Dairy sector targets student market
Published:Wednesday | November 13, 2013 | 12:00 AM
Jamaica's dairy sector has taken aim at the school-feeding programme as a major market for growing milk consumption.
Having been thrown a life-line in the form of a US$70,000 grant from the Food and Agriculture Organization of the United Nations (FAO) earlier this year to develop a five-year strategic plan, Hugh Graham says the creation of new markets for local milk as well as improving the local output are high on the list of priorities.
"For new markets internally, we are speaking of things like how to tap into the school-feeding programme because once we get milk into the programme that would be a major win-win situation both for the local producers and also for our school children," said Graham, the chief executive officer of the Dairy Board.
Graham cited World Health Organization (WHO) milk consumption levels for students, saying that "Jamaicans are way off" the recommended consumption levels.
"We are very hopeful that by the next budget year, the school-feeding programme will be able to accommodate at least certain quantities of milk or milk products," he said, noting the recent inclusion of local eggs into the programme.
In reference to the industry's long battle for viability, Graham said revitalisation of the industry depends on key government and private-sector investments.
"We are looking also at the processors in terms of the source of their inputs. We are looking at how we can improve the local content of some of the dairy products (manufactured locally) and how we can get consumers to increase their consumption of milk instead of all these products of really low nutritional value," said Graham.
EMPHASIS ON FRESH MILK
"Right now there is a lot of emphasis on fresh milk, but there is a lot of development that can come from value-added products such as yoghurt, cheeses and butter."
Jamaica imports millions of litres of yoghurt annually, but "why not produce our yoghurt locally like other countries?" the CEO chided.
With some 116 million litres of milk needed to satisfy local consumption annually, local production accounts for just over 10 per cent, Graham said.
"The remaining portion is supplied by imported milk solids and we need to look closely at that," he said of the need to reduce imports of milk and milk substitutes.
In the 1990s, local output was up to 38 million litres. Last year, Jamaica produced 12.85 million litres of milk and 12.5 million litres in 2011.
The Dairy Board head is hoping to improve output to at least 13.1 million litres for 2013.
The crafting of the five-year strategic plan, on which Graham's bid to tap into the school-feeding programme is premised, began in October. The process extends to March 2014.
It will see international and local consultants conducting "a rapid assessment of Jamaica's dairy industry," he said. And it will seek to identify private and public sector investments to advance the development of the industry.
Government is expected to create the policy environment which encourages the private sector to invest added Graham.
"Additional funding of the US$100,000 for the dairy plan will come from the Jamaican Government," Graham said.