Though Sudan has huge animal resources among which 135 million heads of cattle, it has imported 43 thousand tones of powder and fresh milk during 2009 with the cost of $212 million. Some of the reasons mentioned for this is that cattle breeders are interested in quantity, rather than quality, of animals. Experts say that one of the problems encountering milk production in Sudan is movement of cattle from one area to another in search for pastures. Moreover, the kind of cattle in Sudan still gives less milk than the European (Friesian) type, in addition to manual means of milking cows. 

Operating factories
There are several milk production factories in Sudan, but the most important ones are:
1. Blue Nile Diary Co. (CAPO)
2. Premier Food Industries
3. Moawia Al-Bereir Co.
4. Kenana Diary Co.
5. Khartoum Diary Co. Ltd.

Some of these factories produce fresh milk, powder milk and yogurt. Cheese is produced traditionally from fresh milk by small business groups with different brands mainly from Dewaim area in the White Nile State.

Local and international consumption

According to a study carried out by the Blue Nile Diary Company, there is a big gap between produced and consumed milk products in the country, although per capita consumption of milk in Sudan is classified as lower than the international standards. However, milk price in Sudan is the highest, where one pound of milk costs almost half a US dollar, internationally it costs no more than one quarter of US dollar even in countries which import milk products. This is apparently due to high rate of customs, taxes and high cost of labor caused by high cost of living in the country.

To face this situation, the Blue Nile Diary Co. (CAPO) has started to establish a new project titled “CAPO II” as an extension to the first operating factory, to be implemented in four stages.
The first stage has begun during 2009 by importing 1600 Friesian cows with cost of $12.5 million to produce 12 million liters of milk per annum. The production is scheduled to increase gradually to top 96 million liters per annum with cost of $85.5 million by bringing in 12,000 cows.

This project is expected to cover the current gap of milk production in the country i.e 4 million liters per annum. Moreover, it will hopefully provide milk and dairy products with affordable prices for all people.Another company is also planning to increase investments in the milk and diary products provided that effective laws are enacted to encourage business in this field, especially laws that reduce taxes and levies.

Government role

Observers say that the government has a very big role to play in developing this business. They say it needs to enact relevant laws which observe producers and consumers interests, such as reducing the high rates of customs, taxes and levies. In addition to introducing modern technologies in the field and solving probable problems between shepherds and farmers to fill the milk gap and fight poverty among its citizens.
Many say that this practice will reduce dependence on powder milk. For instance, Sudan Customs reported that powder milk imports increased dramatically from 5,139,573 kgs in 2000 to 20,209,702 Kgs in 2004.

Current situation

According to published figures, the country is importing milk products for $65 million per annum while the local product ranges between 9-11 million tones per annum, but still the gap is very big between local productions and imported i.e 4 million liters per annum. At the same time, powder milk of medium quality is very expensive in the local market. For example a plastic bag of powder milk (2.5 kgs) costs between 39-49 Sudanese pounds i.e. $15.6 – 19.5.

New factories underway

President of the Dairy Board told the media that the board has discussed the 2010 plan on diary products which is based on three axes:
 
1. Product cost
2. Organization and training
3. Customs and taxation exemptions

During the first half of 2010, the plan includes establishing 16 diary factories throughout the country by the Zakat Chamber. This will take place in South Darfur, Jazeera, South Kordofan, River Nile, Gadaref, Kassala, North, Blue Nile and Sinnar States. All these efforts aim to fight poverty among citizens and provide diary products with affordable prices.

Experts say that Sudan diary production potentials are huge, if properly invested by introducing new technologies, cattle hybrids, well trained labor as well as creating a suitable environment for the business.

Leading Arab States producing milk (in thousand tones)

Source: Arab Encyclopedia