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 20080827_DSC2487 baghlan mixer half.jpg 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. 20080827_DSC2491 cheese half.jpgWith the diminishing number of expatriates the market of Gouda cheese is declining.

 

From May 2008 onwards, the project aims at increasing the production capacity and reducing the high production costs. Amongst other things a new yoghurt production line has been established. 

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.

 

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Latest revision 02 July 2010