TETRA Laval SUSTAINABLE DEVELOPMENT
Delivering greater dairy farm profitability in Kenya
After boosting farm profitability and productivity since 2022, a new partnership is taking the Dairy Hub project in Kiambu County to the next level.
The Dairy Hub project, supported by Tetra Pak East Africa and Tetra Pak Food for Development, ensures Tetra Pak’s customer – Githunguri Dairy Farmers Cooperative Society (GDFCS) – receives a reliable supply of quality milk from local smallholder farmers. The hub provides farmers with a stable market and hands-on technical training.
Between September 2022 and December 2024, the hub increased farm profitability by 26%, milk yield per cow by 17%, milk collected per farm by 92%, and the margin above feed cost by 103%, while the amount of rejected milk was reduced by 71%.
Boosting profitability and quality
Following the success of the Dairy Hub project, the partners launched a new two-year Public-Private-Development Partnership (PPDP) – Pathways to Profitable Dairy Farming – in May 2025. The initiative brings together Tetra Pak, the United Nations Industrial Development Organization (UNIDO), GDFCS and the Kenya Dairy Board, with US$ 3.5 million in funding from the Swedish International Development Cooperation Agency (Sida).
The programme aims to make dairy farming more profitable through increased milk production, raise milk quality, promote environmentally sustainable farming practices, and expand opportunities for women and youth across the dairy value chain. A key milestone will be the creation of a Dairy Academy to serve as a centre of excellence for farm advisors and smallholder farmers. Early results are promising, with GDFCS milk deliveries growing from 90,000 to 250,000 litres per day and a projection of 350,000 litres by 2027.
“Building the capacity of customers via farm advisors and smallholder farmers through targeted training and collaboration is essential for creating a sustainable and inclusive dairy industry in Kenya,” said Jonathan Kinisu, Managing Director at Tetra Pak East Africa.
Over the next two years, the project plans to train more than 10,000 smallholder farmers in animal health, farm management, business skills and sustainable practices to strengthen long-term resilience.
FARM PROFITABILITY
+26%
MILK PRODUCTION YIELD PER COW
+17%
Milk collection/farm
+92%
Margin above feed cost
+103%
New initiative in Pakistan to tackle childhood malnutrition
Tetra Pak has supported its customer Fauji Foods to establish a Sustainable School Nutrition Programme to combat child malnutrition and improve academic achievement throughout Pakistan.
Launched in February 2025, the initiative will deliver nutrient-rich UHT milk in aseptic packaging to thousands of school children nationwide. As UHT milk does not require refrigeration and has a long shelf life, it can be easily stored and transported in areas with limited infrastructure.
Child malnutrition remains a major public health challenge in Pakistan. The 2018 National Nutrition Survey reported that 40% of children under five were stunted, 20% wasted and 11.4% underweight, with anaemia affecting over half of adolescent girls. Milk can be part of the solution, providing essential nutrients such as calcium and protein.
Nourishing young bodies and minds
Through the programme, 42,000 children at 118 schools across more than 100 towns will receive milk, with Fauji Foods providing around 160,000 litres each month. Ongoing child health assessments will track key child health metrics to measure the progress and impact of the programme. Besides improving nutrition, the Sustainable School Nutrition Programme will strengthen communities by promoting child health, learning and long-term development.
In addition, the programme includes public awareness campaigns on the benefits of UHT milk, the creation of resilient supply chains and transparent data reporting to guide broader policy efforts. Tetra Pak is contributing technical expertise and global best practices to promote success.
Securing long-term impact
“Safe and healthy milk is a wonderful way to provide nourishment to young school children, fostering better health and encouraging school attendance,” said Awasin Bin Nasim, Managing Director, Tetra Pak Pakistan. “It is also crucial that the milk remains safe from bacteria and contamination. This is made possible through both UHT treatment and aseptic packaging technology, which maintains the milk’s nutritional integrity and safety without chemicals or preservatives, even when no refrigeration is available.”
Strengthening the regional dairy value chain in Punjab, India
A new regional Dairy Hub has been established to help more smallholder dairy farmers to access the formal dairy market in Punjab while improving their productivity, profitability and milk quality.
Tetra Pak India and Tetra Pak Food for Development have partnered with the customer Verka Dairy, the Punjab State Cooperative Milk Producers’ Federation, to launch the Punjab Dairy Hub.
Although Punjab has a long tradition of village-level milk cooperatives, much of the state’s milk is unprocessed, which leads to inconsistent supply and seasonal shortages. Additionally, the demand for processed, high-quality milk continues to rise, which means that Verka Dairy needs additional reliable suppliers of milk.
The Dairy Hub model supports the entire value chain
Tetra Pak’s Dairy Hub model connects smallholders to processors and provides comprehensive services and technical expertise, including training in farm management, animal health, hygienic milking and feeding practices. By applying best practices and technical training, the Punjab Dairy Hub aims to increase yields per cow, boost milk quality and improve incomes for smallholder farmers while ensuring Verka Dairy can source more consistent volumes throughout the year.
The Punjab Dairy Hub will begin with two milk collection centres and 25 reference farms to demonstrate how both milk quality and output can be increased, with plans to scale up to 650 farms during the 28-month project. Higher collection volumes are expected to justify investments in staff, cooling facilities and transport to support a more resilient supply chain.
Improving lives through socio-economic benefit
“We believe deeply in the Dairy Hub model, not only as a way to increase the availability of safe, nutritious milk, but also due to the social and economic benefits it can bring,” explained Cassio Simoes, Managing Director, Tetra Pak India. “There are so many livelihoods that depend on the dairy industry, and so many lives that can be improved by establishing strong relationships between smallholder farms and processing plants.”
“There are so many livelihoods that depend on the dairy industry, and so many lives that can be improved by establishing strong relationships between smallholder farms and processing plants.”
