning against the trade of illegal powdered milk in a bid to protect local farmers and stabilize the dairy market.

The government initiated a crackdown leading to the arrest of several suspects in Eastleigh and the recovery of illegal goods.

China strengthens dairy industry oversight with new milk standards

CHINA – China has taken steps to enhance governance over its thriving dairy industry by introducing specific standards to regulate various types of milk available on supermarket shelves.

The government has heightened scrutiny of dairy products through initiatives such as the ‘Excellent Milk’ project, which closely monitors quality and safety improvements.

The National Health Commission (NHC) is now seeking public input to update standards and policies for three types of milk found in local supermarkets: high-temperature pasteurized milk, pasteurized milk, and sterilized milk.

Revisions aligning with the local Food Safety Law cover 21 food and beverage items, including updates for pasteurized

and sterilized milk, and the formulation of new standards for high-temperature pasteurized milk, reflecting its growing popularity in the Chinese market.

Under the proposed standards, manufacturers have been given processing options to classify their products under the high-temperature pasteurized milk category.

Guidelines suggest treatments such as 115°C for 20 seconds, 120°C for 15 seconds, or 130°C for two seconds.

The updated national standards for pasteurized and sterilized milk, last revised in 2010, are now open for public comment until February 10, 2024, through the National Food Safety Standards Management Information System.

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Lactalis powers French whey production site with solar in sustainability push

FRANCE – French dairy giant Lactalis, in collaboration with renewable heat supplier Newheat, has inaugurated what is hailed as “the largest solar thermal power plant in France.”

The project, covering an expansive 15,000 m², is set to supply heat to Lactalis’ Verdun dairy factory for the next quarter-century.

Anticipated to cut the CO2 emissions of the site’s drying tower by 2000 tons annually, equivalent to 7% of the total emissions, the initiative marks a pivotal stride in the widespread adoption of solar heat for food and beverage applications.

With heat production constituting 45% of France’s final energy needs, and a majority being supplied by fossil fuels, decarbonizing heat is paramount in the nation’s broader strategy for energy independence.

Lactalis’ move to embrace solar thermal energy reflects a commitment to reducing its energy footprint and contributing to the national goal of transitioning away from traditional energy sources.

Jean-Luc Bordeau, Managing Director of the Ingredients division at Lactalis, emphasized the significance of continuing their transformation by focusing on reducing the energy footprint after the major renovations of the Verdun site and the inauguration of the new drying tower in 2021.

The Lactalis site at Verdun converts liquid whey, a cheesemaking by-product, into whey powder for the food industry, with an annual production capacity of 75,000 tons.

Tanzania launches new milk processing plant in Rombo District

TANZANIA – In a significant development for dairy farmers in Rombo District, Kilimanjaro region, a new milk processing plant and collection center have been inaugurated, promising increased earnings for local milk producers.

The facility, situated in Kondiki village, is poised to process an impressive 8,000 liters of milk daily to meet the demands of both the local market and beyond.

Investor Robert Schozderk, a passionate advocate for the sector from Poland, is credited with the establishment of the milk processing plant.

The establishment of the milk collection center, capable of purchasing 15,000 liters monthly or 5,000 liters daily from dairy cattle, is expected to be a game-changer for the 1,294 families of dairy cattle keepers in the area.

The center is set to provide a reliable market, paying farmers TZS 800 (US$0.31) for each liter of milk, providing a significant boost to their income.

Adrian Kimaro, the plant manager, emphasized the need for extension officers to guide dairy cattle keepers in adopting modern animal husbandry practices to enhance milk yields.

He noted that despite owning substantial numbers of dairy cows, many farmers were experiencing low milk yields, hindering their profitability.

“The government will mop up the milk, convert it into powder milk, package it, and store it in the Strategic Food Reserve. As soon as we get to January, even the private processors will be free to buy the same dry milk at a price the regulator will provide,” Chelugui explained.

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Dodla Dairy’s Subsidiary inaugurates state-of-theart dairy plant in Kenya

KENYA - Country Delight Dairy, a subsidiary of Dodla Dairy Limited, has inaugurated a new dairy plant in Nyahururu Town, Laikipia County, Kenya.

The plant, with a daily processing capacity of 100,000 liters of milk aims to expand its dairy product portfolio in the market by procuring, processing, and marketing milk and milk products through integrated cold chain facilities, ensuring farm-fresh milk from producer to consumer.

Country Delight Dairy was established to engage in the production, processing, and distribution of milk, milk products, and other related products.

Meanwhile, in Nigeria, Zayith Foods Limited has inked a deal with investment firm, Inclusive Impact Investments BV (Triple I), to enhance its yoghurt processing and distribution capabilities across the country.

As part of the deal, Tripple I will provide tailored, flexible, and costeffective financial products, coupled with a profound understanding of local contexts and continuous engagement with portfolio companies.

“This funding allows us to provide nutritional food (dairy) at an affordable price with excellent quality. We consider Triple I to be the right partner in our mission to provide healthy food products across Nigeria,” said Chidimma Uzoma, founder, Zayith Foods Limited.

Triple I is dedicated to uplifting small and medium-sized enterprises in Sub-Saharan Africa and Southeast Asia, particularly focusing on empowering women and young individuals to overcome poverty, according to a statement.

Danone unveils new plant-based beverage facility in France

FRANCE- Danone, a global dairy and food company, has inaugurated its newly transformed production facility in Villecomtal-sur-Arros, southwestern France, which has been converted to a

plant-based beverage production site.

The dairy giant said the transformation reflects its focus on anticipating consumer needs. The site will become a new reference point in Europe for the production of oat-based drinks for the Alpro brand.

In a statement, Danone said that the transformation took nearly two years and called for a capital investment of several million euros. It is now home to Danone France’s only oat-flour-to-oat-juice production facility.

The Villecomtal-sur-Arros plant features two production lines, one operating at high speed. Beverage output is expected to reach over 300,000 litres a day for distribution in France and 26 other European markets. 90% of total production is designated for export.

The transformation of the site aligns with Danone’s ‘Renew Danone’ strategy,

focusing on adapting and expanding product ranges to meet consumer demand for healthy and diversified products.

With the inauguration of Villecomtalsur-Arros, Danone now has two French and four European sites dedicated to plant-based beverages, with the wellknown Alpro brand a key driver.

THE GOVERNMENTS IMMEDIATE STEPS INVOLVE DISTRIBUTING 650 MILK COOLERS AS PART OF REVIVING THE MILK COOLERS PROGRAM.
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Japan to introduce stricter standards for non-chilled Milk Products

JAPAN – The Japanese government is set to implement more rigorous standards for milk products that do not require chilling, necessitating additional certificates from

the country of origin for entry into the market.

The Ministry of Health, Labour and Welfare (MHLW) has unveiled a ministerial proposal, inviting public and industry feedback before the anticipated enforcement in mid-March this year.

The proposed amendment targets milk and dairy products not requiring storage below 10°C or permitted to be stored at room temperature.

This includes regular milks, modified milks, low-fat milks, skim milks, processed milks, liquid milk preparations, and other milk-based beverages.

The regulations will apply to products that have undergone sterilization and aseptic packaging or packaging followed by sterilization.

FrieslandCampina WAMCO Nigeria appoints Roger Adou as MD

NIGERIA

– FrieslandCampina WAMCO Nigeria PLC, a leading dairy company in Nigeria, has appointed Roger Adou as its new Managing Director, effective January 1, 2024.

Adou takes over from Ben Langat, who served as Managing Director for seven years and has exited the company to pursue new career opportunities.

Roger Adou, who joined FrieslandCampina in 2019, brings over 21 years of experience in the Fast-Moving Consumer Goods (FMCG) industry in Africa.

Prior to his appointment as the Managing Director, Adou served as the Regional Director for FrieslandCampina West Africa, overseeing a region comprising 18 countries in West and Central Africa.

Known for his leadership acumen and ability to manage diverse teams, Adou has a rich background in the beverage

industry.

Before joining FrieslandCampina, he gained extensive experience working with notable companies such as The CocaCola Company and the Castel Group, a prominent beverage and bottling company operating in 21 African countries.

Kabrita launches first FDA-authorized goat milk-based infant formula in the US

USA – Kabrita, a producer of goat milk formula, has officially unveiled the inaugural and exclusive long-term FDAapproved goat milk-based infant formula in the United States.

This achievement comes after extensive clinical trials, confirming the safety and comprehensive nutritional adequacy of Kabrita’s infant formula tailored for a baby’s growth in the crucial initial year.

The enduring FDA approval signifies a major stride, ensuring a consistent presence of Kabrita’s infant formula in the US market.

“This guarantee offers reassurance to parents, highlighting the stability and dependability of the product,” a company representative stated.

In late 2023, the American Academy of Pediatrics formally endorsed goat milk infant formula as a suitable nutritional option for infants, regardless of whether they are breastfed or not.

This endorsement, particularly for those requiring formula supplementation in their first year, underscored the increasing acknowledgement of the nutritional advantages associated with goat milk-based formula.

Kabrita’s formula, containing goat milk proteins closely resembling those in breast milk, provides distinct benefits such as improved digestion compared to cow milk proteins.

Additionally, goat milk boasts significantly higher natural oligosaccharides, the third-largest component of breast milk, enhancing the overall nutritional value of the formula.

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REGULATIONS
APPOINTMENT

Kenyan president seeks collaboration with India’s dairy expertise

KENYA – During his visit to India, President William Samoei Ruto had a meeting with Dr. Meenesh C Shah, Chairman of the National Dairy Development Board (NDDB), and Shri Manish Bandlish, Managing Director of Mother Dairy.

The meeting aimed to explore collaborations and share insights on the dairy sector, particularly India’s successful journey from deficiency to self-sufficiency.

Dr. Shah briefed President Ruto on India’s transformative path to becoming the world’s largest milk producer through

cooperative strategies and structured project implementations supported by the government.

Dr. Shah also discussed NDDB’s visit to Kenya and outlined the Dairy Development Plan for Kenya, drawing on India’s experiences and expertise, highlighting the unique aspects of India’s smallholder dairying system, similar to Kenya’s.

President Ruto expressed keen interest in Indian expertise and sought collaboration to enhance Kenya’s dairy sector, focusing on productivity measures such as High Genetic Merit semen doses, disease control through vaccination, and the provision of dairy machinery and packaging equipment.

The President emphasized the importance of the dairy sector in Kenya, predicting a doubling of milk production in the next five years.

Arla Foods in talks to acquire Hero Group’s Semper facility in Sweden

SWEDEN – Arla Foods, a Danish dairy giant, is in discussions to acquire the Semper facility in Götene, Sweden, from Hero Group.

The facility, which produces gruel, infant formula, and gluten-free mixes, is set to be closed by Hero Group due to changing market conditions, including a decline in baby milk consumption, reduced demand from China, and a lower birth rate.

Arla Foods already has a cheese and spreadable butter factory in Götene, next to the Semper site, and the two companies share facilities.

Arla is interested in acquiring the factory buildings, parts of the equipment, and the land itself. The acquisition would enable Arla to enhance its production capacity for milk powder, particularly for industrial markets.

According to a Hero Group spokesperson, the decision to cease production at the Götene plant is driven by lower-than-expected production due to changing market forces and strategic focus.

The company aims to prioritize a smaller number of core categories.

Jim Frandsen, General Manager of Hero’s northern European business, stated that talks with unions have been initiated due to the need for operational efficiency and competitiveness amid lower production levels at the Götene plant.

The acquisition, if successful, would further strengthen Arla’s position in the dairy industry and contribute to its strategic growth objectives.

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Fonterra invests US$36M in clean energy transition at Edendale site

NEW ZEALAND – Fonterra, New Zealand’s dairy cooperative, has announced a significant US$36 million investment in a 20-megawatt electrode boiler at its Edendale site, marking a crucial step in its ongoing transition away from coal.

Fonterra is partnering with Meridian Energy, a hydroelectric power generation company, to source electricity from 100% renewable resources, including wind, water, and solar energy.

The move is part of Fonterra’s commitment to eliminate coal usage by

2037 and achieve a 50% reduction in Scope 1 and 2 emissions by 2030.

This investment is expected to slash emissions at the Edendale facility by approximately 20%, equivalent to 47,500 tonnes of CO2e per year.

Once operational in the fiscal year 2025, the electrode boiler will contribute to an overall reduction of nearly 3% per annum in Fonterra’s carbon emissions from its 2018 baseline.

