Lesego Malatsi - SouthAfrica.TO

[ BUSINESS PROFILE ]
Lean, green,
milk machine
The vision of a group of local farmers in the Eastern
Cape has led to the establishment of Africa’s first ever
environmentally friendly dairy
WITH THE TAGLINE ‘where ecology
meets technology’ the founders
of Coega Dairy - a group of local
Eastern Cape dairy farmers - have
managed to establish a company that
adds value to locally produced milk,
protects the pristine environment of
the Eastern Cape and gives the region
a much needed economic injection.
The Coega Dairy initially invested
R50-million (US$7.3-million) in
advanced ultra-high temperature
(UHT) processing equipment that
makes it possible to produce UHT
milk, also known as long life milk, more
efficiently. The UHT processing plant
which boasts the smallest carbon
footprint of any dairy in the southern
hemisphere is situated in Coegaharbour,
in the Coega IDZ, ten minutes
from Port Elizabeth, in the centre of
Coega Dairy’s milk supply region.
According to Coega Dairy CEO, Dr
Hennie Kleynhans, no other dairy in
the region or on the continent has
invested in the advanced technology,
known as OneStep, and internationally,
he is only aware of a dairy in Spain
that is using it. The use of OneStep
technology led to the erection of a
processing plant that consumes 50 per
cent less energy, water and chemicals,
while causing 50 per cent less effluent,
of which 65 per cent is recycled.
The technology is new in the market
and very expensive to install, requiring
dairies to undergo an overhaul of existing
infrastructure. But given the cost
squeeze on dairy producers, Coega Dairy
deemed the investment worthwhile.
South African milk producers face
tough competition from countries
where milk can be produced more
competitively or where farmers
receive subsidies. Producers also
have to contend with increasing input
costs and low producer prices.
The project will initially have a raw
milk intake of 150 000 litres a day
which will be processed into UHT
milk, custards and butter. The factory
will embark from 2013 on projects
that will yield value added products
specifically for the export market.
Currently 13 commercial milk farmers
own the Coega Dairy but come 2012, in
order to increase the positive economic
impact in the Eastern Cape, ownership
of Coega Dairy will be modified with
dairy farm workers, black farmers,
farm managers, and factory workers
given the opportunity to own 40 per
cent of the company’s shares.
INDWE NOVEMBER 2011 45