Sh1.8b needed to sort dairy sector
May 02, 2005
DAIRY Corporation Limited (DCL) needs over $6m (about sh1.8b) to put up a dry milk line to solve the problem of over-production.
By Mary Karugaba
DAIRY Corporation Limited (DCL) needs over $6m (about sh1.8b) to put up a dry milk line to solve the problem of over-production.
Nathan Twinamasiko, the Dairy Development Authority executive director, last week told the parliamentary finance committee that the corporation cannot absorb all the milk from the farmers.
The committee is chaired by Maj. Bright Rwamirama.
Twinamasiko said during the rainy season, farmers produce a lot of milk, which is normally poured due the corporation’s low capacity to process long shelf life.
He was responding to queries that about 80,000 litres of milk were poured daily in western Uganda.
The farmers recently presented a memorandum to the committee, saying DCL had ordered that they stop supplying milk.
DCL officials said lack of investment was the major constraint faced by the company.
They said this had suffocated efficiency, increased operation costs and constrained expansion where an opportunity exists.
Twinamasiko said the plant would process the milk into powder for export market.
DAIRY Corporation Limited (DCL) needs over $6m (about sh1.8b) to put up a dry milk line to solve the problem of over-production.
Nathan Twinamasiko, the Dairy Development Authority executive director, last week told the parliamentary finance committee that the corporation cannot absorb all the milk from the farmers.
The committee is chaired by Maj. Bright Rwamirama.
Twinamasiko said during the rainy season, farmers produce a lot of milk, which is normally poured due the corporation’s low capacity to process long shelf life.
He was responding to queries that about 80,000 litres of milk were poured daily in western Uganda.
The farmers recently presented a memorandum to the committee, saying DCL had ordered that they stop supplying milk.
DCL officials said lack of investment was the major constraint faced by the company.
They said this had suffocated efficiency, increased operation costs and constrained expansion where an opportunity exists.
Twinamasiko said the plant would process the milk into powder for export market.