Anna Palairet, Fonterra’s acting chief operating officer, emphasized the importance of continually assessing energy sources and technologies for each site as the cooperative’s manufacturing operation spans the country.

With a massive daily processing capacity of up to 15 million liters of milk at the Edendale site, securing a reliable energy supply is essential.

Government to install milk coolers in wards nationwide to boost dairy sector

KENYA – Dairy farmers in Kenya are set to benefit from the government’s commitment to install milk coolers in all wards across the country as part of the

modernization program for Kenya Cooperative Creameries (KCC) facilities.

According to government representatives, the initiative aims to eliminate middlemen who often purchase milk at low prices in rural areas and sell it at higher rates in urban markets.

Simon Chelugui, the Cabinet Secretary for Cooperatives and Micro and Small Enterprises, highlighted the challenges faced by dairy farmers, including issues related to storage, milk preservation, high feed costs, and limited market access.

He noted that the government’s immediate steps involve reinstating the stalled milk coolers program, with the distribution of 650 milk coolers already underway.

He added that the government plans to establish a milk price-stabilizing

fund, allocating close to Sh3 billion (US$18.69m) for this purpose.

The fund, to be implemented by the New Kenya Cooperative Creameries, will address the issue of excess milk by converting it into long-life products stored in the Strategic Food Reserve.

THE GOVERNMENTS IMMEDIATE STEPS INVOLVE DISTRIBUTING 650 MILK COOLERS AS PART OF REVIVING THE MILK COOLERS PROGRAM.
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Rwanda launches US$100M dairy project to boost rural incomes, climate resilience

RWANDA – Rwanda has embarked on a six-year, US$100.37 million dairy development project aimed at bolstering the income of rural households and fortifying the dairy sector against climate change.

Launched on the foundations of the previous successful Rwanda Dairy Development Project (RDDP), the new initiative addresses lingering challenges hindering the sector’s viability and sustainability.

The RDDP-2, slated for implementation from 2024 to 2029, objectives include an 80% increase in incomes for 80% of dairy households, the creation of 3,400 new jobs, and adoption of environmentally sustainable practices by 53% of beneficiaries.

In addition, the project plans to construct or rehabilitate 164 milk storage/processing facilities, equip 95 milk collection centers with digitalized transaction systems, and support 85,000 people in dairy entrepreneurship through improved access to finance.

This comes as the country’s annual milk production surpassed one million tonnes (one billion litres) in 2023, according to the 2022/2023 annual report by the Ministry of Agriculture and Animal Resources (MINAGRI).

In the 2022/2023 fiscal year, over 81 million litres of milk were supplied to milk processing plants, constituting about 8% of the total milk produced during the same period.

In other news, Zimbabwe is inching closer to milk selfsufficiency with production rising to 90M in 2023, as revealed by the latest data from the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development’s Dairy Services Department.

Statistics further indicated that the country’s milk intake by processors surged by 11% to 83.02 million liters, up from 74.95 million liters in the corresponding period of the previous year.

Value4Dairy receives US$5M grant to boost Nigerian dairy sector

NIGERIA – Value4Dairy, a consortium led by FrieslandCampina, has secured a US$5 million grant from the Bill & Melinda Gates Foundation to enhance the productivity and sustainability of the Nigerian dairy sector.

Established in April 2021, Value4Dairy consists of strategic partners with expertise in various agri-related value chains: FrieslandCampina WAMCO, URUS, Barenbrug (and Agrifirm.

The grant will fund 50% of the consortium’s latest project, aiming to advance systemic and sustainable local dairy production in Nigeria.

The Value4Dairy initiative is designed to create a selfsufficient, competitive, climate-smart, and locally managed dairy sector.

It focuses on establishing three self-sustaining dairy zones in Oyo, Osun, and Abuja, serving as hubs for training and supporting pastoralists and smallholders.

The program aims to empower 10,000 individuals initially, expanding to include 40,000 milk producers in subsequent years.

Each dairy zone will feature warehouses, outlets providing dairy farming inputs, and two milk collection points.

FrieslandCampina WAMCO will collect the aggregated milk for processing into nutritious dairy products, ultimately benefiting over 5 million Nigerians.

The consortium will leverage its partners’ expertise to provide local farmers with access to advancements in feed, breeding, sustainable farming practices, and routes to market, enabling them to increase milk production at lower costs sustainably.

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INVESTMENT
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MILKING Success

KDB's vision for sustainable growth of Kenya's Dairy sector

In November 2023, the Kenya Dairy Board launched its 5th Strategic Plan (2023–2027), marking a pivotal moment in the country's dairy sector. Established in 1958 under the Ministry of Agriculture and Livestock Development, the Kenya Dairy Board plays a pivotal role in enhancing and regulating the dairy industry.

Rooted in the Dairy Industry Act CAP 336, this strategic roadmap outlines a vision for the next five years, emphasizing safe, quality dairy production, market expansion, and business adaptability. Building on past achievements, the plan aims to propel the industry forward, ensuring sustainability and competitiveness on both local and global fronts.

STRATEGIC GOALS FOR 2023–2027

The framework delineates five interconnected goals that will guide its endeavors over the next five years. These goals encompass ensuring the safety and quality of marketed dairy produce, striving for a sufficient supply of dairy products to meet both local and export demands, expanding market access for Kenyan dairy goods, fostering the profitability and adaptability of dairy businesses, and enhancing the organizational capacity to effectively meet customer expectations. Together, these goals form a comprehensive strategy aimed at advancing the dairy industry in Kenya while ensuring its sustainability and competitiveness in the global market.

ALIGNING WITH NATIONAL PRIORITIES

This forward-looking plan is woven into the national fabric, aligning with Kenya Vision 2030, the BottomUp Economic Transformation Agenda (BETA), and the

Fourth

Medium Term Plan (MTP IV). It encapsulates a commitment to transforming the dairy sector into a commercially oriented, modern industry that contributes significantly to the GDP.

Recognizing dairy's transformative potential, the agenda aims to double annual milk production from the current 5.2 billion litres to 11 billion litres and grow annual exports of dairy produce to 1 billion litres of milk equivalents by 2027, and empower smallholder producers.

In pursuit of doubling production, a multifaceted approach encompassing enhancements in feeding, breeding, disease control, and farmer extension services is set to be deployed. The aim is to elevate the productivity per cow from the current 5 litres to 10 litres per day.

To fortify this endeavour, localised feed centres will be strategically established in various wards, ensuring a seamless supply of high-quality feeds to dairy farmers. Recognizing the surge in production, substantial investments will be directed towards upgrading milk cooling and processing facilities to effectively manage an estimated 3.3 billion litres of milk slated for formal marketing annually.

STRATEGIC ISSUES, GOALS, AND KEY RESULT AREAS

The Strategic Plan addresses critical issues, articulating qualitative goals linked to the key result areas (KRAs). The KRAs encompass dairy industry compliance, production and value addition, market access, sustainability, and institutional capacity.

KRA 1: DAIRY INDUSTRY COMPLIANCE

In the pursuit of Dairy Industry Compliance, KDB will

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FEATURE:

focus on creating an enabling policy and regulatory environment. This will involve conducting thorough reviews of existing policies, legal frameworks, and standards. By implementing minimum producer prices, the Board aims to enhance the formal milk market and optimise processing infrastructure utilisation. Simultaneously, KDB will enforce quality and safety requirements through vigilant enforcement of the Dairy Industry Act and associated regulations. Coupled with consumer education and promotion of self-regulation, these efforts will ensure full compliance with stringent milk quality and safety standards.

KRA 2: DAIRY PRODUCTION AND VALUE ADDITION

Building upon the foundation of compliance, the Board directs its attention towards Dairy Production and Value Addition. Through this Key Result Area, the regulator commits to supporting 20% annual growth. This will entail extensive capacity-building initiatives targeting both dairy farmers and Dairy Business Operators (DBOs). By fostering enhanced productivity and production, particularly in the high-value milk and dairy products segment, KDB endeavours to propel the dairy industry forward while ensuring sustainability and competitiveness.

KRA 3: MARKET ACCESS

In alignment with its production goals, KDB shifts focus to Market Access. Through this KRA, the Board aims to facilitate export growth and boost domestic consumption. Initiatives include promotional activities, trade facilitation, and capacity building, aspiring to propel the dairy industry towards exporting an additional 200 million litres annually. Simultaneously, efforts will be underway to sensitise consumers and ensure affordability, fostering a 10% annual growth in the consumption of dairy products.

KRA 4: SUSTAINABILITY OF THE DAIRY INDUSTRY

Looking towards the future, KDB prioritises the Sustainability of the Dairy Industry. Under this KRA, the dairy watchdog is dedicated to promoting climate-smart agriculture and enhancing research and innovation. Sensitising stakeholders

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KENYA DAIRY BOARD
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Kenya Dairy Board staff in Garissa County where they sensitized dairy farmers on milk safety and ways of increasing production of cow,goat and camel milk. Kenya Dairy Board staff giving important lessonns during a three-day training event in Kabianga Dairy Corperative in Kericho County.

on climate-smart agriculture and advocating for green energy sources form the cornerstone of KDB's sustainability efforts. These initiatives aim to achieve net-zero impact while envisioning a future driven by informed decision-making and the adoption of cutting-edge technologies and innovations to enhance productivity and production.

KRA 5: INSTITUTIONAL CAPACITY

Finally, recognizing the importance of organisational strength, KDB emphasises Institutional Capacity enhancement. Through this KRA, the Board will focus on bolstering human resource output through skill development, adequate tools, equipment, and increased revenue generation. Efforts towards ethical conduct, national values, and good governance will further contribute to elevating the Board's image and ensuring the delivery of quality and efficient services.

IMPLEMENTING THE VISION

To ensure the effective execution of the strategic plan, the Kenya Dairy Board has devised a comprehensive strategy implementation matrix. This matrix aligns key result areas with strategic

objectives and appropriate strategies, facilitating the seamless fulfilment of KDB's mandate. Let's delve into how KDB plans to implement its vision across various critical areas:

Upholding quality and safety

KDB is committed to fortifying compliance along the dairy value chain through a multifaceted approach. This will involve rigorous risk-based surveillance, the establishment of a milk residue monitoring program, and stringent enforcement of regulations. Additionally, KDB will champion laboratory services to elevate the quality and safety landscape.

Enhancing traceability and recall systems

In pursuit of a more traceable and responsive dairy value chain, KDB will focus on implementing and monitoring traceability and recall mechanisms. The Board will also advise the government on a quality-based milk payment system and promote self-regulation among stakeholders.

Empowering consumers

KDB aims to enhance consumer awareness and education regarding dairy produce quality and safety through the development and implementation

KDB Managing Director

Margaret Kibogy meets with Business France East Africe to discuss trade, investment, and cooperation.

IN NUMBERS 11B

AMOUNT OF LITERS THAT KENYA TARGETS TO PRODUCE BY 2027

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KDB PLANS TO PROVIDE SPECIALIZED TRAINING TO 500 DBOS IN MILK PROCESSING AND VALUE ADDITION. ADDITIONALLY, THE BOARD AIMS TO LINK 200DBOS TO MILK PROCESSING SUPPLIERS.

of a robust consumer education and awareness strategy.

Supporting 20% annual growth in Production and Value Addition

To bolster production and value addition, KDB plans to train 100,000 dairy farmers on good agricultural practices and connect them with fodder suppliers. The Board will also support the formalisation of the informal dairy business sector and provide specialised training to dairy business operators to enhance productivity and value addition.

Moreover, to boost productivity and enhance value addition among dairy business operators, the KDB will initiate an

inventory of existing milk processing and value addition capacities. The Board will conduct awareness sessions for 100 Dairy Business Operators (DBOs) to identify gaps in the value addition process for dairy products.

Furthermore, KDB plans to provide specialised training to 500 DBOs in milk processing and value addition. Additionally, the Board aims to facilitate connections by linking 200 DBOs with suppliers offering cutting-edge technologies for milk processing and value addition.

Facilitating industry growth in exports and domestic consumption

Likewise, KDB envisions spurring export growth by addressing non-tariff barriers, contributing to committees, lobbying for cost management measures, and capacitating dairy business operators on export strategies. Concomitantly, the Board endeavours to foster domestic consumption through county and school programs, promotional activities, and strategic interventions during June Dairy Month.

