Dairy sector attracts more investors

By David Ssempijja

Uganda’s diary sector continues to attract more heavy investments, a move considered by players as a timely remedy as the country seeks to boost commercial farming that would increase output and financial benefits from animal husbandry.

The latest entrant into the sector is The Midland Group of companies’ new agro-industry arm; with a $15m (sh42.7b) investment into producing milk and a range its products, trading under Pearl Diary brand.

According to the group chairman Basket Kotecha, construction of the processing plant in Mbarara is already under way and is scheduled to be completed in the first quarter of next year

“We plan to produce milk powder in the first phase, processing 500,000 litres per day; we shall later on produce butter oil, liquid milk, cream, butter, ghee, cheese and skimmed,” among other,” he told a press conference at Serena Hotel on Wednesday.

He was optimistic that at the beginning, the investment would result into the direct employment of roughly 250 people and the indirect creation of a further 10,000 jobs.

“The group’s initiative- Pearl Dairy will not only create jobs for Ugandans but will also create competition in the raw milk sector and help farmers get suitable prices for their produce,” Kotecha added. 

The executive director Diary Development Authority (DDA) Jolly Ziribwende noted that the private sector investments had a key role in supporting the sector out of the challenges it’s currently embroiled in.

She said that Uganda produces an estimated 1.5 billion litres of milk per year, 90% is marketed as unprocessed.
Information with regulatory body also indicates that approximately sh50b is also lost annually due to milk spillage, emanating from contamination, lack of markets and transport.

The country has a low per capita milk consumption estimated at 50 litres per person per year against 200 litres recommended by the World Food Programme

Midland Group has a history of success in other areas where they have invested in Uganda, we are optimistic that the dairy sector will also have a lot to achieve from them,” said Ziribwende. 

The major businesses in Uganda (one of the countries where the Group operates) are Midcom, Real Estate Development (Course View towers)

They are also the owners of Rainbow International School and Midland Forex Bureau. Midcom is also the leading distributor of Nokia in Middle East and the Africa region with presence in 11 countries.