Dairy Development and
School Milk in Haiti
Tetra Pak proposes a
partnership along the milk
value chain
April 2010
Content

Background – agriculture, milk
production, children, malnutrition

Proposal for dairy value chain
development – objectives, why
school milk, stakeholders and their
roles, budget, results

Tetra Pak and DeLaval –
experiences and country cases,
what we can assist with

Conclusions

Contacts
External
Tetra Pak April 2010
Background
External
Tetra Pak April 2010
Agriculture in Haiti

Food insecurity and hunger are chronic issues,
58% of the population is undernourished.
Development of agricultural sector a necessity.

75% of the population live in rural zones and
depend on agriculture. 66% of labour force
occupied in agriculture.

Agricultural exports: 20 million USD
Agricultural imports: 470 million USD

“Programmes for creating jobs in agriculture and
rural infrastructure to boost local production”
(Michel Chancy, Secr. of State for Animal Production, MoA)
External
Tetra Pak April 2010
Milk Production in Haiti

Haiti imports 52% of its food, including >70% of milk
consumed

Small scale milk production and very low yields.
450,000 Creole cows, only 20% exploited for milk

Most of the local milk is consumed unprocessed

Veterimed (donor funded NGO) started Lét Agogo, a
dairy cooperative that helps around 600 farmers
process and sell milk. Runs 12 mini-dairies.

First industrial dairy, Viva Haiti started 2007. Produces
UHT milk in 65 ml and 150 ml cartons. Fortified,
flavoured milk supplied to school milk programmes
covering 50,000 children (2009)
External
Tetra Pak April 2010
13 milk plants in the whole country
Let Agogo’s national network has12 small collection
centers and processing facilities. Viva is the only UHT
milk plant in the country.
Source: Veterimed
External
Tetra Pak April 2010
Malnutrition – could lead to loss of 2% of GDP*
Malnutrition
Poverty

Malnutrition (Stunting) in early years is linked to:
 0.7 grades loss of schooling
 7 month delay in starting school

Leads to a >10% potential reduction in lifetime
earnings for each malnourished individual

Vitamin and Mineral Deficiencies estimated to cause
loss of 0,8% of GDP in Haiti (93 mio USD)
*Sources: World Bank Human Development Network-Jan.2006 “Repositioning Nutrition As Central to Development”,
External
UNICEF/Micronutrient Initiative
Tetra Pak April 2010
Status of Children in Haiti

80% of Haiti’s population live below the poverty
line

Around 29% of children stunted

Around 50% of children aged 6-11 are not
enrolled in primary school (2003)

More than half of children have never
attended school (2003)

School feeding only available
for a few
External
Tetra Pak April 2010
School feeding in Haiti

Started in 1990’s. Donors include USAID, WFP,
EU, Canada, WB

NGOs implement: CRS, World Vision, Save the
Children, BND, Hands Together, St. Jude Medical
and Education, PNG, Feed the Children and
Mission of Hope.

WB Education for All Fast Track Initiative funds
school milk to 50,000 children in Porte-au-Prince.
Viva Haiti supplies UHT
fortified flavoured milk.

Lét Agogo supplies sterilized
milk to 13,000 school children.
Government funding.
External
Tetra Pak April 2010
Proposal for dairy
development –
catalyzed by a
school milk programme
External
Tetra Pak April 2010
Programme objectives
►
to create job opportunities in the dairy value
chain
►
to increase farmers’ incomes
►
to attract more people into dairy farming
►
to stop migration to cities through offering
income generating activities in rural areas
►
to improve nutritional status of children and the
population at large
►
to improve school enrolment, attendance and
academic performance
►
to improve infrastructure (roads, electricity)
►
to reduce the need for food imports
►
to increase food exports
External
Tetra Pak April 2010
Some Programme Stakeholders
Donors
Programme Owners:
Ministry of Health
Ministry of Economy
Ministry of Agriculture
Ministry of Education
NGO Partners:
NGO Partner:
CRS, BND etc
Lét Agogo
Dairies
Tetra Pak
Dairy farmers
DeLaval
External
Tetra Pak April 2010
Roles along the supply chain
Farmers
• Ministry of
Agriculture
• Lét Agogo
• Farmers
• DeLaval
Food Processors
Distribution
School milk
• Dairies
• Dairies
• Min. of
Economy
• Min. of Health
• Ministry of
Education
• NGOs
• Min. of Health
• WFP
• NGOs
• Min. of
Health
• Tetra Pak
• WFP
• Tetra Pak
Programme Owners:
Ministry of Agriculture and Ministry of Education
External
Tetra Pak April 2010
Why School Milk?

to reduce malnutrition and improve health

Milk contains 18 of 22 essential nutrients

Milk reduces the risk of various medical disorders including
osteoporosis, obesity, dental problems

to promote school enrolment and attendance

to improve academic results


It is difficult to study on an empty stomach

Milk aids cognitive and physical development
to support the development of the agricultural
sector


School milk stimulates local milk production
to support the development of the private sector

