Dairy hubs

Milk cows grazing grass at the dairy farm in summer. Beautiful mountain pasture with blooming wildflowers.

Photo by Dmitriy Gutkovskiy / Shutterstock

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Dairy hubs
Dairy hubs
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SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Food and Beverage
Food and Agriculture
Business Model Description

Establish and operate dairy hub facilities to aggregate and process milk, where either (i) a dairy processing company builds a dairy hub in collaboration with milk farmers, or (ii) farmers or cooperatives invest, own and operate a dairy hub.

Expected Impact

Lower waste, reduced costs and higher qualities of milk and dairy products benefit the industry and support farmers and other value chain actors.

How is this information gathered?
Updated: 9 Aug, 2021 Date of Production: 1 Jun, 2021
Armenia
Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
20% - 25% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Short Term (0–5 years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
20% - 25% (CAGR)
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
< USD 500,000
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Zero Hunger (SDG 2)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Decent Work and Economic Growth (SDG 8) Industry, Innovation and Infrastructure (SDG 9) Responsible Consumption and Production (SDG 12)

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Sector Sources
  • 1) Government action program 2019-2023, https://www.gov.am/am/Five-Year-Action-Program. 2) National strategy and action program to combat desertification in the Republic of Armenia, Ministry of Nature Protection of Armenia, http://www.mnp.am/uploads/1/1551885091anapat_eng-1.pdf. 3) Ministry of Agriculture, www.minagro.am/պետական-օժանդակության-ծրագրեր. 4) FAO AQUASTAT, ges/pg_4062968307_22.pdf. 5) 5. Agro-investment Guide Armenia, https://www.eda.admin.ch/dam/countries/countries-content/armenia/en/Investment%20Guide.pdf. 6) How can farming intensification affect the environmental impact of milk production, L. Bava , A. Sandrucci, 2014, Journal of Dairy Science, https://www.journalofdairyscience.org/article/S0022-0302(14)00316-6/fulltext. 7) State Cadaster Committee, Armenia, https://www.cadastre.am. 8) FAO, Food Waste and Loss in Armenia, http://www.fao.org/3/a-au842e.pdf. 9) World Bank, Development Indicators, https://data.worldbank.org/indicator/NV.AGR.TOTL.ZS?locations=AM&view=chart. 10) Statistical Committee of Armenia, Labor Market in Armenia, 2019. 11) Statistical Committee of Armenia, Food Security and Poverty in Armenia, 2019, https://www.armstat.am/am/?nid=82&id=2125. 12) Intended Nationally Determined Contributions of the Republic of Armenia under the UN Framework Convention on Climate Change (UNFCCC), https://www4.unfccc.int/sites/ndcstaging/PublishedDocuments/Armenia%20First/INDC-Armenia.pdf. 13) Statistical Committee of Armenia, 2018, https://www.armstat.am/file/article/eco_booklet_2018.pdf. 14) The Strategy of Main Directions of the Development of Agriculture of Armenia 2020-2030, https://mineconomy.am/en/page/1467. 15) Tax Code, https://www.arlis.am.
IOA Sources
  • 21) UNDP interviews with stakeholders, 2019. 22) Investment Guide Armenia, Ministry of Economic Development and Investment, 2017, http://uk.mfa.am/u_files/file/invest/investinarm.pdf." 23) Voluntary National Report (VNR) of Armenia, for the UN High-level Political Forum on Sustainable Development, 2018. 24) Sustainable Development Report, 2019, https://www.sdgindex.org/reports/sustainable-development-report-2019. 25) Tackling the Challenge of Smallness in Agricultural Market, 2016, G. Gabrielyan et al, Center of Agribusiness and Rural Development (CARD), Armenia. 26) Cheese Production and Export Supply Chain: Armenia, Gagik Gabrielyan, International Finance Corporation, 2017, https://openknowledge.worldbank.org/handle/10986/29328. 27) Statistical Committee of Armenia. Annual Reports on Foreign Trade. 28) Government Decision No 336-A of 22 March 2007 on the Promotion of Cattle Breeding. https://www.arlis.am. 29) Government Decision No 1925-N of 21 December 2006. https://www.arlis.am.