A targeted campaign will be launched to raise awareness in all 47 counties and 500 private schools. This initiative aims to instil the importance of incorporating dairy products into daily dietary habits among students. The Board plans to execute 15 promotional campaigns designed to encourage the consumption of high-value dairy products. These campaigns will highlight the nutritional benefits and diverse uses of dairy items, fostering a heightened interest among consumers.

To further stimulate milk consumption, the Board will actively

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KDB MD Margaret Kibogy shares the board's plan to transform dairy sector with Cooperatives Cabinet Secretary Simon Chelgui during a field day in Nakuru County

promote the significance of dairy during the June Dairy Month. This month-long promotion will emphasise the nutritional value of dairy, aiming to establish a tradition of increased consumption during this period.

To ensure milk and milk products are affordable and accessible to consumers, KDB will advocate for the implementation of five specific measures to manage the retail cost of these items. This includes mapping out the milk distribution network, identifying potential gaps, and sensitising DBOs in these areas. Additionally, the Board aims to support the establishment of 250 new DBOs across the country, thereby contributing to the wider availability and accessibility of dairy products in diverse regions.

Promoting climate smart agriculture and research excellence

With sustainability in mind, KDB plans to undertake various initiatives to bolster sustainability within the dairy sector. KDB is seeking to actively engage stakeholders to raise awareness about the Dairy Industry Sustainability Framework spanning from 2023 to 2033. Furthermore, the implementation of the Dairy Quality Awards will recognize and incentivize commendable performance and practices in the industry.

The Board is dedicated to advancing climate-smart practices and the utilisation of green energy sources within the dairy sector. To assess the feasibility and impact, KDB will evaluate solar technology applications in cooling and processing facilities. By 2033, the goal is to have 200 establishments equipped with these sustainable technologies. KDB aims to educate 1,000

stakeholders on the benefits of green gas energy sources and recycling methods, fostering an industry-wide understanding and commitment to eco-friendly practices.

Recognizing the pivotal role of agriculture in climate action, the Board plans to sensitise an additional 1,000 individuals on

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Agriculture and Livestock Development Cabinet Secretary Mithika Linturi during one of market surveillance activities by KDB which is aimed at protecting the Kenyan Dairy Market from illegal imports.
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KDB donates milk containers to farmers as part of initaitives to promote production of safe milk

IN NUMBERS 1B

AMOUNT IN LITERS OF VALUE ADDED PRODUCTS THAT KENYA TARGETS TO EXPORT BY 2027.

climate-smart agricultural practices. This outreach aims to encourage the adoption of methods that enhance resilience, reduce environmental impact, and contribute to achieving net-zero emissions in the dairy industry.

Advancing research, innovation, and continuous learning

The strategic plan entails KDB's commitment to fortifying its research efforts and generating crucial information for strategic planning and decisionmaking. In pursuit of this objective, KDB is set to implement a comprehensive roadmap aimed at strengthening research capabilities. This will entail developing a robust dairy information system and proactively undertaking surveys, studies, and benchmarking exercises. The goal is to conduct a minimum of 10 research projects by the end of the stipulated period.

Recognizing the importance of sharing insights, the Board will ensure the widespread dissemination of research findings. This will contribute to creating a knowledge-sharing culture within the industry, fostering informed decision-making and progressive developments.

to enhance awareness and encourage the adoption of these identified technologies and innovations, contributing to the overall advancement and sustainability of the dairy industry.

MIDTERM REVIEW

Anticipating the dynamic nature of the dairy industry, the plan introduces a checkpoint in the form of a midterm review slated for 2026. This midpoint assessment isn't just a formality; it's a moment for reflection and recalibration. Here, the Board will scrutinise the ongoing initiatives, making room for the inevitable twists and turns that come with any ambitious undertaking. As circumstances evolve, so too will the plan, ensuring its relevance and efficacy in the face of a changing environment.

BUILDING A FOUNDATION FOR SUCCESS AND ADAPTATION

Delegates follow proceedings during the Launch of The Kenya Dairy Sustainability Roadmap 2023-2032 Report.

KDB aims to identify 10 pertinent and scalable technologies and innovations conducive to the dairy sector's growth. Subsequently, the Board will initiate a comprehensive sensitization program targeting 500 stakeholders. This initiative seeks

In crafting the blueprint for the future, KDB’s strategic plan not only envisions transformative goals but also establishes robust mechanisms to ensure its success. With an eye on progress, the plan incorporates a framework comprising monitoring methodologies, evaluation mechanisms, and periodic progress reporting. The journey towards success is marked by a commitment to transparency and adaptability, recognizing that the roadmap may need course adjustments along the way. DBA

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MIARE Dairy FARM

Urban Dairy Farmer Cultivates Success in Nairobi's Heartland

In the heart of Kenya, amid the sprawling urban landscape of Kasarani estate of Nairobi City, a tale of resilience and determination unfolds.

This is the story of Mr. Albert Miare, a former highranking police officer who, against all odds, ventured into dairy farming to secure his family's future, after he bowed out from the rigours of public service.

The narrative is not just about cows and milk but a testament to the transformative power of agriculture, sustainable practices, and the indomitable spirit of a man who turned a modest dream into a thriving reality.

A MODEST PLAN

The journey began in 2006, two years before Mr. Miare's retirement from the Kenya Police Service. Faced with the prospect of leaving a structured career, he contemplated the future and sought a way to sustain his family. The initial plan was modest – to keep two cows to provide enough milk for his household. Little did he know that this simple idea would blossom into a fully commercialized dairy farm.

His story mirrors the journey of many individuals who, upon retirement, seek new avenues for personal and financial growth. What started as a practical solution to securing a daily source of

milk evolved into a comprehensive approach to dairy farming.

"As you can see, each cow requires only four feet by seven feet, therefore, I added another ten feet to get where the animal can be exercising. It is a question of utilizing a little piece of land since my farm is within a busy urban area. My start was slow but at some point, I thought to myself, “this is a good idea," he explained.

The initial vision was to keep just two cows, positioned conveniently near the house to ensure easy care. However, as Mr. Miare delved deeper into the project, he realized the potential for a more significant impact. The construction of a barn for eight cows marked a turning point, highlighting his forward-thinking approach.

The initial construction of the barn marked the inception of Miare's dairy farm. However, it was during the building process that Mr. Miare's cousin, intrigued by the project, joined in, sparking a realization that this venture could be more than just a personal endeavor.

"My cousin came and found me doing that idea when I was on leave, and he asked me what I was doing. And I said I was trying to construct a small place where I can keep a cow so that it can sustain my family," Mr. Miare shared.

As the construction progressed, so did Mr. Miare's vision. The initial plan of keeping two cows evolved into preparing for the possibility of a herd of eight. This approach laid the foundation for the farm's future expansion.

"I decided that, after retirement, I can do something better. With my knowledge from the police, having worked for 36 years, it was my training to do things with a lot of precision and planning, whic assisted me in starting off the business venture," he explained.

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CHALLENGES: NAVIGATING THE HURDLES

The transformation from sustaining his family to fully commercialized farming did not happen overnight. Mr. Miare's journey was shaped by challenges, including the limitations of space, disease outbreaks, financial constraints, neighborhood dynamics, water scarcity, and waste management challenges. Yet, he remained undeterred.

He informs Dairy Business Africa that at the peak of the dairy enterprise in 2019/20, he had a herd of 54 animals, which later reduced to about 20 cows after the ravages of Covid-19 pandemic and foot and mouth disease, which nearly obliterated the herd.

"Dairy farming has its challenges. Apart from the issue mentioned, there was also a policy challenge because Nairobi residents were not allowed to keep animals within the city. But I had to adjust myself to show the county government that I am not only doing it for myself but also providing food for the community," he emphasized.

His commitment to overcoming obstacles and adapting to policy changes led to recognition on a national level. "In 2011, I was judged as the best small-scale farmer in the country. I competed in a presidential farming competition where I was judged as the best small-scale farm. I was awarded a trophy plus a check by His Excellency the late President Mwai Kibaki," he proudly shared.

The accolades and recognition fueled Mr. Miare's determination, proving that his modest venture had a broader impact than he initially perceived. His farm became a benchmark for others, attracting visitors from many countries.

"I've received quite a number of people from South Africa, Zimbabwe, Zambia, Malawi, Namibia, Uganda, and India. They have all been here, and I am happy that they identified my farm

as one of the concepts that can be impactful to other people, especially in the urban food system," he shared.

However, with success came its own set of challenges. Mr. Miare faced the harsh realities of climate change, impacting feed availability and contributing to the sale of animals to maintain a manageable herd size. The onslaught of challenges intensified with the COVID-19 pandemic and an outbreak of foot and mouth disease, resulting in substantial losses.

I BELIEVE THE DAIRY CAN IMPROVE THE LIVES OF PEOPLE AND IT IS A RELIABLE SOURCE OF FOOD FOR THE URBAN DWELLERS. IT CAN ASSIST IN THE REDUCTION OF POVERT AND THE NATION CAN BE FOOD SECURE

"At one time, I was producing almost 460 liters of milk per day. But as the years went by, the issue of climate change started affecting us so much that even feeding those animals became difficult. We had to keep on selling our herd so that we could remain with only those that we could feed," he explained.

To offset the climate change impact on his venture, he drilled a borehole. “Climate change had affected us so much, but this

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borehole was a game-changer," he emphasized.

FAMILY AND THE FUTURE: A CALL TO ACTION

The involvement of Mr. Miare's family has been instrumental in overcoming challenges and ensuring the farm's success. His wife actively engages in chicken farming, providing a diversified income stream. Additionally, his daughter, inspired by her father's dedication, has embraced agriculture as a career and received training in value addition.

"My wife is very supportive, and without her, I cannot succeed. She has been keeping chickens. My daughter has been assisting me also, and she is keen on agriculture. She has is studying a course in agribusiness management and she has also trained in value addition."

The family's involvement underscores Mr. Miare's belief in the importance of a supportive family structure in the farming journey.

He advocates for more families to engage in agriculture, ezphasizing that even with a small piece of land, individuals can contribute to their own sustenance and that of their neighbors. Further, he remains a huge believer in urban farming, especially to help offset the challenges of food insecurity in Kenya and Africa as a whole.

"There is no small land where you cannot keep animals. Family setup is key - without the support of the family, you

cannot succeed. There is no bigger farm; you can utilize any piece of land. If you are producing more than what you can consume, sell it to your neighbor," he highlighted.

As part of the farm’s sustainability focus, the family runs a profitable vegetable farm that ensures manure from the farm finds a viable use.

As Mr. Miare reflects on his journey, he envisions the dairy industry playing a pivotal role in Kenya's economic growth. He advocates for the utilization of even small parcels of land for agricultural purposes, stressing the potential for financial gain through dairy farming.

"The dairy industry is where money is. If you look at the market, the demand for milk is high. Yogurt, fermented milk, ghee, and even products like ice cream have a vast market. Young people should think about it; dairy farming can improve your pocket and health," he asserted.

VISION FOR THE DAIRY INDUSTRY: ECONOMIC GROWTH AND SUSTAINABILITY

Mr. Miare's vision extends beyond his farm. He envisions a future where dairy farming contributes significantly to Kenya's economic development, creating job opportunities and promoting a sustainable food system.

"I believe the dairy industry can make an impact. It can improve the lives of people and it is a reliable source of food for the urban dwellers. It can assist in the reduction of poverty, and the nation can be food secure," he passionately stated.

As the future beckons, Mr. Miare and the family are setting their sights on new opportunities in their journey to running a viable business: they are planning to enter the value addition side of the industry, with the original product being yoghurt. They have also recently received a feed mixer from the county government of Nairobi, which they plan to make profitable use of in future.

In concluding his thoughts, Mr. Miare extends a call to action, urging individuals to embrace agriculture and contribute to the nation's food security. He highlights the support provided by Nairobi County to farmers, coupled with emerging innovations, making agriculture an attractive and viable venture for all.

A FLOURISHING LEGACY: INSPIRING FARMERS BEYOND BORDERS

As Mr. Miare stands amid his flourishing dairy farm, surrounded by his supportive family, it is evident that his dedication and forward-thinking approach have not only transformed his own life but also served as a beacon of inspiration for aspiring farmers in Kenya and beyond.

