K120m to boost dairy industry

By : The National

ABOUT K120 million will be progressively invested in the establishment of a dairy industry in the country by the Innovative Agro Industries Limited.

Chief executive officer Ilan Weis said this would provide a cost-effective alternative to the products in the market.

“It is really not about creating a diary farm but creating a new dairy industry in PNG,” he said.

“Our products will be on the shelves of supermarkets by September or October. It really is grass to glass projects, meaning that when we do livestock as a business philosophy, we need to grow at least most of the feed.

“First it is mobilising enough land to grow enough feed for the cows to eat as importing feed is not sustainable for us as a business model. The farm is in Illamo and the feed is growing there in Central province.

“The cows are actually boarding tonight in New Zealand and will be here on the May 25. And then you have to do the milking parlour because that is non-existent here.

“Then there is processing, meaning you have to set up a factory or processing plant that does the fresh milk, butter, yogurt, ice cream and all the products.
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“It’s about creating an industry. It’s our biggest investment to date at US$40 million (K120 million).”

The partners in the project are Innovative Agro (50 per cent), Central province (30 per cent) and Government (20).

Central provided the land so the equity is in consideration of the land.

“Fresh milk price in PNG are ridiculous. A litre of milk in the shops goes for about K12 to K16. Two litres go up to K26. If the current price is K14, our target price is K6 to K8 a litre for the PNG consumer. And that something that we have done for vegetable and poultry as well.”

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