dairy farming business plan in uganda

AGDI dairy farm in Uganda champions farming as a business

AGDI Dairy Farm is one of the three farms that have been identified to pilot the Practical Dairy Training Farming approach. Established in 2010 by retired Colonel Dick Buyingo and his wife Agnes, the farm has become synonymous with excellence, winning two prestigious awards in 2014 (Dairy Development Authority: Premium Award National Large Scale Dairy Farmer and New Vision: Best Farmer South Western Uganda). Dick Buyingo shares his vision and what continues to drive him in the interview below:

What drove you to abandon traditional pastoral cattle keeping and adopt commercial dairy farming?

I began contemplating farming when my retirement from the army became eminent. Having worked in the army for 23 years, I had only two options for retirement: look for a job and continue working for someone or work for myself. In deciding to work for myself I also found that I had two options: stay in the urban centre and sell airtime or move back to the village and explore the immense untapped opportunities. I chose to move back to the village and use my land to make money. I started with what I knew and had grown up doing- looking after our ankole cattle. I soon realised that having 600 herds of ankole cattle was not as prestigious as I was made to think. The cows were not as productive and yet I still needed a significant number of staff to look after my cattle. My expenses were too much for me to manage. I decided to venture into beef farming with Boran bulls. I sold all the 600 ankole cattle that I had and bought 300 Boran bulls for beef. Beef farming soon lost its glitter and I was faced with the stark realisation that I had taken on a project that demanded more resources than I had. I needed more land which I didn’t have. That was the turning point for me. It also taught me one of many lessons that I have learnt about business. As an entrepreneur, you have to be able to make tough decisions and stick with them.

In 2010, we procured the services of a professional business analyst – Dr. Florence Kasirye - who helped us develop a five-year business plan for commercial dairy farming. In a period of one month I sold all the 300 Boran bulls and bought 150 Friesian cows which I personally selected. That is when AGDI Dairy Farm was born and I have never looked back.

100 of my heifers were 5 months in-calf and within a period of 5 months I was getting 400 litres of milk. That was productivity. I got rid of 50 cows and stayed with 100. This taught me my second lesson about business: profit is not in quantity but in quality. Our local cows are bad for business because they are not productive and without productivity you cannot make profit.

Why have you chosen to partner with SNV to host a Practical Dairy Training Farm?

My mission is transformation and sustainability of dairy farming in my community. When you find a like-minded partner like SNV, that’s a partner worth partnering with. One of SNV's goals is to increase productivity which is my yard stick. You see, even if the price of milk goes down, if your cows are giving you twice the amount of milk the average cows produce, you still make a profit. To increase productivity, we must adopt commercial farming and invest in feeding our cows. Not only should we encourage communities to adopt commercial dairy farming, we must also ensure the sustainability of our farms by involving the youth. Successful businesses are those that outlive their founders. To involve the youth, we have to involve the women because they have a great influence on their children. These are principles that SNV is championing in The Inclusive Dairy Enterprise project.

There is a revolution taking place in the Western part of Uganda. Farmers are increasingly buying heifers and looking for technical support with feeding and livestock management. All that we have to do is teach farmers how to effectively utilise their land to improve their dairy production and productivity. This gives me confidence in the work that we are doing with SNV.

For more about SNV’s work in Uganda, visit www.snv.org/country/uganda .

Photo: Rinus van Klinken, SNV Project Manager for TIDE, and Dorah Egunyu, SNV Communications Officer, chat with Colonel Dick Buyingo.

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The dairy industry in Uganda offers glimmer of hope for the country’s food industry

Mar 16, 2021

Since we last ran a profile of the dairy industry in Uganda in 2015, a lot has changed in the sector, as country continues to attract new investments and the sector becomes more sophisticated, to meet increasing demand for dairy products in the country, region and internationally.

From its lush green fields, abundant rainfall and fertile soils, Uganda has made long strides in its food security journey over the last nearly four decades, since peace was restored in the East African country, following more than 20 years of instability and stagnation in economic and agricultural development.

In the recent past, apart from the booming coffee sector, the dairy sector has stood out for its ascent from the embers of the violence and chaos that was the hallmark of Uganda since it gained its independence from Britain in 1962 – that decimated the country’s vast potential as a leading source of agricultural produce, from fruits and vegetables, coffee, tea, grains, milk, meat, fish and legumes and many more.

Dairy sector thrives

The dairy sector in Uganda is one of the most important sectors in the country’s quest to boost the economy and its food and nutrition security – especially considering that Uganda has one of the youngest populations in Africa and the World, with a median age of 17 years. With a fast growing population that is growing at 3.32% per annum and which is more than 45 million in early 2020, Uganda’s demographic figures point to a country that is in need of a food and agro industry to feed its rapidly urbanizing population, which currently makes up just 26% of its total numbers.

According to the Dairy Development Authority (DDA), the regulator of the sector, the country has seen the production volume of milk rise from 400 million litres in 1986 to 2.51 billion litres in 2018, and further to 2.7 billion litres by the end of 2019. The DDA further adds that the value of marketed milk increased from US$784 million in 2017 to US$850 million in 2018.

The sector has also increasingly become an important contributor to foreign exchange for the country, helping it on its balance of trade – the only country in East Africa to have a positive balance of trade in milk products. The authority reports that dairy exports increased from US$50 million in 2015 to about US$131.5 million in 2018, and $135.9 million in 2019, while imports stood at about US$5 million in 2018.

The Minister of Agriculture Animal Industry and Fisheries (MAAIF) reports that the country’s large, medium, small scale and cottage dairy processing plants numbered 120 in 2017/18 with total processing capacity of 2.72 million litres, which rose marginally to 135 in 2019 with a processing capacity of 2.8 million litres a day, with the increment largely attributed to increased investments in cottage dairy processors across the country.

According to the Ministry, the main products exported by Uganda’s dairy companies include casein, whey proteins, UHT and milk powder that are mainly exported to Eastern Africa, the COMESA and SADC trade blocks, UAE, Nigeria, Syria, Japan, Oman, USA, Nepal and Bangladesh.

“With the opening up of new markets, farmers in Uganda have been provided with a bigger outlet for their milk and this creates more opportunities for them.” Bijoy Varghese, the Pearl Dairy Farms General Manager Tweet

The future prospects for further growth in milk exports from Uganda, especially to its most important export market in the region, Kenya, was dealt a blow when Kenya formulated restrictive conditions in early 2020, that basically stopped any milk exports into the country from Uganda in order to protect its own industry that had been inundated with cheaper milk products. This put paid to Uganda’s erstwhile booming exports into Kenya that was at one time said to have hit 110 million litres by the third quarter of 2019.

With a booming industry, the sector faces a challenging future, as new investments rise in the sector, while consumption lags below the booming milk production in the country. DDA figures show that the country’s milk per capita consumption hit 63 litres in 2018, way below the recommended quantities by the World Health Organization. The regulator says that it continues to prioritize milk consumption campaigns in an effort to have every Ugandan consume at least 200 litres of milk annually, per the WHO.

Investments thrive

According to the DDA, Uganda offers a compelling case for new investments and product diversification for local, regional and international markets, better than any other country in Eastern Africa due to the increasing quantities of milk and the opportunity to export milk products into potential markets in the EAC and COMESA, to which the country is a member, and into Southern and Western Africa and internationally.

The authority reveals that the substantial increase in milk production and productivity in the country are calling for more investments in cold chain infrastructure, milk collection and bulking centres, milk transportation and processing facilities to reduce post-harvest losses and boost incomes and economy of the country. With about 80% of the total milk produced marketed but only 33 % of the marketed milk processed into value added products, the DDA is seeking investors to pump in the cash to improve this figure to at least 50% – and the investments are flowing in.

Following the liberalization of the dairy sector, which began with the privatisation of the once government-owned monopoly Uganda Dairy Corporation in 2004, when Agriculture & Livestock bought a stake in the dairy processor, the dairy industry in Uganda has seen frenetic growth, with the decade starting 2010 being the most dramatic. Over the space of only a decade, Uganda came from a country dependent on imported milk from mainly Kenya, to a surplus, as the decade ushered in a surge in local, regional and international players into the sector.

Most of the leading dairy companies in Uganda – including Pearl (of the Lato brand), Jesa, Brookside Uganda, Amos, GBK, Paramount, Lakeside and Vital Tomosi have been in existence for less than 10 years, and yet they continue to invest aggressively to improve capacity and boost efficiencies. 

The dairy sector has seen two key entrants in the last few years, with leading Kenyan dairy Brookside acquiring the stake previously held by Sameer Agriculture and Livestock to create Brookside Uganda and Vital Tomosi, which produces the Milkman brand and is a joint venture by the founding Tomosi family and the Vital Capital Fund, a US$350 million private equity fund that makes impact investments in developing nations, primarily in Sub-Saharan Africa.

Two major players, Amos dairies, which processes more than 300,000 litres of milk per day to produce high value casein for the export market and Pearl Dairy, with a capacity of 800,000 litres per day, and which produces milk powder, yoghurt, butter, ghee and UHT milk, have revolutionised the dairy sector in Uganda, and have been largely responsible for the surge in export volumes into the regional and international markets.

And it is not only the Vital Capital Fund that has invested in the sector. The Rise Fund, a global impact investment fund managed by American private equity firm, TPG Capital acquired a reported 34% stake in Pearl Dairy in 2019 to enable the dairy processor expand and enhance its operations, in addition to an earlier investment by the IFC in the firm. Jesa Dairy, one of the pioneer dairy processors in the country, is building a new, bigger 2,700m2 plant that will be ready in 2021 near Kampala, to boost its production capacity.

As older players continue to invest in the sector, smaller ones including the likes of Rainbow Industries, GBK Dairy, Kooky Enterprises, Paramount Dairies, Mama Omulungi Dairy Limited and scores of others are also contributing to the country’s quest to be self reliant and to supply the regional markets with its milk products.

Product innovations intensify

As investments surge, the pace of new product innovations has also increased in tandem, to meet changing consumer needs and aspirations.

In the fermented milk category, the Ugandan consumer was very comfortable with traditionally fermented milk packaged in loose plastic bags for a long time, but this is changing, albeit slowly. Flavoured and fruit yoghurt variants, with the latest cup packaging and branding are increasingly hogging the shelves in the country’s informal and formal retail shops as consumer wants and experiences move up the scale. 

Brookside Uganda, Jesa, Vital Tomosi and Pearl Dairy are leading the charge, introducing an array of flavor options that the Ugandan consumer was used to finding in Kenyan shelves, whenever they travelled to their neighbouring country. 

In the packaged milk category, UHT milk products have increasingly become the norm, considering the huge infrastructural challenges and the need to access markets far away from the processing plants within the country and in the regional markets of Eastern Africa. Higher value products such as cheese and ice cream, although increasing in popularity, are still small in comparison with packaged milk and fermented products. 

However, Uganda’s dairy sector is a leader in the milk powder and casein production, with Amos Dairy and Pearl Dairy producing vast quantities per year for regional, and importantly, international markets.

Export markets key to future

The dairy industry in Uganda has undergone one of the fastest transformations that the food industry in Eastern Africa has ever witnessed – and the future can only get better, but the lack of adequate local market for its vast potential is standing on the way of the sector’s continued growth.

Talking at the end of the hotly contested presidential elections that were held in early 2021 on the status of the economy, the country’s President Kaguta Museveni decried the lack of adequate purchasing power in Uganda, citing the dairy sector as one that could do better if more Ugandans were capable of spending more on the purchasing of processed milk. In this regard, the regional markets within the East African community, including Kenya, where milk production can barely meet demand and consumer prices are high, are the best options if Uganda is to boost milk processing and consumption – in addition to international markets.

The country’s leading dairy operator Pearl Dairy has taken the initiative to broaden its markets following the passing of the Africa Continental Free Trade Area (AfCFTA) agreement, which is in force across the Continent. The company in August 2020 announced the expansion of its yoghurt and milk powder products into the markets of Ethiopia, Malawi and South Sudan, following the ratification of the trade deal, the biggest and most comprehensive in Africa’s trade history – expanding its markets into eight countries, with Algeria the next in line on its potential markets in Africa.

“With the opening up of new markets, farmers in Uganda have been provided with a bigger outlet for their milk and this creates more opportunities for them. This expansion presents a great boost to the entire dairy value chain in Uganda considering the current situation in the sector,” said Bijoy Varghese, the Pearl Dairy Farms General Manager. 

“With a strong backward integration program, based out of Mbarara, we are aligning with more and more farmers to fulfill the current and future demand. These opportunities will lead to the creation of jobs and better the livelihoods of the local farmers due to increased demand in exports,” Varghese added.

As milk production in Uganda is forecasted to continue to increase, following initiatives such as Pearl Dairy Farmers Project, undertaken in partenership with the IFC to boost dairy production in Uganda; plus the rapid commercialization of farming in the country’s main milk belt in the western region. East Africa’s largest dairy exporter is at the forefront of revolutionizing the milk sector in Africa and beyond in the near future.

This feature appeared in the January/February 2021 issue of Food Business Africa. You can read the magazine  HERE

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AGDI dairy farm in Uganda champions farming business

AGDI Dairy Farm is one of the three farms that have been identified to pilot the Practical Dairy Training Farming approach. Established in 2010 by retired Colonel Dick Buyingo and his wife Agnes, the farm has become synonymous with excellence, winning two prestigious awards in 2014 (Dairy Development Authority: Premium Award National Large Scale Dairy Farmer and New Vision: Best Farmer South Western Uganda). Dick Buyingo shares his vision and what continues to drive him in the interview below:

What drove you to abandon traditional pastoral cattle keeping and adopt commercial dairy farming?

I began contemplating farming when my retirement from the army became eminent. Having worked in the army for 23 years, I had only two options for retirement: look for a job and continue working for someone or work for myself. In deciding to work for myself I also found that I had two options: stay in the urban centre and sell airtime or move back to the village and explore the immense untapped opportunities. I chose to move back to the village and use my land to make money. I started with what I knew and had grown up doing- looking after our ankole cattle. I soon realised that having 600 herds of ankole cattle was not as prestigious as I was made to think. The cows were not as productive and yet I still needed a significant number of staff to look after my cattle. My expenses were too much for me to manage. I decided to venture into beef farming with Boran bulls. I sold all the 600 ankole cattle that I had and bought 300 Boran bulls for beef. Beef farming soon lost its glitter and I was faced with the stark realisation that I had taken on a project that demanded more resources than I had. I needed more land which I didn’t have. That was the turning point for me. It also taught me one of many lessons that I have learnt about business. As an entrepreneur, you have to be able to make tough decisions and stick with them.

