Sameer, farmers row deepens

May 31, 2007

MARKET INTELLIGENCE<br><br>A wrangle has erupted between dairy farmers in the western region and the Government over the allocation of milk coolers and collection centres to the proprietors of Sameer Agricultural and Livestock Limited.

MARKET INTELLIGENCE

By Macrines Nyapendi

A wrangle has erupted between dairy farmers in the western region and the Government over the allocation of milk coolers and collection centres to the proprietors of Sameer Agricultural and Livestock Limited.

Sameer manages the former Dairy Corporation.

The farmers accuse Sameer of attempting to forcefully take over the collection centres and cooling plants belonging to them.

The coolers and collection centres were installed in a partnership between donors and the farmers’ organisations.

The farmers provided land and erected buildings that house the cooling systems while the donors offered the machinery and training.
The farmers have petitioned the donor agencies to intervene.

They claimed that Sameer had stopped buying milk from most of the collection centres to “technically force the farmers to abandon them.”

Clayton Arinanye, the Uganda Crane Creameries Cooperative Union Limited director, said the farmers were given mandate to own and manage the collection centres and the coolers by the agencies that donated them.

“The coolers and the collection centres were donated and installed by DANIDA and other donor-funded agencies before the Dairy Corporation was leased out.
“Most of the coolers and collection centres were leased to the farmers by the Dairy Corporation before the divesture of the company.

“So they do not belong to the Government,” Arinanye explained.

The leasing of the cooling systems and the collection centres was facilitated by DANIDA, the United Nations Development Programme, the Food and Agricultural Organisation and Land O’ Lakes
The executive summary of the organisational reforms for the dairy industry master plan of 1993, gave the farmers the mandate to own and manage collection centres and cooling systems.

“Farmers’ organisations and cooperative unions have already begun the process of purchasing the Dairy Corporation’s cooling and collection centres.

“The ultimate objective was that the farmers’ organisations should own and operate the facilities,” the summary states.

However, Ashok Garga, the Sameer chief executive officer, insists the centres and coolers belong to them.

“Those properties initially belonged to the Dairy Corporation and when we leased it, they were transferred to our company,” he said.

Sameer has instructed farmers not to store milk that is not sold to them in the coolers.

It also does not want them near any collection centres.

“The facilities were put in place to ensure proper handling and storage of milk.

“The grading of milk is also done at the collection centres before it is cleared for sale. “Farmers buy diesel that is used to run the cooling system. So how can Sameer stop them from using the facilities?” Arinanye asked.
Farmers contribute sh70 for every litre of milk to be cooled at the centres.

Dr. Nathan Twinamasiko, the head of the Dairy Development Authority (DDA) explained that farmers’ complaint is based on incomplete information on how the divesture process works.

The DDA was given the task of implementing the Dairy Corporation’s support services to dairy farmers when it was transformed into a commercial company.

DDA was also supposed to strengthen and maintain those services.

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