VITALAC Innovative Food Supplements Note: This project has been cancelled, because the project partners did not respond to requests for information.Vita Pakistan Limited has found Americana Dairy Llc. interested in joining them in setting up a production facility for (partly) non-dairy based milk powder in Lahore, Pakistan. Vita Pakistan already has second hand dairy powder equipment in place. Despite efforts of 2 PUM senior experts – among others – this production line is unable to produce cost-effective quality powders. This project application is based on the PUM experts' advice to change and upgrade the existing line, allowing cost effective production of high quality milk powder with partly vegetable based ingredients (e.g. pea proteins).Although Americana Dairy is the official applicant, Vita Pakistan is the initiator of the project. Vita Pakistan and Americana Dairy already have a joint venture for the distribution of liquid milk.For this project, the partners will set up a new joint venture VITALAC, with share ratio 33% Americana Dairy and 67% Vita Pakistan. In contrast, the financial contribution is divided 20% Americana Dairy / 80% Vita Pakistan. Since marketing of the products is critical to the project, Americana Dairy has claimed a larger share in the joint venture, in exchange of their buyer network and marketing experience. The existing equipment will be rented out by Vita Pakistan Ltd to the new joint venture to underline that the ownership is Vita Pakistan’s.The joint venture will produce three types of special application (industrial) milk powder in 25 kg bags, with non-dairy ingredients ranging from 60% to 65%. In addition, two types of consumer milk powder will be produced (All-Rite coffee/tea creamer and Hilac instant milk for children). These products will have around 70% non-dairy based ingredients and have higher sales margins. The targeted production share of these two products will increase from 25% in year 1 to 30% in year 7. Total production capacity will be 8,000 Mtons. The fresh milk will be sourced from the market, supplemented by 45 contract dairy farms.Corporate Social Responsibility (CSR)The new joint venture will follow Vita Pakistan's CSR principles. Worth mentioning are Vita Pakistan's good working conditions, their involvement in the Rural Development Initiative (RDI) and 10% of profits are donated to charities.Impact•	Employment and working conditionsThe project will employ 111 people: 31 high-level, 53 medium-level and 27 basic-levels. Job opportunities are in production/maintenance and marketing/sales. Two years later this will have increased to 201.Salaries are at least 25% above minimum wage and increase 10% annually. Preference is given to women and minorities. Free health check-ups and lunch/dinner are provided to all employees.•	Innovation / Transfer of knowledgeKnowledge about operating and maintaining the equipment and producing these non-dairy based milk powders is new for Pakistan.•	Chain effectsThe project will involve 75 contract dairy farms and create an estimated 120 indirect jobs in distribution.•	EnvironmentThe impact on the environment will be neutral. The Bag house with CIP system will effectively reduce the exhaust of milk powder to the environment.•	Position of womenAt least 25% of the recruited staff will be women, including medium- and high-level positions. To set up a production facility for non-dairy based milk powder products with an annual capacity of 8,000 Mtons.