–company anticipates 5M litres of fresh milk per year, eyes regional market
DEMERARA Distillers Limited (DDL) on Sunday invited the media to tour its dairy farm facility at Moblissa, on the Soesdyke-Linden Highway, where a massive US$20 million investment project is being executed.
The project offers job opportunities to 200 persons, among them residents of the community, some foreigners, Cubans and Venezuelans, and will use fresh cows’ milk for its Savannah Milk brand instead of reconstituted imported powered milk.
Financial Director of Demerara Dairy Investment (DDI) and Deputy Chief Executive Officer (CEO) Yasudeo Singh told the media that the farm is technically advanced with equipment and the necessary infrastructure.
He was at the time speaking at a press conference following the media tour.
Thus far, the company has expended US$9 million on the project. The total cost is US$20 million which is a massive investment being made by DDL.
Singh added that it is a transformative project for Guyana and the entire Caribbean, as the milk will be exported to the region following its introduction to the Guyanese market.
Meanwhile, Project Executive Loris Nathoo told reporters that they are aiming to have first-milk sometime in the third quarter of 2025.
“We are hoping to have the diary cows here in the first week in June next year. After that, two to three months [later], we will have first-milk in the third quarter of 2025. We will have all preparations in terms of the diary cows. As you can see, we are constructing the first large pen of 80,000 square feet, with two pens in that same size and in total we will have seven buildings,” Nathoo said.
He revealed that they are hoping that by the time the animals are here in Guyana, the arrangements for the feed stock would be in place.
Nathoo pointed out that some of the feed will come from their own growth of experimental grass, which is a mixture of hay and silage.
He added that they are also exploring the possibility of having contractors supply feed for the first 18 months, so that they can have adequate feed for the 500 milking cows that will be on the farm.
Nathoo said that by the time the cows are here, they will have three to six months of feed stocked in the hay storage area, once they are fully completed.
“Once we are comfortable; we have the feed to sustain the animals, we will import the cows from Brazil,” he said.
Further, he said that they are well on track with the project, making arrangements for the medium-voltage transmission line for electricity on the farm. This should be in place by the end of January, or early February 2025. Once installed, the transmission lines will be connected to the farm.
Nathoo reported that an additional three to four wells will be built to ensure an adequate supply of water for the cows. At the moment, one well has been dug.
Also addressing the media was Chairman and Chief Executive Officer (CEO) of DDL, Komal Samaroo, who said it is important for them to give context to the project, since it is within the framework of the DDL group.
“As you know, we have packaging operations at Diamond, and we have been building the Savannah brand of milk, which is made from imported re-constituted powered milk. That was the first stage of a market-led growth strategy to build a brand, create a market, and then work on the backward integration as we seek to build a domestic supply chain that flows into our manufacturing unit,” he said.
Samaroo reported that the project is a very strategic part of that overall plan, and they hope by the end of next year, they will be able to produce fresh cow’s milk from the farm and transport it to the plant at Diamond where they will be putting in the necessary infrastructure. At the Diamond branch, the fresh milk from the farm will be stored under the requisite condition and subsequently packaged.
“I believe that the model we are using has been proven to be a successful model for profitable and sustainable growth, and I also believe that with all the work that has gone into the farm; technical input from our partners with planning, I think we are on the way to creating a very viable dairy farm, which will be integrated into our overall brand strategy,” Samaroo said.
The DDL dairy farm, once fully operational, is expected to produce five million litres of milk per year. It is expected that each cow will produce 20 to 35 litres of milk per day.
DDL plans to export the milk to St. Kitts, Barbados, and Antigua and Barbuda.
The DDL dairy farm has all the basic amenities for staff comfort, including washroom facilities, air-conditioned rooms, modern kitchen and dining area, and in-house accommodation for workers. Additionally, security cameras will be installed, and no visitors will be allowed on the farm. Transportation will be provided for all employees to and from the farm daily.
David Rice, Project Supervisor, reported that the experimental grass is being cultivated on the farm to feed the cows, and they will also look at the possibly of growing corn for animal feed as well.
