Proposal to merge dairy authority with agriculture ministry approved

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Parliament has approved a proposal by the Government to mainstream the Dairy Development Authority (DDA) into the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF).

This merger ends a five-month debacle that began with Parliament's initial rejection of the amendment bill.

The stalemate prompted President Yoweri Museveni to meet the Agriculture committee and later the National Resistance Movement (NRM) Parliamentary caucus where a consensus was struck.

Committee report

The Dairy Industry Amendment Bill 2024 was tabled for first reading on September 24, 2024. It was then referred to the respective committee of parliament. Under the arrangement, the body’s functions shall be mainstreamed into the agriculture ministry.

While tabling the report on Tuesday, October 22, 2024, Agnes Linda Auma (Lira District Woman MP, Independent) cautioned that the rationalization of the Dairy Development Authority (DDA) could undermine the regulator's progress and negatively impact the market.

Asinansi Nyakato, Hoima City Woman MP (FDC), presenting the minority report during plenary. (Photo by Miriam Namutebi)

However, she noted that these concerns could be addressed if the government ensures that mainstreaming the DDA into the Ministry of Agriculture does not disrupt the ongoing processes of recognition and accreditation, which are crucial for market access.

“MAAIF should take this as a serious matter since milk is a perishable good…. Rationalization of DDA may in a way compromise quality assurance, if not taken care of. Therefore, the Ministry must establish a robust regulatory unit to ensure that the quality of the dairy products isn’t compromised,” remarked Auma.

Her warning comes as the National Dairy Laboratory, run by the DDA, nears full accreditation, having recently received an ISO 17025 recognition certificate that certifies all dairy export test results for the international market.

Auma also took aim at the certificate of financial implication, which she believes lacks clarity.

“DDA has an approved staff establishment of 140 positions with 91 positions filled. Sixty-three percent of DDA staff are scientists earning less than the approved government science scale. The budget for 2024/25 stands at sh10.9 billion of which sh3.7 billion is the wage component. There will be marginal savings from the rationalization of DDA will not lead to anticipated savings as indicated by the certificate of financial implication” she added.

Originally, under the merger plan, the government had projected savings of UGX 11.02 billion in the 2024/25 financial year and UGX 11.5 billion in subsequent years, with only UGX 53 million allocated for terminal benefits.

Asinansi Nyakato, Hoima City Woman MP (FDC), in presenting the minority report, warned of the potential negative impact this could have on the milk industry.

“Export of milk and milk products require observance of safety and quality standards and regulations along the dairy value chain, which the Ministry can’t effectively and efficiently deliver. It is also important to note that the milk is a perishable product and it is mainly driven by smallholder farmers,” Nyakato observed.

MPs respond

Her remarks, however, provoked Stephen Kangwagye (Bukanga County, NRM), who questioned why supporters of the minority report, many from regions like Buganda, Bunyoro, and Lango, were opposing the merger of the Dairy Development Authority, while MPs from cattle corridor areas showed no such resistance.

“When you see the stepmother crying more than the real mother of a child, you know that there is a problem. I am a cattle keeper and we are the sole beneficiaries in this sector. When you see the real role of the Ministry of Agriculture, is to formulate laws and regulations, but also set clear quality standards,” Kangwagye fumed.

Adding that “DDA should be rationalized simply because, we have seen all the challenges whatever DDA has done to us, the cattle keepers. For instance, whatever has been happening to cattle keepers, it is only the Ministry of Agriculture which has been coming to them.”

Rejecting the minority report, Laura Kanushu (PWD Representative, NRM) claimed that the entity has been absent in most woes, dairy farmers have faced over time.

Anitah Among, the Speaker of Parliament presiding over plenary on October 22, 2024. (Photo by Miriam Namutebi)

“I have never heard of DDA all my life. The milk that people produce can drop up to Shs100 per litre under DDA when water of kaveera is sh500. We aren’t just rationalizing for the sake of rationalizing like some MPs want to think, we know what we are talking about. We want efficiency, we want people who produce those to earn because that is their only source of income,” Kanushu complained.

Govt responds

Frank Tumwebaze, Minister of Agriculture, defended the merger, arguing that the government believes the Ministry of Animal Husbandry and its relevant departments can effectively integrate the functions of the Dairy Development Authority (DDA).

This, he said, would allow Uganda to achieve efficiency gains, consolidate staff, offer better pay, and implement the policy without duplication.

“I believe the Bill will address these overlapping functions and facilitate the integration of the DDA into the Ministry. It will enhance the efficiency and effectiveness of service delivery, while also harmonizing staff remuneration. Whether you work for the Ministry of Agriculture or the DDA, a veterinary doctor is a veterinary doctor, and a scientist is a scientist. There’s no reason for any discrepancies in pay,” Tumwebaze explained.

He further noted, "Fortunately, with the government's salary enhancement for scientists, integrating agency staff into the mainstream service won’t be difficult. In fact, many agency employees currently earn less than their counterparts in the mainstream service."