amibia Dairies (Pty) Limited (Namibia Dairies), on Tuesday, 03 July, announced a business improve-ment initiative that includes the integration of the O&L Farming Division’s farms Gocheganas, Pardah, and Otavifontein thereby completing the vertical integration of fodder production, milk production, milk processing and national distribution.
The company said the integration was a positive step following the preceding implementation of business improve-ments projects such as the implemen-tation of the SAP business system, ISO 9001:2000 certification, Operational Improvement Management (OIM) programme, rationalisation of depots, and route optimisation.
Des van Jaarsveld, Managing Director of Namibia Dairies, said: “This integration affected 120 employees of the O&L Farming division. We are very proud to have found a way to retain the affected employees. This brings our total staff compliment to over 580.” Adding, he commented: “It is an important initia-tive aimed at reducing costs, increa-sing operational efficiency, and the synchronisation of supply and demand along our value chain” Here, a value chain refers to a coordinated system of activities in transforming raw materials into a finished product that is delivered to the end consumer.
The company further stated that its ultimate aim was to create a sustainable, efficient, world-class company operating in an independent local dairy industry.
 “An independent local dairy industry is crucial to prevent a state of dependency on imported dairy products and further serves to guarantee consumer choice and the industry’s ability to sustain local jobs”, said Van Jaarsveld. Adding to this, Mr. Harald Marggraff, Manager of Commodities at the Namibia Agricultural Union, said the primary dairy industry currently supports 220 jobs further stating that the industry was working very hard to increase local production and prevent shortages. “During the 1980s and 1990s, our country witnessed the collapse of its commercial butter production which lead to loss off job opportunities, and reduced consumer choice in that market”, Marggraff said singling out the now defunct Rietfontein Dairies which used to export up to a million pounds of butter annually to England thereby earning crucial revenues and supporting jobs.
In view of an independent dairy industry, the Namibian government has emphasised the strategic role of the dairy industry and the role of UHT milk (Ultra Heated Milk) as a basic food commodity. To this effect, a 40% levy on imported UHT milk has been introduced during April 2007. 
The concept of vertically integrating the O&L Faming division into Namibia Dairies has been presented to various stakeholders including senior union officials. Meanwhile, the affected employees have been transferred into the employ of Namibia Dairies under their previous conditions of employment.
A member of the Ohlthaver & List Group, Namibia Dairies was established in 1997 through a merger of Bonmilk and Rietfontein Dairies. The company is the leading dairy and fruit juice manufacturing company in Namibia, employing over 580 employees.

Des van Jaarsveld, Managing Director of Namibia Dairies