In 2010, we procured the services of a professional business analyst – Dr. Florence Kasirye – who helped us develop a five-year business plan for commercial dairy farming. In a period of one month I sold all the 300 Boran bulls and bought 150 Friesian cows which I personally selected. That is when AGDI Dairy Farm was born and I have never looked back.

100 of my heifers were 5 months in-calf and within a period of 5 months I was getting 400 litres of milk. That was productivity. I got rid of 50 cows and stayed with 100. This taught me my second lesson about business: profit is not in quantity but in quality. Our local cows are bad for business because they are not productive and without productivity you cannot make profit.

Why have you chosen to partner with SNV to host a Practical Dairy Training Farm?

My mission is transformation and sustainability of dairy farming in my community. When you find a like-minded partner like SNV, that’s a partner worth partnering with. One of SNV’s goals is to increase productivity which is my yard stick. You see, even if the price of milk goes down, if your cows are giving you twice the amount of milk the average cows produce, you still make a profit. To increase productivity, we must adopt commercial farming and invest in feeding our cows. Not only should we encourage communities to adopt commercial dairy farming, we must also ensure the sustainability of our farms by involving the youth. Successful businesses are those that outlive their founders. To involve the youth, we have to involve the women because they have a great influence on their children. These are principles that SNV is championing in The Inclusive Dairy Enterprise project.

There is a revolution taking place in the Western part of Uganda. Farmers are increasingly buying heifers and looking for technical support with feeding and livestock management. All that we have to do is teach farmers how to effectively utilise their land to improve their dairy production and productivity. This gives me confidence in the work that we are doing with SNV.

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Please note you do not have access to teaching notes, investing in the ugandan dairy sector.

Publication date: 17 May 2021

Teaching notes

Learning outcomes.

Industry analysis and market attractiveness: Understand how to analyse an industry, using the dairy sector in Uganda as an example and what makes a market attractive for incumbents or future entrants. Value disciplines: Understand and apply the different value disciplines companies can choose from to achieve market-leading positions. Business integration: Understand some of the key benefits of vertical integration and when it may or may not make sense to integrate. Doing business in Africa: Understand the specific generic challenges of doing business in Africa, particularly in the agricultural and manufacturing sectors. Generalisability of frameworks: Realise that the same frameworks that are used to analyse large firms and mature markets can be applied to smaller firms in less developed markets.

Case overview/synopsis

The case is set in the early months of 2020, as Bernd Schanzenbächer, founder and managing partner of EBG Capital (a Swiss investment firm that manages a multimillion global portfolio of agricultural investments), and his team are deciding whether to invest in a dairy farm in Uganda. The opportunity looks quite interesting and the EBG Capital team believes there is a good fit between the farm owners’ needs, its management team’s objectives and EBG Capital’s strengths and interests. However, the dairy market in Uganda faces many challenges and, while the market-demand fundamentals appear promising, the team wonders if it is the right time to invest. The issue for EBG Capital is to understand what makes the Ugandan dairy industry so challenging and to determine how to fix or mitigate some of the industry’s most pressing problems – given that it will be the firm’s first investment in the country – as well as for deciding where it makes sense to play in the broad value chain (i.e. only in milk production or also in milk processing).

Complexity academic level

Masters in Business Administration and Executive Education courses.

Supplementary materials

Teaching Notes are available for educators only. Please contact your library to gain login details or email [email protected] to request teaching notes.

Subject code

CSS 11: Strategy.

• International business
• International business strategy
• International market entry

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognisable information to protect confidentiality.

Vidal, J.F. (2021), "Investing in the Ugandan dairy sector", , Vol. 11 No. 2. https://doi.org/10.1108/EEMCS-09-2020-0352

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Helping the Ugandan Dairy Sector Achieve its Potential

A joint IFC and GAFSP investment of $8 million in Pearl Dairy will support the expansion of Pearl’s milk processing plant.

About the Project

The dairy sector in Uganda plays a key role as a source of household income and nutrition. Although the industry has maintained an average growth of three percent per year, in addition being actively promoted by the Ugandan government, the sector struggles to work to its full potential.

Dairy production across Uganda is dominated by small-scale farmers living in impoverished rural areas, and it is estimated that only 20 percent of the country’s milk output is processed. Strategic support for the sector will help to improve milk quality and reduce seasonal variability in milk production.

Pearl Dairy has established the second largest milk processing plant in Uganda, with a capacity of 240,000 litres of milk per day, producing mainly milk powder and butter oil. A joint IFC and GAFSP investment of $8 million in Pearl Dairy will support the expansion of Pearl’s milk processing plant. The establishment of milk collection canters and cold-storage infrastructure will help facilitate milk collection from smallholder farmers living in remote locations.

This project will directly improve the livelihoods of more than 10,000 farmers in vulnerable remote rural areas. Farmers will be provided with market access and technical support, and local communities will benefit from an increase in nutritional intake through their consumption of milk and other dairy products.  The project will also generate 150 new direct jobs.

Project Status

Supervising entity

• This joint IFC/GAFSP investment in Pearl Dairy will enhance the livelihood of more than 10,000 farmers in rural areas, improving their livelihood. It will also create 150 new jobs for the local community. 
• By providing market access and technical support, the investment will help integrate farmers into export markets and reduce the current gap between world market prices and those dairy farmers currently receive.
• The project will also contribute to food security by increasing local consumption of milk and other dairy products, thus raising the nutritional intake of the local population. 

Mr. Niraj Shah

Head, GAFSP Private Sector Window

[email protected]

Washington, DC

Tel: 202 473 3743

Summary of Investment Information (SII)

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FAO joins forces with Uganda’s Dairy Development Authority to boost dairy sector

Food and Agriculture Organization of the United Nations (FAO) joins forces with Uganda’s Dairy Development Authority to boost dairy sector. (IMAGE: Courtesy | theKR Media)

KAMPALA: On Thursday, April 14, 2022, the Food and Agriculture Organization of the United Nations (FAO) concluded a round of regional and national policy dialogues with Uganda’s Dairy Development Authority (DDA) and key dairy stakeholders in a push to improve the country’s dairy sector.

Uganda’s dairy sector plays a vital role in household nutrition income levels. It represents 6.5% of the country’s agricultural Gross Domestic Product (GDP). Dairy production is dominated by rural small-scale farmers with varying levels of quality and only around 20% of milk is processed into higher-value products.

According to the DDA, Uganda’s revenue from the export of dairy products has risen sharply, by 63% in three years (2018-2020). Dairy now accounts for 8% of total export value. The time is ripe to help the sector to reach its full potential.

In Uganda, the AgrInvest initiative of the Food and Agriculture Organization of the United Nations (FAO) and the European Union uses public funding to attract sustainable private investments and support improvements in key agrifood sectors such as dairy.

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During the regional meetings, held in Mbarara and Wakiso, FAO officials presented the results of four economic and policy studies that highlight a range of issues in the dairy value chain.

“The AgrInvest Project in Uganda supports existing Policy Dialogue Platforms, or at least platforms in the making, in partnership with key stakeholders. These platforms enable public and private dairy value chain stakeholders to strengthen their voice, articulate their investment needs and take the advantage of economies of scale by working together. Such collective action can boost the commercial dairy sector,” said Martin Maugustini, AgrInvest Uganda Project Coordinator.

“These dialogue platforms also aim to identify possible investment opportunities for investors, such as the Ugandan Development Bank (UDB) with whom AgrInvest is partnering with,” he added.

The studies included analyses on price incentives for milk producers and traders, on the performance of the Milk Collection Centres (MCC), on post-harvest loss in the milk and dairy sector, and on domestic dairy consumption in Uganda.

In the East African Community, Uganda ranks third in milk consumption, behind Kenya and the United Republic of Tanzania, with each Ugandan consuming 64 litres per year on average. In comparison, the recommended intake by World Health Organization and FAO is around 200 litres.

“Milk is a vital source of nutrition and many Ugandan farming households get their income from the sale of milk and dairy products. Through this package of policy studies, stakeholder dialogues and the action plan devised today, Uganda has access to strong evidence on the reforms the dairy value chain needs and the strategic targets for future investments,” said Thibault Meilland, Economist and Policy Advisor with the FAO Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme.

“This will ultimately make milk producers better off with higher incomes, better milk-handling practices along the value chain, and better-quality milk and dairy products for local consumers and export markets,” he added.

On milk prices, FAO economists found that the current effects of trade and market policies have led to milk producers earning prices around 7% below international equivalents since 2013, but down from around 50% less in 2005.

Nevertheless, dairy farmers were penalised by excessive market access costs – 40% of producer prices – such as transport, informal fees and high-profit margins by traders. Improving transport infrastructure and logistics services, diversifying export opportunities and promoting cooperatives are a few policy recommendations shared.

In Uganda, the 475 MCCs play a key role in integrating resource-poor milk producers into the commercial dairy value chain. The study identifies various bottlenecks such as limited access to clean water supply in rural areas, low access to stable energy supply for milk processing, morning only deliveries, better financial management systems, high operating costs, and underuse of cooling systems.

Post-harvest losses of milk were most likely to occur at the level of MCCs, followed by at the farm. Several recommendations to curb milk loss include increasing investment in technology and best practices for milk handling, storage and transportation, as well as better enforcement of the regulatory framework to improve milk quality, which would supply the currently under-utilized domestic processing capacity and boost the potential of an already dynamic export-oriented dairy production system.

“The recommendations from the dialogue will help all the value chain actors to address some of their challenges but also provide an avenue for developing a policy action work plan that addresses issues of price incentives, low milk consumption, post-harvest loses, milk collection centres among others,” said DDA’s Principal Planning Officer – Okital Kenneth.

The next steps, in the form of a policy action plan for dairy devised during the meeting in Kampala, will help the Ugandan Dairy Development Authority and financial institutions such as the UDB to enlarge their agricultural loan portfolio with targeted reforms and investment in the promising dairy sector.

About AgrInvest The FAO-supported AgrInvest Project in Uganda, funded by the European Union, aims to increase private investments in the country’s agriculture and agribusiness sectors through an enhanced capacity of the Uganda Development Bank (UDB) as well as the public-private policy dialogue. AgrInvest aims to:

> de-risk UDB agricultural lending > enhance UDB portfolio in terms of quality and scope > make some of UDB operations and processes more efficient and > enhance the policy environment to enable responsible private investments in agriculture and agribusiness.

In this context, the AgrInvest initiative aims to help UDB in de-risking value chain (VC) investments through policy dialogue. UDB relevant staff are involved in policy dialogue, which will serve as hands-on training for improved understanding of agricultural issues and enhance agricultural investment.

About the MAFAP Programme The Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme is a leading policy support initiative at FAO that works with countries in Africa to strategically prioritize, reform and implement policies on food and agriculture. By monitoring and analysing public budgets and trade and market policies, MAFAP guides governments to repurpose their agricultural support to accelerate the transformation of agrifood systems. It also collaborates with policymakers to identify priorities for policy and investment reforms in key commodity value chains, and supports with implementating policy changes so that agrifood systems can deliver affordable healthy diets to all and inclusive markets for farmers. MAFAP is one of AgrInvest’s key implementation partner in Uganda.

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• Dairy Development Authority

Have More Than 25+ Years

Dairy Development Authority (DDA) is a semi-autonomous agency under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF). It was established by an Act of Parliament, the Dairy Industry Act, 1998 to develop and regulate the dairy industry in Uganda.

Mr. Akankiza Samson Mpiira

Mandate of dda.

“To provide development and regulatory services that will ensure increased production and consumption of milk, sustainable and profitable dairy industry sector that will contribute to economic development and improved nutritional standards in Uganda.”

Dairy for Improved Health and Prosperity of Ugandans.

“To Increase productivity and competitiveness of the Dairy Sector enhancing its contribution to population health and wealth of all Ugandans.”

To enhance dairy value addition and quality for increased market competitiveness.

what dda offers to the public

Capacity building.

DDA provides training and skills development for dairy stakeholders along the dairy value chain to enhance production and productivity.

Value Addition

DDA promotes value addition in the dairy subsector, teaching skills like yogurt production, cheese making, and product packaging, aiming to reduce post-harvest losses and increase incomes.

Pasture Production and Fodder Conservation

DDA distributes improved pasture seeds and seedlings to dairy farmers and promotes fodder conservation.

Milk Consumption Promotion

DDA encourages milk consumption through initiatives like the school milk program and World June Dairy Month celebrations.

Mass Milk Consumption Campaigns

DDA leads campaigns like June Dairy Month to promote milk consumption, focusing on quality milk production for improved nutrition and income.

Milk Marketing and Reducing Losses

DDA addresses post-harvest losses and milk quality by improving transportation, rehabilitating milk collection centers, and providing food-grade utensils

The 10 Duties of DDA

Our journey.

DDA established

This was by Act of Parliament, the Dairy Industry Act, 1998 to develop and regulate the dairy industry in Uganda.

OPERATIONS BEGIN

Operations of the Dairy Development Authority began in June 2000.

African Dairy Conference

Held the African Dairy Conference and Exhibition is the hallmark of the ESADA activities.

Frequently Asked Questions

What does dda stand for.

DDA stands for Dairy Development Authority

Does DDA offer testing services?

Yes. DDA tests milk and milk products following the Uganda standard guidelines. All milk products in the country are tested for quality and safety by the DDA Laboratories across the country The National Dairy Laboratory coordinates all milk and milk product tests in line with International Standard Organization (ISO) guidelines. The testing services are open to the public, processors, traders, transporters, regulators, exporters and importers.

What are the different milk products on the market?

There are a wide range of milk products from processors on the Ugandan market. They include; • Pasteurized milk • UHT milk • Yoghurt • Ice cream • Cheese • Ghee • Butter

Does DDA give improved dairy breeds to farmers?

No, DDA does not give farmers improved dairy breeds, but creates linkages to the service providers.

How can one access genuine milk cans at friendly prices?

It is easier to access milk equipment and other farm inputs such as veterinary drugs if the farmers are well organized in farmer groups. DDA would then be able to source for a reputable supplier of the required farm inputs and link the supplier.It is easier to access milk equipment and other farm inputs such as veterinary drugs if the farmers are well organized in farmer groups. DDA would then be able to source for a reputable supplier of the required farm inputs and link the supplier.

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FAO strengthens support to Uganda’s dairy sector

By David Mwanje

According to Pml dairy, the Food and Agriculture Organization of the United Nations (FAO) announced a new collaboration with the Dairy Development Authority (DDA) to boost exports of Ugandan milk and dairy products and assess potential new markets, as part of the country’s ongoing efforts to strengthen the dairy sector.

