it’s a deal: Katureebe and William Gatei, the Capital Funds boss, after signing the deal

By David Ssempijja

Uganda has signed a $50m (about sh110b) deal with Kenyan company, Capital Funds, where the firm will fund the country’s dairy sector development programmes.

About 90% of the money will be used to set up two powder and pasteurised milk processing plants and on training farmers in modern farming.

“This is the most important public-private partnership because it will strengthen the agriculture sector through value-addition and agro-processing. These two are key components as the country seeks to transform from subsistence to commercial farming,” said the Dairy Development Authority (DDA) board chairperson, Bernadette Katureebe, at the signing ceremony at the authority offices in Nakasero, Kampala on Wednesday.

She said under the deal, farmers would also be supported with farm inputs and credit.

The partnership will focus on activities related to improving milk production and quality. It will also help farmers enhance their marketing skills, Katureebe added.

While Capital Funds will finance the project, DDA will ensure that farmers are helped to produce the required milk quality and quantity to supply the local and export markets.

“Milk is very susceptible to perish, thus requiring handling with extra care when it is being transported from the farm to the market.

“This is one the biggest challenges faced by our diary farmers, which we intend to address under the agreement,” said the DDA executive director, Dr. Nathan Twinamasiko.

He said according to a study conducted by the authority, Uganda loses sh50b annually as a result of milk spillage, emanating from contamination, lack of markets and transport.

“Currently, we produce about 1.6 billion litres of milk per year or 4.5 million litres per day. But with this investment, the volume will increase to more than 10 million litres per day.”

The recent Uganda Bureau of Statistics livestock census indicates that Uganda has about 11.4 million head of cattle compared to Tanzania’s 33 million and 40 million for Kenya.

The country has a low per capita milk consumption estimated at 50 litres per person per year against 200 litres recommended by the World Food Programme.