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Uganda: Museveni Launches Milk Powder Plant
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East African Business Week (Kampala)
12 May 2008
Posted to the web 12 May 2008
Edris Kisambira
Kampala
The Uganda government will import breeds of dairy cattle from either Canada or Australia to help boost a dairy sub-sector that needs more raw milk than ever before following a turn around that Sameer Agriculture & Livestock Ltd has engineered over 18 months.
The transformation is signified by the official opening last week of a US$15 million powder milk plant. The investment in a powder milk plant will expand markets for Uganda's milk sector capable of generating $40 million.
The plant, a joint venture between the Sameer Group of Kenya and the India-based Jaipuria Group, will process 250,000 litres of milk per day. President Yoweri Museveni also flagged off a consignment of 15 tonnes of milk powder for export to Syria.
SALL took over Dairy Corporation Limited (DCL) in 2006 and the turn around that SALL has overseen has resulted in an unprecedented growth of the dairy sector, which produced 1.4 billion litres of milk up from 700 million litres in 2000.
SALL took over DCL at a time when raw milk collections stood at a mere 50,000 litres. Today, SALL has more than doubled collections at the company, taking volumes to 120,000 litres of raw milk.
Mr. Naushad Merali, the chairman of the Sameer Group, said more capital will be invested in the company. He said that because of the initial investments that SALL has made, raw milk collection has increased from 40,000 litres per day to 140,000 litres.
"This will go up to 400,000 per day. It is up to farmers to ensure that more milk that more milk is produced," Merali said.
The export market has also already reacted to the development, with some 25 tons of milk powder having been exported to Rwanda.
Orders have also come in from Kenya, Tanzania, Yemen and Sudan. SALL is also prospecting in Syria, Mozambique, Ethiopia and DR Congo.
Mr. Ravi Jaipuria, the chairman of the Jaipuria Group, a dairy and beverages group from India said there was need for improvement of the farming methods to increase milk production and lower the cost of production.
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He revealed that Sameer will establish a model dairy farm/institute to provide free training to farmers.
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