Introduction of the first UHT milk processing industry in Burundi The dairy industry in Burundi so far only produces pasteurised milk, sour milk and yogurt. The limited volumes of 'Long Life' UHT processed milk available in the country are imported. The project will establish a UHT processing and packaging plant located in Bujumbura. The plant will be operated and owned by a joint venture between Alpes Industries Services of France and the Industrie Agro-Alimentaire de Buterere. The company will be ISO22000 / HACCP certified. The company will initially create additional employment for forty persons and daily buy 15,000 litres of raw milk from some 600 farmers through four milk collection centres which are established under PARSE, a governmental programme of milk value chain development executed by different development partners. The UHT milk will be marketed in Bujumbura and commercial centres throughout the country. Two years after the end of the PSI project period, the company expects to at least double its initial capacity, employ some 80 persons and buy milk from some 1,200 farmers through eight collection centres.Corporate Social Responsibility (CSR)The joint venture will adhere to the present HRM/CSR policies of IAB. Any forms of discrimination, favouritism and corruption are avoided. The CSR, HRM, environmental responsibility and HIV/AIDS policies and measures will be worked out in detail, including the measures to ensure chain responsibility.Impact•	Employment and working conditionsThe joint venture will maintain the same working conditions as the present IAB and will provide:- wages above average in the sector and the lowest at Living Wage level;- fixed contracts with 6 months’ probation;- 13th month bonus;- voluntary overtime with double pay;- health cost for employees and family;- legal INSS social security;- company transport, a daily free lunch uniforms, phone cost when in company, and personal credit facility.The company ensures healthy and safe working conditions.•	Innovation / Transfer of knowledgeThe production method of UHT processing and packing milk is new for Burundi. The standard UHT milk is not new but so far imported while fortified UHT milk for specific target groups would be new. The system of purchasing raw milk from a number of collection centres on the basis of long-term contracts and using a reefer truck is new. The existing commercial milk processors are collecting from individual farmers and centres using non refrigerated cans only. The organisation of the distribution with distribution points in the town of Bujumbura and other urban centres and the use of bicycle hawkers is also new for the dairy sector.•	Chain effectsImpact on local suppliersThe project will have a positive impact on the position of some 600 to 1,200 small household level dairy farmers. Under the current government and donor funded PARSE programme such farmers receive assistance and are organised in producer groups. Collection centres are owned and operated by cooperatives of 10 to 15 of such groups. The project will create an essential link in the dairy value chain supplying Bujumbura and the urban centres.Impact on local customers or consumersThe project will lead to increased availability of milk. Since long life milk needs no refrigeration, lower income consumers are likely to have better access to milk. The consumer price of processed milk will be about 20% lower than the price of presently imported UHT milk.•	Impact on the sectorThe project will have a positive impact on the sector. In particular it will be an important sales outlet for the cooperative collection centres and will be important to complete the dairy value chain presently under development. IAB (and later the joint venture) is a member of the sector policy group under the PARSE programme for dairy sector development.•	EnvironmentThe project will order an ESIA and will be ISO 22000 and HACCP certified. Waste water is treated by the nearby municipal treatment plant.•	Position of womenThe joint venture will employ 21 women directly of which 14 in medium and higher positions. Since women play an important role in the (household) dairy sector the project will contribute indirectly to income and employment for a large number of women. Training of sector partners (e.g. staff of collection centres) and creating employment at supplying farms is also expected to strengthen the position of women.•	Impact on food safetyThe project will have a positive impact on food security and nutrition through the increased availability of quality milk. The project can directly replace the import of 1.8 million litres of UHT per year and will add another 3.6 million litres to the UHT supply, annually. The project will establish an ultra-high-temperature (UHT) milk processing and packaging plant with a capacity of 5.4 million litres of UHT milk annually, to be marketed in Bujumbura and commercial centres throughout the country.