Dairy farmers plan sh6b plant

Oct 04, 2007

Dairy farmers in western Uganda are planning to set up a sh6b processing plant.<br>The plant is expected to improve incomes of the 15,000 farmers in the region.

By Macrines Nyapendi

Dairy farmers in western Uganda are planning to set up a sh6b processing plant.
The plant is expected to improve incomes of the 15,000 farmers in the region.

Clayton Arinanye, the Uganda Crane Creameries Cooperative Union (UCCCU) general manager, said the project aims at developing a commercially vibrant and sustainable dairy sector that will become a leading provider of high quality dairy products in the region.

“We are moving our vision forward by becoming entrepreneurs. Our vision is to improve quality and diversify the range of dairy products. The market is quality-biased, that is why are taking on the challenge of processing our produce,” Arinanye said after laying a foundation stone for the proposed plant in Mbarara town.
The plant is supposed to start operations next year.

“Those (processors) we had entrusted with the challenge let us down. The buyers have on many occasions disappointed us.”

The 80,000-litre plant will process 5,000 litres of UHT milk in the first year, 2,000 of yoghurt and 2,000 of pasteurised milk daily, fetching a projected sh4b.

In order to achieve their mission, the farmers have invested heavily in training in good production practices and quality control.

According to the Dairy Development Authority, south-western Uganda produces over 828,000 litres of milk per day and only 200,000 litres are sold to the eight processors. The growth rate of milk production is about 8%-10%.

“The cooperative union has over 15,000 members and serves another 20,000 through linkages to the market,” Arinanye said.

He said the sh60m that was used to purchase land where the plant will be built was contributed by the farmers.

Arinanye said: “Of the sh6b earmarked for the construction of the processing plant, each member of UCCCU has pledged one cow (average sh300,000); all put together is about sh4.5b.”

The farmers have also partnered with donor agencies like the Swedish Cooperative Centre, Land O’ lakes, Agriculture Consultation Sector Structuring, World Wide Sires, DANIDA and GTZ.”

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