Kiruhura- Rushere-based
dairy company - Vital-Tomosi - the producers of Milkman yoghurt, has
asked government to protect them against local competition, especially
against well-established companies.
Speaking at the
commissioning of the company’s dairy plant in Rushere, Kiruhura
District, Mr Odrek Rwabwogo, a partner in Vital-Tomosi, said government
must put in place a policy, which ensures productive capabilities of new
entrepreneurs are not constrained.
“The cost of
infrastructure [and] supplies to this plant … is coming from at least
four hours away. So you have a high cost of entry and then you have to
compete with someone who has 100 years in the market. It is extremely
important that a plant like this that does 100,000 litres of milk from
farmers gets some … protection,” he said.
Mr Rwabwogo said they had invested about $15m in the plant, 60 per cent of which was from private equity.
According
to Dairy Development Authority (DDA), Uganda currently produces 2.2
billion litres of milk, mainly from the central and western regions,
which account for about 50 per cent of national production.
Uganda,
according to DDA, currently has a milk per capita consumption of 62
litres, which has grown from 25 litres in 1986. Much of this, which
represents 85 per cent, according to available data, is consumed in raw
form representing about $100m in real value. Fifteen per cent, which
represents $160m is processed.
Over the years, Uganda
has seen tremendous growth in dairy processing. However, this has
created stiff competition, creating a challenge for some dealers.
The growth has also, according to farmers seen an improvement in farm-gate prices, which has improved livelihoods.
“Factories help us a lot. They have broken the monopoly. We see a difference in prices now. A few years ago, a litre would never go beyond Shs600 but now it is Shs800,” Mr Moses Musimenta, a herdsman said.
“Factories help us a lot. They have broken the monopoly. We see a difference in prices now. A few years ago, a litre would never go beyond Shs600 but now it is Shs800,” Mr Moses Musimenta, a herdsman said.
ekamukama@ug.nationmedia.com
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