US$20M dairy farm at Moblissa expects to begin milk production by fourth quarter of 2025

The foundation for the large pens to house the dairy cows
The foundation for the large pens to house the dairy cows

By Khadidja Ba

The US$20 million Demerara Dairy Inc (DDI)’s major farming initiative in Moblissa is on track to produce first milk in the third quarter of 2025. This project aims to revolutionise the country’s milk production, reduce reliance on imports, and strengthen the regional milk supply chain. The project, which is a joint venture between Demerara Distillers Ltd (DDL) and Israeli company LR Group, aims to establish a technologically advanced and sustainable dairy farm that will cater to both the local and regional markets.

Project Executive for the initiative Loris Nathoo shared details about the timeline yesterday during a tour of the dairy farm. “We are hoping to have the dairy cows here, maybe the first week in June next year, and then… two to three months after that, we will have first milk,” Nathoo said. He added that the farm plans to begin production of fresh milk by the end of the third quarter, or the beginning of the fourth quarter of 2025.

The project has already made significant strides in its physical development, with the laying of the foundation of the large pens to house the dairy cows. “As you can see, we are constructing the first large pen, 80,000 square feet,” Nathoo explained. “Each pen will accommodate a significant number of cows, and we have two pens of that size. We will have about seven buildings in total, including the milking parlours.” These pens are being designed to ensure the comfort and well-being of the cows, which will be integral to the success of the farm’s milk production.

In addition to the facilities for housing the animals, careful planning is being made for the farm’s feedstock. “Some of that feed will be our own grown hay and silage,” Nathoo said. “We are also exploring the option of having the first 18 months of feed provided by contract farmers.” This will allow the farm to secure an adequate supply of feed while it hones its own cultivation efforts. “By the time the animals arrive, we plan to have between 3 to 6 months of feedstock already stored,” Nathoo added.

As the farm prepares to receive its cows and begin production, a significant amount of attention is being paid to ensure the necessary infrastructure is in place for electricity and water. “We are making arrangements with the electricity, the medium voltage transmission line coming in,” Nathoo shared. “Mr Marshall is in charge of that, and we are hoping that by the end of January or early February, that line will be connected to the farm.” While the farm has already drilled one well that will provide sufficient water for the cows, more will be needed for irrigation purposes. “We are looking to finalise drilling maybe 3 to 4 more wells. At this point, where the animals are concerned, we have enough water,” Nathoo confirmed.

David Rice explaining the type of grass currently being grown

Site Supervisor for the project David Rice pointed out that a specific type of grass is being grown. “The Mombasa Guinea grass is a grass that grows well in sandy areas. This  grass has a high nutritious value for the cows. Since the cows will be high-producing animals, we will need sufficient nutrients to maintain that high production from the animals,”he said.

Project Manager for DDL Daryl Manickchand explained that 157 acres which used to be forested land were being prepared for final crops “This is another large field to prepare the four different varieties of grass that we have. It’s basically a flat land for crop harvest, the crop being grass to be used to feed the cows. We also have sweet corn,” he added.

The project is being developed with careful oversight and collaboration with various government agencies to ensure that it progresses smoothly and responsibly.

DDL’s Government Affairs Consultant Leslie Kirton pointed to the importance of working with regional and national agencies to secure the necessary permits and ensure that the project does not negatively impact surrounding communities. “We are working closely with the government agencies for all the permits and collaboration with the regional systems in both Region Four and Region Ten,” Kirton said.

He noted the unique geographical situation of the farm, as one side of the road lies in Region Four and the other side in Region Ten. “We are in talks with all the relevant agencies, including the EPA, Hydromet Department, National Drainage and Irrigation Authority, and the Guyana Livestock Development Authority (GLDA),” Kirton said. “This is an effort that is very closely coordinated to ensure it is done right and has no negative impact on the community.”

The scale and technological sophistication of the farm make it a landmark project for Guyana. According to Deputy CEO of DDL and Finance Director of DDI Vasudeo Singh the project has already seen a considerable financial investment. “We have already expended about US$9 million on this project,” Singh stated. “The overall cost is about US$20 million. This is a massive investment, not only for Guyana but also for the Caribbean.”

The farm is part of a larger strategy by DDL to replace imported powdered milk with fresh milk produced domestically. DDL Chairman and CEO Komal Samaroo explained the strategic importance of this initiative within the broader goals of the company. “This project is built on the premise of quality and competitiveness,” Samaroo said. “Our goal is to produce fresh milk here and truck it down to our plant in Diamond, where we will put in the necessary infrastructure to receive, store, and package it under our Savannah brand.”

This shift toward local milk production is expected to help stabilise Guyana’s dairy market and reduce the country’s reliance on milk imports. Samaroo stated that the long-term vision for the project involved creating a sustainable and profitable domestic milk supply chain.

Answering questions from the press, Nathoo revealed that the farm’s annual milk production was expected to reach 5 million litres, which will not only serve local markets but also be exported throughout the Caribbean. “We are already in St Kitts, Barbados, and Antigua, and we are working to expand our presence throughout the rest of the region,” Nathoo said. This regional expansion is a key part of the farm’s business plan, as it aims to tap into the growing demand for fresh dairy products in the Caribbean.

The farm will initially import 500 dairy cows from the United States, which will form the foundation of the  herd, Samaroo confirmed. These cows are being specially selected for their ability to adapt to Guyana’s climate and for their high milk productivity. “After the first year, the cows will give birth to heifers and bulls, and we will have a revolving cycle where the younger cows replace the older ones,” Samaroo explained. “These cows have been specially selected because of their productivity in our climatic conditions. We are expecting between 20 and 35 litres of milk per cow per day.”

While this initiative is set to have a significant impact on Guyana’s dairy industry, Samaroo said, “Our production here will only affect 15-20% of the milk market,” acknowledging that the farm will be part of a larger, competitive market.

The project is also contributing to job creation, with both local and foreign workers employed in the development phase. Manickchand explained that accommodations were being provided for staff working on-site. “We have prepared 12 containerized temporary living accommodations for 72 workers, complete with beds, lockers, air conditioning, washrooms, a medical unit, and a laundry room,” Manickchand said.

Given the shortage of skilled and semi-skilled labour in the area, the project has brought in foreign workers, many of whom are Venezuelans. These workers are in the country under the auspices of the International Organization for Migration and the UN. However, Kirton emphasised the priority being placed on hiring Guyanese workers. “The priority is to hire Guyanese workers,” he said. “We have hired a number of people from Moblissa.” Kirton added that they are aiming to employ around 80 workers during the construction phase and about 72 workers once the farm is fully operational.