Dairy aggregation and storage

Dairy aggregation and storage

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Dairy aggregation and storage
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Operate a distribution service to collect milk from smallholder farmers and offer cold storage and wholesale to processing facilities.

Expected Impact

Improve food security and nutritional situation especially for children by avoiding dairy product losses.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in ROI)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
Of 6.9 million liters of milk produced daily, rural centers have capacity of only 1.7 million liters
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Responsible Consumption and Production (SDG 12)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
No Poverty (SDG 1) Good health and well-being (SDG 3) Decent Work and Economic Growth (SDG 8)
Sector Sources
  • (II) Ministry of Agriculture, Animal Industry and Fisheries. Agricultural sector potential in Uganda. https://www.agriculture.go.ug/agricultural-sector-potential/ (IV) National Planning Authority. National Development Plan III (NDPIII) 2020/21 – 2024/25. (V) Fowler, M. and Rauschendorfer, J. (2019). Agroindustrialisation in Uganda. https://www.theigc.org/wp-content/uploads/2019/11/Fowler-and-Rauschendorfer-2019-working-paper.pdf (VI) Rakotoarisoa, M.A., Iafrate, M. and Paschali, M. (2011). Why Has Africa Become a Net Food Importer? http://www.fao.org/fileadmin/templates/est/PUBLICATIONS/Books/AFRICA_STUDY_BOOK_REVISED_low_res.pdf (VII) Government of Uganda. Uganda Green Growth Development Strategy (UGGDS) 2017/18 – 2030/31. (VIII) United Nations Development Programme (2019). Inequalities in Human Development in the 21st Century. Briefing note for countries on the 2019 Human Development Report. Uganda. (IX) World Bank (2018). Making Farming More Productive and Profitable for Ugandan Farmers.https://www.worldbank.org/en/country/uganda/publication/making-farming-more-productive-and-profitable-for-ugandan-farmers (X) Government of Uganda. Uganda Vision 2040. https://consultations.worldbank.org/sites/default/files/materials/consultation-template/materials/vision20204011.pdf
IOA Sources
  • (1) Okwakol, S. (2018). 'Milk Production In Uganda Hits 2.08 Billion Litres', EABW News, June 25. https://www.busiweek.com/milk-production-in-uganda-hits-2-08-billion-litres/ (5) World Wildlife Fund (2020). Dairy Industry. https://www.worldwildlife.org/industries/dairy (6) Netherland Development Organisation (2008). Dairy Investment Opportunities in Uganda Report. http://www.bibalex.org/search4dev/files/338024/171497.pdf (7) Government of Uganda. Diary Industry Act 2000 (Ch 85). https://www.ilo.org/dyn/natlex/docs/ELECTRONIC/88143/100692/F1567060613/UGA88143.pdf (8) Economic Policy Research Centre (2018). Fostering a sustainable agro-industrialisation agenda in Uganda. https://eprcug.org/research/research-reports?task=document.viewdoc&id=579 (9) Uganda Investment Authority (2016). Compendium of Investment and Business Opportunities. https://www.ugandainvest.go.ug/wp-content/uploads/2016/02/Compendium-of-Investment-and-Business-Opportunities-Vol-2.pdf (10) SOGEROM Consortium (2018). Diagnostic Studies N° 1.1 to 1.4 To support the Mid-Term-Review of Uganda's 2nd National Development Plan (NDP-II) and evaluation of NDP-I. (11) PwC (2019). Corporate - Tax credits and incentives. https://taxsummaries.pwc.com/uganda/corporate/tax-credits-and-incentives (12) Food and Beverages (2020). FrieslandCampina set to invest 23 million euros in its Nigerian business. https://www.foodbev.com/news/frieslandcampina-set-to-invest-e23m-in-its-nigerian-business/ (13) Capital IQ Company Screening Report. (14) Uganda Legal Information Institute. Dairy regulations. https://ulii.org/ug/legislation/statutory-instrument/2002/200326 (15) Government of Uganda. Plan for Modernisation of Agriculture: Eradicating Poverty in Uganda. https://www.inclusivebusiness.net/sites/default/files/wp/PMAMaindocument.pdf (16) International Institute for Environment and Development (2020). To address food insecurity in Uganda post COVID-19 the government must act now. https://www.iied.org/address-food-insecurity-uganda-post-covid-19-government-must-act-now (17) Food Business in Africa (2020). Dairy Industry in Uganda. https://www.foodbusinessafrica.com/dairy-industry-in-uganda/ (18) Uganda Development Bank (2020). Agriculture. https://www.udbl.co.ug/agriculture/ (19) Bank of Uganda (2020). Agricultural Credit Facility. https://www.bou.or.ug/bou/bouwebsite/ACF/moreinfo.html (20) PwC analysis based on Prof. A. Damodaran data, 2020. (21) Economic Policy Research Centre (2018). Fostering a Sustainable Agro-industrialisation Agenda in Uganda. Kampala. https://eprcug.org/research/research-reports?task=document.viewdoc&id=579 (22) Environment Protection Authority (1997). Environmental Guidelines for the Dairy Processing Industry. State Government of Victoria. https://www.epa.vic.gov.au/-/media/epa/files/publications/570.pdf (23) Grain (2011). The great milk robbery: How corporations are stealing livelihoods and a vital source of nutrition from the poor. https://www.grain.org/media/W1siZiIsIjIwMTEvMTIvMTYvMTFfNDNfNTBfOTk4X0dSQUlOX0RhaXJ5X1JlcG9ydF9FTi5wZGYiXV0