The story of Miare's dairy farm is a testament to the transformative power of dairy and the boundless possibilities that lie within even the smallest plots of land, as urbanization takes hold in Africa.

It is a story of cultivating dreams and turning them into a sustainable reality, reminding us of all that with determination, innovation, and a supportive community, the fields of opportunity are endless. DBA

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UGANDA

Dairy Industry in rising against all odds

Uganda Dairy Sector thrives despite trade sanctions from its largest export market Kenya

Although worlds apart, Uganda and New Zealand share a rare commonality: surplus milk. While New Zealand boasts one of the highest per capita consumption rates of fresh white milk globally, standing at around 103 kilograms, Ugandans consume a mere 62 kilograms, falling short of adequate milk consumption. Consequently, the country is compelled to export a substantial portion of its production, rendering it vulnerable to disruptions in external

markets. This vulnerability was starkly evident recently when Kenya, its primary export destination, imposed restrictions on exports, resulting in significant losses for dairy producers and farmers in Uganda.

Undeterred by trade barriers from its largest client, Kenya, Uganda is forging ahead with its efforts to elevate its dairy industry onto the global stage. After all, dairy production stands as a vital economic activity, employing an estimated 100,000 people and contributing 6.5 percent to the country’s Agricultural Gross Domestic

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Product (GDP), as highlighted by Minister of State for Agriculture, Animal Industry, and Fisheries, Lt. Col. (Rtd). Dr. Rwamirama Bright Kanyontore PhD.

With this in mind, stakeholders in the sector are working tirelessly not only to ensure its survival but also its thriving in a highly unpredictable regional and global market. Production has reached an alltime high, experiencing a growth of 37% from 2.81 billion liters in FY 2020/21 to 3.85 billion liters in FY 2022/23. Furthermore, exports have surged to an even higher level, rising by 158% in FY 2022/23 to US$246 million.

In this article, we explore how the country has consistently increased output, identify opportunities within the industry, and examine the measures industry stakeholders are taking to address challenges that threaten the industry's survival.

PRODUCTION SURPASSES 3 BILLION LITER MARK

In 2023, Uganda achieved a significant milestone as milk production exceeded the 3 billion mark for the first time. Data from the Dairy Development Authority (DDA) indicates that milk production for FY2022/23 reached 3.85 billion liters, marking a remarkable 37% increase compared to the 2.81 billion liters produced in the previous financial year.

The country's expanding herd size significantly contributed to this growth. Over the past eight years, Uganda's herd size has steadily increased, reaching an estimated 16.7 million heads in 2023, up from 13 million heads in 2013.

However, DDA Board Chairperson

Rtd. Rev. Canon Sandra Mwebaze attributes Uganda's rise in milk production primarily to the improving quality of cattle through the community breeding program. Spearheaded by DDA in collaboration with Uganda’s National Animal Genetic Resources Centre and Data Bank (NAGRC & DB), this initiative has been pivotal.

The impact is evident in regions with high milk production breeds, such as the central and western regions, which boast the highest average milk productivity per cow (6.6 liters and 6.2 liters, respectively). In contrast, the Karamoja region, where indigenous cows prevail, registers the lowest average milk productivity per cow at 2.9 liters.

Adopting high-yielding cattle is just one facet of the equation. Lt Col. (Rtd). Dr.

Kanyontore noted that Uganda achieved its highest-ever milk production despite some parts of the country experiencing drought.

To mitigate the impact of drought, Rtd. Rev. Canon Mwebaze reveals that Uganda has placed significant emphasis on fodder security and water conservation for dairy production. The Dairy Development Authority (DDA) has been proactive in this realm, providing improved pastures to farmers who then showcase them to their communities, thereby enhancing adoption.

Furthermore, the authority has been offering farmers training in silage and hay production to ensure cattle are adequately fed during seasons of rainfall scarcity. The government also encourages dairy farmers to construct dams on their farms to ensure water availability for their cattle even during dry spells.

ENHANCING MILK QUALITY AND SAFETY

When it comes to quality and safety, Uganda leaves nothing to chance. The country has implemented the Clean Milk Program to educate farmers and other stakeholders in the dairy value chain about the hygienic and safety standards necessary for the industry. This ensures that Ugandan milk maintains its quality and meets demand in both the national and international markets.

Between 2018 and 2023, the Dairy Development Authority (DDA) trained a

YEAR HERD SIZE 2013 13,020,000 2015 14,204,948 2016 14,368,000 2017 14,189,000 2018 14,572,103 2019 14,784,856 2023 16,722,978 JAN-MAR 2024 | DAIRY BUSINESS AFRICA 33

Trends Of Milk Production In Uganda

total of 28,818 dairy stakeholders on clean milk production and handling practices, feed production and conservation, and value addition, among other topics.

In addition to education efforts, the government has provided farmers with milking machines to conduct complete and hygienic milking, thereby reducing the chances of mastitis and contamination of raw milk. In the 2022/23 fiscal year, Uganda supported 38 dairy farmer cooperatives and groups by providing a total of 252 milk cans of different capacities, 176 milking buckets, 11 milking machines, and 11 chaff cutters. These efforts aim to improve the quality and quantity of milk produced in the country.

Uganda has established a comprehensive network of milk collection and bulking centers to store milk under optimal conditions before transport to processing facilities. Storage primarily occurs in milk coolers, which have increased over time in line with production growth. According to the Dairy Development Authority (DDA), the number of milk coolers surged from 355 with a capacity of 1.5 million liters in 2016 to 791 in 2023, with a capacity of 2.8 million liters. A vigilant team of inspectors is dispatched to these cooling facilities to ensure milk safety before release to processors. In the fiscal year 2022/23, a total of 3,202 inspection activities on dairy premises were conducted across different milk sheds, according to the DDA.

Transportation to factories typically involves insulated road milk tankers to maintain temperatures at 4 degrees Celsius or lower. The country currently boasts 193 registered road milk tankers. Although the number of tankers has fluctuated over the past five years, the DDA reported a 22.1% increase in the number of registered tankers in 2022 from 202.

To ensure quality and safety, the DDA has established four dairy testing laboratories and operates two mobile laboratory vans to conduct tests on milk and milk products. In the fiscal year 2022/23, a total of 6,004 milk and milk product samples were analyzed, including raw milk, UHT, pasteurized milk, yogurt, milk powder, ice cream, butter, ghee, and infant formula. While most results were compliant with standards, the industry regulator noted a high level of noncompliance in added water, density, SNF, and freezing points.

PROCESSING AND CONSUMPTION RISE

Uganda has a total of 145 dairy processing facilities, ranging from large, medium, and small-scale operations, along with cottages. The national installed capacity stands at 3.4 million liters, while the operating capacity is 2.3 million liters, representing 68.7 percent capacity utilization.

The processing capacity is expected to increase in the 2023/2024 financial year as the government, through the National Agriculture Advisory Services (NAADS), procured three sets of mini dairy processing equipment. Valued at 2.2 billion Shillings (US$570,000), the equipment includes a UHT milk production line, refrigerator, and generator. It will benefit farmers of the Isingiro Women Dairy Cooperative in Isingiro district, Tooro dairy farmers’ cooperative in Kabalore, and Nyabitanga dairy Cooperative society in Sembabule district.

To further boost processing, the Dairy Development Authority (DDA) embarked on the revitalization of the Mbale Dairy Processing Factory, which has been idle for the past 20 years. The factory will be fully equipped with UHT, yogurt, and ice-cream lines, as revealed by Akankiza.

At the factory, milk is processed into yogurt, whole milk powder, UHT liquid milk, pasteurized milk, cheese, butter, ghee, and casein. A significant portion of these products is exported, primarily to Kenya, which accounted for over 80% of Uganda’s exports in 2023. Other countries in the top 5 are the USA, Egypt, South Sudan, and Tanzania. Uganda’s dairy exports have steadily risen since 2014, with a few dips in 2021 and 2022. However, the last financial year, FY 2022/23, was Uganda’s best in terms of dairy exports, reaching US$264.5 million, a 158% increase.

Regarding domestic consumption, DDA notes that most milk produced in Uganda is consumed in raw form, especially in rural

COUNTRY FOCUS: UGANDA
YEAR 2018 2019 2020 2021 2022 2023 Milk Production (Billion Liters) 2.51 2.52 2.6 2.81 3.21 3.85 JAN-MAR 2024 | DAIRY BUSINESS AFRICA 34

areas. In urban areas, raw milk is retailed in outlets equipped with freezers to cool the milk awaiting sale. In 2022, there were approximately 374 such registered premises across Uganda, according to the DDA report.

A portion of the population that does not consume raw milk prefers processed milk, usually in the form of powder, UHT liquid milk, yogurt, and other products. This explains the country’s appetite for imports. According to DDA, the value of imports sharply increased from US$3.1 million to US$7.6 million between 2020/21 and 2022/23, after a sharp drop from US$5.19 million in 2019/20. Interestingly, Kenya was the largest exporter of dairy to Uganda, accounting for over 40% of total exports. Other countries in the top 5 include France, Poland, Mexico, and South Africa.

Overall, DDA report findings indicate that annual per capita milk consumption in Uganda currently stands at about 63 liters, with consumption significantly higher in urban areas compared to rural areas. Consumption is highest in the Western region and lowest in the Eastern and Northern regions.

KENYAN HOSTILITY THROWS A SPANNER IN THE WORKS

The Uganda dairy industry experienced a remarkable boom between 2000 and 2019, with milk production skyrocketing from 200 million liters to 2.52 billion. Unfortunately, Uganda's rapid ascent as a dairy powerhouse was largely export-driven, with one country, Kenya, accounting for over 80 percent of exports.

This dependency became a fatal flaw, which Uganda only recognized in 2019 when Kenya began imposing restrictions to safeguard its own dairy farmers' fortunes. It is estimated that the

2019 blockade of Ugandan milk resulted in the loss of 40,000 jobs and incomes for 3.8 million households.

Extensive lobbying efforts saw Kenya grant market access to Uganda in 2021, only for it to be closed again in 2023. Unlike 2019, when an outright ban was enforced, in 2023, Uganda is technically allowed to export to Kenya, but in practice, access has been severely limited, with Ugandan milk exporters granted only 20 percent of export permit applications.

Distribution of Dairy exports by product and value chain
FY 2022/23 EXPORTS VALUE IN UGX Milk Powder 529,021,016,510 UHT 323,058,260,751 Casein 60,891,520,310 Butter 45,159,866,599 Ghee 8,145,989,949 Yoghurt 7,747,564,120 Whey 2,052,806,288 Cheese 286,676,209 Grand Total 976,363,700,736 JAN-MAR 2024 | DAIRY BUSINESS AFRICA 35 DBA
during

According to the Dairy Development Authority, the ongoing trade dispute with its primary trade partner has also led to steep declines in milk prices, significantly affecting the dairy sector's profitability. The price of milk in Uganda plummeted from Ush1,500 ($0.41) per liter in February 2023 to Ush400 ($0.11) currently, resulting in significant losses for farmers. The average cost of producing a liter of milk in Uganda is Ush670 ($0.18), according to SNV, a Netherlands-based not-for-profit international development organization.

Processors are also feeling the impact. Uganda reported in June last year that Kenya's restrictions on dairy product imports left Ugandan processors stuck with 24 million liters of milk. Brookside Dairy Uganda, a subsidiary of Kenyabased Brookside Dairy Limited, had to

1 Kenya

2 France

3 Poland

4 Mexico

5 South Africa

6 Netherlands

7 United Kingdom

8 Arab Emirates

9 China

10 Germany

11

12

13 United Arab Emirates

14 Austria

send home at least 200 workers in June last year, reducing production by 75 percent as it was unable to export milk produced since March. The processor, whose 116 export permit applications were all rejected, also had to shelve a planned US$10.3 million investment to upgrade equipment for market expansion.

PRIVATE SECTOR MOVES TO RINGFENCE SECTOR

Pearl Dairy Farms Limited (PDFL), the home of the renowned Lato Milk brand, faced significant challenges when Kenya initially closed its market in 2019. Reports from local media indicate that the company, the largest exporter of dairy products in Uganda, had to lay off approximately 1,500 workers after being barred from exporting milk and milk products to Kenya.

