Dairy processing

Dairy processing
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Dairy processing
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

Establish and operate dairy processing plants to produce UHT (ultra-high-temperature) milk and milk powder.

Expected Impact

Add value to the dairy industry, enable improved child nutrition and reduce food loss.

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).
> 25% (in IRR)
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.
Medium Term (5–10 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.
< USD 50 million
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2) Industry, Innovation and Infrastructure (SDG 9) 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
  • 1) National Institute of Statistics of Rwanda (2020). Labour Force Survey Trends August 2020 (Q3). http://www.statistics.gov.rw/publication/labour-force-survey-trends-august-2020q3 2) International Fund for Agricultural Development (2019). Country Strategic Opportunities Programme 2019 – 2024 for the Republic of Rwanda. https://www.gtai.de/resource/blob/45938/fe1c62c39e821a638471d69ef0ee5261/pro201904175029-data.pdf 3) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. http://extwprlegs1.fao.org/docs/pdf/rwa180543.pdf 4) Yilmaz, D.and Yilmaz, I.C. (2020). 'Comparative Cost Assessment of Cold Storage Plants and Natural Storage Structures for Potatoes', Potato Resources. https://doi.org/10.1007/s11540-020-09454-0 5) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. http://extwprlegs1.fao.org/docs/pdf/rwa180543.pdf 6) World Bank. Rwanda Food Smart Country Diagnostic. http://documents1.worldbank.org/curated/en/288911601302842762/pdf/Rwanda-Food-Smart-Country-Diagnostic.pdf 7) Morley, J.E. Undernutrition. https://www.msdmanuals.com/home/disorders-of-nutrition/undernutrition/undernutrition 8) Michaelsen, K.F. (2013). 'Cow’s Milk in the Prevention and Treatment of Stunting and Wasting', Food and Nutrition Policy 34(2), 249–51. https://doi.org/10.1177/156482651303400219 9) Programme Management Unit (FTF-ITT) of National Institute of Agricultural Extension Management. Demand Analysis Report- Republic of Rwanda. https://www.manage.gov.in/ftf-itt/demand/Rwanda.pdf 10) Ministry of Agriculture and Animal Resources (2018). Strategic Plan For Agriculture Transformation 2018-2024. Republic of Rwanda. http://extwprlegs1.fao.org/docs/pdf/rwa180543.pdf
IOA Sources
  • 11) World Economic Forum Grow Africa (2016). Promising Investment Opportunities In Ethiopian Agribusiness. https://www.growafrica.com/sites/default/files/Ethiopia%20Country%20Session.pdf 12) UN Comtrade database. https://comtrade.un.org/data/ 13) Global Research and Data Services (2020). Dairy Product Market in Rwanda to 2024. 14) Ministry of Trade and Industry. Industrial Master Plan for the Agro-Processing Subsector (2014 - 2020). https://rwandatrade.rw/media/2014-20%20MINICOM%20Agro-Processing%20Industrial%20Masterplan.pdf 15) Ministry of Agriculture and Animal Resources (2019). Annual Report 2018-2019. https://www.minagri.gov.rw/fileadmin/user_upload/documents/AnnualReports/Minagri_Annual_Report_2018-19.pdf 16) TrAIDe (2019). Investment Opportunities in the Rwandan Dairy Sector. https://www.agroberichtenbuitenland.nl/binaries/agroberichtenbuitenland/documenten/rapporten/2020/05/20/business-opportunity-report-dairy-rwanda/BORDairy_Rwanda2019_ver4.pdf 17) PwC analysis based on Prof. A. Damodaran data, 2020. 18) 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 19) World Food Programme (2019). Fill the Nutrient Gap. https://docs.wfp.org/api/documents/WFP-0000115861/download/ 20) Tait, P. and Cullen, R. (2006). External Costs Of Dairy Farming In Canterbury. Sydney: Commerce Division, Lincoln University. https://agris.fao.org/agris-search/search.do?recordID=US2016212407 21) Ministry of Agriculture and Animal Resources. National Dairy Strategy. https://www.minagri.gov.rw/fileadmin/user_upload/documents/STRAT.PLC/2013_National_Dairy_Stratey.pdf 22) Republic of Rwanda. Official Gazette nᵒ 07 of 15/02/2016. https://www.minagri.gov.rw/fileadmin/user_upload/documents/Law_and_Regulations/OFFICIAL_GAZETTE_ON_MILK__1_.pdf 23) Republic of Rwanda. Official Gazette n° Special of 17/01/2013. http://extwprlegs1.fao.org/docs/pdf/RWA131821.pdf 24) Republic of Rwanda. Guidelines for application for registration of processed food. http://www.rwandafda.gov.rw/web/fileadmin/guideline_for_application_and_registration_of_processed_food.pdf 25) Republic of Rwanda. Guidelines for good food manufacturing practices. http://www.rwandafda.gov.rw/web/fileadmin/guideline_for_good_manufacturing_practices_of_food.pdf 26) Rwanda Investment Authority. Investment Opportunities. https://www.visitrwanda.com/investment-opportunities/agriculture/ 27) Africa Legal Network (2015). Investment Guide - Rwanda. https://www.africalegalnetwork.com/wp-content/uploads/2015/12/Rwanda-Investment-Guide-2015.pdf 28) Mazimpaka, E. Characterization of Cattle Production Systems in Nyagatare District of Eastern Province, Rwanda. https://www.omicsonline.org/open-access/characterization-of-cattle-production-systems-in-nyagatare-district-ofeastern-province-rwanda.php?aid=91895 29) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. (2020). The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. https://dashboards.sdgindex.org/profiles/RWA 30) United Nations. Sustainable Development Goals. https://unstats.un.org/sdgs/indicators/database/