Market research on dairy products in Mozambique

Earlier this year, GFA concluded a market research on dairy products in urban centers of Central Mozambique for COPOLEITE, the cooperative of dairy farmers of Sofala Province. Information on market size and expected growth trends was of particular interest. Currently, Central Mozambique offers a customer base of 900,000 individuals, consuming 2.8 million liters of milk per month. In addition, there is an increasing potential of demand from industrial clients.

  

As local production cannot satisfy local demand, the market is relying on imports. In 2010 alone, milk products worth more than 147 million US dollars were imported.

The study also determined consumption preferences for specific dairy products revealing a promising market potential particularly for yoghurt, butter and pasteurized milk. Appropriate retail channels are a key factor to be able to increase the market share in this existing potential.

COPOLEITE uses the results as an input to develop a long-term business strategy and to decide which markets to focus on. The cooperative rehabilitated its production site in Beira and re-opened the facility with market expansion in mind in November 2013.

The market research was part of Mozambican-German co-operation in the context of the Sustainable Economic Development Programme (Pro-Econ) implemented by GIZ and the Ministry of Industry and Commerce. GFA has been putting the program’s Component 2 into practice since February 2013. GFA experts  aim at improving local economic cycles in rural areas in the provinces Manica, Sofala and Inhambane through the promotion of multi-stakeholder initiatives and partnerships with the private sector.