Under Uganda’s new Dairy Policy Action Plan – a multi-year framework to consolidate and grow the dairy sector – one of the objectives set by DDA is to increase demand for Ugandan milk both at home and abroad. In that regard, the new export competitiveness study announced today will analyze trade flows in the dairy sector over recent years, identify dairy products and dairy by-products with export potential, and assess Uganda’s comparative advantage relative to its competitors.

This comprehensive assessment, led by the FAO Monitoring and Analysing Food and Agricultural Policies (MAFAP) programme, FAO AgrInvest, and the International Growth Centre (IGC) in Uganda and in collaboration with DDA, will also identify the most dynamic export markets and recommended policy interventions and investments to position Uganda as a competitive milk and dairy supplier.

“On World Milk Day we are pleased to announce our latest FAO support to Uganda, this time on milk exports. Knowing how competitive Ugandan milk is for international markets is the first step to boosting dairy exports, which is needed more so than ever. With that and the measures and investments in the Dairy Policy Action Plan, the dairy sector is set up for transformation for better production and better nutrition, leaving no one behind”, said Marco V. Sánchez, Deputy Director of Agrifood Economics at FAO.

DDA’s Dairy Policy Action Plan, which came into effect last year, outlines a number of measures to be taken to boost consumption, incentivize production, improve quality and tap into the export potential. These include enhancing infrastructure, curbing waste and loss along the supply chain, enhancing operations at milk collection centres and processing facilities across the country, improving the overall quality and shelf-life of milk and meeting food-safety standards for exports. Growing demand for milk can also help incentivize investment throughout the dairy value chain – from production to upstream and downstream operations –, which would also bring higher productivity gains, year-round supplies, and better quality.

”Milk plays a very important role in Uganda, not just economically for the millions of households, but also provides a core foundation for proper childhood growth and health. As DDA we are putting a major emphasis on increasing milk consumption domestically through the School Milk Program, and also expanding our export market portfolio for increased foreign exchange that translates to more earnings for our farmers. The dairy export competitiveness study is timely to re-enforce our quest for additional export markets for our milk. We are grateful for the efforts and collaboration with FAO in ensuring the growth of our dairy sector,’ said Samson Akankiza, the Acting Executive Director at Dairy Development Authority.

These efforts to further strengthen the dairy sector come at a time when raw milk production has surged from 1.9 billion litres in 2014 to 3.2 billion litres in 2022. Whereas exports, although on the increase in recent years, remain overly dependent on demand from key East African export markets, including neighbouring Kenya.

Moreover, the DDA estimates that domestic household consumption of milk stands at just over a half litre (550 millilitres) a day. This is 68% less than the dietary intake recommended by FAO and WHO, meaning Ugandans consume their recommended milk intake for about 2 out of the 7 days in a week.

FAO Representative in Uganda Antonio Querido said, “We are proud to announce our collaboration with the Dairy Development Authority (DDA) to boost exports of Ugandan milk and dairy products, which will contribute to the ongoing efforts to strengthen Uganda’s dairy sector.”

“As we celebrate World Milk Day, FAO is committed to supporting Uganda in its efforts to improve the livelihoods of dairy farmers and traders, and boost exports of high-quality Ugandan milk and dairy products”, Querido added.

To help achieve this target and transformation, Querido pledged FAO’s continued support to the DDA, to build on the successes of previous efforts while at the same time contributing to the development of the country’s dairy sector.

Since 2022, FAO’s MAFAP programme and AgrInvest have supported the DDA to organize several national and regional dialogues to engage with dairy-sector stakeholders, take stock of existing challenges, identify priority policy interventions and investments, and come up with concrete recommendations, which culminated into the Dairy Policy Action Plan adopted in August of last year.

Prior to the policy dialogues, MAFAP and AgrInvest provided policy evidence to DDA on milk price incentives – an assessment of the effects of policies and market factors on the prices received by milk famers and traders in Uganda to determine if they are encouraged to produce and trade milk. The report found that dairy farmers generally received prices below their international equivalents and face fierce competition from informal marketing channels while existing processing facilities have been found to be underutilized, factors which contribute to lower prices fetched by farmers for their produce.

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Dairy Farming Business Plan Guide

Table of contents, for frequently asked dairy farm questions: read here., for green fodder production: read here., for silage making process: read here., dairy farming business plan guide:.

Dairy Farming Business Plan – Introduction to Dairy Farming:- No matter what the season is and no matter what the place is “There is always a great demand for milk” in India. Due to the population increase and consumption of milk tremendously increasing day by day. The rising unemployment and people who are looking for starting a dairy farm in recent years are almost doubled. Milk production in India is expected to grow at about 3 to 4% every year. There are many people who want to get into the small-scale or large-scale dairy farming business. However, due to lack of knowledge and initial investment involved they are unable to set up a dairy unit. We advise you not to get into this dairy business unless you dedicate your effort and time on your farm round the clock. You are not necessarily starting a dairy farm on a commercial scale; you can start on a small-scale business and expand it to a large scale once you are aware of ins and outs of dairy farming.

Before starting a dairy farm, makes sure to follow these:

• Dairy Farming Business Plan #1- However as a beginner, you should definitely get some professional training from Agriculture Universities or Training centers of the Animal Husbandry Department or Krishi Vigyan Kendras or any private training dairy consultancies.
• Dairy Farming Business Plan #2 – Visit local dairy farms and talk to the management so you can get an idea of managing the farm. Always question them about “problems” and ask how they are overcoming them.
• Dairy Farming Business Plan #3 – Read any dairy magazines, online dairy blogs, and YouTube videos to get an overall idea of farming.
• Dairy Farming Business Plan #4 – If you don’t have capital investment and want to get a subsidy and loan the dairy farm, visit your local agriculture/co-operative banks for more information.
• Dairy Farming Business Plan #5 – As feed or fodder is the main component of dairy farming that directly impacts the profits; you must have good knowledge of green fodder cultivation practices and silage-making procedures. You can study the feed and fodder market in your region to find out the feasible and economical fodder solution.
• Dairy Farming Business Plan #6 – Initially, you must visit some cattle markets to observe animals on sale and talk with persons engaged with purchasing animals to get an idea of the best breed, animal prices, and milk yield of animals. You can also learn some negotiation skills.
• Dairy Farming Business Plan #7 – You should learn good labour management skills.

To encourage the rural agriculture sector and increase the milk production as per demand, NABARD (National Bank For Agriculture & Rural Development) helping farmers by providing subsidies on dairy farms and dairy farming loans through approved banks. One can avail of this by visiting your nearest commercial or co-operative or rural agriculture banks. One can get decent profits in dairy farming under good dairy management practices. In the following write-up, let us talk about the “Dairy Farming Business Plan” in detail. Let us take an example of 15 dairy cow farming.

Dairy Farming Business Plan – Requirements of Dairy Farming in India:- There are some components of dairy farming you should be aware of before setting up a dairy farm.

• Land – You must have some cultivated land for growing green fodder crops for your cattle on the farm. The land area depends on the number of animals (cows or buffalo’s). Usually, 2 acres of land is sufficient to feed about 15 cows.
• Shed – There must be a proper and covered secured shed in place before getting cows into your farm.
• Water – Clean and abundant water facility is required for both cattle and to grow the green fodder.
• Fodder – As cows need three types of fodder for best milk yield and high-fat content, you must have good fodder management from growing fodder to feeding fodder on daily basis. Dry fodder, green fodder, and feed concentrate (for extra nutrition) are required to feed the cows in your dairy.
• Breed Selection – Selection of a good breed of cows that yield more milk is essential in dairy farming. Good milk yielding cows such as “Jersy”, “Red Sindhi” “Holstein Friesian (HF cows)”, “Sahiwal”, “Gir”, “Deoni” and “Ongole” etc.
• Labour – Labour is a major task in dairy farming, the selected labour should be very good at handling the farm activities including growing green fodder. It is better to give one or two days of training so that they can understand the routine activities of dairy.
• Vaccinations – To control diseases and protect cow health, you must have a proper vaccination schedule. For this purpose, you can hire a veterinary doctor for routine checkups and medication of cows. For the vaccination schedule, see the vaccination schedule table at the bottom of this article.

Dairy Farming Business Plan – Shed Construction:- Well ventilated and the spacious shed is required for dairy farming. Hygienic conditions are very important in the shed for cattle health. When it comes to space, it is recommended to have 8 feet x 12 feet area for 1 cow. So total space required for 15 cows is about 120 feet x 12 feet. However, this area is not fixed and depends on cow size. Cow feeders should be constructed in between with a separation wall so that the cows can be fed from both sides facing head to head each other; this is what is called a “Head to Head arrangement”.

Care should be taken while constructing the dairy shed. The selected location should be elevated to prevent any water stagnation around the shed and it also provides well ventilation (sunlight and air). The dairy shed roof should be made with asbestos sheets and the floor should be made of either bricks or cement with enough inclination. This can provide good drainage for cattle urine and excrete. The shed should be cleaned daily to maintain hygienic conditions. Collect the manure on daily basis and store it somewhere outside of the shed. You can also make an outlet to the shed so that whenever the shed is cleaned the cow urine any leftover manure can flow into the field. All electrical fittings and water supply requirements should be fully filled as per need in hot areas, it may need to have fans and coolers for cows, especially in summer.

Dairy Farming Business Plan – Fodder Management:- Fodder management is very important in dairy farming. The daily milk yield of a cow depends on the type of fodder and the nutritional facts of the given fodder. High-yielding cows should be given 1 kg of concentrate along with mineral mixture to get 2.5 liters of milk yield. For example, if a cow yields 15 liters of milk daily then these cows should be given 6 kg of concentrate with a mineral mixture.

There are three types of fodder that can be provided under dairy fodder management practices.

• Dry fodder: wheat hay, kutti (rice / pady straw), chokar (wheat bran),
• Green fodder: Any leguminous crops which are good in protein supplements. For example Any gram crop, barseem, maize/corn, masoor, and hybrid grass-like CO-3 and CO-4, niper grass etc.. These green fodder crops can be utilized to make silage. This silage is very nutritious and milk yield will be increased. Silage making is very important and especially it is needed in dry periods. The link will be given at the bottom of the article about “steps in involved in silage making or how to make silage for cattle”. Generally, 2 to 3 acres of fertile land enough to grow green fodders for 15 cows. However, the yield of green fodder depends on many factors.
• Concentrate and Mineral Mixture: Mineral mixture:- It is necessary to provide concentrate feed along with a mineral mixer on regular basis to prevent cows from mineral deficiency. All three types such as dry green and mineral mixture should be accurate proportions for best milk yield.

Note: The cost of feed may depend on the animal milk capacity. On average, the feed may cost about 200 to 250 rupees/day/cow.

Dairy Farming Business Plan – Water Supply:- Clean water supply is required for drinking and cleaning purposes of the shed. Arrangements can be done by providing overhead tanks on the shed.

Dairy Farming Business Plan – Selection of Dairy Breeds:- Successful dairy farming requires a good breed selection of cows. Select the dairy cow/cattle breed that is suitable for your climatic conditions and high milking capacity. You can visit your local farms and can observe the different breed types that are suitable. A crossbreed of HF cows (Holstein Frisian) with Indian Sahiwal. Or Jersey with Sahiwal or Jersey with Red Sindhi is preferable for the good milk yield. It is preferred to select the breed which produces milk of 20 to 25 liters/day. Artificial insemination plays a major role to cross with high-yielding breeds.

Dairy Farming Business Plan – Cow and Calves Management and Care:- Artificial insemination or mating of cows should be carried out after every 3 months (90 days) of calving. Indian cattle breeds take 3 years in reaching the maturity phase whereas high yield  Jersey crossbreed or HF cows reach maturity at 16 to 18 months and they will be ready for mating. In general, for every 13 months, cows should be calving. The lactation period of cows should be 300 days and the service period should be 90-120 days. The gestation period of cows is going to be 266 days. More attention and care are needed in the case of pregnant cows as they need more nutrition during this stage. Concentrate & mineral mixture should be given during the gestation period of cows and this feed intake should be increased as time passes to ensure proper growth of calves and their udder.

Dairy Farming Business Plan – Vaccination Program in Dairy Cow Farming:- Before giving any vaccination in dairy, deworming should be done to get better results. However, deworming should be carried out frequently and the veterinary doctor is your point of contact for this. The following table is the typical vaccination schedule in dairy farming.

Dairy Farming Business Plan – Vaccination Schedule in Dairy Farming:

Dairy Farming Business Plan – Bottom Line:- The above write-up can be assumed for Dairy Farming Business Plan in Tamil Nadu, Karnataka, Kerala, Telangana, Andhra Pradesh, Gujarat, Rajasthan, Punjab, Haryana, West Bengal, Madhya Pradesh, Uttar Pradesh, Bihar, Maharashtra, and other states of India. However, the labour cost, Cow breeds, feed cost, or green fodder production cost and inputs may slightly vary from region to region. You can expect excellent profits with proper dairy management practices, perfect planning, and dedication completely to the farm 24/7.

In case if you are interested in this: Quail Farming Business Plan .

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54 COMMENTS

Hello, my name is Anuj purwar, I am a student. And want to start organic farming with two members team MAYANK SHINHA and rishab pandey. We planned for a loan by the bank and use hydraulic solar panels energy for electricity which help us in earning money because of this electricity were given to our nearly farmers who use petrol, diesel water pump by which we decrease less use of pratrol. We are 17-19 year old and planed for this. We need your support to prove ourselves and promote the organic forming and start online sale of our crops from us to customers directly.

I am not sure about your question. You say solar and talk about Organic.

Read here about : Organic Farming .

Selling electricity to anyone except the government is prohibited in india. Please make sure you are not breaking any law.

GUPTA DAIRY FARM KARNAL Supplying Pure Breed and vaccinated Murrah Buffalo, Sahiwal Breed Cattle, Jersey Cow, Dairy Cow, Cow Heifer, Buffalo Heifer, Australian Cow, American Cow, and other types of Cows and Buffaloes…

We don’t sell any livestock or agriculture produce.

we don’t call or have personal support. You can post comments and get reply.

Respected Concerned person/ / Can you deliver the cows and buffalos throughout india?

Dear sir, I want to open new dairy farm in Jhabua (MadhyaPradesh). I have required 10 Buffalo with good quality and can give 10-15 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc.

regards dinesh bhayal

We don’t sell any cattle/buffaloes.

You must be an adult for eligibility of the loan for dairy farming.

hi i want to set up dairy farm, kindly suggest me the details in pdf, want to do at odisha. if u have, [email protected]

Soon we will introduce farming or agriculture pdf’s to download.

Hello, Can any one suggest the process of dairy loan. I will start dairy farming immediately.

For Dairy farming subsidy and loan, read this: Dairy Farming Subsidy .

You mean for dairy shed construction and design?

