Shs280m earmarked for training dairy farmers.

Apr 23, 2012

A total of sh280m has been earmarked to facilitate the training of dairy farmers in financial and governance empowerment, mentoring and coaching of farmers in handling of dairy products.

A total of sh280m has been earmarked to facilitate the training of dairy farmers in financial and governance empowerment, mentoring and coaching of farmers in handling of dairy products.

The private sector foundation, HEIFER International Uganda and Icon announced on Tuesday that the training is intended mainly for the small scale business persons and dairy farmers.

Unveiling the first phase of the HEIFER International Uganda’s financial literacy training programme in Kampala, Ruth Musoke the director member services at PSFU said a total of 55 diary cooperatives are expected to benefit from the programme.

Musoke said that training will also involve training of famers in different techniques on how to access finances and post-harvest skills so that they can become competitive in business, “hence the need for financial literacy training.”

 “On Average each cooperative has about 200 to 600 members and it’s therefore expected that this programme will target 40,766 Diary farmers,” she explained.

 The training is aimed at imparting skills on managing Agriculture as a business and improving governance and management of diary producer group enterprises.

“The training will be tailored made and focus on areas which stimulate entrepreneurship, equip participants with marketing skills, financial and business management,” she said.

She said that at the end of the program an award will be given to the winning cooperative that would have demonstrated the best practice.

“Uganda’s milk is the best and the cheapest within the East African region which gives it a big comparative advantage to compete within the region but due to the hardships in access to finance and taxation on diary equipment this frustrates the growth of the sector,” she believes.

Musoke decried the poor infrastructure which she said is hampering the growth of the sector as most dairy products are perishable which require proper handling.

“We understand that most of the diary producers are found in the cattle corridors which are greatly affected by long drought but in most parts government has not considered to set up valley dams to enhance their growth,” she said.

 Irene Muwanguzi the country director Heifer international Uganda observed that a number of cooperative leaders lack essential business skills and do not appreciate the financial management.

“This coupled with poor governance, weak executive committees and inability for the farmers to appreciate that farming is a business and must be run and be governed by fundamental business principles for it to grow and be profitable is responsible for its inability to compete favorably,” Muwanguzi noted.

“It is expected that the intervention will increase the competitiveness of the sector within the diary sector as one of the major sectors of export to be fronted in the East African common market” she explained.

According to William Matovu the project Manager EADDP programme, said that the training had been designed to boost the yields and incomes of millions of small daily famers so that they can lift themselves and their families out of hunger and poverty.

"We believe this expanded program will increase capacity in personal finance, bookkeeping, value addition & marketing.
The result will be better skilled farmers and SMEs able to prepare meaningful loan applications for financing investments and thus get access to finance for their business operations,"

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