Food and Agriculture Organizationinternational Dairy Federation

Dairy Development Newsletter

April 1999Issue no. 4

Food and Agriculture OrganizationInternational Dairy Federation

of the UnitedNations41, Square Vergote,

Animal Production Service B-1030, Brussels, Belgium

Animal Production and Health DivisionTel: 32 2 733 98 88

Viale delle Terme de CaracallaFax: 32 2 733 04 13

00100, Rome, ItalyE-Mail:

Tel: +39 6 5705.4701

Fax: +39 6 5705.5749

Telex: 625852 FAO I

E-mail:

Introduction

This is the fourth in the series of Dairy Development Newsletters, sponsored by FAO and produced in collaboration with the IDF group of experts (B34) on “Dairy Technology in Countries with a Developing Dairy Industry”. The growth in demand for the newsletter has been spectacular rising from 500 for issue No.1, to over 2,500 subscribees to the last issue. The newsletter is now also distributed in electronic form,in addition to hard copy,in order to reduce costs.

In this issue we have endeavoured to give an up to date picture of the most interesting and cutting edge activities of both the dairy development section of FAO and IDF. This consists of a review of practical field activities and also a section on recent innovations and current issues in international dairy development including production, trade and marketing.

Many thanks are due to Dr E J Mann, who with Dr. J A Phelan of FAO, initiated this series of Dairy Development Newsletters and has contributed largely to this and all three previous issues. Dr. Phelan retired from FAO in March 1999 after 12 years service. We should like to take this opportunity to pay tribute to his outstanding contribution to dairy development worldwide. We would also like to warmly welcome Mr. Brian Dugdill, Meat and Dairy Officer, to FAO HQ in Rome. Brian has many years of valuable experience as a dairy consultant throughout the world and will be kept very busy in his time here!

Thanks are also due to those who contributed to this issue and to Edward Hopkin and Caroline Brooks of IDF Secretariat for their contribution in the compilation of the material.

Comments, critical or otherwise, as well as potential contributions to future issues of the Newsletter, are most welcome.

A. Bennett, Dairy Information Systems, AGAP, FAO, Jean Claude Lambert, Senior Dairy officer, AGAP, FAO, Edward Hopkin, IDF

1

INDUSTRIAL RESTRUCTURING

ASSISTANCE TO SELECTED STATE OWNED ENTERPRISES

Government of Lesotho/UNIDO

Project TF/LES/94/F10

Lesotho Dairy Products (Pty) Limited is a small producer-owned enterprise which collects and markets milk from some 200 smallholder farming families in the northern and western parts of Lesotho. Many of these smallholdings are run by women as their husbands work away in industry and in the mines in South Africa.

The company collects and markets around 1.5 million litres of milk annually and has a turnover of about one million US dollars, but has struggled to make a profit. With support from the FAO/UN and EU in 1995/96, its processing facilities were refurbished and the company embarked on a five year development plan for the period 1995 to 2000.

As part of a UNIDO technical assistance project to further the privatisation and commercialisation of state-owned enterprises in Lesotho, the company received support to advance the implementation of the plan. Under the auspices of the Lesotho National Dairy Board, a UNIDO dairy management specialist assisted the company for three months.

UNIDO assistance commenced with an in-depth assessment of progress so far under the plan. As a result, the plan was updated and reinforced to meet the current trading situation. The revised plan was adopted for implementation by the company's board of directors. Using a participatory approach, the UNIDO support was centered on the restructuring process and manpower development. A detailed annual business plan was prepared with company management and implementation started. Milk collection from rural areas was streamlined, the quality and presentation of company products was improved, wastage was reduced and a major drive to increase sales was put in place.

In order to motivate all stakeholders, part of the restructuring process involved reorganising company ownership to include employees and a distributor partner, as well as the original producer owners. Now that productivity has been improved and real sales have started to increase for the first time since 1990, the company is profitable and the restructuring process has been successfully completed.