Above article is really helping. I have around 7 Bigha land in Kotdwar-Uttarakhand and looking to get in to dairy farm business, Can I expect a professional help from you ? like in Planning the dairy farm, loans and subsidy, good milk yielding cows and buffalo.

Glad the information is helping at least some people. We don’t have personal consulting support at this point in time. However, you talk to NABARD branch in your city for qualified agriculture/farming loans.

Hai, my name is Mohith and I from Telagana state, I want to start Cow farm. Please guide me.

Well, Mohith Dairy farming needs investment, patience and hard work along with dedication. You can not trust the third person in this business as feed management and care is utmost priorities of dairy cow farming. From, NABARD you can get a subsidy and loan for setting up a dairy cow farm. Here is some information which may be helpful: Dairy Farming Subsidy .

Dairy Cow Farming Project Report t .

Sir, I am from Odisha. I am interested to start a Dairy Farming In Odisha where can I get assistance? and necessary help. Please advise.

NABARD is your point of contact for any livestock subsidy. You can read >DAIRY FARMING SUBSIDY .

Hi, I am Prashant Deshmukh. I really interested to start a new Dairy farm business in Maharashtra. How to start, please guide me.

Well, to start a dairy farm, you must have proper planning, dedication. It requires your hard work. First, decide which dairy breed, you would like to go for. Feed management is very important in dairy farming. Make sure you have enough laborers to handle the farm. Our advice is to start with less number of cows and start increasing as you get more experience. Apart from this marketing is another factor for your dairy products. Here is some information which may help you. Read: DAIRY COW FARMING PROJECT REPORT .

Hello Sir, I am Rohidas Sapke and looking to start my own dairy farm business. Can you advise me is there any private institute who gives training on How to handle dairy farms/animal care/business related things and all?

Very soon, we will update training and consulting services addresses.

I am exploring possibility of dairy farming near Raipur in Uttarakhand.The subject is new to me as I am not a professional from this field.I would like to see a viable business plan,if you have one,for a midsized investment. Regards

It is really a resourceful information on every aspect. Thank you Can you please write on financial breakups, for shed, cows , fodder cost etc all occurring expenses. just as a template it will give an idea for us on financial planning.

Check these:

Dairy Farming FAQ .

How To Get NABARD Subsidy and Loan .

Dairy Shed Design and Construction .

Dairy Cow Farming Project Report .

Sir, I am 37 yrs old from Barshi, in Solapur district. We have some farm land and wish to start a dairy business from scratch. How can I start?

Read this: Dairy Farming FAQ .

Dear Sir, I really appreciate the guideline for my knowledge I am an MBA qualified. I hate jobs, I love business have a full plan to start a dairy farm business I have 5 acre land in one place 4 acre land in other areas which are in a part. Anyhow, I made a contact in our area and there is no a single dairy farm. This would be a great opportunity for me. But need knowledge of this business.

Umar Saood from pakistan currently working in UAE

Dairy farming is not simple as you think. However, with proper planning, dedication and hard work defiantly will pay you off. You cannot depend and trust third person.

To have complete idea. You better read all the dairy farming articles.

Read: Dairy Farming Information .

I am Mahesh and I want to know whether Coorg, Karnataka is best suited for HF breed cows, since we have 2 to 3 acres of land is coorg but due to heavy rain during June to October, we are still worried whether we can go-ahead for dairy farming with HF breeds. Your guidance and suggestions will help us further.

Hi I am a pure science graduate and I have interest in polyhouse and hydroponic agriculture. I want to start cultivation of vegetables in a small area like 1000 sq.m for commercial purposes..n establish my career on it. I like to spread it through out my state working as a professional consultant too. For this, I need proper training and guide and financial resources. Now plz help me to know all about high tech poly house, hydroponics that can help me to build my financial path as a grower and as a consultant too. Plese, help me show me the way. Thank u.

Dear sir new dairy farming business open in my village Bila gujarat so plz help me loan and ideas 7778014786 my WhatsApp number

hello sir, i am 20 yrs old and i want to open dairy farm. can you tell me about problems we face in this field.

Hello Mr. Reddy, Thanks for your effort to put this content in internet, it is very much informative. I am very much interested to start a dairy farm, but need proper guidance to set up this. I’m gathering information from youtube channels and some blogs like your. I may contact you to get some information.

Thanks Sahoo

very useful information sir Thank you

Hello sir, Iam r kanaka raj Ex-Servicemen Army I live from andaman and nicobar Islands. I want to open dairy farm. Can you tell me about problems we face in this field.

Please suggest the training institutes for dairy farming short courses.

Regards Mahesh

Subject: New Dairy Farm

This is Harish (farmer) from Telangana state, I’m really interested to start to start new dairy farm in my village I am having 5 acres land, Hence pls could you advice that from where to get the good livestock’s and what is the cost per cow. Pls could you share with me the shed diagram how to build for at least 10-12 cows.

Kind regards: Harish

Hi, Can you explain this business in financial terms….like cost of animals…on average how much they can produce milk….cost of milk….animal maintenance cost etc…if you can provide a table then it will be very useful

Dear sir I have plan to start up a dairy farm but I don’t have any idea I need some guid line to start up I need some ideas can u tell how can help me on this can u help me on this

My name is Obeng Kingsley an M. PHIL student at University of Ghana pursuing Agricultural science. I am currently rearing sheep but facing challenges in the housing system. I need advise on housing management system. thanks

Dear sir, I want to open new dairy farm in CUMBUM (Andhra Pradesh). I have required 10 Buffalo with good quality and can give 20-30 litre milk per day. please send me the details about buffalo , price, purchasing locations , transportation etc. is it supporting goverment like subsidy and any extra allowance.let me know sir,i donot have any idea.ping me your phone number sir.i need to talk to you..ok sir.

regards, SUDHARSHANREDDY.J

Hi, Do you have any worksheet to make business plan? I need to calculate EBITDA for my Dairy Venture.

Thanks in advance.

thanks so much for such relevant information that will guide us in our development in business.

hi, I want to set up a dairy farm, kindly suggest to me the details in pdf, want to do it at Haveri.

can you please inform me about loans from centre govt subsidy and financial loans ?

i want starting small scale from kerala . please suggest to me rules and regulations

can you suggest names high feeding cows ?

I want to start Cow farming. How much amount will be required for 15 number Cow farming inclusive of Construction, feeder, medical treatment and labour cost etc.

How much monthly income i get with 15 cows?

Hi everyone I am planing for Dairy farming.can any one tell about the cost and land requirements & government rules

nice information

The information about diary farming are very nice. I am very interested to farm which my own please help me regarding this business.

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Ultimate Guide to Beans Farming in Kenya: From Planting to...

How to build a low-budget goat shed: cheap ideas and..., borewell drilling cost, pump price, and pipe cost, polyhouse subsidy, cost, profit, project report, tractor subsidy, bank loan, eligibility, schemes, process, malabar neem project report details guide, cold storage project report, cost and subsidy, mushroom farming project report, cost and profit analysis.

Goat Farming

Goat Diseases

Goat Breeds

Project Reports

Goat Farming in Uganda: A Complete Starting Guide for Milk and Meat Goat Business

Table of contents, selecting the right goat breeds for farming in uganda: poupular goat breeds in uganda, setting up a suitable housing system for goats in uganda, feeding and nutrition management for goats in uganda, breeding and reproduction practices for goats in uganda, health and disease management in goat farming: a focus on uganda, managing goat milk production and dairy products in uganda, goat meat production and marketing strategies in uganda, financial planning and profitability analysis for goat farming in uganda, cost to start a small-scale goat farming in uganda, table of starting a goat farm in uganda.

Goat farming has become an increasingly popular choice among farmers in the country. Goat farming has become a popular choice for many farmers in Uganda. Goats are versatile animals that can provide both milk and meat, making them a valuable asset for small-scale farmers. 

East African goat – Known for its adaptability and resilience, this breed can thrive in various environments and withstand harsh weather conditions. They are also known for their high fertility rates and excellent meat quality.

Kigezi breed – These goats are native to southwestern Uganda and are highly valued for their milk production capabilities. 

Mubende breed – The Mubende breed is yet another favorite among farmers in Uganda. Originating from the Mubende district, these goats have a good growth rate and efficient feed conversion ratio. This makes them suitable both for meat production as well as crossbreeding programs.

Karamoja, Savannah, and Kalahari – Other breeds like Karamoja, Savannah, and Kalahari have unique characteristics that make them suitable choices depending on specific farming goals or environmental factors.

Choosing the right goat breed for Uganda depends on your farm’s location, climate conditions, market demand, and personal preferences as a farmer.

The right housing ensures your goats’ comfort and well-being, directly impacting their growth and productivity. You need to provide enough space for each goat. Aim for at least 10 square feet per adult goat. Good airflow helps prevent respiratory issues and cool the goats during hot weather. Sturdy fencing around the perimeter is essential to keep these threats at bay. Goats require a clean, dry surface to prevent hoof problems and bacterial infections.

The right diet ensures your goats’ overall health, productivity, and growth. Goats are natural foragers and can thrive on a variety of vegetation. However, it’s important to supplement their diet with additional nutrients. In Uganda, common feed sources for goats include grasses, shrubs, legumes, and tree leaves.

In case you missed it: Innovative Housing and Shelter Designs for Profitable Goat Farming

Proper feeding schedules should be maintained to meet the nutritional requirements of different age groups. Remember that overfeeding the goats can lead to obesity and health issues while underfeeding results in poor growth rates and reduced productivity. So, strike a balance by providing quality feed in appropriate quantities based on individual goat needs.

Proper breeding ensures the growth and sustainability of your goat farm. Selecting the right bucks for mating is essential. It is important to choose healthy and genetically superior males that can pass on desirable traits to their offspring. Breeds like the East African goats, Kigezi breed, Mubende breed, Karamoja, Savannah, and Kalahari are popular choices for breeding in Uganda.

Proper timing is crucial for successful reproduction. Female goats or does go into heat every 21 days during the breeding season. Identifying and introducing these signs to the selected buck at the right time is important. Proper goat nutrition plays a significant role in successful reproduction.

Monitoring pregnancy progress closely is vital to conducting regular check-ups on pregnant women. By implementing effective breeding practices and focusing on good genetics and proper nutrition management, farmers can maximize their chances of producing high-quality offspring that will contribute positively to their goat farming business in Uganda.

Ensuring your goats’ health is vital for a successful goat farming venture in Uganda. You can prevent outbreaks and protect your herd by implementing proper disease management practices. Regular vaccinations safeguard against common diseases such as Peste des Petits Ruminants (PPR) and Foot-and-Mouth Disease (FMD). Maintaining a clean and hygienic environment also helps minimize the risk of spreading infections.

Regular check-ups by a veterinarian should be scheduled to monitor the overall health of your goats. It is important to promptly address any signs of illness or abnormalities observed among the animals. Early detection plays a significant role in preventing potential outbreaks from spreading throughout the entire herd. Proper nutrition also contributes to maintaining good health in goats.

Goat milk is not only highly nutritious but also has numerous health benefits. In Uganda, goat milk production has gained popularity due to its high demand in the market. It is important to ensure proper nutrition for the goats. Maintaining good hygiene practices during milking is crucial. The udders should be cleaned thoroughly before each milking session to prevent contamination.

In case you missed it: Surviving the Heat: The Impact of Climate Change on Goat Farming

Milking equipment should also be sanitized properly to avoid bacterial or fungal infections. Furthermore, regular health check-ups for the goats are essential. Proper storage of goat milk is another important aspect. Cooling the milk immediately after milking and storing it at low temperatures is necessary to maintain its freshness and nutritional value.

Proper feeding practices should be implemented to maximize profitability in goat meat production. A balanced diet of grains, hay or fodder crops, and mineral supplements will help promote healthy weight gain in goats. Marketing strategies play a crucial role in selling goat meat products effectively.

Identifying potential customers such as restaurants, hotels, supermarkets, and individual consumers who prefer organic or locally sourced meats is important. Additionally, promoting your farm through social media platforms like Facebook or Instagram can help create awareness about your products amongst potential customers.

Financial planning and profitability analysis involve carefully assessing the costs of setting up and running the farm and estimating potential profits. To begin with, you need to budget for various expenses such as purchasing land or renting it, suitable housing facilities, buying quality breeds, hiring labor if needed, veterinary services, feed costs, marketing expenses, and other expenses that may arise .Additionally, keep track of operational costs, including monthly feed expenditures;

Ensure proper record-keeping so that you can analyze your financial performance regularly. By closely monitoring income and expenditure patterns over time, you’ll be able to identify areas where cost reduction is possible or where production efficiency can be improved. Remember that profitability analysis also includes evaluating return on investment (ROI), which considers immediate profits and long-term growth prospects. It’s essential to weigh the initial capital investment against expected returns over an extended period.

Starting a small-scale goat farming business in Uganda requires careful financial planning. One of the crucial aspects to consider is the initial investment or cost involved.

To set up and establish your goat farm, you should budget around 15 million to 20 million Uganda shillings. This budget will cover various expenses such as purchasing high-quality goats, constructing suitable housing systems, procuring necessary equipment and supplies, and ensuring proper animal healthcare.

Additionally, allocating funds for feed and nutrition management and marketing strategies is essential. Investing in good quality goats is vital for a successful venture. The cost of goats can vary depending on their breed, age, and health condition. It’s advisable to select breeds that are well-suited to the Ugandan climate and have good milk or meat production potential.

In case you missed it: How to Find Goat Farm Near You: Simple Tips and Ideas for Your Location Search

Goat farming is important in Uganda, contributing significantly to the country’s agricultural sector. With its favorable climate and abundant grazing land, Uganda has become ideal for goat farming. One of the key reasons why goat farming is important in Uganda is its potential to provide a sustainable income source for farmers.

Goats are known for their high reproductive rates and fast growth, making them profitable investments. Additionally, goats are well-suited to Uganda’s climate and terrain. Goat farming in Uganda is a thriving industry that has gained significant importance over the years.

• Managing Waste and Manure on a Goat Farm: A Beginners Guide
• How to Set Up an Efficient Watering System for Goat Farming
• Regular Deworming in Goats: A Beginners Guide
• Boosting Fertility in Your Goat Herd: Proven Expert Tips
• Managing a Mixed Goat Herd: Meat and Dairy Goats

How Many Goats to Start a Simple Goat Farm Business

• 10 Goat Fencing Ideas for Beginners
• Napier Grass for Goat Farming: A Beginners Guide
• Community Engagement and Networking Opportunities for Goat Farmers

Thanks for the advice planning to start goat farm project

Woow thanks for information keep up

Thanks for this resourceful information about Goat farming.

