The dairy sector holds immense potential for driving economic development and improving nutrition security and health within environmental boundaries, particularly when investments are strategically directed across the entire value chain. In fact, recent research by the International Food Policy Research Institute suggests that investing in local dairy systems in just five countries – Ethiopia, India, Kenya, Nigeria, and Tanzania – could prevent up to 109 million cases of childhood stunting by 2050.
This was the primary area of discussion at the recent Nutrition for Growth (N4G) 2025 official side event held on 26 March in Paris, “Local Investment for Global Good: Building Dairy Value Chains.” At the event, Global Dairy Platform (GDP) and International Dairy Federation (IDF), in partnership with the International Livestock Research Institute (ILRI)/CGIAR, united experts across nutrition, health, policy and financing to discuss how comprehensive investment strategies can unlock dairy’s potential.
Sustainable food systems consider nutrition, socioeconomics, and the environment. Dairy development improves livelihoods, increases milk yields that add to diet diversity and can have dramatic effects on reducing childhood stunting while also lowering emissions intensity, creating a triple win for people, production, and the planet. Further, development can unlock dairy to increase the dietary diversity of regional dietary patterns to provide adequate nourishment.
Speakers at the side event provided a variety of global perspectives on the topic:
- Ugo Pica-Ciamarra, Livestock Economist for the U.N. Food and Agriculture Organization (FAO), shared how dairy development can improve gender equality, create employment opportunities along the value chain, and result in more affordable and accessible milk and other dairy foods to help sustain households and economic growth, as evidenced in the recently released “Dairy and Socio-economic Development” report.
- Regarding nutrition and health outcomes, Dr. Alice Stanton, Professor of Cardiovascular Therapeutics at RCSI University of Medicine and Health Sciences, shared clinical research that supports the need for diverse diets, indicating that animal-source foods such as dairy provide many shortfall micronutrients and are linked to improved longevity, reduced risk of colorectal cancer, and protection against obesity.
- Integrating dairy into existing cultural food patterns ensures that dietary diversity is not minimized through replacement of traditional foods by dairy, but rather celebrated in the diet, as emphasized by Dr. Namukolo Covic, Regional Director, East and Southern Africa (ESA) for CGIAR.
- Highlighting the benefits of milk consumption for children, Rafael Fabrega, Vice President of Food for Development at Tetra Pak, shared the impact of school feeding programs on health outcomes such as reduced malnutrition, increased growth, and beyond, including improved school enrollment. The results of which are outlined in The state of milk and milk products in school programmes around the world – Contributing to global child nutrition and development. Bulletin of the IDF N°531/2024 as well as on the IDF School Milk Knowledge Hub. The subsequent increase in milk demand from these feeding programs has had ripple effects for dairy sector development, including increases in production and farmer income.
Dr. Sisay Sinamo Boltena from the Ethiopian Ministry of Health emphasized that addressing issues such as affordability and accessibility from improved production, processing, and education requires coordinated efforts from a diverse range of stakeholders across the value chain. Dr. Stella Nordhagen, Senior Technical Specialist at Global Alliance for Improved Nutrition (GAIN) supported this holistic approach, stating, “We need to look not just at one part of the value chain…but rather think about that whole value chain…from production to consumption but also considering processing and transport.” Siddhant Gupta, a Senior Manager at Bain & Company, referred to this, “hidden middle” as the bridge that would help deliver high quality nutrition to the most vulnerable populations.
The dialogue between the moderator, Shirley Tarawali, Assistant Director General at ILRI, and the expert presenters from around the world left the audience with several key takeaways regarding the benefits of investing in local dairy systems, which include:
- Enhanced Food and Economic Security: The dairy sector sustains more than 110 million households globally in low- and middle-income countries. Dairy development positively affects nutrition and health status and economic growth. As investment in the value chain increases, the sector develops, leading to more jobs, a broader tax base for governments, and increased availability and affordability of milk for consumers.
- Reduced Childhood Malnutrition: There is a link between increased dairy production, better access to nutrient-rich food, and improved local economies. Dairy contributes vital nutrients to the world’s most vulnerable population groups. The inclusion of dairy in school feeding programs helps reduce childhood stunting and improve cognition through more milk consumption. This increased demand for dairy foods boosts milk demand, generating more income for local dairy farmers.
- Strengthened Sustainable Food Systems: Public-private partnerships are vital to building local value chains for global good. Initiatives like Dairy Nourishes Africa (DNA), a collaboration between GDP, Venture37, and Bain & Company, are catalyzing development and creating more resilient, inclusive, and environmentally sustainable food systems. By working with farmer-allied enterprises in Tanzania and Kenya, DNA is expanding access to education, technology, and capacity building, resulting in improved nutrition status, economic growth, and poverty reduction.
With the right public-private partnerships in place, investments in the local value chain can unlock dairy’s full potential to drive economic growth, improve nutrition, and strengthen communities.
You can access the Nutrition for Growth official side event’s recordings in the agenda found HERE. Copies of the presentations can be found HERE.