Regular employment at the company has almost doubled as operations have been geared up. Just as important is the company's impact on the rural economy. Daily milk deliveries create regular income opportunities for rural farming families, which in turn generate further rural employment. This valuable experience should help to advance private sector participation in Lesotho's rural and industrial development efforts. It could also serve as a model for other African countries.

ESTABLISHMENT OF A MODEL DAIRY PROCESSING COOPERATIVE

Government of Jamaica/FAO Project TCP/JAM/8821

The Government and FAO Technical Co-operation Programme (TCP), have signed a project to boost collection, processing and distribution of milk in Jamaica. A preparatory mission to launch the project was mounted recently.

Although conditions in many parts of the country are highly suitable to milk production based on grass, Jamaica's 3,000 dairy farmers produce less than one quarter of the country's consumption of milk and milk products - currently estimated at 140 million litres of liquid milk equivalent annually and valued at close to US$170 million. They could produce much more milk.

Largely as a result of the dominant market position of a few large processors, consumers pay a high price for milk by international standards with the lion's share of returns going to processors and retailers. Typically, local producers receive less than a third of the retail price. At the time of the preparatory mission, a number of the larger processors were restricting their purchases of fresh milk, even though some import huge quantities of milk powder for products manufacture. Jamaican farmers had to dump significant quantities of milk. There is thus scope for improving the productivity of the milk production-processing-distribution chain and passing the savings on to producers and consumers.

Supported by the Commonwealth Secretariat, the Government has launched a milk production strategy aimed at making Jamaica self-sufficient in milk. Under the strategy producers are co-operating to form a National Federation to process and distribute their milk directly. The TCP project will support this initiative by conducting a market survey and by providing start-up processing and distribution equipment as well as training. Based on project experience, a longer-term investment plan will be prepared for the Federation.

An opportunity will be provided for small cooperative milk producers, for the first time, to break into direct marketing. This should not only increase their returns from dairying, but also help to reduce retail prices and the country's reliance on increasingly expensive imports.

For further information on both projects contact:

B. Dugdill, Meat and Dairy Officer, FAO, 00100, Rome, Italy

4

THE LACTOPEROXIDASE SYSTEM OF MILK PRESERVATION

As outlined in Dairy Development Newsletter No. 3, there have been significant developments in the acceptance and validation of the Lactoperoxidase System (LPS) of milk preservation.

So what is Lactoperoxidase and how does it work?

Lactoperoxidase is an enzyme, which is naturally present in raw milk. One of its unique biological functions is an antibacterial effect in the presence of hydrogen peroxide and thiocyanate. Both of these substances are naturally present in milk in different concentrations. The method of activating LPS in milk is to add about 10 PPM of Thiocyanate (preferably in powder form) to the raw milk to increase the overall level to 15 PPM (5 PPM naturally present). The solution is thoroughly mixed for 30 seconds and then an equimolar amount (8.5 PPM) of hydrogen peroxide is added (generally in the form of a granulated sodium carbonate peroxyhydrate). Milk to be treated should be hygienically produced and the LPS activators added within 2-3 hrs of milking.

Lactoperoxidase, (LP), has a bacteriostatic effect on the raw milk, which lasts for 6-8 hrs at tropical temperature (30C). This in effect means that the rural producer(s) can then transport the milk for pasteurisation/processing to more distant locations without having to invest in expensive cooling and refrigeration facilities. The system is therefore suited to rural areas where there is insufficient infrastructure such as lack of electrical supply to enable cooling or refrigeration, or when there is insufficient milk to justify heavy capital investment in such equipment.