I love the information I’m so convinced

Thanks for your help and support concerning goat rearing

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Goat Farming in Bangladesh for Beginners: A Step-by-Step Guide

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Analysing milk price incentives to strengthen policies for dairy production and exports in Uganda

The dairy sector accounts for 6.5 percent of Uganda’s agricultural gross domestic product and is a key industry outlined in Uganda’s Third National Development Plan. Dairy export revenues reached a record high of UGX 358.6 billion in the period 2017–2020, but despite the impressive growth, dairy export values fell short of the Agro-Industrialisation Programme targets of UGX 368.7 billion for the first year. The dairy sector is also hampered by low milk productivity and demand, a large informal sector, and non-tariff barriers to international trade. This study, produced jointly by the Food and Agriculture Organization of the United Nations (FAO) and Uganda’s Dairy Development Authority, reviews price incentives to smallholder dairy producers by assessing the effects of trade and market policies and dynamics on domestic milk prices in Uganda from 2005 to 2021, using indicators such as the nominal rate of protection (NRP), nominal rate of assistance (NRA) and the market development gap (MDG). These indicators reveal that milk farmers and traders receive prices below the international-equivalent price due to a largely informal and poorly integrated market, prohibitive marketing costs, and a drop in international demand of Ugandan milk. The study recommends increasing market access and commercialization of the sector by improving transport infrastructure, addressing food and mouth disease, diversifying export markets, incentivizing formalization through a training and certification scheme, and supporting a commodity manufacturing cooperative to promote value addition. This report informed the formulation and adoption of the Dairy Policy Action Plan by the Dairy Development Authority.

USDEC's Mid-Year 2024 Global Dairy Business Review

Our month-by-month summary of mergers, acquisitions, expansions, executive hires and other global dairy business news for the first half of 2024.

Across the international dairy sector, business activity has been brisk this year, as one can see from the U.S. Dairy Export Council's Mid-Year 2024 Global Dairy Business Review. 

USDEC monitors global dairy business developments for our members and curates them for our weekly, members-only newsletter, Global Dairy eBrief. We aggregate and summarize what's most relevant for this retrospective r eview we publish twice a year.

We started this review with items from the January 5 Global Dairy eBrief and ended with news from the June 28 edition. This is a fast-paced yet lengthy review. We put company names in bold for easy scanning and searching.

What follows is a one-of-a-kind, archival summary of global dairy business developments for the first half of 2024, presented in month-by-month chronological order. Think of it as the global dairy business news that was.

Look for the full-year 2024 Global Dairy Business Review in January.    

Lino A. Saputo, president and CEO of  Saputo Inc. , was appointed to the Order of Canada, an honor created by the Canadian government in 1967 to recognize “people who make extraordinary contributions to the nation.” Saputo founder Emanuele (Lino) Saputo was previously appointed a Member of the Order of Canada in 2012. … Michigan-based pizza chain  Domino’s  plans to add more than 1,100 new stores per year under its recently announced five-year growth plan called “Hungry for More.” Over the long term, Domino's believes the international business could grow to 40K locations, outnumbering U.S. stores 4-to-1. … Two of Africa’s most prominent e-commerce companies— Wasoko  and  MaxAB —plan to merge. Together, the groups have an estimated customer base of 65 million people across eight countries: Egypt, Morocco, Kenya, Tanzania, Rwanda, Uganda, Zambia and DR Congo. … An arbitrator was appointed to help New Zealand’s  A2 Milk  and  Synlait Milk  come to an agreement over A2’s termination of an exclusive supply deal with Synlait  (see Global Dairy eBrief, 9/22/23) .  (USDEC Middle East/North Africa office; Company reports; Reuters, 12/21/23; Seeking Alpha, 12/7/23)

Ornua Nutrition Ingredients , which is part of Ornua Ingredients Europe, is selling its powder blending and manufacturing business in the UK to Roger Wertheim-Aymes, founder of the medical supplement operation Aymes . (Ornua and Aymes had previously signed a  long-term supply agreement  for sachets of milk powder under the Aymes Shake label.) The deal includes a facility in Leek, UK, which produces dairy ingredients, bakery products, breakfast cereal, sports nutrition products and health and well-being products. Once the deal is finalized, the facility will manufacture products under the trading name Allicio.  (Just Food, 1/10/24; Agriland, 1/6/24)

Pinlive Foods , the Chinese owner of the imported dairy brand Weidendorf, started producing its own cheese in December. The company’s first factory is located in Shanghai and includes two cheese production lines—one for small round-shaped cheddar cheese with a production capacity of 600 kg per hour, the other for string cheese with a production capacity of 500 kg per hour.  (USDEC China office)

Australia-based milk powder company Nutura Organic is expanding its presence into Vietnam and Thailand as the company looks for growth in emerging markets while China becomes more challenging. In Vietnam, Nutura is partnering with Natural Foods Group to launch products ranging from its pregnancy and conventional infant milk formulas to its organic infant milk formula. In Thailand, the company announced a distribution deal with Thai food producer CP Foods to introduce Nutura products into the country. That launch, which is expected to begin in hypermarkets and supermarkets in the first quarter of this year, features products designed for consumers at different life stages, including both infant and adult milk formulas from Nutura Organic.  (NutraIngredients-Asia.com, 1/3/24)

French dairy company  Danone  signed an agreement to sell its Horizon Organic and Wallaby premium organic dairy businesses in the U.S. to  Platinum Equity , a U.S.-based investment firm. Horizon Organic and Wallaby represented approximately 3% of Danone’s global revenues in 2022. Danone will retain a non-consolidated minority stake in the business. … UK-based  Volac International  has agreed to sell its milk replacer business to The Netherlands’ Denkavit Group , a move that will make Denkavit the sole owner of the Volac milk replacer sales organization and the Volac Socoor business in Italy. Company officials said the buy-out was a strategic decision that will allow Denkavit to strengthen the milk replacer business while enabling Volac to put more focus on growing its new feed additives division. … Chicago-based  Archer-Daniels-Midland  announced a deal to acquire Revela Foods , a Wisconsin-based dairy flavor ingredients developer and manufacturer. The deal, which ADM says will enhance its growing portfolio of flavor ingredients and solutions, is expected to close early this year.  (Company reports)

Dallas-based pizza buffet chain  Pizza Inn  signed a franchise agreement with  Blessings Basket Company for Serving Food  to develop 50 locations in the Kingdom of Saudi Arabia. The deal, which kicks off with two new locations in the Middle Eastern kingdom this month, will more than triple the number of outlets Pizza Inn operates internationally. … China’s  National Dairy Innovation Center  officially started operation in December. Approved by the Ministry of Science and Technology and located in Inner Mongolia, the Center brings together more than 100 member companies and more than 1,000 research experts from China and abroad to focus on China’s national dairy demand and industry development. … Ireland’s  Lakeland Dairies  plans to expand its Killeshandra, Co. Cavan, fluid milk facility, increasing milk intake by nearly 20% and expanding storage, packaging and loading dock. (Late last year, Lakeland  announced the closure  of three of its processing sites.) … French global dairy giant  Lactalis  inaugurated a new solar plant that’s expected to reduce carbon dioxide emissions by 7% or about 2,000 MT per year. The solar thermal plant will supply heat to the company’s adjacent Verdun dairy factory, which converts liquid whey into whey powder, for the next 25 years.  (Company reports; USDEC China office; Agriland, 1/8/24; Restaurant Business, 1/4/24)

FrieslandCampina Ingredients has identified key trends it says will shape the coming year in the food, drink and supplement industries, as consumers turn to nutrition as a source of comfort and control in a tumultuous world. In its  “Nutritional Trends 2024”  report, the Dutch dairy cooperative says an increased focus on healthy eating will manifest itself in nutrition trends including: sustainable, planet-first nutrition; accessible and tailored nutrition for all; innovation in alt proteins; advancing gut health; and healthy ageing and recovery.  (Company reports)

Japan’s Meiji is nearly doubling its investment in Danone’s infant formula production facility in Wexford, Ireland. The company added €10.5 million (about US$11.4 million) in new funding, pushing its total investment in the facility to €22.5 million (about US$24.5 million). The money will go toward increasing capacity to meet rising demand for the product, which was rolled out in to several European markets in 2022.  (Just Food, 1/11/24)

Ann Meaney, Tirlán’s head of ingredient marketing, recently sat down with editors from  DairyReporter  for a Q&A on dairy ingredient trends and opportunities in the Asia-Pacific region.  Click here  to read Meaney’s thoughts on nutrition, innovation, the marketing advantages of “grass-fed” and more. Glanbia Ireland and Glanbia Co-op changed their name to Tirlán in late 2022.  (DairyReporter, 1/11/24)

Hong Kong-based investment firm  PAG Private Equity  agreed to acquire a controlling stake in  Food Union Europe , a Latvia-based provider of ice cream and frozen dairy treats to consumers in Latvia, Estonia, Lithuania, Denmark, Norway and Romania.  (Company reports, 1/10/24)

Tata Starbucks , the joint venture between Starbucks and India’s Tata Consumer Products , said it plans to add 1,000 new stores in India by 2028. The expansion plan involves entering some of India’s Tier 2 and 3 cities, increasing staff to roughly 8,600 people, and expanding the venture’s drive-thru, airport café and 24-hour store offerings. …  Danone  plans to shut down its dairy and plant-based yogurt facility in Parets del Vallès, north of Barcelona, Spain, in a move aimed at improving manufacturing efficiencies. It did not reveal a timeline, but news reports say the company is already looking for a buyer for the plant. … As part of the country’s efforts to boost earnings by farmers, Kenyan President William Ruto commissioned a new  Kenya Cooperative Creameries   (KCC) factory in Nyahururu that’s expected to process at least 150,000 liters of milk a day. Ruto also directed KCC to begin paying farmers KSh50 (about US$0.31) per liter for milk beginning March 1, up from the current KSh 40 (US$0.25). … Paris-based food technology startup  Standing Ovation , which is backed by  Bel Group , received €3 million (roughly $US 3.3 million) in public sector funding to increase its production of animal-free casein from precision fermentation.  (Just Food, 1/12/24; Green Queen, 1/12/24; Inside Retail, 1/10/24; Office of the President of the Republic of Kenya, 1/10/24)

Heloise Le Norcy-Trott, group marketing director for Lactalis UK & Ireland , shared in a recent interview with  GroceryTrader  that rising consumer confidence has the UK cheese market poised for growth in the next 12 months.  Click here to read the cheese trends Norcy-Trott says will help drive growth and opportunity in 2024.   (GroceryTrader, 1/17/24)

French dairy company  Danone  announced it will invest EU$100 million (about US$109 million) in the company’s operations in Mexico in 2024. The financial commitment includes support for the company’s “Margarita Project,” which has provided tools, training and technology for more than 500 rural milk producers in the country to help ensure the quality of milk used in Danone Mexico’s yogurt production. …  Arla Foods  began an operational review of its specialty cheese site, Arla Melton Mowbray Creamery UK, to search for a buyer. The plant is also known locally as Tuxford & Tebbutt. Arla cited a decline in the UK specialty cheese market as the reason for the review. … Chilean food tech company  NotCo  can continue to use the word “milk” on its NotMilk labels after a recent ruling found the company clearly states its product is not actually milk. A court of appeals rejected a lawsuit filed by the Association of Milk Producers of the Los Ríos Region that claimed NotCo was guilty of unfair competition for using the word on its plant-based beverages. … Israel-based food tech startup  Imagindairy  announced it has acquired and is operating its own industrial-scale precision fermentation production lines focused on the production of dairy ingredients. The facility allows Imagindairy access to more than 100,000 liters of fermentation capacity, with planned capacity expansion to triple this volume in the next one to two years.  (Agriland, 1/23/24; Yucatan Times, 1/21/24; Vegconomist, 1/18/24; company report, 1/17/24)

Global investment firm Cathay Capital announced a strategic partnership with French dairy company Savencia Fromage and Dairy , in a deal that aims to enhance Savencia’s presence in China. The partnership includes Cathay’s investment in Savencia’s Chinese brand Baijifu, which includes more than 50 cheese and dairy products. A Cathay official said the investment signals the firm’s belief in the future potential of China’s dairy market, and that the company will help Baijifu “better adapt to the evolving needs of the Chinese market and actively promote product innovation and brand development, sales channel expansion and supply chain management for the French brand.”  (China Daily, 1/26/24)

Vertically integrated Russian dairy producer EkoNiva Group is opening a new office in the Chinese city of Xi’an. The move aims to grow dairy exports to China by increasing brand awareness, expanding the range of products offered, and improving supply chains by leveraging rail transport in the region. EkoNiva has been exporting dairy products to China since 2020, including retail UHT milk.  (The DairyNews, 1/23/24)

The Value4Dairy Consortium , a collaboration of four strategic partners led by Dutch dairy cooperative FrieslandCampina , received a US$5 million grant from the Bill & Melinda Gates Foundation to boost dairy productivity and sustainability in the Nigerian dairy sector. The Consortium, which was launched in 2021, aims to enable farmers in tropical conditions such as Nigeria to improve milk yields and income. The private sector collaboration includes FrieslandCampina WAMCO (the company’s Nigerian dairy subsidiary); URUS (a global artificial insemination, genetics and herd management systems company), Barenbrug (a grass and forage seed company), and Agrifirm (a global company that operates in the animal nutrition and crop farming business).The grant will fund half the cost of the Consortium’s latest project, which aims to modernize the Nigerian dairy sector and bolster small-scale milk production. The Consortium will establish three self-sustaining dairy zones that will be run by local farmer cooperatives and will serve as hubs for training and supporting 10,000 pastoralists and smallholders, with the goal of growing to include 40,000 milk producers. FrieslandCampina WAMCO will collect the aggregated milk for processing, and Consortium partners will provide farmers with access to the latest advancements in feed, breeding, sustainable farming practices and routes to the market, enabling them to increase milk production at lower costs sustainably.  (Company reports)

New Zealand’s Fonterra Co-operative Group made two moves as part of its ongoing efforts to increase sustainable production. Fonterra Australia launched a project that eliminates the cardboard packaging used when transporting its Perfecto Italiano Mozzarella cheese from its Stanhope manufacturing site to the secondary processing site in Melbourne, where it is shredded. Fonterra’s “Naked Mozz” initiative will reduce the amount of cardboard used each year for the trip by 330 tons for an annual savings of more than NZ$825,000 (about US$505,000). Separately, Fonterra said it will install a 20-megawatt electrode boiler at its Edendale site on New Zealand’s South Island. The expected NZ$36 million (about US$22 million) investment will decrease the site’s emissions by around 20% per year and lower the company’s overall carbon emissions by nearly 3% per year when it begins operating in FY25. As part of a strategic plan to expand its wellness sector profile and bolster its Southeast Asia position as a regional business hub, Fonterra is expanding its Nurture range of powdered probiotic drink products. The New Zealand-based dairy nutrition cooperative’s Nurture brand is introducing a new range of products designed to target skin health and stress relief that build upon its existing offerings designed to support immunity, energy and focus. Nurture is introducing the range in Singapore, and looking to expand into potential markets including Malaysia, Indonesia and Thailand. The products target active professionals seeking improved support for gut health and overall productivity and well-being. Each unit contains 50 billion probiotic strains, with no added sugar. They’re currently available for purchase on Nurture’s website. Company officials said they’re working with their Singapore teams and distribution partners on plans to expand distribution into stores.  (Company reports; NutraIngredients-Asia.com, 1/23/24)

