With the global demand for milk set to overtake supply within a decade, the dairy industry is facing immense pressure. Through our Dairy Hub model, we help build sustainable value chains by training smallholder farmers and creating a link to our customers so they can source higher-quality milk.
Nearly a billion people live on dairy farms, smallholdings or in households that keep a few dairy animals. According to the International Farm Comparison Network, of the 867 million tonnes of milk produced globally, 360 million tonnes are currently produced by smallholder farms. Much of that milk is not formally processed, and is lost, limiting smallholder farmers' access to market. The milk and dairy industry thus has significant potential to contribute to UN SDG8, Decent work and economic growth, by creating jobs and increasing incomes for all people along the value chain.
Our Dairy Hub model aims to secure a long-term supply of locally produced, quality milk, without raising the costs of collection in emerging economies. It does so by linking smallholder farmers to a dairy processor, with Tetra Pak offering the technology and ‘hands-on’ practical knowledge and training. This directly supports SDG target 8.2, which measures progress for SDG8 by the increase in levels of economic productivity through technological upgrading and innovation. We have seen around the world how this model increases locally produced milk supply and enhances the stability of dairy supply chains. For example, smallholder farmers involved with Dairy Hubs in Bangladesh have seen their cows' milk yield increase 143 percent, from 4.45 to 10.8 litres, and their monthly income has risen by an even greater percentage, from $100 to $144.
Tetra Pak and Tetra Laval Food for Development are providing hands-on technical support to the newly established Pearl Dairy Farmers Community.
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About Tetra Pak
Together with our customers we make food safe and available, everywhere. Since the start in 1951 we have taken pride in providing the best possible processing and packaging solutions for food.