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Increase of Income Generation for Milk Production Farmers in Hualgayoc

This project is the third phase of the REDyPAC project, funded — as well as in phase I and II — by Gold Fields and Lutheran World Relief (LWR). In its third phase, the project aims to increase the net income of farmers involved in the dairy product value chain in the Hualgayoc district. REDyPAC III will improve product management and quality, and increase milk volumes to improve the production and quality of cheeses.


The project will focus its efforts in 15 villages located in the district and province of Hualgayoc in the Cajamarca region. The region’s main economic activities are livestock (intended for milk and cheese) and agriculture (potatoes, corn for family consumption) on small based farms. Milk produced on these farms are then sent to local artisan cheese production facilities. On average, each family has three (3) producing cows (crosses of Holstein and Brown Swiss), with yields ranging from six (6) to seven (7) Lt/cow/day, which decreases to five (5) Lt/cow/day during the dry season. Cheese are still mostly part of the family home, whose infrastructure is cement floors, stucco walls, and have basic equipment.

These conditions however, do not guarantee the production of quality cheeses at a competitive range. Increasing milk production remains a major challenge for these small holder farmers. Organizational capacity for productive purposes is precarious as there are no specific structures such as cooperatives, associations and/or consortia. Additionally the capacity of business-business management that focuses on product quality needs to be strengthened to improve the competitiveness of businesses and producer capacity.

Being the third phase of the REDyPAC project, LWR and its project partner CEDEPAS Norte, aims to increase the quality, management, and production of dairy products which will result in an increase of income and quality of life for small holder farmers in Hualgayoc.


Increase the net income and contribute to the quality of life of producers involved in the dairy product value chain in the Hualgayoc District.


  • Improve beneficiary and organizational capacity in business management.
  • Standardize product quality and increase the supply volume of milk for cheese production.
  • Sustainably improve the production and quality of cheeses.
  • Strengthen the business skills of cheese producers.

Quick Facts

Since 2009, LWR, Gold Fields and CEDEPAS have been working together to stabilize and increase farm incomes is the key to building resilience and preventing catastrophic de-capitalization of rural farmers in the face of increasing climate shocks in this sensitive high-Andean production system.