Potential Dairy clients in Zambia!

15-10-2015 Agriterra business advisors Dik van de Koolwijk and Marnix Sanderse visited Zambia in the second week of September to have an introductory background to the new country portfolio. In the first week of October, Marnix Sanderse (Business advisor, from November onward he will be based in Zambia) and Hillary Maket (Kenya) conducted assessment/scoping mission concerning the Zambian dairy sector.

Dairy farming in Zambia is done in small scale despite land averages of 15Ha per farm. From the scoped cooperatives, milk intake was  average 5,000kg/day from the highest cooperative and the lowest 1,600kg/day.

Dairy cooperatives are on an establishment track. Albeit, weaker institutional capacities. Ambitions are rich. Of those producing yoghurt, business plans have been documented. Despite these, challenges are unique and difficult sometimes to fathom. For example Kwanshama coop which is the only uniquely undertaking feed formulation (an area with great need for support) however lacks audit statements.

Among the scoped clients, areas of weaknesses and opportunities for Agriterra are;
- Weak Financial management (non-computerized FM, weak internal control)
- Weak governance (roles of board and management, managers are used as slingshots by board)
- Extension (Currently no extension but AI)
- Market development for yoghurt
- Possibility of merging unions


Marnix Sanderse and Hillary Maket


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