School milk stimulates local milk processing
External
Tetra Pak April 2010
Benefits of UHT milk and aseptic technology
►
LONG LIFE: Product remains fresh for months without
refrigeration. No preservatives added.
►
SAFE: Quality, hygiene and nutrition guaranteed
►
FEWER DELIVERIES: Cost-effective transport and storage with
minimal environmental impact
►
AVAILABILITY: Seasonalities can be evened out – processing
during high season – consumption during low season. Remote
customers can be reached.
►
RENEWABLE & RECYCLABLE: Packaging material possible
to recycle, paper is a renewable material
►
DIVERSIFICATION: Plant can be used to pack juices, nectars,
yoghurt drinks, etc
►
TECHNOLOGY TRANSFER: Tetra Pak training and global
expertise is made available to the food processors
External
TP316,
0102JH
Tetra Pak
April
2010
Main funding requirements
►Technical assistance to dairy farmers
(farmer training, training of trainers)
►Investment in milk collection (cooling
tanks, quality control, vehicles) and
infrastructure (roads & electricity in
selected areas)
►Cow for calf and other cow distribution
programmes to attract new dairy farmers
►Procurement of UHT milk for School Milk
Programme
External
Tetra Pak April 2010
Programme roll-out and estimated budget
No of
children
(incl.
present
50,000)
Year 1
Year 2
Year 3
Year 4
Year 5
200,000
500,000
1,000,000
1,000,000
1,000,000
20,5
37
37
37
Est. cost for 10,5
dairy dev &
SMP (mio
USD)
Assumptions:
•
•
•
•
120 feeding days
1 portion = 150 ml of UHT fortified flavoured milk @ 0,25 USD/portion
Distribution cost of 10%
Dairy development budget of 20 million USD over 5 years
External
Tetra Pak April 2010
Programme results
Year
1
2
3
4
5
Milk demand for SMP (million
litres)
3.6
9
18
18
18
Increase in milk production from
present (70 mio tons)
5%
13%
26%
26%
26%
Increase in UHT milk processed
from present (5 mio litres)
72% 180% 360%
360%
360%
18
18
Number of cows supplying school 3.6
milk if each produces 1000 litres
per year (thousands)
9
18
• 5,000-25,000 new jobs created in milk value chain
• Decreased malnutrition
• Increased school enrolment, attendance and academic
performance
• Reduced milk imports
External
Tetra Pak April 2010
Tetra Pak and DeLaval
External
Tetra Pak April 2010
Tetra Pak – At a Glance
 World leader in supplying systems
for processing and packaging of
liquid foods
Supports local entrepreneurs to start
local food production
 Present in over 150 countries
Involved in school milk and school
feeding in around 50 countries
 Work on the principle that
“A package should save more than it
costs”~ Dr. Ruben Rausing, Founder
External
Tetra Pak April 2010
– At a Glance
 Over 125 years of innovation and experience in
the dairy business, supporting dairy farmers in
managing their farms their way.
 Customers in 100 countries.
 Can supply everything needed for small or large
scale dairy farming. Special range of products
for farms with < 30 cows (Entry Line cooling,
milking, hygiene, training etc).
External
Tetra Pak April 2010
School Feeding in Tetra Pak Packages

Tetra Pak packaging used in school feeding
programmes in some 50 countries (mainly milk)

Approximately 45 million children world wide benefit
(of which 24,5 million in developing countries)

45 years of experience in school milk programmes
External
Tetra Pak April 2010
Tetra Pak/DeLaval could assist with:
►
Advice in dairy development programme development
►
Support training of trainers and farmers in milk production
►
Investment in milk reception at dairy
►
School Milk Project development (concept papers, proposals)
►
School Milk implementation consultancy (workshops and
seminars with SMP administrators, parent & teacher
associations, government officials etc)
►
School Milk implementation manual could be made available
►
Design of unique school milk package to be used by all
suppliers
►
Formulations of new fortified products if requested by
authorities
►
Discounts on packaging material for school milk
►
School milk promotion and marketing support
External
Tetra Pak April 2010
Tetra Pak
School Milk
Country Cases
External
Tetra Pak April 2010
Kenya


Thailand
School milk created
milk drinking
generation and a
developed dairy
industry

School milk to
> 6 mio children

Grew milk
consumption: 2-28
l/capita 1988-2008
4,3 mio children
1979 - 1998

250 000 jobs
External
Tetra Pak April 2010
Pakistan



Gothki Disctrict 2003,
USDA funding
Enrollment increase,
height/weight
improvements
Pakistani gov. started
own SMP based on
Gothki experience
Palestine

WFP / Italian Gov.

157 000 pre- and
primary school
children (2009)

Long term national
programme
discussed
External
Tetra Pak April 2010
China


Launched 2000,
Government
regulates, parents
pay
Quality standards:
only UHT, only
licensed dairies
Russia

600 000 children
in 12 regions

Local government
funding

National quality
standard
External
Tetra Pak April 2010
Tetra Pak/DeLaval
Dairy Development
examples
External
Tetra Pak April 2010
Bangladesh

School milk led to
investment in 3 UHT
plants.

TP/DL active in
planning dairy
development with
customers & partners
Guatemala

School Milk
Programme drove
demand for quality
milk

TP/DL initiated and
participated in donor
funded dairy dev.
programme
External
Tetra Pak April 2010
Albania
Tanzania

Poor milk collection
system, low quality
milk

Lack of collectable
milk stops investments
in UHT processing

Dairy development
proposal made for
UHT customer

Study to evaluate
viability of milk
collection centres
proposed to donors
External
Tetra Pak April 2010
Conclusions
External
Tetra Pak April 2010
Some Conclusions

Partnership with the private
sector can drive development
in agricultural production and
food processing

School Milk can be the catalyst
for dairy development

Results: jobs and incomes in
rural areas, decreased
malnutrition, increased school
attendance, improved GDP etc
External
Tetra Pak April 2010
Contact & Information:
Rafael Fábrega
Food for Development Office
Tetra Pak, S.A. , Panama
Telephone: +507-208-5800
Mobile: +507-6676-8676
E-mail: rafael.fabrega@tetrapak.com
www.tetrapak.com
www.tetrapak.com/ffdo
www.delaval.com
External
Tetra Pak April 2010