Milk powder, UHT, Butter, Cheese, Infant Formula, Yoghurt, Ice cream

Milk powder, UHT, Butter, Cheese, Infant Formula, Yoghurt, Ice cream

Cheese, Infant Formula, Milk Powder

Infant Formula, Milk Powder

Butter, Milk Powder

Formula, Milk powder, UHT, Yoghurt, Cheese, Butter

Butter, Cheese, UHT, Yoghurt, Ice cream

Butter, Cheese, Ice-cream, Infant Formula, UHT, Whey, Yoghurt

Infant Formula, Milk Powder, Yoghurt

Cheese, UHT, Yoghurt, Ice Cream, Infant Formula, Casein

To mitigate future risks, Pearl has been actively expanding the market reach of Lato, venturing into new territories such as Egypt, Tanzania, and the DRC Congo. Its existing markets include Zambia, Ethiopia, South Sudan, and Malawi, with plans to include Burundi in 2023, followed by Algeria as a potential market.

In addition to dairy, the company diversified into honey production, involving around 200 dairy farmers in 2021, with a total of 1,000 beehives installed in Phase one of the project. Over the next four years, the goal is to engage 4,000 farmers in honey production, managing a total of 20,000 beehives.

Pearl has also expanded its product line beyond dairy, introducing new offerings such as banana-flavored instant porridge, infant cereal, and soft drinks.

To support its growth initiatives, Pearl secured a $35 million (Sh5.36 billion) loan from the International Finance Corporation in April last year. Out of this, $21 million (Sh3.22 billion) will be allocated to upgrading and expanding the capacity of its powder milk plant in Uganda, while the remainder will be used to acquire a 100 percent stake in Highland Creamers & Food Limited—a Kisii-based firm behind the Farmily Milk brand. Having a local processing plant will help Pearl overcome supply chain challenges and ensure access to the market.

Other dairy companies are also focusing on increasing local consumption. Fresh Dairy introduced a new flavored milk slim pack, emphasizing its convenience and modern appeal.

Butter, Cheese, Infant Formula, Milk Powder, UHT

Other dairy companies are also focusing on increasing local consumption. Fresh Dairy introduced a new flavored milk slim pack, emphasizing its convenience and modern appeal. Jesa Farm Dairy, on the other hand, invested in a new dairy processing plant in Busuju, Central Uganda to further expand its processing capabilities. With the new plant commissioned, the company has been on an innovation spree. Its recent innovation, Jesa Jus as its Uganda’s first locally produced juice and dairy blend. These efforts aim to stimulate higher milk consumption locally, providing a buffer

COUNTRY FOCUS: UGANDA SN HERD SIZE VALUE IN UGX PRODUCTS IMPORTED
11,546,406,655
5,160,966,111
4,148,723,000
2,853,789,212
949,126718
837,404,776
Infant
810,719,836
652,503,345
306,459,324
294,385,292
Belgium 167,395,546 Butter, Cheese,
Ice cream, Infant Formula, UHT, Yoghurt, Milk Powder
139,295,310 Ice Cream
Iran
103,289,495
103,039,119 Cheese JAN-MAR 2024 | DAIRY BUSINESS AFRICA 36

against fluctuations in the international market.

CHARTING A FUTURE BEYOND KENYA

Since the 2019 trade dispute with Kenya, Uganda has been actively seeking new markets for its milk, spanning Southern, Central, and even Northern Africa. Among the most notable developments were the agreements with Algeria and Senegal. While details about the Senegal deal remain scarce, President Macky Sall pledged to purchase milk powder from Kampala.

Considerable progress has been made regarding the Algerian market. According to the Dairy Development Authority (DDA), the Algerian deal is expected to absorb approximately 1.4 billion liters of milk valued at around US$500 million (Ush1.8 trillion). In September 2023, Samson Akankiza, the DDA Executive Director, announced that the supply, initially limited to powdered milk, had been completed. The first consignment, totaling 120,000 metric tons, marks the beginning of the quota's supply as per the agreement.

Uganda is optimistic about its prospects in Algeria, considering its strategic location in the Maghreb and its proximity to France and the United Arab Emirates, where demand for dairy products is high. Samson Akankiza, the DDA Acting Executive Director, emphasized Algeria's potential as a gateway to and from Europe, given its border with France, facilitating logistics for sourcing products.

In a bid to further enhance exports, Uganda partnered with the Food and Agriculture Organization of the United Nations (FAO) in February this year. The collaboration aims to boost exports of Ugandan milk and dairy products while exploring potential new markets, aligning with the country's ongoing efforts to fortify the dairy sector.

MOVING TOWARDS THE 10 BILLION MARK

A 2019 report by The Economic Policy Research Center highlighted Uganda's potential to produce 10 billion liters of milk annually. However, livestock diseases posed significant

challenges, compelling farmers to resort to resilient yet lowyielding local Ankole cattle.

According to the report, other factors limiting dairy potential included a high failure rate for artificial insemination (AI), restricted access to extension services, and limited investments in feed resources.

Acting on the report’s recommendations, the Ugandan government has initiated the final trial of anti-tick vaccines, yielding promising results against brown, blue, and red ticks. Presently, livestock farmers spray animals weekly, but with the vaccine, they will only need to spray twice every six months. Additionally, the government has intensified efforts to address issues related to AI and feed quality.

As milk production escalates, the government acknowledges the challenge of low domestic consumption relative to production. Efforts are underway to boost domestic consumption, particularly among school-going children, a strategy successfully employed in other countries. Although the establishment of school milk policy guidelines is ongoing, notable progress has been made. The SNV School Milk Program stands out as a success, reaching over 1 million children in western Uganda and contributing to an estimated annual sales value of about 33.6 billion shillings (US$8.73 million).

A VOTE OF CONFIDENCE

The emergence of a new large-scale player in the sector signifies a vote of confidence in Uganda’s dairy sector and its future. According to Akankiza, the Benni Foods dairy plant is currently under construction in Lyantonde District. Once completed, it is expected to process at least 1 million liters of milk per day into long shelf-life products and create hundreds of jobs.

Encouraged by the progress made thus far, the dairy industry regulator vows to spare no effort until Uganda realizes its full milk production potential. "As DDA, our commitment remains unwavering in nurturing a sustainable sector that fosters prosperity for farmers," concludes Rtd. Rev. Canon Mwebaze.

28.68 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 28.68 28.68 28.68 28.68 28.68 28.68 28.68 28.68 300 250 200 150 100 50 0 Financial Year Value in USD JAN-MAR 2024 | DAIRY BUSINESS AFRICA 37

Milk POWDER

Whole milk powder plays an important role in the manufacture of a wide range of food products. It can be used in reconstituted dairy products such as yoghurt and milk drinks, but also as a source of fat and non-fat milk solids in confectionery and baked goods

It is usually obtained by removing water from pasteurised milk through spray-drying. The powder can contain between 26% and 40% milk fat (by weight) on an “as is” basis and offers all the nutritional qualities of milk in its dry form.

As a long-shelf-life product (typically lasting 18 months), whole milk powder serves as a valuable tool for managing fluctuations in milk supply. During peak production seasons, dairy processors convert surplus milk into WMP. This strategic inventory is then drawn upon during periods of low milk supply to be reconstituted into various dairy products, as mentioned above.

Global WMP production has plateaued at around 4 million tonnes, showing little sign of significant growth. Data from the Foreign Agricultural Service (FAS) of the United States Department of Agriculture (USDA) reveals a 6% decline in whole milk powder production during the 2022/2023 period, dropping from 4.62 million metric tonnes to 4.34 million tonnes. This trend aligns with the previous 10 years, where fluctuations in global milk production have resulted in a negative average annual growth rate of 0.51%.

In this article we look at the global production, consumption, and trade trends that affect the global WMP markets.

GLOBAL PRODUCTION UPDATE

Four countries dominate global WMP production: New Zealand (32%), China (24%), the European Union (14%), and Brazil (13%). Combined, they accounted for a whopping 83% of global production in market year (MY) 2022/2023, according to FAS data.

Whole Milk Powder Growth Hits Pause, But Importance Remains for Underserved Markets

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While MY 2023 production data is forthcoming in Spring 2024, FAS provides individual forecasts that allow us to estimate global numbers. As the world's largest milk producer, New Zealand's WMP production is expected to decline 5% in MY 2024, dropping to 1.33 million metric tonnes (MMT).

FAS attributes this decrease to a smaller milk pool and lower profitability compared to other products. Despite this, WMP remains the largest dairy product produced in New Zealand, representing over 40% of their total output.

FAS forecasts unchanged production in China, the secondlargest WMP producer, at 1.175 million tonnes in 2024. Unlike other producers, Chinese processors primarily utilize WMP to manage seasonal imbalances between raw milk production and consumption, not for profit. FAS highlights subsidies in Hebei, Shandong, and Heilongjiang that encourage raw milk processing into WMP for low-supply periods.

In the European Union, WMP production is projected to fall by 1.6% from 2023 levels, dropping from 620,000 tonnes

FOUR COUNTRIES DOMINATE GLOBAL WMP PRODUCTION: NEW ZEALAND (32%), CHINA (24%), THE EU (14%), AND BRAZIL (13%). COMBINED, THEY ACCOUNTED FOR A WHOPPING 83% OF GLOBAL

to 610,000 tonnes. FAS attributes this decline to lower milk availability and prioritization of cheese production by processors. Additionally, the report suggests that WMP faces competition from fat-filled milk powders (FFMPs), produced by combining palm or coconut oil with high-quality NFDM. FAS explains that FFMPs are a more economical alternative to full-cream milk powder, attracting food industry usage.

Meanwhile, in Brazil, South America's leading WMP producer, FAS forecasts a 3.4% increase in production to 585,000 tonnes. This projection stems from planned measures to counter competition from Argentina and Mexico, the region's other major suppliers.

In Argentina, FAS estimates 2024 WMP production at 225,000 MT, representing a 16.4% increase from 2023's 188,000 MT. However, in Mexico, the other notable producer, forecasts remain flat at 125,000 MT due to limited new drying capacity, according to FAS.

CONSUMPTION TRENDS

China reigns supreme as the world's largest WMP consumer, but FAS forecasts a slight dip to 1.695 million tonnes in 2024. This aligns with an industry trend of declining WMP demand among health-conscious Chinese consumers seeking added benefits from other dairy products.

FAS attributes this shift to reduced popularity of WMPbased products like reconstituted milk, yogurt, and milk drinks, particularly in affluent areas. This trend is expected to continue in 2024. However, baked goods, a more stable sector, are projected to maintain flat WMP consumption, according to FAS.

The EU mirrors China's trend, with WMP consumption declining for several years. USDA data shows a drop from 400,000 MT in 2022 to 385,000 MT in 2023, and a further decrease to 380,000 MT is expected in 2024.

However, brighter days shine on WMP in Brazil. USDA data reveals consistent growth, with FAS estimating an 8% increase in 2023 powdered milk consumption compared to 2022, reaching 700,000 MT due to high import volumes. This upward trend is expected to continue, with Post forecasting a 1.4% increase to 710,000 MT in 2024.

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Chronic milk deficits make Algeria the world's fourth-largest WMP importer. A significant portion of these imports feed into the production of pasteurized reconstituted milk and UHT milk. However, a sizeable portion is also directly sold to consumers in convenient

500g packages at market price.

Algerian WMP consumption has been steadily increasing over the past seven years, averaging around 245,000 tonnes over the past five years. Based on available data, we estimate consumption to reach 264,000 tonnes in 2024.

TRADE PUNCTUATED BY HIGHER PRICES

New Zealand reigns supreme in global WMP trade, accounting for over half of all exports. In some countries like China and Indonesia, they dominate the market with a staggering 90% share. However, the USDA forecasts a 2% decline in their 2024 exports, down to 1.325 million tonnes. This dip is attributed to lower WMP production, weaker Chinese demand, and stagnant demand from Algeria and Indonesia.

Meanwhile, EU exports are projected to decrease by 2% from 260,000 tonnes in 2023 to 250,000 tonnes in 2024, according to the USDA. This follows an 8% increase in 2023 driven by strong buying from North African countries and the UK. Notably, EU WMP exports already saw a 14% jump between January and July 2023.

Argentina, another major WMP exporter, is expected to bounce back in 2024 with projected exports of around 165,000 tonnes. This represents a significant 57% increase compared to 2023, and the USDA attributes this growth to both higher WMP production and existing stock accumulated from the 2023 milk surplus.

