DDL’s US$20M dairy farm could tap 20% of Caribbean’s milk market – Chairman

Nov 26, 2024 News

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Kaieteur News- Demerara Distillers Limited (DDL) is looking to transform Guyana’s agricultural landscape and potentially tap about 20% of the region’s milk market, with its US$20 million dairy farm that is under construction.

The dairy farm which is located in Moblissa Village, Soesdyke-Linden Highway, is a project by DDL’s subsidiary Demerara Dairies Inc. (DDI). Media workers toured the farm on Sunday to witness the progress being made, alongside DDL’s Chairman Komal Samaroo, with senior executives, and technical staff providing details on the venture.

The farm, designed to meet international standards, will kickstart operations next year with 500 imported cows from the United States, which were selected for their productivity and adaptation to local climatic conditions. According to Samaroo, this initial herd will form part of a replenishment cycle to sustain milk production.

The Chairman stated that the dairy farm will build off of the DDL’s Savannah milk brand, which is reconstituted imported powdered milk. He explained, “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.  This project is a very strategic part of that overall plan.”

DDL’s Chairman said that the product will be developed to ensure quality, affordable milk and forms part of regional food security. He underscored that with a huge regional milk market, when production commences, DDL dairy farm is looking to tap about 20% of that market.

DDL’s Deputy Chief Executive Officer and DDI’s Finance Director Vasudeo Singh in his remarks underscored the project’s transformative potential not only for Guyana but for the entire Caribbean. “This will be a very technologically advanced farm…thus far we have expended just about US$9 million already on this project. The overall cost of this will be somewhere around US$20 million, this is a massive investment…” he said.

Singh underscored that with the Savannah milk brand already in St Kitts, Barbados and Antigua, the company is working on building out that brand using the new dairy farm. “We have already started to export milk to the region. Our intention is to replace that with the milk that will be produced here (dairy farm) and that will go throughout the entire region,” Singh said.

According to him, the Moblissa dairy farm is projected to produce five million liters annually, with a daily production between 20 and 35 litres.

DDL Projects Executive Loris Nathoo revealed, “We are aiming to have the first milk by the beginning of the third quarter of 2025.”  He said that the cows should arrive by the first week of June 2025, and commercial production is expected some three weeks after.

“I think we are well on track…we are making arrangements for the water and we’re looking to finalize maybe drilling three to four wells,” he said. Nathoo added that while they already drilled a well for water for the animals, they will need large quantity of water for irrigation.

Nathoo added that the company is making arrangements for the electric transmission line to be set up and connected to the farm by February 2025. Notably, the Linden Utility Services Cooperative Society Limited will be supplying the DDL’s dairy farm with electricity. With a transmission line being run from the town to Moblissa Village, residents will have the option to engage the utility company to become a consumer.

Moreover, Darrell Manickchand, Project Manager of DDL’s administration division, explained the self-sustaining design of the 80,000 square feet pens. He also disclosed that DDL will be growing their own crops for the cows to consume.

“These are not grazing cows, they will be in the shed, well fed, less movements for them so more of their energy goes towards milk production,” he said. Manickchand added that the farm will be equipped with its own veterinary facility.

“The farm itself is basically self-sustaining. All of the cow manure that is produced in the cowsheds will be scraped off, diluted and then pumped into the cow manure lagoon as we call it from there now, they will be pumped back into the field as a natural source of fertilizer,” Manickchand disclosed.

The farm is planned to span across 500 acres, and will include seven buildings, including pens, milking parlors, and storage facilities. DDL has also started cultivating feedstock, such as Guinea grass, to prepare silage to ensure a sustainable food supply for the non-grazing cows. Furthermore, DDL Project Manager Wesley Kirton disclosed, “We are working closely with all the government agencies in terms of permits and collaboration with the regional system in both regions four and ten…”

According to Kirton, DDL has engaged with the Environmental Protection Agency (EPA), the National Drainage and Irrigation Authority (NDIA) and others.  “This is an effort that is very closely coordinated to ensure the project has no negative impact on the community,” he added. He also spoke about lobbying the government to get the road into the village upgraded.

(DDL’s US$20M dairy farm could tap 20% of Caribbean’s milk market – Chairman)

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• cow, dairy, DDL, milk

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