19 November 2008
Kampala — Sameer Agricultural and Livestock Limited's (SALL) entrance into the local dairy industry will go a long way towards helping Uganda catch up to its neighbours in milk production.
SALL is a joint venture between Sameer Group of Kenya and RJ Corporation of India. In 2006 the firm took over the assets of the state owned Dairy Corporation Ltd.
Since taking over, raw milk collection has increased to 120,000 litres from 50,000 per day with a monthly income of sh1.4b up from sh330m to dairy farmers, according to SALL. There are plans to increase these collections from local farmers even more dramatically.
"Our projection is that within the next 6 months raw milk collection will jump to 300,000 litres per day as compared to the current 120, 000 litres. We are confident that in the near future there will be more than enough milk for both the milk powder plant and the liquid milk plant," said Anand. Gaggar, the SALL managing director.
The recently commissioned $15m milk powder plant will account for a lot of this new milk. The plant will process 250,000 litres of milk daily to produce over 20 tonnes of milk powder per day rendering ready market for dairy farmers.
SALL projects that the milk powder processing plant will push up dairy exports by 60% and generate up to $40m annually.
Benefits to the farmers
In a bid to boost milk production and add value to milk from producers, Sameer has started empowering some of the smallholder farmers, who are supplying them with milk.
The country's national herd is estimated to be 6.3 million cattle which is predominantly indigenous with about 5% crosses and exotic breeds.
Despite these large numbers, Uganda still has a low per capita milk consumption estimated at 50 litres per person per year compared to the FAO recommended 200 litres annually.
Gaggar said the firm has partnered with nearly 50, 000 farmers allover the country, upgrading over 60 milk collection facilities and doubled the network of milk coolers, generators and raw milk transport tankers.
He said the firm has distributed 63 milk cooling tanks and 63 generators to 63 Milk Collection Centres in the south western districts of Mbarara, Bushenyi, Ntungamo, Kabarole and Rukungiri, says the managing director.
The coolers have a capacity of between 2 000 and 5 000 litres each and Sameer keeps on managing the equipment as it provides technicians and engineers who keep on checking on them.
"With the expanded milk processing capacity of over 400, 000 litres per day the farmers are guaranteed of a market for their milk," he said.
"Unlike in the past when farmers resorted to selling off their cattle due to lack of market for milk more and more farmers have started to improve on their herd and shifting from beef to dairy cattle keeping."
The managing director elaborated that SALL has also ensured that farmers are paid promptly and regularly for their milk.
"We are mainly focusing on the areas that we operate in. These districts have well organised milk bulking groups which are being run by democratically elected representatives," he says.
He said this has managed to rekindle farmers' confidence and motivation to produce more milk to meet Sameer's targets.
"Besides growing milk collection, SALL is injecting on average sh1.4b up from sh330m to the dairy farmers," said Gaggar.
To build capacity the ensure milk supply is maintained and pushed up, SALL is engaging in offering regular trainings on milk collection and testing for clean milk production.
"SALL is soon launching farmers education programmes with field education services to educate them on various aspects like animal health, disease control, animal feeding and nutrition, dairy animal breeding," he pointed out.
"We also offer interest free loans from our own funds as well as arranging credit from commercial banks to enable farmers buy equipment, transport vehicles in order to expand their business."
Uganda is strategically positioned within the COMESA region and has a combination of rich soils and a favourable climatic condition.
These are the most important factor in any country's ability to produce high quality milk.
Milk production in Uganda is estimated at about more than 1.2 billion litres per year. Smallholder farmers account for about 90% of the production with animals ranging from one to 40.
Production in neigbouring Kenya and Tanzania stands at 1.4 and 1.42 billion liters respectively, according to the most recent figures.
Apart from the Uganda Market, Sameer is looking at the regional market as well. Exports have started to go to the north and southern Sudan and the Middle East.
He said the company is already exporting milk products to Kenya, Tanzania, Rwanda, Mauritius and Southern Sudan.
SALL'S product range now stands at skimmed milk powder, full cream milk powder, pasteurised milk, plain and flavoured yoghurt, plain and flavoured UHT milk in tetra bricks and low fat UHT milk also in tetra brick.
Other products include UHT milk in tetra fino (pillow type), ghee, butter and fresh cream and machines have been ordered to add ice cream to the product range.
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