Dairy
Development in Baghlan Province
(Follow up Animal Health and Production Programme in Baghlan)
| Donor / contractor |
Dutch Ministry of Foreign Affairs – Royal Netherlands Embassy |
| Budget |
US$ 1,390,258 (period 1) Animal Health and Production Programme US$ 622,955 (period 2) Dairy Development in Baghlan Province |
| Period |
November 2005 – March 2008 May 2008 - April 2010 |
| Area |
Province of Baghlan |
During
the first programme period, one of the targets was the establishment of a cheese
factory in Baghlan Province with the financial support of the Dutch
Government. In earlier days a well running cheese factory already existed in
Baghlan, but during the war the factory was destroyed in 1987. In 2006, DCA-VET
built the Baghlan Cheese Factory (BCF) alongside the ruins of the former one.
The factory has been equipped with Dutch cheese making equipment, like churns
and a pasteurising device.
About 550 local farmers are delivering their cow milk to the factory. Thanks to BCF, these farmer families are able to raise their slender income. During the first months, only Gouda cheeses were produced, but from July 2007 onwards other dairy products are made as well: mozzarella, pizza cheese / fresh breakfast cheese, yoghurt and fresh, pasteurized milk. But especially in summer, when milk intake exceeds sales still a lot of Gouda cheese is produced.
One BCF sales agents takes care of the sales to hotels, restaurants, supermarkets and private customers in Kabul. Besides, there is a market for BCF products in Baghlan and Pul-i-Khymri and in 2010 a new market has been opened in Mazar-i-Sharif. Presently, mozzarella and fresh breakfast cheese account for more than 50% of the sales.
With the diminishing number of expatriates the market of Gouda cheese is declining.
Since January 2010, focus is on Marketing. A newly appointed commercial manager will investigate possibilities to increase sales as well as sales margins. A business consultant is asked to assist in developing a feasibility assessment as well as a business plan for the Baghlan Cheese Factory.
On April 1st, 2010, Dutch funding will end. This funding has enabled DCA-VET to establish the cheese factory, install all necessary equipment, build up a milk intake of 250,000 liters a year, develop the production process of various types of cheese and reach a sales value of almost US$ 100,000.
From April 2010 onwards, DCA-VET will support the Baghlan Cheese Factory from her own funds. In the meantime, negotiations are going on with some new investors that are willing to bridge the coming years needed to put BCF on track towards sustainability.
Latest revision 02 July 2010