BUUMBA CHIMBULU
VARUN Beverages Zambia has announced plans to increase its milk procurement from local farmers following the departure of Parmalat Zambia, one of the country’s major dairy off-takers.
The Parmalat’s exit has created a gap in the market that remaining processors are now expected to fill.
In January this year, Parmalat Zambia, a subsidiary of the French multinational Lactalis Group, announced the closure of its manufacturing plant in Zambia, effective April 1, 2025.
The company’s operations have since shifted to importing finished dairy products from South Africa and other international subsidiaries, a move that raised concerns over job losses and disruptions to local supply chains in an already challenging economic environment.
With Parmalat’s exit, other milk processors have had to step up, and Varun Beverages Zambia is positioning itself as a leading buyer of local milk.
Speaking in an interview, Varun Beverages Zambia Milk Procurement Manager Clive Hanakamba said the company was committed to expanding its milk collection network nationwide.
“As a processor, we are obviously looking to increase the volume of milk we can purchase from farmers. With one of the major off-takers leaving the market, it has left a void that has to be filled by other processors,” Mr Hanakamba said.
He added that Varun Beverages was working to become the off-taker of choice for dairy farmers, leveraging programmes and platforms that foster interaction with farmers and stakeholders.
“We want to expand our collection not just in Lusaka, but also in other areas of the country. That would be great for both the farmers and the industry as a whole,” he said.
Reflecting on the state of the dairy industry, Mr Hanakamba noted that 2024 was a particularly difficult year, especially for farmers, due to a severe drought that reduced milk production by up to 45 percent in southern Zambia, where farmers are heavily reliant on grazing.
“Lusaka was a bit more resilient, but that’s the kind of resilience we need to build everywhere,” he said. “The drought severely affected milk collection, but with this year’s good rains, we’re hopeful that the industry will rebound.”
Mr Hanakamba reaffirmed the company’s commitment to supporting farmers and strengthening the dairy value chain, stating that Varun Beverages sees significant potential in the sector despite recent challenges.
