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Dairy Farmers Stuck with Over 150,000 Liters of Milk

by Uganda Times

Wilson Bagatuzire, a farmer in Kashari says he is worried of where to take his milk because Pearl Dairies, which used to buy the bulk of the milk, closed yet cooperatives cannot consume what they produce.

Dairy Farmers in Mbarara and Kiruhura districts are stuck with over 150,000 liters of milk following the closure of the biggest Milk processing plants in the area. Pearl Dairies stopped buying milk three days ago while Amos Dairies stopped a week ago.    

The closure of the two biggest milk processors has taken a huge toll on dairy farmers. James Rwamunahe, a manager at a milk collecting center in Biharwe trading center, says they collect over 15,000 liters each but only sell 5000 liters leaving a balance of 10,000 liters.

He says the whole of Kashari A collects over 30,000 liters but only 15,000 liters are taken by Abesigana Farmers Dairy Cooperative society leaving a balance of 15,000 liters.

  Vernacular audio

//Cue in: “niturundana haihi liter…           

Cue out: …emitwaro nka eshatu.”//

 Wilson Bagatuzire, a farmer in Kashari says he is worried of where to take his milk because Pearl Dairies, which used to buy the bulk of the milk, closed yet cooperatives cannot consume what they produce.  

//Cue in: Omu hindi obeire…       

Cue out: …ahansi shilling bishatu.”//

David Rwancumi, a Dairy farmer in Kiruhura district, says due to lack of market a liter of milk has dropped between Shillings 700 and 800 to Shillings 300. 

He also notes that the few cooperatives buying milks don’t give them chance to negotiate for better prices.  

Alex Mubagizi, the Igongo Farm Manager says a liter of milk now costs between Shillings 100 and Shillings 300 s down from between Shillings 700 and Shillings 800.   

//Cue in: “aha dairy itwe…       

Cue out: …bakahikaho ahari 600.”//

  Much as milk farm gate prices are low, a liter of milk in Mbarara business center costs between Shillings 1000 and Shillings 1200. Asaph Nagaba owns a cooler at Fresh Milk Suppliers on Bulemba Road in Mbarara town. 

He says the closure of the milk plant doesn’t mean that they should reduce prices because they also have expenses to cover.  

“We cannot reduce our prices just because the Indian has closed, we have other expenses like Transport, taxes, polythene bags for packing and other things so we keep our prices high but not exorbitant,” he said.    

Nathan Bahuku, a farmer in Biharwe has appealed to government to come up with a strategy of finding market for their milk to save them from loses.    

 //Cue in: “Nitushaba gavumenti ngu…    

Cue out: …nikyo tukushaba gavumenti

Our reporter was denied access to Pearl Dairies. However, a source told URN that the factory has laid off three quarters of its workers since it closed on grounds that they no longer export milk to Kenya.    

Pearl Dairies are the producers of Lato Milk products. 

The company has been consuming over 300,000 liters per of milk each day collected from Kiruhura, Lyatonde and Mbarara districts.  Late last year, the then State Minister for Animal Husbandry, Joy Kabatsi asked farmers to start cooperative societies to help them negotiate milk prices and find market for their products. 

Story by Edson Kinene

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