Demerara Distillers Limited (DDL) yesterday announced that it was partnering with the LR Group of Israel in undertaking a feasibility study for the establishment of a commercially viable dairy farming operation designed to supply the company’s TOPCO milk plant with fresh cows’ milk for pasteurization and packaging.
According to a DDL statement, the study forms part of a Memorandum of Understanding (MOU) signed last June between the two companies and which provides for collaboration in the development of a dairy farming operation that will include the participation of local dairy farmers.
“TOPCO is currently testing the production and packaging of reconstituted milk which is scheduled to be commercially launched later this month. The study however is being undertaken to determine the feasibility of transitioning to the pasteurization of fresh cows’ milk,” the company noted.
The feasibility study and definition of the scope of the project, the statement noted, are scheduled for completion in early 2022.
Joseph Harrosh, Director of the LR Group, is currently in Guyana and met with the Board of Directors and executive management of DDL, headed by Chairman Komal Samaroo. The statement said the meeting viewed a presentation on the concept of the proposed project by Harrosh and a team of experts from Israel. “A technical team from Israel will visit Guyana early next year to assess and make recommendations on land selection for the dairy farm and a structure for the participation of private farmers in the process. Thereafter, the feasibility study will be finalized,” it added.
Harrosh and the DDL team also toured the operations of TOPCO for an on-the-spot look at the new state-of-the art equipment recently installed.
According to the statement, Israel is considered a global leader in the agriculture sector, including dairy farming and the project is being designed to utilize best practices and the latest state-of-the art technology.
Earlier in the year, DDL said it would be importing milk powder for its pasteurised milk processing plant until Guyana has an “organized dairy sector.” “We are not set up for local milk because there isn’t an organized dairy sector here in Guyana, so no, we will not be using local cow’s milk. We will import the reconstituted milk for that,” Samaroo had told Stabroek News in April, when asked for an update on the project. “Well, until there is that organised dairy sector,” he added, when asked about possibility of switching in the future.
Meanwhile, DDL reminded that the MOU also provides for the implementation of strategies to increase the supply of fruits and vegetables from local farmers through the provision of support services that promote best practices in crop selection, cultivation, disease control, harvesting, packaging and transportation to DDL’s TOPCO plant at Diamond. It also provides for jointly pursuing other commercially viable projects in Guyana and the rest of the Caribbean Community that fit into the development priorities of member states and the region’s efforts to reduce its food import bill and ensure food security.
