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Thriving Dairy Sector Easiest Way To Fight Poverty – Expert

by Jacquiline Nakandi
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By Joshua Kato

Milk is more than the white liquid that nourishes people’s bodies. Milk is a way of life.

Milk is money, both directly and indirectly and yes, during the ongoing African Dairy Conference, delegates, both private and from governments are testifying that milk is actually one of the easiest ways of fighting poverty.

The 16th African Dairy Conference and Exhibition that started on Monday at Hotel Africana Kampala will run up to Friday. Hosted by the Dairy Development Authority (DDA), the conference has attracted delegates and exhibitors from all over the world.

On Tuesday, the conference was officially opened by the Minister for General Duties in the Office of the Prime Minister, Kasule Lumumba, who represented President Yoweri Museveni.

Delegates at the conference pointed out that a few years ago, all powder milk that was sold in supermarkets was imported from Kenya and beyond.

Today, supermarket shelves are dominated with locally processed powder milk. A few years ago, it was difficult to find quality locally processed yoghurt, but today, there are over 20 companies making it.

The development is the same with cheese, ghee and drinking milk. Some of these processors are exhibiting on the side lines of the conference.

According to Samson Akankiza Mpiira, the acting DDA executive director, the exhibition has been modelled along the dairy value chain; from the grass to the table. The conference has brought together delegates from 24 countries, including Belgium, Netherlands, Denmark, Germany and India, who are some of the leading producers of milk, plus Kenya, Brazil, Ethiopia, Italy, Bulgaria and China, among others.

Sector grows tremendously

According to Akankiza, the Uganda dairy sector has grown exponentially over the years and its products continue to gain increased demand and consumption within and beyond Uganda’s borders.

“In the past five years (2018-2022), our production has increased from 2.51 billion litres to currently 3.85 billion litres. Our annual growth rate average is 11%, which is among the highest of any sector in the economy,” he says.

Akankiza says out of the 3.85 billion litres of milk currently produced, 80.2% (2.5 billion litres) is marketed, while 19.8% (633 million litres) is consumed at the farm.

He adds that some 66% (1.6 billion litres) of the marketed milk is sold unprocessed, of which 10% (169 million litres) is sold door-to-door (homes) and 56% (1.3 billion litres) is sold at sales outlets.

Another 34% of the marketed milk is processed (872,576 litres) into various milk and milk products, including pasteurised milk, yoghurt, UHT milk, cream, ice cream, butter, ghee, cheese, milk powder, casein, whey powder and butter oil.

Akankiza stated that milk collection and bulking has equally improved tremendously with a number of players, such as Government, dairy co-operatives, traders, processors and private individuals continuously investing in cold chain infrastructure.

Cold chain infrastructure ensures that the milk is kept at an optimum temperature that enables it retain its nutritional and palatable qualities.

“We currently have 198 registered roadworthy milk tankers of different capacities (5,000-20,000 litres) operating countrywide. At farm level, milk handling containers from the farms include food grade milk cans,” he told the conference.

There are 160 (large, medium, small scale and cottages) licensed entities processing milk in Uganda.

Uganda’s key export market is comprised of mainly East African Community regional countries, Common Market for Eastern and Southern Africa, Southern African Development Community, Malaysia, India, United States, Japan, Oman, United Arab Emirates, Nepal, Syria and Bangladesh.

The top exporters include Vital Tomosis Dairy Limited, Jesa Farm Dairy Limited, GBK dairy Products Limited, Birunga Dairies (U) Limited, Brookside Limited, Amos Dairies Limited, Pearl Dairy Farms Limited, Lakeside Dairy Limited and Rainbow Dairy (U).

The most exported products include milk powder, yoghurt, cheese, butter, ghee, butter oil, UHT milk, casein and whey protein powder.

In a message delivered by Lumumba, President Museveni said the dairy sector employs hundreds of people, including women and youth and even has the potential to employ more.

“The dairy sector has the potential to cause social transformation across the country. We must continue aspiring to produce quality and good quantities so that we harness the many markets around us,” Museveni noted.

He called upon stakeholders to work at improving local consumption of milk, from around 70 litres at the moment to the recommended WHO rate of 200 litres per person per year.

“We must also address the endless burden of disease that is afflicting the sector by helping farmers quickly identify them,” the President said.

DDA board chairperson Rev. Can. Sandra Mugenyi Mwebaze noted: “The authority has played a key role in ensuring that the Ugandan dairy sector is stable, the dairy and dairy products are safe for human consumption and that they meet the highest global standards. This is the reason why our products are being sought after by countries such as Algeria and the United States.”

Mugenyi specifically thanked Museveni for championing the growth of the dairy sector.

“It is important to note that agriculture, inclusive of dairy, can only thrive when and where there is peace, stability and a favourable investment climate. All this has been realised under the capable leadership of the National Resistance Movement Government led by Museveni, whose dedication to transforming the sector spans a period of more than 60 years,” she told the conference participants.

Agriculture minister Frank Tumwebaze further emphasised the sector’s role in alleviating poverty. However, he called upon stakeholders to increase on value addition.

“Farmers must turn away from the traditional way of keeping dairy cows, but also start modern farm-based value addition,” he said. Using an example of yoghurt, Tumwebaze pointed out that where a litre of milk averages sh800 in the cattle corridor, a litre of yoghurt goes for sh5,000. “…..and yet I am told that you need just two litres of milk to produce a litre of yoghurt,” he said.

Private sector hailed

In his remarks, agriculture state minister Lt. Col.(rtd) Bright Rwamirama pointed at the long, winding journey towards milk prosperity.

“Our journey, as Africa and particularly as Uganda, has witnessed remarkable milestones in enhancing milk production, nurturing a robust value chain, dismantling barriers to investment, and orchestrating effective marketing and promotion strategies for milk and milk products,” he said.

Through these avenues, he said the country is fostering the emergence of a sustainable model for the dairy industry, one that promises prosperity and will promote growth. Rwamirama also recognised Museveni’s unwavering dedication to the dairy sector in Uganda.

“His leadership has left a mark at every tier of the dairy value chain, a commitment that has been instrumental in positioning dairy as one of the leading agricultural exports in our beloved country,” he said.

“We also recognise the pivotal role that private sector participation plays in propelling our industry forward, and we extend our hand in partnership and co-operation,” he added.

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