Friday 24 August 2012

Uganda’s dairy sector is a success story – new research



ALON MWESIGWA

Richard Mwebaze, a cattle farmer in Ibanda district liked his indigenous cows. If anyone dared advise him to sell them, that person would be counted among his enemies.
“I loved my cows. I just liked keeping them around,” he says.
While Mwebaze had much love for his cows – the long horned, Kinyankore cows, they had one problem: with about 40 cows, he would struggle to get 15 litres of milk daily.
Even then it took him a lot of time to get convinced that he needed to adopt a new breed that is productive and would offer him a lot of milk.
“It was after visiting one of my farmer friends that I realised I needed to change the breed. I sold my 40 cows and bought 12 high milk yielding cows,” Mwebaze narrates. “While I used not sell milk because it was very little. Now, I take about 80 litres of milk to our min-dairy in Ibanda town,” he says.
“Each litre is priced Shs 400, meaning every day I must earn Shs 32000 amounting to Shs 960, 000 a month.
“This is not bad either. I can live happy life with that [income].”
Mwebaze paints a picture how much transformation has taken place within the dairy industry in Uganda. More and more people have adopted improved breeds that guarantee high milk yields.
Dairy farmers and the sector in general have transformed a lot in the last two decades – from the indigenous cows with low milk yields to high yielding milk cows.
The study, Dairy sector reforms and transformations in Uganda since the 1990 to 2011, done by the Economic Policy Research Centre (EPRC), shows that livestock sector, driven mainly by the dairy industry has maintained positive growth rates averaging at 3% per annum compared to the declining growth rates registered in food and cash crop subsectors. 
According to Isaac Shinyekwa, a research fellow at EPRC, the growth in the sector can be attributed to the farmers being assured of daily income as a result of selling milk.
“People have gone into dairy farming because they are assured of daily income. This is not the case with when you grow beans, where you have to wait for three months to sell after harvest,” he says.
As such, more and more people are taking on milk producing exotic cows from the indigenous cows. The study indicates that a number of exotic cows grew from 19% in 2006 to 25% in 2010.
“With increased trade in milk, households undertook to improve herd productivity through the adoption of improved dairy cattle breeds – exotic and cross breeds,” notes the report.
Milk production has also grown from 380 million litres in 1990 to 1.6billion litres in 2011. The sudden increase in milk relates to a gradual and over time change in the proportion of grade animals to local animals, according the study. Cattle population also grew from 5million in 1990 to over 10 million in 2010.
While the Western region remains the country’s milk hub, with output per unit farm estimated at 2600 litres per annum with exception of Northern Uganda, dairy farms in other regions improved in terms of average milk per annum – it’s attributed to growth in number of dairying households adapting to improved breeds.  
Jobs created
According to Mwebaze, a dairy farmer, dairy farming is one of the areas where one must employ at least someone to help them if they are to succeed on the farm.
“I employ about 8 people, where some work on the farm in terms of maintaining it, others in transporting the milk among other activities related with livestock,” he says.
Indeed, the study notes that the dairy sector has not only created employment for over 700, 000 dairy farming households,  but also for farm input dealers, dairy equipment dealers, dairy ingredients dealers, raw milk traders, transporters, min-dairies, and large scale milk processors and distributors.
Milk processing
While milk production has improved, the biggest chunks of the milk still go unprocessed, although, most of the processing companies like Sameer and others are operating under excess capacity. Sameer’s installed capacity is 50, 000 litres a day, but they process only 25000.
Only 20% of the milk is processed.  
Local farmers, however, are coming together in their groups to process their milk. “Co-operatives like Uganda Crane Creameries Cooperative Union (UCCU) in Mbarara, process the milk of the farmers in this group. They are able to make such products like yoghurt and cheese,” says Shinyekwa. 
Even with visible successes, a host of challenges fen the sector. Dr Swaibu Mbowa, a research fellow at the EPRC, notes that there is still a huge gap in infrastructure like roads and electricity to support the sector especially in the value addition development chain.
“The government need to promote the public private partnership and support min-dairies facilitated by farmer groups to increase the amount of milk processed,” says Mbowa.
Also farmers still receive low farm gate prices for their milk, especially in Western Uganda. For instance, Sameer buys each litre of milk at Shs 300, during peak seasons – the factor that acts as a disincentive to most farmers.
“While some challenges remain, we recommend that the government look into dairy farming as one way to fight poverty; the families in dairy farming, have an income and they are healthy because they drink the milk in addition to selling,” adds Mbowa. 
aamwesigwa@gmail.com