A dairy farmer’s testimony of value addition
In terms of money, Vian explains that during the rainy season, a litre of milk is sold at sh1000. However, in the dry season it costs half that much.
Vian's farm in Ngoma produces a lot of milk, from which he decided to make yoghurt and ghee.
NAKASEKE - For most people, when they think about engaging in a business, they look at the numbers. Is it lucrative? If so, what is the rate of return on investment? This is because they know that numbers don’t lie!
One such person is a farmer in Nakaseke, Monday John Vian, who metaphorically pulled out his calculator and found that there is a lot of profit in value addition.
His farm in Ngoma produces a lot of milk, from which he decided to make yoghurt and ghee.
In terms of money, he explains that during the rainy season, a litre of milk is sold at sh1000. However, in the dry season it costs half that much.
“When we have a lot of milk, we make yoghurt and we sell 500g at sh3000. Milk from a 20L jerrican can make 30 500g cups of yoghurt. This means we make sh120 000 from yoghurt, but if we sold a 20L jerrican of milk, we would get sh20,000,” says Vian.
Since value addition involves a cost, Vian says he still makes profit.
“From sh120 000, we remove the cost of sugar and flavour when making yoghurt. Sugar costs sh4000 a kilo, and the flavour costs sh10,000 for a small bottle. Plus, you can use that flavour for two jerricans.”
He plans to acquire more land and make more of his branded yoghurt, Spur Foods Limited.
Power troubles
Nakaseke was plagued with power cuts, which frustrated milk producers like Vian from refrigerating their milk and yoghurt.
Fortunately, with the support of the NSSF Hi-Innovator programme, Vian was able to install solar panels, which keep the milk and yoghurt in good condition until it goes out on the market.