In July 1998 a workshop was held in Uppsala at the Swedish University of Agricultural Science on the “Use and handling of the Lactoperoxidase System in Milk Handling and Preservation”. The meeting provided a forum for Lactoperoxidase experts to review recent developments in improved and updated application of this revolutionary milk preservation method. The CODEX representative, Dr. Yukiko Yamada, outlined the “Guidelines for the Preservation of Raw Milk by Use of the Lactoperoxidase System” (CACGL 13-1991). She also emphasised that the “method should only be used in situations when technical, economical and/or practical reasons do not allow the use of cooling facilities for maintaining the quality of raw milk. Use of the LP System in areas which currently lack the infrastructure for collection of liquid milk, would ensure the production of milk as a safe and wholesome food, which otherwise would be virtually impossible”. Dr. Yamada advised on on the use of the LP system only at collection points by trained personnel. The experts agreed that the involvement of FAO as the implementation agency should facilitate the effective field level implementation of the dissemination of LPS.

The reports on the field trials from a number of experimental sites were both interesting and encouraging. Countries in which tests were carried out included Cuba, China, Mongolia, Uganda, Sri Lanka, Kenya, Estonia, Pakistan and the Philippines.

Pastor Ponce Ceballos and José Z. Capdevila Valera prepared a paper on the “National and International Experience of Cuba in the application of the Lactoperoxidase system”. They presented the following findings from the last three years research:

• “Protection of 250 million litres of milk without refrigeration, that means a third of the total annual production.
• used in 14 provinces of the country
• experiences in all the industrial chain: small producers, dairy co-operatives, big companies, dairy industries
• Diverse conditions: collecting systems in pitchers, cistern jars, intermediate collection centres, direct distribution of raw milk
• Several types of milk: cows, goats, buffaloes and other”

A high rate of similarity was reported between the results obtained from other American countries. The LP system was reported to generally have a beneficial effect on the quality on milk products. Increased cheese yields in the order of 0.5kg/100L of milk were reported. The application of the system at all industry levels was reported to be extremely good and produced excellent results in cooled milk over long periods (48-72 hrs in weekends).

An easy-to-use system has now been developed in which sachets containing standard amounts of the two LPS activators are added to given volumes of milk - in the can.

Based on the success of the system additional research is now being carried on including among others:

• Uses of the activation of LPS on liquid and solid products
• Natural Inhibition of the catalyse enzyme in order to avoid the destruction of free oxygen in milk
• New forms of presentation/packing to cover a range of volumes and its application, also lengthening its effect.

The following outputs as defined at the meeting of experts at Uppsala University in July 1998, have now been met.

• Training of experts,

• Production of field manuals and posters
• Production of chemicals for phase II (50,000 sachets in total, representing the treatment of 2,500,000l of raw milk)

• Laboratory equipment

A project proposal for the dissemination of the LP system has been forwarded by FAO to the Swedish government for approval. The proposal contains the outline of the Global Lactoperoxidase Programme (GLP) which aims to initially target 20 strategically identified countries where the LPS could be readily applied and then expand the experiences gained in the practical demonstrations to a total of 80 countries. Regional and national co-ordinators and partner institutions will co-ordinate implementation. FAO has been approached by a total of 80 countries over the last 2 years seeking demonstration of the technology.

As soon as the project is approved, the GLP will swing into full action.

Ongoing activites and updates are available at

or contact M. Jean Claude Lambert, Senior Dairy Officer/Dr. N’Gatta, Zegoua, GLP Secretariat, Animal Production and Health Division, FAO, 00100, Rome, Italy. E mail:

Women – The Main Beneficiaries of Support to Sheep Co-operative Project: TCP/JOR/6611

The rural dairy sector in Jordan has received a significant boost recently from an FAO led multi-donor funded project on assistance for sheep milk production, mechanisation and standardisation of traditional milk products such as Jameed[1], Samneh[2], Djamid[3] and Jibneh[4] a number of cheeses. The project operated from February 1996 and August 1998 and had a total value of US$879,000. With the Dairy Group of the Animal Production and Health Division of FAO taking the lead technical role, other donors willingly gave their support to the project which was mainly of direct benefit to women through the provision of training in income generating activities and also to the co-operatives for the increased return for the milk of sheep and goats. The Jordan Co-operative Society is now hoping to replicate the type of technology and expertise developed in a number of other regions in Jordan. The project stimulated a great deal of interest from individuals and producers groups both in the country and in the region. The project donors and their individual inputs and objectives included:

