Malab Dairy Company - Leading Dairy Producer in Somalia
Malab Dairy Company, based in Mogadishu, Somalia, is a leading dairy producer in the region. Established in 2015, the company focuses on providing high-quality dairy products, including yogurt, using natural ingredients. With a commitment to customer satisfaction and quality, Malab Dairy aims to become the preferred dairy company in Somalia and East Africa while promoting sustainable practices and supporting local farmers.
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COMPANY BACKGROUND Somalia is country endowed with livestock; it supplies meat to the Arab gulf countries and in the old days even to Soviet Union. Somalia s richness in livestock makes it suitable place to build a dairy facility. Malab dairy company was established by a group of Somali dairy experts with the principle aim of processing and supplying different milk products to the larger horn of Africa. Malab Dairy has been in dairy business since 2015. It is a social enterprise, which has branches in Nairobi Kenya and Mogadishu Somalia. The company started yoghurt production in Mogadishu in 2015 to become the first yoghurt manufacturer in Somalia after collapse of the central government of Somalia in 1991. The company aims to help smallholder farmers to increase their income while satisfying our customers with priced high quality dairy products.
CONT. We are a young but growing company with growing reputation of high customer satisfaction. We do not compromise on the quality and the services provided to the customer. The company believes in keeping the customers happy and providing them with high quality dairy products at a very competent price. Malab Dairy adds value to raw, unadulterated milk by using the simplest and natural ingredients to produce the highest quality products. Processing is kept simple with highest hygiene maintained. Trained staff, supervised by highly experienced dairy technology specialist ensures that hygiene and quality is of the highest standard possible. Chr. Hansen Holding A/S, Nairobi Laboratories to ensure we meet the right quality, tests company s products regularly. Ingredients for processing including cultures probiotics and natural flavors provided to us by Chr. Hansen Holding from Denmark while our natural fruit pulp is procured from South Africa. Product lines include Greek/Natural Yoghurt, Vanilla, Strawberry, and Passion Fruit among others.
OUR VISION & MISSION Our vision is to become the leading preferred dairy company in Somalia and East Africa. And provide quality dairy products to our consumers at affordable price. Our Mission We at Malab Dairy Company committed to supply high quality, optimum nutritious dairy products where customer's safety and health is our priority. In order to carry out our company mission, we commit ourselves to the: Being a loyal buyer of milk from our producers. We aim to provide sustainable wealth to our stakeholders. By supplying and providing quality and affordable products, we build trust with our customers. We commit to develop and grow our team so that they are able to operate in a safe, caring and secure environment. We strive to let our activities support the protection of the environment,
THE MARKET Malab Dairy is currently producing high quality Yoghurt from cow milk and selling in Mogadishu. The company intends to produce other products in due course. Currently almost all milk products are imported with latest statistics on trade indicating that in 2014, total exports amounted to US$266m and imports were US$1.88billion leaving a negative deficit of US$1.16. On the same year milk powder imports were US$38.9m, milk was $3.55m and cheese, butter and others were US$700,000. AU IBAR estimates in 2013, that milk was 6 times more important than meat in Somalia and consumption averaged 329liters/person/pa, higher than Kenya and Sudan with 198liters/person/year and 26liters/person/year respectively. Milk production in Somalia was estimated to be a total of 586million liters/year with South Central producing 492million/year. Much of this milk is consumed locally with little no value addition at all. Demand can be derived from the imports which means it is highly unmet.
PRODUCTS AND SERVICES LINE Currently our capacity of production per day is 200 cartoons of set yoghurt, 300 cartoons of drink yoghurt and 70 cartoons of cheese And the Product we offer include: a. Yoghurt b. Drink yoghurt c. Cheese Fresh milk (We expecting to start in the coming years) Based on current estimate, the company intends to make gradual increase in production by 70% over a period of 6 months of which profitability will increase by 90% per month.
MARKET ANALYSIS/LOCATION ANALYSIS Our market targets are mainly young age people and psychographics in Mogadishu and our market size is 2 million people for the time being but we are very hopeful that it will reach approximately four million in the next three years.
COMPETITOR ANALYSIS Competitors are only starting to come up and we know of only one who has just started but facing huge challenge of finding quality milk. Other competitors are importers who are unlikely to make it because of prices and patriotism of Somali community. Essentially Malab Dairy is most established now in the market with little competition. Malad Dairy products have various competitive advantages: prices for example compared to imports; fact that it is working with local dairy milk producers provides greater advantage also. Quality is another aspect which we are mustering to ensure products meet consumers needs. This is coupled with branding Malab is Somali word for Honey which connects well with the consumers.
SALES AND MARKETING STRATEGY Our sales and marketing strategy include : We established distribution centres in each district and downtown so that the distributors make our product reach the retailers easier and efficiently. The distributors get our products with discounted price so that they will sell it bulk and with the price, we distribute at retail level. This relieves us about 50% of the direct distribution costs. We established an aggressive business to business sales and distribution channels targeting the retailers who direct reach the target (households). We also developed marketing campaign that addresses the consumer s needs, tastes and preferences. We are listening to the end consumers and retailers so that we respond to the very needs of the target. Currently, we give promotions that we intent to attract consumers in which a person may be the winner of getting blender machine, ironing device or even gas stoves. We will develop an advertisement campaign that draws attention.
OUR AIMS AND GOAL The company aims to help small-scale farmers to increase their income while satisfying our customers with priced high quality dairy products. We are a young but growing company with reputation of high customer satisfaction. The company believes in keeping the customers happy and providing them with high quality dairy products at a very competent price. Malab Dairy adds value to raw, unadulterated milk by using the simplest and natural ingredients to produce the highest quality products. Our goal is to keep providing pleasures to those who place importance on their own diet while valuing the health and happiness of their families. To this end, we are committed to creating new value based on goodness. Delivering yoghurt products directly to consumers we contribute to realizing daily lifestyles full of happiness by delivering goodness directly from Malab dairy to consumers.
KIND OF COOPERATION'S & THE MACHINES THAT WE ARE INTERESTING -UHT Milk Tube Sterilizer dairy processing machines Or -UHT/Pasteurized Milk Production Line -Stuff Study tours -Knowledge sharing -Flavors outsourcing -Training cheese making -Meeting ISO standards
