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Mzuzu Dairy

Update

Revival of milk processing in Northern region by opening a factory in Mzuzu for production of fresh milk, yoghurt, chambiko and more. This factory will provide a market for local farmers to sell raw milk in much bigger quantities. Products to be sold as an own brand to distributors and supermarkets all over the Malawi. Status: Partnership agreement is signed with Denis Chitowe and factory is being prepared for productions of the first fresh milk and yoghurts. Equipment is on its way from China. First sales expected beginning of 2019.

Dairy production equipment

Pasteurizer

Sachet filler

The business

This business is about getting a milk processing factory running again. In a factory hall in Mzuzu, northern part of Malawi, there is abandoned equipment for sale. The previous owner failed to manage the factory properly due to poor health condition and problems with finding a successor. Denis has the idea to start a milk production line again. And, the market for milk products is still there. The products from the test-batch a few years ago were sold easily. Raw milk can be purchased nearby, as Mzuzu has various milk-cooperations around.
The idea is to start production of fresh milk, yoghurts and chambiko gradually again. Once the production is up and running again and market analysis can be based on sales, products will be diversified and scaled up.

Finance

The business case is able to give high return on investments, but financial risks are also bigger. Potentially big volumes can be produced, uncertainty is in buying enough raw milk as trust of local farmers in dairy industry has te be restored. Another risk is having enough expertise to keep the production line running. Despite these risks Accesserator considers this a big opportunity for Mzuzu area.
More financial details are available on request for interested investors.

Denis Chitowe