Food and Agricultural Organisation of the United Nations (FAO)

• Provision of technical advice

World Food Programme (WFP)

• to fund the purchase of machines and equipment to a total cost of US$559,295

Jordan Co-operative Corporation and the Government of Jordan

• to assist the livestock sector by promoting semi-industrial processing and improvement of market access for rural producers, empowering local communities, particularly women and stimulating the creation of job opportunities in rural areas in additional to increasing the quality and quantity of locally available traditional milk products

The Sheep Co-operative Society

• to put in place three sustainable and commercially viable milk collection and processing centres, to assist in the commercialisation and marketing of high quality dairy products

German and Canadian Embassies

• to provide two refrigerated vehicles

Background

Jordan has a semi-arid climate with vast tracts of rocky deserts and sparse vegetative coverage. The eastern part of the country is composed of mainly desert plateau; the west highlands and the Great Rift Valley separates the East and West Banks of the Jordan river. A mere 4% of the land is arable with only 1% being meadows and pastures. In the rural areas traditional pastoralist system is predominant.

Sheep flocks are generally 50-100 heads with a herder looking after the animals throughout the day. From 1986 to 1996 the number of sheep and goats doubled to 2,375,000 and 806,000 respectively. Ovine and caprine milk accounts for 36% (58,600 tonnes) of the total milk production. At the farm level women are responsible for the milking and utilisation of milk and milk products, particularly in rural areas. Milking is mainly carried out at the watering holes/wells, close to the tented accommodation. The ewes are attached head-on in a line normally of 40-50 head and hand milked by women. Each ewe produces a net of 0.5kg/d and the lactation period is normally of 120 days. This gives annual production of 60kg/head, (net of suckling requirements).

The main constraints for the full development of the sheep and goat sector in Jordan were the lack of proper handling and storage and processing systems for the sheep and goat dairy sector, particularly in remote rural areas where the flocks are raised. It was estimated that up to 20% of the raw sheep and goat milk was lost due to unhygienic practices and poor environmental conditions. It was also reported that up to 30% of the local sheep owners do not milk their ewes due to the lack of proper equipment and difficult market conditions. These losses represent a significant loss, mainly to the producers (women and families) and also to processing industry potential and ultimately consumers.

Implementation

In collaboration with the National Project Director (Dr. Esam. O. Al-Quararah) and WFP, three co-operatives that were operating under the WFP funded RangeLand Development Projects, were selected to participate in the project. The sheep breeders’ co-operatives from the Karak, Maan and Dier-Alla regions were selected according to the milk production level, number and composition of flocks and availability of utilities such as power and water. The Jordanian Co-operative Society provided the buildings to house the processing plants. A local Jordanian dairy engineering company manufactured the processing equipment.

Training

The training element was one of the most important and successful results of the project. The project implemented a base assessment of the situation from the farm to the table. The training types and depth were the tailored to suit these requirements.

Milk processing facilities with 100% future expansion potential were constructed due to growth envisaged in the sheep and goat milk sector (two cheese processing plants with a capacity of 3-4,000l/d, located in Maan and Karak districts, managed and operated by the producers organisation and a specialised cheese factory with a capacity of 500l/d in Deir Alla, managed and operated by a local women’s group). A total of 18 women were selected as trainees for the day to day operation of the plants and given one month intensive training in plant operations, hygiene and management. The training also included equipment operation, maintenance, laboratory testing and preliminary process testing for traditional milk products. FAO also provided counterpart two JCC staff with external training in Morocco to acquire practical co-operative experience in improved and hygienic milk collection and processing systems.