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Comparison of whole milk powder(WMP) Quotations of European Union, the United States and Oceania

Despite not commanding premium prices like cheese, butter, and skim milk powder, WMP has seen a notable upward trend in recent years. In September 2023, the price per tonne closed at €3,686, compared to €2,797 in January 2021, with a peak of €4,566 reached in March 2023.

Since 2021, EU WMP prices haven't been as competitive as those from other major exporters. The Oceania region, including New Zealand, offered some of the most affordable prices at US$2,650 per tonne, while the US had the highest at US$4,299.

However, it's worth noting that the US isn't a major WMP producer, with WMP accounting for under 6% of its total milk powder production and expected to remain a relatively small share. This potentially explains the higher price point.

WMP RELEVANCE REMAINS

While stagnating or declining growth in the WMP market might suggest waning relevance, that's hardly the case. Several countries heavily rely on WMP imports to bridge their milk supply gaps, creating sustained demand in regions like Algeria, China, and Brazil. An uptick in these markets could spark pockets of future growth, despite ongoing competition from cheese and skim milk powder impacting production levels.

In the short term, reduced Chinese imports from New Zealand pose a multi-faceted challenge. New Zealand may need to redirect its WMP, intensifying competition for existing producers by year-end. This shift could also lead to significant price fluctuations on the global market. DBA

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Exploring SURGE THE

High-Protein Beverages

Take Center Stage in Health and Nutrition

The consumption of protein-enriched beverages is experiencing a notable surge, driven by a growing awareness of their myriad health benefits. Once solely associated with muscle building, protein products are now recognized for their role in satiety, metabolism regulation, and overall wellness.

Recent research by Kerry underscores a shift in consumer motives, with many prioritizing a healthy lifestyle above all else, followed closely by weight management and muscle support. Givaudan's consumer insights further illuminate the appeal of these drinks as convenient meal replacements, effective hunger suppressants, and energy boosters, catering to busy lifestyles and health-conscious individuals alike.

This upward trajectory extends beyond naturally protein-rich options like yogurts to include a wide array of fortified beverages. According to MarketsandMarkets, protein now constitutes nearly 30% of functional ingredients in the beverage industry, reflecting a growing demand for nutritious and functional drinks.

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The implications are clear: the global market for protein products is poised for exponential growth, with projections indicating sales reaching a staggering $70 billion by 2025—a remarkable $18 billion increase from 2020 levels (Statista, 2020, Protein Products Market – Statistics & Facts). As consumers continue to prioritize health and wellness, high-protein beverages are undeniably at the forefront of this evolving landscape.

WHAT’S FUELING THE SURGE

"Traditionally, high-protein beverages were confined to specialist sports nutrition applications. However, as health increasingly influences purchasing decisions across all demographics, consumers are seeking added nutritional value, such as proteins, to maximize the benefits of the products," states Robert Lamber, Chief of Marketing and Communications at Ulrick & Short.

His observations find resonance in a 2021 FMCG Gurus study. The research reveals a notable shift, with 45% of global consumers expressing a commitment to healthier eating and drinking habits by prioritizing increased protein intake in February 2021, compared to 37% in April 2020. Moreover, 78% of global consumers associate protein consumption with bolstering their immune systems as of February 2021, marking a significant rise from 70% in April 2020.

Notably, older consumers are emerging as a pivotal demographic in the high-protein beverage market. According to Giract, a global food ingredients research firm, there is substantial potential for high-protein foods targeted towards older consumers. Recent findings indicate that 10% of consumers aged 55 and above are actively seeking to boost their protein intake. Additionally, a separate study by Mintel highlights that 34% of Brazilian consumers aged 55-64 express interest in and are willing to pay more for high-protein food and beverages.

OLDER CONSUMERS ARE EMERGING AS A PIVOTAL DEMOGRAPHIC IN THE HIGHPROTEIN BEVERAGE MARKET WITH 10% OF CONSUMERS ABOVE 55 YEARS ACTIVELY SEEKING TO BOOST THEIR PROTEIN INTAKE.

In the United States, consumers aged between 45 to 54 years are particularly inclined towards beverages enriched with over 20g of protein per serving, as revealed by proprietary research from Kerry. With the aging population grappling with the challenges of declining muscle mass and bone health, protein beverages have emerged as a favored choice in addressing these concerns.

WHEY PROTEIN REIGNS SUPREME

In the realm of protein beverages, dairy protein stands as a historic cornerstone and the undisputed gold standard. Renowned for its exceptional attributes as a protein source, whey protein reigns supreme, boasting high protein quality scores and offering a clean, neutral taste, texture, and mouthfeel in beverage applications.

Frost & Sullivan, a research and consulting firm, attributes

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whey protein's mainstream adoption to the growing health consciousness among individuals pursuing active lifestyles and embracing more nutritious diets. Taste emerges as a significant driver of this demand, notes Frost & Sullivan. Unlike alternative proteins, whey proteins seamlessly integrate into foods and beverages without compromising taste—a pivotal factor for consumers prioritizing palatability.

"Consumers are increasingly drawn to high-protein, lowfat products. Their preference leans towards maximizing protein content while minimizing fat content. This explains the burgeoning demand for pure whey protein, isolated from fat and lactose," remarks Aulikki Kemppainen, Application Specialist Dairy Centrifuges at Tetra Pak.

PLANT-BASED BEVERAGES EVOLVE

The burgeoning trend of veganism among consumers has spurred producers to diversify their offerings with plant-based protein drink options. Exciting new sources such as canola (also known as rapeseed), sunflower, and flax are joining established plant protein sources like soy, pea, and rice as top choices for nutritional and functional proteins in foods and beverages.

While consumers may express preferences for specific protein types, there is a compelling argument for utilizing protein blends in product development. Take pea protein, for instance—it boasts allergen-free properties, a clean-label appeal, and a mild flavor profile, making it a sought-after choice among consumers and in new product formulations. However, pea protein falls short as a complete protein, lacking methionine and cysteine, two essential amino acids. Combining it with a complementary protein source like rice protein can significantly enhance its overall quality.

Blends, though particularly prevalent in plant protein products, are also finding success in combining plant and dairy proteins. This approach not only allows for increased protein levels but also facilitates the balancing of amino acid compositions to achieve the desired nutritional profile. As consumer demands evolve and sustainability concerns take center stage, the strategic integration

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TRENDS: HIGH PROTEIN BEVERAGE
MARKET

of protein blends emerges as a key consideration in meeting both dietary preferences and environmental consciousness.

However, formulating with plant proteins poses unique challenges as they do not behave in the same manner as dairy proteins. They are generally less soluble, which means that simply adding more protein can lead to sedimentation in beverages. Moreover, larger insoluble particles can impart a sandy or gritty mouthfeel, contrasting with the smooth, rich creaminess that consumers expect.

Fiber emerges as a natural stabilizer, aiding in keeping the protein in suspension and eliminating sediment. This allows for the addition of more protein while maintaining a smoother, creamier texture. Renske Janssen, Project Manager of Protein Technology at NIZO, underscores the complexity of balancing fiber and protein interactions. "In some cases, adding fiber will enhance protein solubility, while in others, it may decrease solubility," he observes.

Optimizing fiber-protein interactions is crucial for crafting a successful formula. "This involves selecting the best ingredient combinations and modifying processing conditions," explains Janssen. "Adjusting pH levels, incorporating salt, and applying heat to the final product—rather than the protein concentrate or isolate—can all influence outcomes."

In cases where solubility remains inadequate, Janssen suggests employing enzymatic treatments to reduce protein size through proteolysis. However, achieving balance is key, as smaller proteins can yield smaller peptides (strings of amino acids), which can impart a bitter taste to the beverage.

EXPANDING HORIZONS IN FUNCTIONAL PROTEIN BEVERAGES

The addition of proteins finds its most suitable applications in

beverages already endowed with viscosity and mouthfeel, such as shakes, breakfast drinks, meal replacements, sports beverages, ready-to-go drinks, and smoothies. As the category continues to evolve, creative ingredients and new technologies are propelling functional beverages beyond the traditional realm of classic protein powder drink mixes and the ubiquitous "protein shake."

Among the latest innovations are a diverse range of formats, tastes, and textures in functional high-protein beverages. A prime example is the emergence of low-pH protein waters, gaining traction in the market. Standout offerings include International Protein's protein water and Protein20 protein-infused water, alongside NA whey protein water. These breakthroughs are made possible by "clear" proteins such as Kerry's ProDiem Refresh. Kerry, the Irish taste and nutrition company, highlights that ProDiem Refresh enables the creation of refreshing and transparent low-pH protein waters, juices, and energy drinks, maintaining a clean-label status without the need for stabilizers.

Some producers are pushing boundaries by introducing protein-infused cold brew coffees or teas. Arla Foods Ingredients showcased two new drink prototypes—a high-protein coffee and a high-protein tea—at the Vitafoods Europe trade show. The cold-brew coffee, rich in protein, calcium, and caffeine while low in sugar and fat, serves as either a morning caffeine boost or a pre-workout energizer. Meanwhile, the protein-rich tea, flavored with yuzu, offers additional calcium to support healthy bones.

Moreover, the high protein drink market is expanding into the shelf-stable drink aisle. NotMilk's High Protein drink stands out as the first non-refrigerated 100% plant-based protein drink of its kind. Targeting active individuals and sports enthusiasts seeking convenient refueling options on the go, this plantpowered beverage boasts an ideal ratio of carbohydrates and proteins, along with essential vitamins D and B12, all without added sugar, according to the company.

ENHANCING FUNCTIONALITY IN PROTEIN DRINKS

In response to evolving consumer demands, some producers are elevating the functionality of sports and protein drinks by incorporating probiotics, collagen, and CBD to offer additional benefits. A prime example is the Amazon best-selling Premier Protein Shake, which boasts 24 vitamins and minerals aimed at supporting a healthy immune system, as outlined in its product description on Amazon.com. Notable components include antioxidants such as Vitamins C and E, Zinc, 50% of the daily value of calcium, and 30% of the daily value of Vitamin D to promote healthy bones.

In a recent development, Kerry conducted a human clinical study combining its probiotic ingredient BC30 with its grassfed dairy protein solution Ultranor. The study demonstrates that incorporating BC30 into Ultranor enhances amino acid absorption, thereby supporting protein utilization. This synergy of functionalities presents enhanced benefits to consumers, particularly aging populations who may experience less efficient protein absorption, necessitating higher intake to maintain muscle mass and strength. Athletes also stand to benefit, as improved protein utilization supports functions such as muscle

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repair.

Another notable trend in this domain is the increasing average protein content of high protein drinks. According to an Innova report, the average protein content per serving in grams (g) of food and beverage launches featuring a high/source of protein claim rose from 15.1g in 2016 to 17.8g in 2020. Presently, 20g of protein per serving appears to be the baseline, with leading brands like Fairlife's CorePower Elite high protein milk shake containing 42g per serving, ranking second in Amazon.com's top-selling high protein drinks. Premier Protein, holding the top spot, offers 30g of protein per serving, underscoring the industry's shift towards higher protein concentrations.

SURGE IN DEMAND FOR ORGANIC AND SUSTAINABLE OPTIONS

In tandem with health and wellness trends, consumers are increasingly gravitating towards natural and organic products. This shift is evident in the popularity of brands like Orgain Organic Nutritional Protein Shake, currently holding the sixth spot on Amazon.com. The product boasts being produced from grass-fed whey protein, aligning with consumers' preferences for organic and sustainable sources.

In the realm of plant protein, there is a notable uptick in claims regarding the nutritional profile of proteins. Phrases such as "contains all essential amino acids" or "complete protein with all essential amino acids" are gaining traction as consumers become more discerning about the quality of plant proteins. Notable examples include Soylent Creamy Chocolate Meal Replacement Shake and OWYN Plant-Based Complete Nutrition Protein Shake.

The natural and organic trends in the sports and protein markets have prompted alterations in pricing strategies, as the ingredients involved often entail higher production costs. Despite this, consumers are willing to invest in these additional costs. According to a 2021 FMCG report, 55% of global consumers express a willingness to pay a premium for products with highprotein claims.

Adriana Chychula, a leading food analyst at Mintel, sheds light on an intriguing phenomenon: consumers' simultaneous interest in synthetic ingredients aimed at enhancing performance. Chychula notes, "This is all about control—consumers want to know what is in their products and have some form of reassurance that they aren't consuming unwanted contaminants, but also want the stuff that'll take their results to another level." This dual inclination underscores the complex dynamics driving consumer preferences in the protein market.

