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“Leading the New Dairy Enterprise in Papua New Guinea”

The first dairy enterprise in Papua New Guinea is an innovative step towards creating dairy self-sufficiency in the region. The initiative will spawn a variety of benefits for locals, children in particular, including increased wellness, lower product prices as well as increased knowledge on the dairy market sphere, and create operational efficiency. The project will potentially have long term contributions to the local society, and create a previously non-existent dairy industry.

The Opportunity

Establishing the initial pillar for the novel local commercial dairy industry in Papua New Guinea.

Once identifying an existing demand for a local dairy industry in Papua New Guinea, LR Group in cooperation with the government of Papua New Guinea and its affiliate partners, will support the establishment of the country’s first Commercial Dairy Enterprise.
Papua New Guinea, a country rich in natural resources, as well as innovative in its fresh crop production abilities, is relatively unfamiliar with the technicalities of the dairy market.
The dairy industry in PNG is currently 100% based on imports; thus, local consumption is significantly limited due to the high import costs.
This initiative aims to create self-sufficiency through large-scale production, and the supplying of dairy products to the local population, placing particular emphasis on the youth population.




The Vision

To establish a sustainable local dairy industry that will advance over the long run, and ultimately replace the need for imported dairy products in Papua New Guinea.

Milk consumption has historically been associated with health and wellness due to its high nutritional value, such as calcium and vitamin D, among others. The high nutritional value of milk has rendered it one of the most consumed beverages around the world.
In addition to creating a local dairy industry in PNG, the project will create substantial competition with imported products by lowering dairy prices.
As a result, the population of PNG will be able to enjoy the nutritional benefits of fresh dairy consumption at a profitable price. Local youth in particular will be able to consume milk as an everyday food product at schools.
A key element of this project is the transfer of knowledge pertaining to cow farming, dairy product manufacturing, and its distribution throughout the local community. Effectively training locals in said practices will guarantee local independence and the continuity of the industry.



The Challenges

Devising the infrastructure required in order to support the large-scale venture, from its very foundation.

One of the central challenges embedded in projects of this nature is creating a sustainable support system, starting from its preliminary stages of establishment, while simultaneously ensuring its long-term functionality.
Thus, extensive research has been done in order to ensure what the local needs and preferences are, local climate, markets, possible health solutions and more, in order to warrant a sustainable, thriving enterprise for the local region.
Starting with the initial stage of growing cow feed, to raising adolescent calves into mature milking cows, followed by supervising health treatments for the livestock, and directing the creative process of producing a variety of dairy products for local consumption, the entire process mentioned above is included into the intensive transfer of knowledge. The entirety of the data will be transferred to locals who will eventually progress as experts in the dairy industry.
Establishing a community of local professionals and experts, who will continue to implement the acquired knowledge is a key success factor of the project. Via the joint efforts of our experts and the local community we will be able to build a unique and modern training system that will help the community advance the industry for years to come.


The Project

Assembling a profitable dairy farm and processing plant that will provide the initial building blocks for a brand new industry in Papua New Guinea.

All of the operational structures, including the field crops, the dairy farm and the processing plant are efficiently located adjacent to one another, within the same farm expanse.
This holistic system is entirely self-sufficient and internally based, thus not requiring any external components for functionality.
The operational structures:
• Dozens of hectares of field crops which produce maize, sorghum, lablab and Guinean grass for forage feed, which is kept in a food center that contains silos and barns within the premises. This system promotes independence and ensures that the cows will receive the best feed possible while simultaneously developing the local area as a green productive environment.
• A sustainable dairy farm that consists of imported calves from New Zealand and future offspring with high quality genetics, designed in Israel. This modern farm allows farmers to monitor their cows and calves using an automated, computerized hi-tech system that gathers all the required information on the livestock.
In addition to the hi-tech milking parlor, the buildings constructed within the farm allow for the precise treatment of cows in different developmental stages, such as ill cows, pregnant cows, and newborn calves. This element is designed to ensure the proper care and treatment for all of the differing needs of the livestock.
• A dairy processing plant, which holds a capacity of thousands of liters a milk, daily. The state of the art equipment allows for the mechanized production of milk, yogurt and ice cream, using the most highly developed machinery in the industry. These products are then packaged in different compartments and sent throughout the region for mass consumption.
This vertically integrated enterprise described, will promote efficiency throughout the value chain, as well as economies of scale to assure high yield and superb quality of agro-produce.


The Impact

The project will effectively boost regional economic growth by introducing a highly demanded local dairy local industry and providing essential nutritional value to the population of Papua New Guinea.

A crucial faction of this project is to enlarge the dairy consumption within locals, particularly children.
The existing Papua New Guinea dairy industry is entirely dependent on imports which limits the local community’s access to basic dairy products. This dairy enterprise will provide a daily glass of milk to thousands of school children throughout the region, which will have an immediate positive impact on their nutrition and healthy development.
Implementing the knowledge, methods and techniques utilized by the project experts and transferred to the local community will enable PNG to continue its ongoing path to food security and self-sufficiency.
Throughout the project’s operation, the local community also benefits from the job creation, which will effectively help in lowering the unemployment rate, as well as train the local team in advanced, modern agricultural expertise.

Every step proceeding this initiative is thoroughly calculated and monitored, in order to warrant the production of superior quality dairy products, based on the exemplary experience of the Israeli dairy industry.


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