Denmark-based  Arla Foods  is in discussions to purchase the Semper facility, a factory in Sweden owned by Switzerland’s Hero Group that is set to be closed due to changing market conditions. Arla already owns a cheese and spreadable butter factory next to the Semper site and is interested in buying the land as well as the factory buildings and parts of the equipment. … The  Kansas Dairy Ingredients  (KDI) plant in Hugoton closed unexpectedly last week, just two and a half years after KDI invested more than US$40 million to expand the plant, which employed more than 100 people and produced cheese and butter.  (Company reports; 12News, 1/22/24; Dairy Business Africa, 1/25/24)

Following news of the acquisition of Food Union Europe by a private equity firm, Andrey Beskhmelnitsky, CEO of the Latvian frozen dairy treats provider, spoke with DairyReporter about the accompanying spinoff of the group’s Chinese business. In the interview, Beskhmelnitsky said Food Union China , which will become an independent entity, will focus on pursuing B2B growth and developing its protein-enriched products in China as it splits from the wider group.  Click here to read more about Food Union China and its upcoming strategic initiatives and priorities.   (DairyReporter, 2/5/24)

Australian dairy producers  Margaret River Dairy Co.  and  Mundella Foods  returned to local ownership when they were reportedly bought by Australian dairy company  The Cheeky Cow . The two dairy companies were shut down by their Chinese owner  Bright Foods Group  when Bright said it could not find a buyer last year. Cheeky Cow plans to move its operations to the newly acquired Margaret River Dairy facility after making renovations to the site. ( Augusta Margaret River Times, 2/5/24)

Irish dairy cooperative  Ornua  named Lindsay Brady as president of Ornua Foods North America. According to the company, Brady, whose most recent role was as general manager at Conagra Brands , will be responsible for “driving ambitious growth plans” for its Kerrygold butter brand in the U.S. and Latin America. … Denmark-based bioproduction company  21st.BIO  announced it is now granting access to its precision fermentation technology platform to food and ingredient manufacturers. The move follows 21st.BIO's successful scaling of the beta-lactoglobulin protein. … Saudi Arabia-based food manufacturer, seller and distributor  Saudia Dairy and Foodstuff Co.   (SADAFCO) opened a new sales depot in Makkah. The 86,000-sq.-ft. warehouse, which includes a solar energy system, was established to save costs and improve the supply chain and services to cities in the region. … Belgium-based dairy cooperative  Milcobel  said the company and its CEO Nils van Dam have “parted ways.” A company statement cited “a clear difference in vision between Board of Directors and CEO” for the split and said a management team has been assembled by the Board of Directors to handle day-to-day management until a new CEO is hired.  (Company reports; Arab News, 1/20/24)

New Zealand-based dairy cooperative Fonterra said it is increasing production of cream cheese at its Darfield site to meet growing demand from China. Plant officials said the company plans to export around 20,000 MT of cream cheese to China this season—an increase prompted in part by last week’s Chinese New Year celebrations, as cream cheese is commonly found in Chinese pastries, tea macchiatos, cheese lollipops and cheesecakes.  (Radio New Zealand, 2/12/24)

Citing the need for “efficient and productive operations” in the current global landscape,  Nestlé  announced plans to close its dairy plant in Matagalpa, Nicaragua. The plant focuses primarily on producing dairy products under the Switzerland-based company’s Prolacsa brand, which officials say will move its operations to other facilities in Latin America. … Irish dairy cooperative  Ornua  named Conor Galvin as its new CEO. Galvin, who is currently CEO of Ireland-based coop Dairygold , will assume the new role in May. … France-based  Danone  inaugurated a new beverage production facility that was recently converted from dairy to plant-based. The site, which took two years to transform and features two production lines, was converted to anticipate consumer demand and is now home to Danone France’s only oat-flour-to-oat-juice production facility. … Israel-based animal-free dairy company  Remilk  received Health Canada's “Letter of No Objection,” which allows the startup to sell its animal-free beta-lactoglobulin protein in Canada. The company’s products, which incorporate proteins produced via precision fermentation, have also received approval from the U.S., Singapore and Israel.  (Company reports; Dairy News Global, 2/12/24)

New Zealand dairy cooperative Fonterra announced it will merge its Fonterra Brands New Zealand and Fonterra Australia business units. The new, single entity will be known as Fonterra Oceania and will be led by René Dedoncker, who has been Fonterra Australia’s managing director since 2017. Fonterra CEO Miles Hurrell said the merger is part of an effort to bolster the co-op’s competitive position in the trans-Tasman dairy market.  (FoodBev.com, 2/21/24; Dairy News Global, 2/19/24)

In its 2023 annual results, Denmark-based Arla Foods said a cautious first-half consumer market gave way to growth for its brands in the second half of the year. The farmer-owned cooperative reported 2023 revenues of €13.7 billion (about US$14.75 billion)—down only slightly from the previous year’s total of €13.8 billion. Net profit was €380m (about US$410 million). In its 2024 outlook, the company said it expects second-half 2023 growth momentum to continue in the first half of this year, resulting in an expected “return to branded volume driven growth for 2024 as a whole of 1%-3%,” despite more market and growth outlook uncertainty in the second half of the year.  (Company report, 2/20/24)

Finnish dairy company Valio announced the launch of a new research, development and innovation project designed to “create a Finnish nature-smart food system in which growth, profitability and added value are built on the basis of sustainable production.” The five-year, €100 million (about US$108 million) initiative, known as “Food 2.0,” is set to start this year and aims to increase exports connected to the food system by more than €1 billion (about US$1.1 billion) once completed. The project will receive about €30 million (about US$32 million) in funding from Business Finland , a government organization that provides innovation funding and trade, travel and investment promotion.  (Company reports)

Scotland-based dairy cooperative  First Milk  completed its acquisition of  Blackmore Vale Dairy , a UK-based manufacturer of chilled dairy products. … German ingredients giant  Döhler  entered a manufacturing partnership with Delaware-based fermentation company  Superbrewed Food  to help the startup scale production of its Postbiotic Protein ingredient. The companies claim the ingredient performs well in dairy and alternative dairy applications. Superbrewed and France-based cheesemaker  Bel Group  are reportedly making progress on their 2022 strategic collaboration to develop lines of cheese products that incorporate Postbiotic Protein.  (Company reports)

Yili Group’s  new ice cream factory in Huanggang City, Hubei Province, started production. The new facility, Yili’s fourth in the province, mainly produces high-end ice cream and frozen dairy products, with a capacity of 100,000 MT per year. The company estimates the plant will drive US$277.84 million in revenue annually. … To mark the Lunar New Year,  Starbucks  released a new pork-flavored latte in China called the “Abundant Year Savory Latte.” The drink, which features pork-flavored sauce with espresso and steamed milk and is garnished with a slice of pork on a skewer, is available at Starbucks Reserve stores across China. … In its recently released five-year outlook, Toronto-based  Restaurant Brands International  (RBI) said it is confident in the long-term global growth outlook for its Tim Hortons, Burger King, Popeyes and Firehouse Subs operations. Company officials said RBI is envisioning opening at least 7,000 new restaurants in international markets over the five-year outlook period. … To meet growing consumer demand and create consistency with other company products,  Arla Foods  relaunched its plant-based JÖRĐ brand as Arla JÖRĐ. The relaunch, which debuted in Sweden last week, includes updating the package design to feature the Arla brand and an enhanced formula that includes vitamins D and B9 as well as fiber.  (USDEC China office; Company reports; Vegconomist, 2/16/2024; CNN, 2/20/24)

France’s Danone plans to sell its Russian business to a member of its government-installed management team for 17.7 billion rubles (about US$192 million). The move comes after Danone’s local operations were seized by the Russian government last July in retaliation against foreign sanctions imposed in response to its 2022 invasion of Ukraine. Danone initially said it would stay in the region after the war began but decided to seek a buyer after seeing financial performance decline. The deal, which is reportedly priced at 56% less than market value, must be approved by Russia’s Ministry of Agriculture and a special subcommittee that rules on the exits of Western companies.  (Reuters, 2/21/24; Financial Times, 2/21/24)

Persistently high inflation interfered with sales at many major global dairy processors in 2023, as companies noted in their most recent financial performance results.

• China driving results for a2 Milk Co.  New Zealand-based infant formula company a2 Milk Co. reported that revenue was up 3.7% and net profit after tax was up 15.6% in its 2024 half-year results. The company’s report cites strong performance in the Chinese market, which accounts for roughly 80% of its branded sales, for the gains. Despite fewer births and higher costs associated with meeting China’s new national standards for infant formulas, a2 posted total IMF sales growth of 1.5% and launched a new China-labeled IMF product. However, while announcing improved revenue guidance, the company also warned that “China IMF market conditions remain challenging with a double-digit decline in market value still expected in FY24.”
• Dairy Ireland weighs on Kerry Group results.  Kerry Group 2023 revenues fell by 8.6% to €8.020 billion (about US$8.7 billion) while profit after tax increased to €728.1m (about US$787.4 million). Part of the revenue drop was attributed to falling sales and volumes in the Dairy Ireland unit. Revenue and overall EBITDA in Dairy Ireland dropped due to constrained supply conditions as well as elevated input costs impacting market demand dynamics. Chief executive Edmond Scanlon said the company would continue to “selectively invest” in the dairy business. It sees emerging markets, sustainable nutrition and foodservice as its key business differentiators.
• “Difficult year” for FrieslandCampina . Netherlands-based FrieslandCampina’s revenue dropped by 7.1% in 2023 to €13 billion (about US$14 billion), a decrease the company attributed to unfavorable currency translation effects, the sale of part of its German consumer activities and declining volumes in consumer markets due to high inflation. The co-op’s operating profit tumbled 84.1% last year to €75 million, a drop linked to discrepancies between the guaranteed price of member milk and dairy commodity market prices. CEO Jan Derck van Karnebeek said, “2023 was a difficult year for FrieslandCampina,” and the company is not providing a supplementary cash payment to its member dairy farmers. FrieslandCampina expects worldwide demand for dairy to grow slightly in 2024, but said ongoing conflicts and geopolitical instability in various parts of the world will likely increase costs for raw materials, packaging materials and transportation.
• Strong results for Danone.  France-based Danone reported that revenues rose 7% in 2023 to €27.6 million (about US$30 million), a jump attributed to a 7.4% increase in prices. The essential dairy and plant-based protein (EDP) business was credited as a key driver of Danone's success, delivering positive results with volume/mix returning to positive territory. China, North Asia and Oceania also experienced competitive growth. CEO Antoine de Saint-Affrique said 2023 was a year of consistent progress and strong delivery against the company’s Renew Danone agenda. “In a context which remains challenging, the progressive improvement of our volume-mix, turning positive in Q4, the visible progress made by EDP Europe, and the continued strong momentum of our Medical Nutrition activity are encouraging signs, even if lots remains to be done,” he said. This year, the company expects inflation to ease and like-for-like sales growth in the 3% to 5% range.
• Dairy and Infant Nutrition grow for Nestlé . In the Swiss food and beverage giant’s full-year 2023 results, total reported sales decreased 1.5% to CHF93 billion (about US$106 billion), a drop the company attributed to foreign exchange fluctuations and net divestitures. Two of the brighter spots were in Infant Nutrition and dairy. Infant nutrition posted high single-digit growth, based on continued momentum for premium infant formula, including human milk oligosaccharides products and specialty formulas. Dairy reported mid-single-digit growth, led by fortified milks, coffee creamers and home-baking products. Dairy sales in Latin America were solid, with high single-digit growth supported by dairy culinary solutions and fortified milks. Infant Nutrition saw high single-digit growth in Latin America and positive growth in Greater China. Sales of healthy aging products grew at a double-digit rate in China, supported by the launch of the company’s N3 milk. CEO Mark Schneider cited increased marketing and other investments for the company’s growth in the face of unprecedented inflation that impacted consumer demand for food and beverage products. Nestlé expects organic sales growth of around 4% in 2024 and a moderate increase in operating profit margin.  (Company reports)

Fraser & Neave Holdings , the Malaysian unit of Singapore-based Fraser and Neave Ltd., announced plans to lease a 350,000-sq.-ft. industrial land parcel in Cambodia for a new dairy manufacturing facility. A new subsidiary, Fraser & Neave Foods (Cambodia ), will operate the facility, which will produce sweetened beverage creamer in cans and pouches. According to a company report, the 50-year lease aims to help strengthen the company’s presence in Cambodia. The facility, which is expected to cost US$38 million to develop, is slated to open in early 2026.  (Company reports)

Denmark-based Arla Foods announced that in 2025 it will close its Tistrupt dairy factory and transfer “the majority” of its cheese production to its facility in Taulov, about 80 kilometers away. The company said the Tistrupt facility, which will shut down in 2026, would require “significant investments” to meet future safety, health and quality standards.  (Just Food, 2/22/24)

Australia-based  Bega Cheese  said it will close its Betta Milk and Pyengana Dairy plant in Burnie, Tasmania, and move production of those brands to one of its other Tasmanian facilities. A company statement cited the inability of the site to function in a commercially sustainable way, calling it “an aging facility that has a number of challenges including its safety and environmental impacts.” …  Unilever’s  Breyers brand and California-based precision fermentation supplier  Perfect Day  announced a partnership to launch a new Breyers lactose-free chocolate frozen dessert made with Perfect Day’s dairy protein from fermentation. U.K.-based Unilever is the first multinational ice cream and frozen dessert brand to offer a product with Perfect Day’s whey protein from fermentation.  (Company reports; Just Food, 2/20/24)

In its FY 2023 annual results, the Emmi Group reported revenue for FY23 up 0.3% from the previous year and adjusted net profit growth of 9.3% from 2022 (adjusted for the one-time loss on the divestment of Gläserne Molkere i and the profit from the sale of the minority interest in Ambrosi ). The company credited its positive results to its consistent focus on strategic markets and attractive niches, including chilled premium desserts in the U.S. and Italy as well as in “important growth markets such as Chile and Mexico.” In 2024, the Emmi Group expects the general economic conditions to remain challenging and subdued economic growth in many market relevant to the company. As a result, the company expects organic sales growth of 1% to 2% and a net profit margin of 5.0% to 5.5%.  (Company reports)

