Laying foundation for milk processing by increasing milk volumes

In June 2015 company assessment of Lelan Highland Dairies Ltd. was conducted. The mission team concluded: That from a long term perspective there is a business case for milk processing. However, at this point and time processing is a bridge too far, since basics are not solid enough. One of the reasons is that milk supply is very low due to the lack of extension support and level of professional knowledge amongst Lelan's members to manage good fodder. Furthermore, the organization need to adjust their structure and funds need to be allocated in order to support the growth plans. Finally, both board and management need to be trained on governance, finance, strategy and operational excellence. Thus, the mission team advise Agriterra to start a partnership with Lelan focusing on the 2 main objectives: (1) Strengthen People & Organization (2) Improve the quantity and quality of milk supply. Once the above two objectives are met, milk processing could be elaborated.