|
|
Uganda: Dairy Processors Target Foreign Markets
 |
 |
|||||||||
|
||||||||||
|
|
|||||||||
|
||||||||||
The Monitor (Kampala)
13 May 2008
Posted to the web 12 May 2008
Tom Magumba
Kampala
The development comes a year after Uganda's dairy products were cleared for export to Comesa.
Dairy farmers could benefit from expanse regional market as processors focus on supplying milk products to the Common Market for Eastern and Southern Africa.
Dr Nathan Twinamasiko, the executive director of Dairy Development Authority (DDA) said increased production costs, and better prices on the foreign markets have lured processors into exporting dairy products.
Last week, Sameer Livestock Limited commissioned $ 15 million milk powder processing plant with the hope of exporting a chunk of milk powder to the region.
"Our market is liberal, so investors have a choice to sell where they reap most," Dr Twinanmasiko said. The development comes a year after Uganda's dairy products were cleared to be exported to the Comesa. The trend, he said, will continue as Uganda positions itself to be the leading milk producer in the region.
While milk processors are turning to foreign markets, questions remain as to whether at the current production Uganda has the capacity to sustain the supply considering that many farmers especially in the northern and eastern region are grappling with decreased production. Uganda's milk production in 2007 was estimated at 1.5 billion litres. According to DDA 400,000 litres of milk were exported per month and at 4.2 million litres were consumed locally per month.
Dr Twinamasiko said: "There is a lot of untapped potential. With the expanded milk processing capacity of more than 400,000 litres per day the farmers will have guaranteed market for their milk and enough to export."
Companies such as Sameer Agriculture and Zimbabwean Dairibord that acquired Alpha Dairy are looking to Comesa markets and the Middle East. Sameer recently introduced powdered milk mainly for export.
Mr Ravi Jaipuria, the chairman of Sameer Group that bought Dairy Corporation and now the leading processor of diary products said about 50,000 farmers are partnering with Sameer all over the country to supply raw milk to the company.
The company has upgraded more than 60 milk collection centres and doubled the network of milk coolers, generators and raw milk transport tankers. But as the industry leaps to this stage, challenges such as packaging and transportation from farms remain a stingy issue to be addressed if players are to gain more leverage in the regional market.
Dr Twinamasiko said fundamentally the industry is targeting to export more than 100 million litres per year by the end of 2008 up from the current 4.8 million litres.
He said the government should strictly target increasing milk production in traditional milk areas of eastern and northern regions.
DDA, the body mandated to develop, regulate and ensure fair competition among players in the dairy industry, receives Shs600million annually only 20 percent of the estimated 3.5 billion budget required, limiting the body's impact on the industry.
A medium and short term strategy has been designed to look at the existing cattle types and encourage the farmers to upgrade their herds through cross breeding and introduction of superior dairy breeds. However, are sceptical saying they have heard so many promises. "Hopes have been but we never get to see the developments," said Mr Eseu Moses a Soroti based dairy farmer.
Mr Eseu said the region has the advantage of growing cereals and therefore the raw materials for cattle feeding are readily available all farmers need is tangible support from government.
In another move to restore standards on the dairy market, DDA is set to close over 40 of the 83 milk outlets deemed unhygienic in the country starting this month.
"Affected outlets are those located less than 15 metres from the road and not furnished with tiles and ventilated with stainless equipment," Dr Twinamasiko said.
|
He said the premises should have sufficient water to maintain the hygiene, refrigeration and owners examined medically.
| |||||||||||||||||||||||||||||
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Copyright © 2008 The Monitor. All rights reserved. Distributed by AllAfrica Global Media (allAfrica.com). To contact the copyright holder directly for corrections -- or for permission to republish or make other authorized use of this material, click here. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Make allAfrica.com your home page | RSS Feed | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Top | Site Guide | Who We Are | Advertising | Search | Subscribe | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
| Questions or Comments? Contact us. Read our Privacy Statement. | |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||