In a move designed to enhance the dairy cooperative’s portfolio of products and geographical reach, Ireland’s  Lakeland Dairies  completed its acquisition of Belgium-based butterfat business  De Brandt Dairy International NV . … U.K.-based  Butlers Farmhouse Cheeses  acquired  Hampshire Cheese . The deal, which will add Hampshire’s continental-style soft cheeses Tunworth and Winslade to the Butlers portfolio, reportedly makes Butlers the largest independent soft cheesemaker in the U.K.  (Company report, 3/1/24; FoodBev Media, 3/6/24)

Saizeriya , an Italian restaurant chain from Japan, invested US$30 million in its Guangzhou subsidiary to build a new plant that will produce sauce, pasta and pizza. The new facility, which is expected to begin operations in January 2026, will reportedly help reduce production costs, stabilize supply and increase capacity as Saizeriya looks to open more outlets in Guangzhou. … Irish co-op  Lakeland Diaries  received local government permission to proceed with its plans for an extension to its dairy processing facility in County Cavan. The single-story extension is part of a company effort to enhance operational efficiencies and will include storage, packaging and dispatch areas, as well as a corridor linking it to the existing facility.  (USDEC China Office; Agriland, 2/27/24)

Minnesota-based Midwest Dairy , which represents more than 4,000 dairy farmers in 10 states, named Corey Scott as its new CEO. She will replace Molly Pelzer, who announced her retirement last fall. Scott has more than 15 years of food and agriculture experience, including serving as vice president of sales and marketing for Athian and holding several leadership positions with Land O’Lakes and its sustainability division, Truterra LLC . In 2023, Scott was selected as one of GreenBiz’s 12 Women Cultivating Sustainable Food Systems and earned a U.S. Dairy Sustainability Award for her work in reducing dairy’s overall environmental footprint. Scott began her tenure at Midwest Dairy on March 13.  (Company reports)

Nestlé is selling a manufacturing plant and distribution center in Cayambe, Ecuador, to Peru-based Grupo Gloria . In addition to the facilities, the deal includes the brands La Vaquita, Yogu Yogu, Natura, Cereavena and Huesitos and the licensing of international brands La Lechera and Svelty. Grupo Gloria, which purchased Fonterra Co-operative Group’s Chilean dairy assets in 2022, said the Nestlé purchase further strengthens in Latin American portfolio. Nestlé said it would still do business in Ecuador in several food sectors, including infant formula and culinary products.  (Just Drinks, 3/11/24)

Nestlé announced it achieved a net reduction of 13.5% of its greenhouse gas (GHG) emissions in 2023, including a reduction of more than 15.3% in methane emissions. A significant portion of those reductions came from efforts in the dairy sector: The Swiss food company said more than two-thirds of its GHG emissions come from sourcing its ingredients and identified dairy as the single largest source of emissions. To reduce emissions on farms, Nestlé said it is helping its suppliers and the farmers it sources from transition to locally relevant regenerative agriculture practices based on five key pillars of action: diverse cropping systems and livestock integration, biodiversity, collective and landscape actions, soil health, and water security and quality. The company said it is on track to reach its goal of a 20% absolute reduction of GHG emissions by 2025. (Company reports)

Savencia Fromage & Dairy Group  reported a sales increase of 3.7% to €6.8 billion in 2023, despite a 3.7% dip in the fourth quarter. The French dairy group attributed the boost to organic growth of 11.6% and a structural effect of 2.1% related to the consolidation of Williner's activities from April 2023. Operating income decreased to €212.9 million, a 9.1% drop from 2022. The company cited higher raw materials and energies costs and lower industrial product prices for the drop. Looking forward, the company said it expects geopolitical and economic tensions will lead to a slowdown in the growth of world economies, and that constrained purchasing power will continue to impact consumption patterns.

Australian dairy processor  Beston Global Food Co.  saw first-half 2024 earnings fall short of expectations, with a reported a loss after tax of AU$18.8 million (about US$12.4 million) in H1 FY23. Year-over-year net sales from continuing operations fell 4.2% for the same period. The company said the low numbers were due to the extremely favorable weather conditions on its contracted supplier dairy farms, which lifted milk intake 7 million liters above its forecast, significantly raising inventories and placing pressure on working capital. Beston said it plans to sell inventories built in H1 FY24 and expects cashflows to return closer to budget when milk supply normalizes and inventory levels are reduced.  (Company reports)

Ornua Ingredients  is shutting down its processed cheese plant in Slippery Rock, Pennsylvania. The company cited the unforeseen cancellation of a manufacturing agreement with its sole customer. The plant is expected to close by the end of April. … A year after taking over the majority of the German dairy products business of Dutch dairy company  FrieslandCampina , German dairy company  Theo Müller  said it will shut down its Heilbronn and Schefflenz Landliebe production sites by the summer of 2026. Müller attributed the closures to cost pressures, investment requirements and a challenging market situation. It plans to transfer production from the locations, including Landliebe-branded yogurts and desserts, to other sites in Germany. … Arkansas-based retail giant  Walmart  is building a milk processing facility in Robinson, Texas. The company said products from the new facility (its third plant) will serve more than 750 Walmart stores and Sam’s Clubs throughout the South, and it will enable Walmart “to meet the growing demand from customers for high-quality milk while providing transparency about where its products are sourced and making the supply chain more resilient.” …  National New Markets Fund LLC , an affiliate of Los Angeles-based SDS Capital Group, has invested $17.5 million of its New Markets Tax Credit allocation into Minnesota-based farm co-op  Bongards Creameries . The capital infusion will fund projects to increase Bongards’ milk intake capacity by almost one-third, from 4.1 million pounds to 5.4 million pounds per day.  (Company reports; WKBN, 3/6/24)

Denmark-based dairy cooperative Arla Foods announced it will invest €210m (about US$228 million) to bolster mozzarella cheese production at its Taw Valley site in the UK. The investment, which the company says marks Arla’s largest-ever investment in Great Britain, will enable the company to advance technologies and better meet the demands of customers who are seeking particular browning, melting or stretching characteristics. Arla said the majority of the mozzarella produced at the Taw Valley site will be exported to global foodservice customers. Construction is expected to be complete in 2026, with shipping commencing the following year.  (Company reports)

On the heels of Nestlé’s announcement that it achieved a net reduction of 13.5% of its greenhouse gas (GHG) emissions in 2023, Synlait Milk said it is partnering with the global food giant to help fund new emission reductions tools for its farmer suppliers. The New Zealand-based dairy processor said the partnership will focus on on-farm solutions to improve efficiency, including effluent management systems, emissions-friendly feed options, advanced soil testing, alternative fertilizers and tree planting. Financial terms of the deal were not disclosed.  (Company reports)

As part of an effort to accelerate its “Growth Action Plan,” Unilever announced it will spin off its ice cream business and launch a cost-cutting productivity plan that could result in the elimination of roughly 7,500 jobs globally. A company statement said because the ice cream business’ operating model is very different from its other categories, the separation will enable Unilever to focus better on the more “complementary” segments of nutrition, beauty and wellbeing, personal care and home care. A demerger is the most likely separation route for the ice cream business, though the company said other options will be considered. It expects to complete the separation by the end of 2025. Unilever said the productivity program will help the company create a simpler, more focused and higher-performing business model through technology-led interventions, process standardization and operational centers of excellence. It is expected to deliver cost savings of around €800 million (about US$871 million) over the next three years.  (Company reports)

Amid rising consumer demand,  Mother Dairy , the commercial arm of India’s National Dairy Development Board, said it will invest Rs650 crore (about US$78.4 million) to set up two new plants for processing milk, fruits and vegetables. The plants are expected to be completed in two years. The milk supplier said it will also invest another Rs100 crore (about US$12.1 million) to improve and expand capacity in its existing plants. … Lithuania-based dairy company  Vilvi Group  said it is investing €50m (about US$54.6 million) to increase cheese production at its facility in Bauska, Latvia. The company did not say what cheese varieties it planned to expand, but it manufactures gouda, edam and other regional cheese types. It expects to complete the expansion by 2027.  (The Hindu Business Line, 3/17/24; Just Food, 3/13/2024)

French cheese giant  Lactalis  bought Portuguese cheesemaker and wholesaler  Sequeira & Sequeira . The deal includes Sequeira’s plant in Lamego, Portugal, and its wholesale activities in Portugal, Mozambique and Cape Verde. The plant, Lactalis’s second in Portugal, produces a range of traditional Portuguese cheeses and fresh cheese under the Paiva label. … Indian private equity fund  Kedaara Capital  paid Rs1,200 crore (about US$144 million) for a majority stake in southern Indian ice cream maker  Dairy Classics Ice Creams  (known as  Dairy Day ). Dairy Day is in the midst of a project to expand capacity by 75%. The company supplies about 50,000 retailers in India. …  Maola Local Dairies , a subsidiary of  Maryland and Virginia Milk Producers Cooperative Association , acquired  HP Hood’s  extended shelf-life UHT dairy processing factory in Philadelphia. The plant produces coffee cream, half & half and other extended shelf-life products.  (Company reports; The Economic Times, 3/21/24; Just Food, 3/20/24)

Michigan Milk Producers Association (MMPA)  is partnering with India’s  Gujarat Co-operative Milk Marketing Federation Limited (GCMMF) —also known as Amul—to manufacture Amul-branded fluid products in the United States. MMPA said the strategic partnership will enhance the co-op’s “growing and diversified product mix while utilizing our state-of-the-art technology.” The products will be sold in specialty stores throughout the Midwest and East Coast. … Local authorities approved a $120-million expansion plan for  HP Hood’s  manufacturing facility in Genesee County, New York. The project, originally announced in mid-2023, expands the company’s refrigerated warehouse and includes new processing capacity for extended shelf-life drinks. The estimated completion date is the first quarter of 2025.  (Company reports; The Buffalo News, 3/7/24)

Qatar-based vertically integrated dairy firm Baladna and the Algerian government are reportedly set to sign a deal to bolster domestic Algerian milk powder capacity by 200,000 MT annually. Media reports indicate Baladna would build a farm 250,000-acre dairy farm in Adrar, Algeria, but details on construction of a facility to process the milk remain unknown at press time.  (USDEC Middle East/North Africa office; Doha News, 4/3/24)

While Chinese milk production growth continued to steam ahead in 2023, farmgate prices dropped precipitously (continuing a downward trend from record highs that began in late 2021). The latest numbers show Chinese raw milk below the cost of production, with anecdotal reports of farms culling herds, a situation that could presage a milk production slowdown ahead. Those market dynamics show in the latest corporate reports of two of the country’s major milk producers.

• Modern Farming Group  increased YOY raw milk sales by over 9% in 2023 to 2.55 million MT. The company’s revenue grew 9.5% to US$1.86 billion. However, net profit decreased by 68% YOY to US$26 million. Modern Farming blamed the decrease on lower raw milk and beef prices.
• China Shengmu  saw 2023 revenue grow by 5.5% to US$486 million. Net profit, however, plummeted by 79% YOY to less than US$12 million.  (USDEC staff; China office)

A growing consumer focus on maintaining personal health and an increasing awareness of the health benefits of certain foods are driving new dairy product innovation designed to improve factors ranging from gut health and sleep to energy and focus. A few recent examples include:

• Nestlé China  launched a new milk powder for adults designed to support sleep quality. The powder is called Yiyang Wanning and is targeted at consumers aged 40-60. It contains tryptophan sourced from WPC, mulberry leaf extract, magnesium, zinc and protein, in a proprietary blend that the company says has shown to reduce the time to fall asleep by 15% in clinical studies. Nestlé officials linked the product launch to the Chinese government’s Healthy China 2030 initiative, a priority of which is to improve sleep quality and duration among Chinese adults.
• In Japan,  Meiji  introduced a new functional milk beverage that the company claims supports eye health and improves sleep quality. Meiji Eye and Sleep W Support contains crocetin, a carotenoid derived from gardenia fruit and saffron, that Meiji says is easily absorbed by the body and has been reported to alleviate the eye’s declining ability to focus due to excessive computer work, as well as improve sleep depth and relieve sleepiness upon waking. The company is targeting young to middle-aged Japanese consumers based on research that shows an increasing number of this age group say they are experiencing fatigue, sluggishness and eye strain. It is currently available via Meiji’s home delivery service.
• Japan’s  Morinaga Milk  plans to roll out several new Foods with Function Claims (FFC) targeting major health concerns of local consumers. The lineup include Bifidus Yogurt Bone Density Countermeasure, a dairy beverage that Morinaga bills as good for both bone and gut health.
• And in response to the expectations of Chinese consumers to move beyond fortification and offer products that include clean labels and high protein content,  Yili Group  launched Changqing premium protein artisan yogurt. The company says the yogurt has 1.6 times the protein of regular yogurts but is made using a natural fermentation process that eliminates the need for adding protein powders or other supplemental ingredients. Yili expects demand for clean labels to increase among Chinese consumers in the coming year.  (Dairy Reporter, 3/21/24; Food Navigator Asia, 3/19/24, 3/13/24; Nutra Ingredients-Asia, 3/19/24)

As part of Synlait Milk Ltd.’s ongoing struggles, the company missed a NZ$130m (about US$77 million) debt repayment deadline on March 28. The company, which sought a letter of support from its largest shareholder ( China’s Bright Dairy ) was granted a repayment extension until July 15. Synlait’s half-year 2024 report signaled additional challenges ahead. While revenues increased 3%, the company reported a net loss of NZ$96 million (about US$57 million) for the six months ended Jan. 31, 2024. It received a letter of support from Bright that included a commitment to participate in a future equity raise and to extend a loan at the request of Synlait (subject to approval). But it lowered its guidance. Synlait’s previously announced guidance stated that EBITDA performance was expected to be flat or down compared to FY23—it now expects the FY24 EBITDA result to be  significantly  down on FY23. The company cited softening demand and/or margins across business units; adverse foreign exchange and product mix; and increased operating expenses for the expected decline.  (Company reports; Just Food, 3/28/24)

California biotech company,  Triplebar Bio Inc.,  and Netherlands-based  FrieslandCampina Ingredients  announced they will produce lactoferrin through precision fermentation to meet increasing global demand. The collaboration is part of a multi-year, multi-country strategic partnership announced last year to develop and scale up the production of cell-based proteins using precision fermentation.  (Food Navigator USA, 3/26/24)

Oregon-based Tillamook County Creamery Association (TCCA ) President and CEO Patrick Criteser plans to step down this year. The TCCA Board of Directors selected David Booth, TCCA's current executive vice president of brand growth and commercialization, to succeed Criteser at the farmer-owned cooperative. TCCA said the move aligns with its long-standing succession plan. Criteser, who has led Tillamook since 2012, will remain CEO until later this year, while Booth immediately assumes the role of president. Upon Criteser's departure, Booth will move into the role of president and CEO. Booth joined TCCA in 2015 and has nearly 30 years of executive experience, including 18 years at ConAgra Foods.  (Company reports)

Milk product manufacturer Canada Royal Milk received regulatory approval from the Canadian Food Inspection Agency (CFIA) and Health Canada to begin producing infant formula in its Kingston, Ontario, facility. A statement from the company, which was set up by China’s Feihe Milk in 2019, said the first batch of infant formula is expected to be available throughout the Canadian marketplace this summer.  (Company reports)

Lactalis  is consolidating its Australian yogurt and desserts operations by closing its plant in Echuca, Victoria, Australia, and moving production to its facility in Bendigo, Victoria. The company also said it would invest A$85 million (about US$56 million) in its supply chain in the state of Victoria over the next three years. ... As part of the sale of its Russian operations in response to the government takeover of assets in the country, French food giant  Danone  initiated the dissolution of DanoneBel, its last subsidiary in Belarus.  (Just Food, 4/10/24; Kyiv Independent, 4/5/24)

Beth Ford, CEO of USDEC member Land O’Lakes , was named to Time’s list of the  “100 Most Influential People of 2024.”  Time cites Fords work “at the forefront of a national effort to invest in America’s rural communities, from wider broadband coverage, to helping farmers adapt to the changing climate, to stronger trade efforts and more funding for agricultural R&D.”  Click here to go directly to Ford’s entry.

