Business

Milk Afric launches P120m dairy project

Government, Milk Afric and Lobatse Town Council officials doing the ground breaking ceremony PIC: KABO MPAETONA
 
Government, Milk Afric and Lobatse Town Council officials doing the ground breaking ceremony PIC: KABO MPAETONA

The project, which is promoted by Milk Afric, is worth P120 million and would create 250 jobs in the next two-and-half years.

Milk Afric, which has signed a processing agreement with Parmalat, has also roped in the Lobatse Town Council as they entered into a Public Private Partnership (PPP) through leasing of the dairy farm for 25 years.

The project is also expected to transfer skills and expertise to the locals by sending 10 employees and five Ministry of Agriculture officials for a 12-months training at both the University of Florida and U.S firm, Alliance Dairies, which is the technical partner to Milk Afric.

Milk Afric Chief Executive Officer, Phil Matibe assured the public that once the project is fully operational in two years, it would address the milk deficit that the country currently faces.

“We have come together to create jobs, empower smallholder farmers and rejuvenate Botswana’s dairy industry by contributing to the reduction of the national deficit,” said Matibe.

The project would start with initial 2,000 dairy cows. Kedikilwe said through the project, employment opportunities, knowledge and skills development transfer would emerge.

“It is common knowledge as to why the dairy industry in Botswana is constrained by many factors which include limited knowledge and therefore poor management, which has a bearing on securing credit facilities, high prices of dairy breeds, drought, heat stress, and diseases and costly imported feed,” he said.

For his part, the United States Ambassador to Botswana Earl Miller said that the project illustrates how the U.S investors, in partnership with Botswana leaders can help diversify the country’s economy and address unemployment.

“It will strengthen the local dairy industry by providing assistance to farmers through a corporate social responsibility programme and it will provide a sustainable milk production system that will provide fresh locally produced milk to Botswana’s grocery store shelves.”

Miller further stated that the success of Milk Afric is part of a broader trend of the U.S- Botswana strengthening trade over the last 10 years.

The U.S and Botswana continue to be vital trading partners with goods worths billions of Pula either imported or exported between the two countries.

 Botswana’s exports under African Growth Opportunity Act (AGOA) increased over 50 percent and two farming franchises opened in Botswana during this time frame.