Yoghurt, milk, and curd cheese
from local production

In Senegal, the demand for fresh dairy products is growing. In 2020, consumers spent around 140 million euros on these products – an increase of 50 million euros since 2011. According to estimates, sales will grow to around 220 million euros in 2030. The main contributor to this increase is the constantly growing demand for industrially produced and packaged dairy products. This development is driven by the growing urban population and a new middle class that values standardised and hygienic food.

Since 2006, the Senegalese company La Laiterie du Berger (LDB) has been producing and marketing dairy products to satisfy the demands of this growing market, especially in the greater Dakar area. They are sold under the brand name Dolima. With a wide range of products including yoghurt, fresh milk, curd cheese and more, LDB is one of the main suppliers of dairy products in Senegal. The raw milk comes from pastoralists in the northern border region with Mauritania, where the company's main production facility is located. To ensure the quality of the purchased milk, the livestock owners receive veterinary and technical support from LDB.

In the coming years, LDB wants to build on its strong market position and expand its operations. As part of a project supported by Invest for Jobs, LDB will first enlarge the production capacities. In addition, distribution points with refrigerated storage facilities are to be built throughout the country to access new sales regions from there. The number of vehicles that are used to supply retailers will also grow.

The centrepiece of the growth strategy is the extension of the logistics centre in Sandiara, about 60 km south-east of Dakar. It is here that new storage capacities with access roads and loading ramps are being built. This will ensure that the additional production volume can be efficiently processed and delivered to the network of more than 18,000 shops. They are traditionally the most important customers and generate almost 90 percent of sales. Another building block of the marketing concept is the increased cooperation with large supermarket chains: they are an important distribution channel to reach the country's growing middle class.

Through the project, LDB will directly create about 470 new jobs in the areas of production, logistics and distribution. The wages will be above the Senegalese minimum wage. The increased demand for raw milk and the additional income of the retailers should also improve the income situation of numerous people along the supply chains. More than 200 milk producers in the north of the country will attend further training on livestock and dairy farming. This should also improve their living and working conditions. Beyond that the trainings will contribute to animal health and the long-term conservation of the herds.

From 2021 to 2023, La Laiterie du Berger plans to invest a total of 10.6 million euros as part of its expansion strategy. The Facility Investing for Employment grants a subsidy of 2.65 million euros (25%). The funds will be used to finance the enlargement of the logistics centre in Sandiara.

The Facility Investing for Employment (IFE) of KfW Development Bank is part of the Special Initiative "Decent Work for a Just Transition" of the German Federal Ministry for Economic Cooperation and Development (BMZ). With its support, the Facility wants to remove barriers that prevent the creation of new and better jobs in the private sector in the African partner countries.