Milk’op finances and manages economy of scale & vertical integration to help groups of smallholder Pakistani dairy farmers to produce more and sell better
More than 7 million households in Pakistan rely on their small herds of livestock for their livelihood. Due to lack of awareness and capital, these small herds are poorly managed and the produce is poorly sold and thus the households earn barely enough to feed them – and they have nothing to send their kids to schools, receive medical services, build their homes and re-invest in sources of their livelihood.
Milk’Op will help these dairy farmers to increase their production and sell it directly to market. Milk’Op will provide necessary finances and trainings to the farmers to do it by themselves. First of all, the farmers will be organized into groups to make this process economical, efficient and profitable. Each farmer group will be trained to take better care of their herd and adopt modern herd management practices to get higher production from their animals. Then the group will be financed to set up a collection center, where all the member farmers will collect their produce in refrigerated tanks. This collected milk will be transported on refrigerated vehicles to processing plants or market. Such collection centers and transportation will not only reduce up to 20% spoilage but will also cut the middlemen who keep up to 40% revenue from the sales proceeds. All of this will result, in short term, in 2 to 4 times increase in farmers earning. Milk’Op will take a portion of farmers increased incomes in financial and management fee to makes its operations sustainable and expand to more farmer communities.
Farmers will be continuously educated on reinvesting in their herds by purchasing better feed, better veterinary services and more animals of better breeds. More disposable income at farmers’ hand will enable them to afford education, medical care and better housing etc. – all resulting in upward spiral of prosperity.
Milk’Op is planning to launch its operations by end of this year.
Funds raised at this platform will supplement the matching investments from social venture funds and individual impact investors.
These funds will mainly go in purchasing refrigerated equipment and pay for initial trainings etc. of the farmers. At tipping point, we’ll be able to procure bare necessary items and will have to wait till our internal cashflows can sponsor training programs.
$10,000 = Equipment and Comprehensive Capacity Building of One Farmer Group
$7,500 = The Equipment for One Farmer Group
Milk’Op is yet to launch its operations and your contribution can help us to finance our first group of farmers.