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In this article, we have modeled the industrial processing of local milk in the manufacture of dairy products in Senegal using a computable general equilibrium model in which the intermediate consumption of companies has been modified to capture this new deal in addition to the introduction of a new tax parameter, making it possible to determine its impact on the economy as a whole. The simulations were built to take into account not only the industrial transformation aspect, but also the incentives applicable to encourage the private sector to join this initiative. The 20% industrial processing & 10% tax rebate on the purchase cost of local milk proved to be the best and most attractive incentives at both micro and macro levels. Incentives will have to be put in place to support the industrial transformation process, with a mode of governance involving all players and clear, transparent operating rules.