Located in Iringa Region, ASAS DAIRIES LTD is a private dairy processing firm that was established in the year 2000 to provide high quality milk products to the local market. Currently, the company sources and procures 94% of its total raw milk supply from smallholder farmers through a working partnership with three contracted Farmers’ Cooperatives (engaging 1,415 farmers).
At the present, ASAS’ factory’s installed capacity is 50,000 liters per processing shift. However, the lack of capacity and the high capital outlay required in dairying by the farmers’ results in the company processing only 11,500 liters per processing shift. That means the operational plant utilization stands at 23% of the installed plant processing capacity. The 77% installed capacity deficit is therefore a huge market opportunity for farmers and offers them room for growth. Some of the identified gaps that triggers supply deficit includesThe company currently operates at 23% of its installed capacity of 50,000 Liters of milk against 11,500 Liters which they are able to source from smallholder producers. Some of the identified gaps that triggers supply deficit includes;
Reducing these smallholder farmer’s based constraints can have a positive advantage for farmers to access a market opportunity from 77% supply gap that offers them room for growth and profitability.
The project targets at addressing constraints which limit production, productivity, consistency and quality of milk produced by the farmers supplying milk to the company through;
Thanks SAGCOT CTF "I was really impressed by the state-of-the-agricultural equipment available and more so by the staff who operate them and by the well-meshed flow of work. This was an eye-opener for us so kindly keep up the good work"