The market for farmers supplying fresh milk to the Sameer Agriculture and Livestock Limited’s (SALL) has increased from 50 to 120 thousand litres in the past 18 months and is expected to reach 300 thousand litres in 6 months.
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Sameer is a joint venture established by Sameer Group of Kenya, which operates various businesses in East Africa, and RJ Corp, a food and beverages industry in India.
Sameer took over the Government Funded Dairy Corporation Limited (DCL) in August 2006 and invested strongly in maintenance (getting the plant operational), transport (ensuring reliable transport) and processes ( diversifying, eg drying, to be able to manage variable production) . This has allowed them to increase the amount of milk processed and capture significant export markets.
This success story should be a warning to all food processing businesses, unless you can invest in maintaining an efficient and comprehensive operation, you are not going to be able to succeed – saving by restricting investment is a sure route to failure if it effects operation efficiency.