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Botswana To Export Milk

Delta Dairies Claims 10% Local Market The establishment of Delta Dairies has lit hopes of Botswana exporting milk in the near future. This comes at a time when Botswana is importing both powdered and liquid milk from neighbouring South Africa - there were no producers of UHT milk in Botswana and all existing dairy companies, including international brands Clover and Parmalat, have been importing milk from South Africa. According to John O’Rahilly, Delta Dairies Managing Director, “over the past six years the two international companies have imported 38,9 million litres of milk, which represents a 200% growth over the same period.” He noted that opportunities for export are highlighted by the significant quantities of whole milk and milk powder imported by other African countries, most notably Mauritius, Senegal, Mauritania, Swaziland, Mozambique and Lesotho. He said Botswana should take advantage of this seemingly ready to consume market. O’Rahilly said other product lines that can be considered for exports included raw milk related dairy products such as cheeses, yogurts. In December 2007 Botswana’s first and only UHT milk processing factory was commissioned and commenced commercial production from its premises in Gaborone.  Negotiations between the promoters of Delta Dairies and the CEDA Venture Capital Fund began in 2005 following the completion of a feasibility study funded by the Centre for Development of Enterprise (CDE). The study revealed the existence of a considerable opportunity for import substitution of processed milk in Botswana. It further pointed to very good prospects for exporting product to neighbouring countries. Clover, Parmalat and smaller South African brands Dewfresh and Montic have had a presence on the local market for a number of years resulting in their enjoying a certain level of customer loyalty. The companies also have strong relationships with local distribution companies, ensuring superior product uptake by the trade, O’Rahilliy observed.   “In the three months since its introduction to the marketplace, Delta Fresh has gained approximately 10% of market share.  A strong awareness and business development strategy has been developed to establish a superior brand position and create loyalty.  The campaign has begun rolling out,” the Managing Director added. He said the visual brand has already been developed through packaging, and to date, there is overwhelming positive feedback about the taste of Delta Fresh long life milk.  “Other than that we are a 100% Botswana product; the taste of Delta Fresh milk appears to be our unique selling proposition and these will be the flagship traits on which we will build loyalty with the end consumer,” O’Rahilly said. Delta Fresh offers a range of milk products in line with the variety that has been on offer from other brands including Skim Milk, Full Cream, Low Fat and Fat Free.  “We want Batswana to know that local manufacturers can offer a product that is as good, if not better, than products coming from outside the country.” says O’Rahilly. The packaging was developed by a local advertising agency, Native Impressions, who worked together with O’Rahilly over a two–year period to get the concept just right.   Dr Harold Sigwele, an agricultural economic consultant who has experience in trade policy formulation, helped in the realization of the milk plant.  O’Rahilly is an engineer who has set up UHT plants in other parts of Africa; before joining Delta fresh he worked for Olivine and Dairyboard in Zimbabwe.

 

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