OVERCOMING THE FLAVOR & TEXTURE BARRIER

A recent Kerry study revealed that over 70% of consumers prioritize flavor and taste as the "most important" factors when making beverage purchases. However, producers continue to grapple with challenges related to flavor and texture, irrespective of whether their protein derives from dairy or plant-based sources.

This challenge significantly impacts the acceptability of their

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MARKET TRENDS: HIGH PROTEIN BEVERAGE

products. According to market intelligence firm Mintel, 44% of UK sports nutrition users report struggling to find products that taste enjoyable. Common grievances include a chalky or powdery texture, along with off-notes or bitterness. While initial purchases may be driven by the perceived health benefits of the product, many consumers agree that without great taste, repeat purchases are unlikely. A study conducted in Canada found that 61% of consumers prioritize taste as the top attribute to consider in performance and nutrition drinks, while 52% emphasize flavor.

In efforts to address taste and flavor challenges, dairy protein producers are exploring innovative methods to create better-tasting, less bitter whey protein that also exhibits greater heat stability. This advancement allows for a potential increase in the total whey protein hydrolysate that can be incorporated into final formulations.

Ulrick & Short, for instance, has developed a new functional protein, Complex 23, tailored specifically for the beverage sector. Highly soluble and boasting a more neutral flavor profile, this innovation accommodates various processing methods.

On the other hand, Kerry offers manufacturers

ProDiem Complete, a plant protein blend combining pea and rice protein to deliver a plantbased solution equivalent in protein quality to dairy. ProDiem Complete addresses taste, mouthfeel, and texture challenges associated with plant proteins.

Such solutions empower beverage producers to reduce the need for ingredients aimed at masking bitterness. Simultaneously, this facilitates the development of long shelf-life protein beverages— beverages that boast both excellent taste and visual appeal, along with cleaner labeling.

Meanwhile, Innophos offers ingredient solutions within its portfolio that enhance texture, appearance, and flavor protection of high-protein beverages. Recent launches like Textur-Melt LM89 and DKP (Dipotassium Phosphate) stabilize and enhance the performance, functionality, and quality of drinks containing protein from sources such as whey, collagen, and plant-based alternatives.

"Textur-Melt LM89 provides processors with buffering capabilities and prevents age gelation in plant-based protein beverages," explains Amr Shaheed, Manager of Technical Services at Innophos, Inc. "This is crucial for processes and reactions requiring specific and stable pH ranges, ensuring protein solubility, stability, and seamless passage through the heat exchanger during pasteurization."

THE KEY INGREDIENTS TO UNLOCKING FUTURE SUCCESS

By leveraging the right ingredients and establishing strategic partnerships, manufacturers have the opportunity to surmount common challenges inherent in protein formulation. This approach enables the creation of high-quality, innovative protein products that meet consumer expectations in terms of taste, texture, and overall experience.

Arielle Rose, a senior industry research analyst at IBISWorld, underscores the dynamic nature of the market, driven by evolving consumer trends— particularly the rise of health-conscious and environmentally-friendly consumers.

According to Sally Lyons Wyatt, an industry expert at Circana specializing in consumer trends and the outlook for food and beverages, companies that "provide beverages that support consumers on their wellness journeys" are poised for success. She emphasizes the importance of leveraging social and digital media platforms to effectively communicate the benefits of these products to consumers, facilitating greater engagement and brand loyalty. DBA

POUNDS OF PLASTIC COCACOLA COULD SAVE BY TRANSITIONING DASANI TO CLEAR BOTTLES

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IN NUMBERS

Managing Food safety & quality in Yoghurt Processing

Yoghurt is a centuries-old dairy product packed with a whole lot of nutritional benefits that is relished by the young and old alike. As opposed to regular milk, yoghurt is an excellent vehicle for probiotics that aid in lactose digestion and hence is well tolerated by people with lactose intolerance. Yoghurt contains 10 essential nutrients including calcium, vitamin A, vitamin B12, and riboflavin. The 2013 Australian Dietary Guidelines state that yoghurt can help protect against heart disease, stroke, high blood pressure, some cancers, Type 2 diabetes, and contribute to stronger bones.

With its dynamic nature and variable viscosity, yoghurt requires specialist processing knowledge to ensure a high-quality and safe product. The production processes and the type of milk, as well as practices adopted during feeding, milking, and beyond, can affect the quality and safety characteristics of yoghurt. Let’s troubleshoot some of these issues encountered by manufacturers.

RAW MATERIALS RECEPTION AND STORAGE

The total microorganism count is a good indicator of the general quality, hygiene, and safety of milk since increased microbial growth influences the efficiency of heat treatment. Raw milk may be contaminated by antibiotics, the residues of various livestock

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PRODUCT FOCUS: YOGHURT

therapeutic treatments. Besides their cumulative effects on consumers, antibiotics can also inhibit yoghurt fermentation. In addition, a high somatic cell count is a good indicator of mastitis that degrades milk hygiene.

Raw milk may also contain heavy metals such as lead, mycotoxins such as aflatoxin M1, and dioxins that may impact people's health if consumed. Lead is implicated in mental disorders and cardiovascular diseases, while aflatoxin M1 and dioxins are considered by the European Commission as carcinogenic.

Cream and milk powder which are used as raw materials may also be contaminated by airborne pathogens during storage and transportation from suppliers. Since these pathogens are virtually identical to those found in raw milk, cream needs always be maintained chilled at 0-40C.

However, bacteria like Listeria monocytogenes grow even at low temperatures. While these hazards can also generally appear in milk powder, heat treatment during yoghurt production ensures that they are effectively eliminated.

Advances in analytical technology for checking the hygiene quality of milk such as the flow cytometry technology have made it possible to test milk within minutes so that a result is available before it is unloaded from the delivery truck and mixed with the rest of the supply. The analyzer incubates a sample of milk and then uses a laser to count individual bacteria and somatic cells that determine the hygiene quality and subsequent suitability for processing.

QUALITY OF STARTER CULTURE CRUCIAL

The presence of a non-vital culture can inhibit milk coagulation. Culture vitality, measured by the coagulation time and the amount of lactic acid produced, is therefore an indicator of whether or not the fermentation process will take place as desired.

Vitality can be affected by a number of reasons chief among them being bacteriophage-attack. Bacteriophages are viruses that infect and destroy the lactic acid bacteria needed in the production of yoghurt. Phages can slow down fermentation,

CULTURE VITALITY, MEASURED BY THE COAGULATION TIME AND THE AMOUNT OF LACTIC ACID PRODUCED, IS THEREFORE AN INDICATOR OF WHETHER OR NOT THE FERMENTATION PROCESS WILL TAKE PLACE AS DESIRED.

which can negatively impact the flavor, yield, and texture of dairy products. As phages are strain-specific, culture rotation is an essential practice in the dairy industry to combat infection by phages. DSM, a Dutch multinational corporation, has developed an industry-leading, proactive phage management approach. The company supports dairy manufacturers on location by assessing the design of the process for phage risks and conducting phage surveys. The data collected can subsequently be used to give individual dairy producers advice on hygiene and a suitable culture rotation scheme to avoid phage issues. Manufacturers are also turning to Direct Vat Inoculation (DVI) as it provides relative immunity to phage attacks. DVI involves inoculating the

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yoghurt mix directly with a very large number of freeze-dried starter organisms.

CONTAMINATION FROM ADDED FRUITS

When adding fruits to yogurt, there's a risk of introducing moulds and other contaminants. Most commercially supplied fruits for yogurt blending come in pasteurized sealed bags, ensuring they are free from harmful bacteria and moulds. However, melons and guava, with a pH above 4.5, may potentially increase the pH of the yogurt/fruit blend, creating low-acid areas that support the growth of spoilage bacteria. To address this, manufacturers may need to acidify melon and guava fruits before pasteurizing and packing to ensure safety. Additionally, fruits should be free from heavy metals and pesticides, and additives must comply with national and international regulations to avoid exceeding hazardous limits.

ADDING OTHER FOODS TO YOGHURT

Confectionery and nuts are very dry foods and do not support the growth of microorganisms. Nuts are a potential source of moulds and could, particularly if the storage temperature is not maintained, reduce the shelf life of the yoghurt. The presence of each nut variety added to a blend must be declared to assist people who may have a nut allergy.

Care must be taken with cleaning and handling equipment such as ladles to ensure that nut residues do not find their way into blends that are not meant to contain nuts. Flavoring such as chocolate, strawberry or vanilla should not impact the safety or shelf life of the product.

YOGHURT’S ACIDITY KEEPING MICRO-ORGANISMS AT BAY

Due to the high acidity of yoghurt attributed to the lactic acid bacteria, most microorganisms that cause foodborne illnesses do not get an ambient environment to thrive and hence die off. In case there is a problem with acidity, the low temperature at which yoghurt is stored comes in handy to slow down bacterial growth.

Moreover, storing at the recommended temperature ensures that the yoghurt remains fresh throughout its storage life. It also guards against the growth of acid-tolerant micro-organisms that, while they are unlikely to cause illness, can cause the yoghurt to develop off-flavors or go moldy and spoil.

GOOD MANUFACTURING PRACTICES

Notwithstanding the acidity in yoghurt contributing to its safety, good manufacturing practices (GMP) must be adhered to, to control the risk of micro-organisms getting into a blend and reducing its shelf life. The existence of yeasts or moulds in industrial yoghurts is an indicator of poor hygienic practices in manufacturing. There is also the risk that if bacteria like

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Salmonella find their way into the blend, they may cause serious illness. This is because the infectious dose of Salmonella is very low and, even though they can’t grow in yoghurt, if any are present there is a chance that they could cause illness.

FINAL PROCESSING AND PACKAGING

During incubation and packaging, airborne pathogens such as coliforms, moulds, and yeasts constitute possible hazards, which cannot be timely controlled at this stage. Packaging materials could be a source of microbial contamination, which is effectively eliminated under aseptic packaging conditions. The presence of foreign bodies such as packaging material fragments like metals, and adhesives is a critical subject that can impose a physical hazard. Metal detectors and optical control are necessary for the detection of these hazards and their elimination.

EFFECTIVE FINISHED PRODUCT ANALYSIS

To limit liabilities and potentially damaging product recalls, analysis at the critical final stage of production is vital. The majority of this testing can be performed using rapid routine analysis with Near-infrared (NIR), but certified chemical analysis methods are also often required for validation of compliance with certain end-product criteria.

Sugar and acidity are two important quality parameters in yoghurt and must be tested, as the target contents of both vary in different types of yoghurt. Both are essential guidelines of taste in the finished product.

CONSISTENCY IS KING

All processors want their products to have consistent quality. It is vital to treat all the yoghurt in a line in the same way to guarantee the same final product characteristics within and between batches. Many types of yoghurt require gentle treatment. The process of pumping, cooling, and agitating a fermented product can damage its structure.

Inadequate process control is another potential source of product inconsistency. The solution is effective

COMPOSITION

ALLOWABLE LIMITS

Milk protein min. 2.7%

Milk fat (% m/m) less than 15%

Titrable acidity, expressed as % lactic acid (% m/m) min. 0.6% min.

Ethanol (% vol./w) min. 0.5%

Sum of microorganisms constituting the starter culture (cfu/g, in total) min. 107

Labelled microorganisms(cfu/g, total) min. 106 Yeasts (cfu/g) min. 104

* Source: CODEX ALIMENTARIUS

automation and accurate temperature and pressure control throughout the process. Inconsistent processing parameters can cause separation, variable viscosity, graininess, and flavor variations in the final product. As such, agitation should be kept to a minimum in the vat, during cooling and before filling. This can be achieved through intermittent agitation with timers being placed on the yoghurt vat agitators to minimize shear in the vat during cooling.

At times separation of whey from the rest of the yogurt occurs, and although not a safety issue, it has serious quality implications and may impact consumer acceptance. Ever been taken aback after opening a yoghurt pack only to be greeted with a thin layer of a watery liquid sitting atop your yoghurt? Well, the substance that forms is called whey and is a product when the milk added to the yoghurt has been strained and curdled. To prevent this as a manufacturer, you can either increase your stabilizer level or use different stabilizers. Stabilizers not only help in preventing syneresis, but they also improve the body and texture by increasing firmness in yoghurt.

