DEPUTY Minister for Investment, Industries and Trade, Mr Exaud Kigahe has said that the government will soon revamp Njombe Milk Factory Company Limited.
The move is meant to address the increasing needs of dairy and its products as well as growing market and economic well-being of the shareholders and cattle keepers.
He said the government has started initial preparation to give Njombe Milk factory company Limited a new and improved form, structure, or appearance among others for smooth take off
when the operation starts.
Kigahe gave the clarification in response to the basic question asked by Njombe Urban MP Deodatus Mwanyika (CCM) on what plans the government has to revamp the factory.
He said revamping processes are being carried out through Njombe Regional authorities to engage shareholders.
“The government will soon take action to revamp the company and I must assure you (Member of Parliament) that Njombe milk diary will soon start operations” said Deputy Minister.
In 2020, Njombe Milk factory clinched a 696m/-loan facility from state-owned development finance institution, Tanzania Agricultural Development Bank (TADB) to launch an additional rescue package for the company.
According to TADB’s Acting Director of Credit and Business, Wende Mengele, Njombe Milk Factory project is on a growth trajectory and would soon start paying dividends to its shareholders.
Ms Mengele urged the management of the factory to work diligently to develop and roll out new products, which will easily be sold to the market given Njombe’s strategic advantage of serving Lindi, Mtwara, Ruvuma regions and regional markets of Malawi and Mozambique.
The bank supported in facilitating payments to farmers, rehabilitating the factory’s infrastructure and managerial assistance.
TABD support to the factory intends to ensure the factory reaches its full capacity utilisation of 20,000 litres per day from the current 3,000 litres.
The main shareholders of Njombe Milk Factory are Njombe Livestock Farmers Organisation (NJOLIFA) which owns 20 per cent shares, Njombe Local Government Authority with 19 per cent stake and the Roman Catholic Njombe 9.7per cent.