DLG Group's premix and nutrition arm sets up new alliance with Indian milk and dairy products company

08-Jan-2019 - Last updated on 09-Jan-2019 at 08:09 GMT

Vilofoss, the premix and nutrition subsidiary of Denmark’s DLG Group, has established a cooperation with milk and dairy products manufacturer, Prabhat Dairy, as part of the Indian's company’s ambition to develop its animal nutrition business.

A spokesperson for the DLG Group did not expand on the objectives of the Danish company in terms of this alliance, but he did disclose that Vilofoss has just sent a container of premix and nutrition products to the Indian company; dairy farmers in the Indian market will start testing those, under a pilot phase.

“Of course, we hope that this will lead to further business and cooperation between Vilofoss and Prabhat Dairy,” said Jacob Holm, CEO Vilofoss.

Under the brand Annapurna, Prabhat Dairy is already supplying cattle feed to dairy farmers. It said it now wants to create a stronger presence in the animal nutrition market; it is set to launch a separate animal nutrition business. In a statement this week, the Indian dairy group said the joint development agreement it has signed with the DLG Group would support it in this diversification drive.

Under this agreement, two Vilofoss products will be evaluated in the feed of 1,000 cows, spread over 150 selected farms, with the goal of improving the health and increasing milk productivity and quality, continued the statement.

The pilot phase will last four to six months, after which a commercial launch will be planned, added the Indian company.

Sustainable investment

Vilofoss told us it was supported by the Danish Investment Fund for Developing Countries (IFU) in setting up this collaboration.

Being a development financing institution, the IFU was set up with the purpose of providing risk capital for projects in developing countries with a positive impact, such as a project contributing to economic and social development.

"One our main strategic sectors is agribusiness, where we for many years have been investing in several agribusiness projects across Africa, Asia, Latin America and Eastern Europe.

"One of these investments is in China in partnership with the DLG Group and a local partner.

"Based on the successful partnership in China, we are assisting DLG in entering the Indian market, which shows promising potential for feed and premix products," a spokesperson for the IFU told FeedNavigator.

He clarified, though, that the cooperation with the DLG Group in India is at an early stage, and that the IFU has not at this point made any investment or financed any part of the cooperation.

"Going forward, the IFU will continue to evaluate investment opportunities in the agribusiness sector. And based on our new public-private partnership, the Danish SDG Investment Fund, we expect to grow our investments within the sector."