CODEX SPECIFICATIONS FOR SAFE YOGURT PRODUCTION

The Codex Alimentarius Commission has established guidelines for the safe production of yogurt, recommending the use of milk, water, and cultures of Lactobacillus bulgaricus and Streptococcus thermophilus as essential ingredients. Additional ingredients, such

as milk powders, buttermilk, whey, and proteins, can be added in limited quantities following Good Manufacturing Practices. Whey removal after fermentation is prohibited.

Maximum levels for contaminants in yogurt are outlined in the General Standard for Contaminants and Toxins in Foods and Feeds. The milk used in yogurt production must adhere to established limits for veterinary drug residues and pesticides.

Hygiene practices during yogurt preparation and handling should align with Codex guidelines, including the General Principles of Food Hygiene and the Code of Hygienic Practice for Milk and Milk Products.

Microbiological criteria for yogurt should comply with established Codex principles and guidelines. For flavored yogurts, the principal flavoring substance or flavor added must be declared on the label. Water added as an ingredient should be clearly indicated, along with the percentage of fermented milk used.

The milk fat content, if not exceeding 15%, should be acceptably declared on the product label to avoid misleading consumers. Storage instructions, if applicable, can be provided on the container or in accompanying documents.

Manufacturers or packagers may use identification marks instead of the lot identification and their names and addresses on the container, as long as the marks are linked to the accompanying documents. DBA

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DSM-Firmenich gains approval for HMO ingredients use in Australia, New Zealand

NEW ZEALAND – DSM-Firmenich, a leading innovator in health, nutrition, and beauty, has received approval for four human milk oligosaccharide (HMO) ingredients for use in infant formula products in Australia and New Zealand.

The approval, granted by the Food Standards Australia New Zealand (FSANZ) following an application by Glycom A/S, marked a significant milestone in advancing early-life nutrition solutions more closely aligned with breastmilk composition.

The approved HMO ingredients

include GlyCare 2’-fucosyllactose/ difucosyllactose (2’-FL/DFL), GlyCare lacto-N-tetraose (LNT), GlyCare 6’-sialyllactose (6’-SL) sodium salt, and GlyCare™ 3’-sialyllactose (3’-SL) sodium salt.

DSM-Firmenich is the first HMO manufacturer to secure approval for these ingredients in the Australian and New Zealand regions.

According to the innovator, the approval not only validates the use of additional science-backed ingredients but also opens doors for innovative early-

life nutrition solutions tailored to mimic breastmilk more closely.

The FSANZ assessment found no public health and safety concerns associated with incorporating these HMOs in infant formula products at specified levels.

Christoph Röhrig, Head of HMO Regulatory at DSM-Firmenich, emphasized the company’s commitment to delivering safe and innovative infant nutrition solutions.

DSM-FIRMENICH IS THE FIRST HMO MANUFACTURER TO SECURE APPROVAL FOR THESE INGREDIENTS IN THE AUSTRALIAN AND NEW ZEALAND REGIONS.
Imagindairy acquires industrial-scale facility for animal-free dairy proteins

ISRAELI – Foodtech startup Imagindairy has acquired and commenced operations at an industrial-scale plant in the Middle East to produce animal-free dairy proteins.

With the acquisition, Imagindairy becomes the first in the industry to fully own and operate large-scale production lines with a fermentation capacity of 100,000 liters.

The company plans to triple this volume in the next one to two years and is already producing industrial-sized

batches at price parity with conventional dairy.

Imagindairy utilizes precision fermentation technology to produce dairy proteins without the need for cows.

The initial focus is on betalactoglobulin, the primary whey protein in bovine milk, representing 65% of the total whey content.

The production method involves AIled microflora-based processes, utilizing microorganisms that are 20 times more efficient than cows in converting feed into proteins.

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MSD Animal Health launches innovative milk quality monitoring systems

DENMARK – Bioproduction company 21st.Bio is granting access to its precision fermentation platform to food and beverage ingredient manufacturers.

The platform aims to enable the costcompetitive production of dairy proteins through precision fermentation.

By widely offering its platform, 21st. Bio intends to reduce the cost and time associated with development, making proven industrial-scale production technology for alternative protein precision fermentation accessible.

The platform provides a sustainable and less resource-intensive alternative to traditional animal-based production methods, contributing to stabilizing

global food supply chains.

The technology foundation is licensed from Novonesis (formerly Novozymes), a company with 40 years of experience in optimizing production strains and processes for industrial production.

The technology is already employed to produce numerous food-grade products on the market. 21st.Bio consistently optimizes strains and processes to keep customers ahead of market demands.

The precision fermentation technology platform can be tailored for specific purposes, such as nutritional fortification of plant-based products, texture improvement in alternative dairy, and medical nutrition.

Fromagerie Milleret partners with Amcor for sustainable cheese packaging

FRANCE - Fromagerie Milleret, a renowned cheese producer, has collaborated with Amcor to introduce eco-friendly packaging for two of its premium cheeses – Le Baron Brie and l’Ortolan Bio.

The packaging innovation involves the use of Amcor’s AmFiber Matrix breathable wrap, a recycle-ready material designed to enhance recyclability while preserving the quality of the cheeses.

“The solution is breathable in a way

that protects product quality in shops and at home, addressing consumer concerns about the shelf-life of dairy products and food waste. And the packaging can be fashioned into a variety of shapes, colours, and sizes,” says Laura Delapeyronnie, marketing manager Dairy at Amcor.

According to Amcor, the AmFiber Matrix wrap is crafted for easy recycling within existing paper streams, addressing environmental concerns associated with traditional cheese packaging.

The new packaging solution, as per Amcor’s Asset LCA, notably reduces water consumption by 53% compared to its predecessor.

This development is the latest in Amcor and Fromagerie Milleret’s partnership, which has exceeded thirty years and combines an expert knowledge of soft cheese with the pursuit of more sustainable packaging.

THE NEW PACKAGING SOLUTION, AS PER AMCOR’S ASSET LCA, NOTABLY REDUCES WATER CONSUMPTION BY 53% COMPARED TO ITS PREDECESSOR.
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21st.Bio opens precision fermentation platform to food and beverage ingredient manufacturers

DENMARK – Bioproduction company 21st.Bio is granting access to its precision fermentation platform to food and beverage ingredient manufacturers.

The platform aims to enable the costcompetitive production of dairy proteins through precision fermentation.

By widely offering its platform, 21st. Bio intends to reduce the cost and time associated with development, making proven industrial-scale production technology for alternative protein precision fermentation accessible.

The platform provides a sustainable

and less resource-intensive alternative to traditional animal-based production methods, contributing to stabilizing global food supply chains.

The technology foundation is licensed from Novonesis (formerly Novozymes), a company with 40 years of experience in optimizing production strains and processes for industrial production.

The technology is already employed to produce numerous food-grade products on the market. 21st.Bio consistently optimizes strains and processes to keep customers ahead of market demands.

The precision fermentation technology platform can be tailored for specific purposes, such as nutritional fortification of plant-based products, texture improvement in alternative dairy, and medical nutrition.

Tetra Pak to “decarbonize a major step” in UHT processing with renewable thermal energy

SWITZERLAND – Tetra Pak, the multinational leader in food packaging and processing technology, is set to introduce a new modification to its UHT processing technology, aiming to significantly decarbonize a crucial stage in the production of extended shelf-life milk.

The innovative adjustment comes in the form of a scalable solar thermal module, developed by the Swedish solar thermal company Absolicon.

This module seamlessly integrates with both existing and new UHT lines, marking a pioneering step towards more sustainable UHT milk production.

Tetra Pak asserts that this new solution provides a versatile array of decarbonization options, tailored to meet customer requirements and geographical considerations. Notably, the scalable solar thermal supply holds the potential to

curtail fossil fuel usage by an impressive 40%.

Anticipated to be installed in 2024, the initial module will serve as a pilot before expanding into a global market, revolutionizing UHT processing on an international scale.

In a conventional food production plant, a staggering two-thirds of energy

consumption is thermal, primarily in the form of low to medium temperature – a demand ideally met by solar energy.

Shifting to green energy option thus becomes increasingly pertinent considering that heat generation accounts for a substantial 40% of the world’s total CO2 emissions, according to the International Energy Agency.

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GEA partners with Nestlé to improve energy efficiency at new infant formula plant

NETHERLANDS – GEA, a technology and equipment supplier, has collaborated with Nestlé to enhance the energy efficiency of a new infant formula plant in Nunspeet, the Netherlands.

The project involves equipping a milk

powder line for hypoallergenic infant formula with advanced process and heat pump technology.

By implementing innovative heat recovery from the spray dryer and other processes, the plant is expected to achieve a 75% reduction in energy consumption for steam, leading to a significant decrease in carbon emissions.

This initiative aligns with Nestlé’s commitment to achieving net-zero emissions in its production facilities by 2050.

In response to the growing demand for its Althera and Alfare infant formula brands, Nestlé is expanding the production capacity at the Nunspeet plant with an additional processing line.

GEA’s heat recovery system, fed by exhaust air from the spray drying plant, will provide 80°C hot water for operation, contributing to a more sustainable and efficient production process.

In addition, GEA will also equip complete wet processing technology, supplying the Nestlé spray drying line

with prepared milk.

The installation of process technology and the heat supply system is scheduled for this year, with the plant expected to be operational in 2025.

BY IMPLEMENTING INNOVATIVE HEAT RECOVERY FROM THE SPRAY DRYER AND OTHER PROCESSES, THE PLANT IS EXPECTED TO ACHIEVE A 75% REDUCTION IN ENERGY CONSUMPTION FOR STEAM.

DAIZ Engineering opens center to advance development of hybrid dairy products

NETHERLANDS – Japan’s DAIZ Engineering, a food-tech start-up with patented germination technology, has collaborated with NIZO Food Research to establish the European Germination Food-Tech Center in Wageningen, Netherlands.

The center aims to advance the development of “hybrid dairy products” by combining animal-based dairy with plant-derived protein-based dairy alternatives.

DAIZ Engineering’s proprietary “Ochiai Germination Method” activates seeds using germination to enhance functionality and nutritional value.

The germination process, which

activates enzymes naturally present in seeds, results in improved sensory properties and protein digestibility.

Experts at NIZO will evaluate the nutritional value and digestibility of

germinated seeds. The acquired expertise in plant-based proteins will be leveraged to develop new food ingredients, with the intention of proposing them to global food manufacturers.

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Pureture develops plant-based casein for dairy alternatives

USA – Biotechnology company Pureture, formerly Armored Fresh Technologies, has unveiled a plant-based casein designed for use in dairy alternatives such

as cheese, milk, and syoghurt.

Pureture’s non-GMO protein is created through a unique yeast culture technology, setting it apart from widely

used plant-based casein that often relies on GMO methods.

According to the company, the yeast culture process utilizes raw materials upcycled from nature as the primary feed source.

This approach allows Pureture to produce protein continuously, 24 hours a day, 365 days a year, as long as water and oxygen are supplied.

“One of the distinct features of Pureture’s protein is that it is not merely a copy of animal protein but a raw material replicating nutritional and functional aspects,” noted the company in a statement.

“The protein achieves the properties of a complete protein, including all necessary essential amino acids, with a perfect score of PDCCAS 1.”

Döhler, Superbrewed Food join forces to scale up postbiotic protein production

USA – Ingredients giant Döhler has joined forces with biomass fermentation start-up Superbrewed Food to scale-up the production of its postbiotic protein.

Under the partnership, Döhler will contribute its bio-manufacturing infrastructure to bolster Superbrewed’s patented postbiotic protein ingredient.

This strategic alliance is expected to facilitate the introduction of Superbrewed’s products in 2024, spanning sports and lifestyle beverages, baked goods, confectionery, meat alternatives, and healthy snacks. The collaborative efforts will involve multiple consumer packaged goods (CPG) companies.

“We’ve been working on this for about two and a half years and we will be manufacturing in one of Döhler’s facilities in Europe in order to start delivering some pretty significant commercial quantities of our product this year,” said Superbrewed Food founder

Dr. Bryan Tracy.

Superbrewed’s animal-free postbiotic protein is a non-GMO ingredient with zero allergens, offering versatility to replace or complement animal and plant proteins in both existing and new food formulations.

The protein boasts over 85% protein content, featuring essential and branchedchain amino acids, as well as significant concentrations of minerals and vitamins, including iron, zinc, phosphorous, and B12.

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