In a move designed to shift resources toward high-value products, New Zealand dairy cooperative Fonterra said it will close two of its dairy processing plants in its manufacturing sites in Waikato. A Fonterra official cited aging assets and declining productivity for the closures of Waitoa PDC (specialty powders) and the site’s coal center, along with two dryers at Te Rapa. The impacted operations will close near the end of this year. Efforts are being made to redistribute affected employees at the site, and Fonterra’s specialty nutrition dryer and UHT plants at Waitoa will continue to operate. Previous reports have indicated competition for milk is heating up in the Waikato region with the arrival of Olam Food Ingredients, a Singapore-based agricultural company that has been targeting Fonterra dairy farmers for supply.  (Waikato Times, 4/11/24)

New Zealand’s Westland Milk Products reported a profit of NZ$56 million (about US$33 million) in 2023. The company attributed the record profit to strong sales of high-value dairy products like butter. Westland CEO Richard Wyeth said the company’s backing from China’s Yili Group has enabled Westland to invest in infrastructure that will maximize revenue from high-margin products, including a new lactoferrin plant at the company's Hokitika plant. That development is expected to reduce reliance on traditional high-margin revenue sources like infant formula for China (as import demand in that sector softens).Wyeth also said the company’s Hokitika butter plant has allowed the company to expand strongly by providing Westland-produced butter to Walmart stores in the U.S, and Costco stores in the U.S., Korea, Taiwan and New Zealand, with more international regions planned. He added that the company will continue to divert more milk solids into higher-value products in 2024.  (Company reports)

Laticínios Porto Alegre , the Brazilian subsidiary of  Emmi Group , will acquire a majority stake in the  Verde Campo  dairy, a Coca-Cola-owned manufacturer of dairy products, including yogurt and milk drinks made with whey protein. A statement from Emmi said the deal will allow Emmi to consolidate and improve its position in the Brazilian market while “reinforcing the value of our portfolio with a strong brand and a focus on functional premium dairy products.” … As part of its strategy to acquire businesses to grow its Better Nutrition platforms, Ireland-based nutrition firm  Glanbia  entered an agreement to acquire California-based natural and organic flavor maker  Flavor Producers  from  Aroma Holding  for an initial consideration of $300 million. The transaction is expected to close in the first half of FY 2024. Flavor Producers will operate under Glanbia Nutritionals.  (Company reports; Food Manufacture, 4/15/24)

Finland-based  Valio  said it will close two of its Finnish food and drinks manufacturing facilities and transfer those operations to its Riihimäki plant, which currently processes fresh dairy products and Valio’s Oddlygood brand of plant-based snacks. The company said that shutting the two sites would “improve production efficiency and profitability.” The closures are expected to occur no sooner than the first half of 2026. … U.S. biomass fermentation start-up  Superbrewed Food  said it has sold its Minnesota manufacturing facility and is looking for a larger site. The company, which recently formalized its manufacturing partnership with German ingredients giant  Döhler , said the scale of production of its initial commercial volumes will exceed the capacity of its existing site.  (Just Drinks, 4/9/24; FoodBev Media, 4/15/24)

Denmark-based Arla Foods Ingredients reached an agreement to acquire the whey nutrition business of UK-based dairy company Volac , which specializes in whey ingredients for sports nutrition. The acquisition includes Volac’s whey processing facility in Felinfach, Wales, which Arla says will become a “global production hub and a cornerstone of an enhanced product offering in the performance, health and food sectors.” The acquisition is expected to be completed later this year and is subject to regulatory approval. (Company reports)

In its Climate Transition Action Plan released last week, Minnesota-based General Mills said, “accelerated action to reduce methane is essential to avoiding the worst impacts of climate change.” As a result, the company said it is working to reduce methane emissions on dairy farms by 40% by 2030 through manure management, rotational grazing, feed optimization, and cow health and longevity. Other planned actions include advancing and scaling whole-farm dairy principles across supply sheds and advancing adoption of regenerative agriculture. In December of 2023, General Mills joined the newly formed Dairy Methane Action Alliance, which is led by the Environmental Defense Fund and also includes Danone, Kraft Heinz, Nestlé, Group Bel and Lactalis USA . The company said through the alliance, it commits to “transparent accounting and public disclosure of methane emissions within our dairy supply chain and to creating a comprehensive methane reduction action plan in 2024.”  (Company reports; Food Dive, 4/18/24)

In its FY 2023 annual results, French dairy giant Lactalis reported revenue grew 4.3% from the previous year to €29.5 billion (about US$31.5 billion), and consolidated net profit grew a “weak” 11% to €428 million (about US$457 million). A company statement cited inflation-driven changes in consumer purchasing behaviors—including higher demand for private label brands—for the performance. Lactalis also noted a slight increase in profit margin, an uptick credited to “organic growth and the continued strengthening of Lactalis in North America.” The group invested more than €920 million (about US$982.3 million) in 2023 to “develop new products, modernize its dairies and cheese factories in France and North America and reduce its environmental impact.”  (Company reports, Just Food, 4/19/24)

Emirates Industry for Camel Milk and Products , which is based in Dubai and operates as ‘Camelicious,’ is investing in Asian expansion, with a focus on China. The company claims demand for its camel milk in China has surpassed domestic demand in the UAE. Currently, two-thirds of Camelicious’ production of milk powder is exported to China. “We have also grown our exports to Singapore and Malaysia in recent years and are now looking to expand our footprint in markets such as Japan and South Korea,” said CEO Mutasher A. Latef Albadry. Camelicious is optimistic of 15-20% organic growth annually and is looking at franchise partners to sell its brand in the target markets.  (USDEC Middle East and North Africa offices)

Dallas-based  Daisy Brand  plans to build a new sour cream and cottage cheese dairy processing facility in Boone, Iowa. The $708 million investment will bring 255 jobs to the community. … California-based  Chipotle Mexican Grill  opened its first outlet in the Middle East this week in the largest shopping mall in Kuwait City. The location is run by Kuwait-based franchise operator Alshaya Group, which says it plans to open a restaurant in Dubai later this year and has four new locations planned for the region in 2024. … Weeks after filing for Chapter 11 bankruptcy protection in Chicago, Illinois-based  Oberweis Dairy  disclosed plans to close its North Aurora, Illinois, plant. Oberweis also said it received a bid to purchase its operating assets from the founder of Chicago-based dairy company Dutch Farms.  (Dairy Herd Management, 4/18/24; Bloomberg, 4/22/24; FoodBev Media, 4/24/24)

Darigold named Allan Huttema as its CEO. Huttema had been appointed interim CEO in December to replace Joe Coote, who left the dairy company to return to his native Australia. Huttema has been an Idaho dairy farmer and Northwest Dairy Association member-owner for more than 25 years. The board said it chose Huttema for continuity of leadership and because it believed “a strong connection between the company and its farmer-owners is important as we look to complete our Pasco project and build the on-farm capacity we will need as we begin operations there.” Prior to being named interim CEO, Huttema served as a Darigold director for nine years and chairman for the previous three. Tony Freeman, who had been vice chairman of the board, was chosen to replace Huttema as new chair.  (Company reports)

Following extensive 2023 losses, Belgium-based dairy cooperative Milcobel said it will reorganize the company to make it more flexible, efficient and resilient for the future. A statement from the company, which saw a net loss of 3.7% in 2023, cited rising costs and the turbulent dairy market for the need for flexibility, adding that the major financial impact the company incurred from the implementation of an SAP software package in its Consumer Products division revealed the need for a “different organizational structure in order to achieve greater synergies.” The reorganization plan includes integrating its dairy units to work together more efficiently in a flatter structure, and scaling back milk powder activities beginning in September of this year.  (Company reports)

Challenging global market conditions ranging from inflation to growing market competition weighed on Irish dairy companies in 2023, as is seen in their most recent financial performance results.

• In its latest annual report, Ireland’s  Lakeland Dairies  saw 2023 revenues drop €300,000 to €1.6 billion (about US$1.7 billion) and operating profits sink from €32.5 million (about US$35 million) to €14.8 million (about US$16 million), compared to the previous year. The dairy processing co-op said these results were significantly influenced by the “global dairy market collapse.” The co-op said its Food Ingredients business had been “most exposed” but that its Consumer Foods division saw “solid demand throughout the year on the domestic front and inroads being made internationally.” Looking forward, Lakeland Dairies Chairperson Niall Matthews said recent market volatility and regulatory and policy uncertainty has prompted the co-op to shift its strategic focus. “Following rapid dairy industry growth and the expansion of milk production and processing over the past decade, the industry is transitioning from a supply volume perspective into more value-added product positioning,” he said. “We are making very definite steps to move up the value-add chain to support the long-term operations of our farm families.”
• In its FY 2023 results, Irish dairy cooperative  Ornua  reported turnover dipped almost 1% from 2022, and operating profit dropped by 8%. The owner of the Kerrygold brand called the results a “strong performance” in light of “continued market pressures and evolving consumer demand and buying behavior across all key markets.” As part of its efforts to grow the brand globally, Ornua opened a new flagship butter production facility in 2023 that doubled its Kerrygold Park cream processing capacity, enabling it to produce nearly 1 million retail packs per day. Looking ahead, the company said it expects the dairy market will stabilize in the first half of the year before firming in the second half, and that global milk pricing is likely to be stable for 2024.
• Ingredient, flavor and cheese producer  Carbery Group  also reported a decline in turnover and operating profit for 2023. Group turnover for the company was down 11% from 2022, and Group EBITA dropped 22% from the previous year, results the company characterized as “resilient in an unpredictable market.” Factors cited by the Cork-based company as affecting performance included consumer cost-of-living concerns, high dairy supply from 2022, geopolitical tensions and supply chain disruptions. The company report noted the opening of the Carbery Group Asia Business and Innovation Centre in Singapore as a “significant investment in the region.”
• In its FY 2023 annual results,  Aurivo Dairy Ingredients  reported revenue down by 16.4% compared to its record year in 2022, and operating profit off by 71.4%. While the company said its Dairy Ingredients business experienced a “very tough” 2023 due to market conditions, its commercial and new product development team continues to “implement our strategic goal of broadening our product range and the customers we serve.” Examples noted in the report include growth in Central America, the Middle East and Southeast Asia, which now make up more than 40% of annual sales, and two new Aurivo powder brands that are gaining traction in global markets.
• Arrabawn  reported a 20% drop in 2023 turnover and a record operating profit that jumped 12.5% from the previous year. The co-op cited difficult weather conditions and high input costs for the revenue drop but said despite falling markets, 2023 was “one of the most successful in the history of Arrabawn.” CEO Conor Ryan said performance was aided by substantial investments made to Arrabawn’s manufacturing business, including a new entrance and milk intake area at its headquarters. Looking forward, he said the company hopes to complete upgrades to the plant this year, and that “our capacity and ability to produce a range of dairy ingredients on the Nenagh site allows us to widen our network of customers and markets.”  (Company reports)

Minneapolis-based  General Mills  is reportedly exploring the sale of its North America yogurt business, which includes its Yoplait brand. Insiders estimate the deal could potentially be worth $2 billion. … After buying a 10% stake in Lithuanian dairy business  Rokiškio Sūris  in 2017, New Zealand dairy cooperative  Fonterra  said it will sell its shares as part of a “strategic long-term review of investments.” Rokiškio Sūris, which makes butter, cheese, milk powders and whey protein, plans to buy back the shares, which are valued at €7.9 million (about US$8.5 million), this month. …  Simply Good Foods , a Denver-based developer, marketer and seller of branded nutritional foods and snacking products, announced it will purchase Only What You Need (OWYN), a leading plant-based ready-to-drink protein shake brand, for $280 million. … Chinese billionaire Xianfeng Lu and his  Moon Lake Investments  business plan to sell Australia’s largest dairy farming operation. Moon Lake purchased dairy producer  Van Diemen’s Land Co.  (VDL) in 2016, but has faced significant criticism about effluent issues, alleged animal welfare practices and farm management problems. The businessman has already sold off around half of the land (originally 47,000 acres) and more than a quarter of VDL’s estimated 19,000 dairy cows. After Fonterra cancelled a major milk supply contract with the company this February, it has reportedly culled at least another 700 head.  (Company reports; Australian Financial Review, 4/29/24; Reuters, 4/26/24; The DairyNews, 4/19/24)

As part of increasing efforts to develop products for the growing number of young, single Chinese consumers who live alone,  Pizza Hut China  reportedly launched a new product called a Pizza Burger. The burger, which includes bread made from pizza dough and topped with mozzarella and parmesan cheeses, is available in four flavors. … Saudi Arabi’s  Almunajem Foods Co.  is building a $42-million food factory to produce meat and dairy products. The company did not offer details on what types of dairy. It expects to complete construction in the first quarter of 2026.  (USDEC China Office; USDEC Middle East/North Africa office)

Chicago-based Mars Inc . announced the launch of a sustainable dairy plan as part of its efforts to cut greenhouse gas (GHG) emissions by 50% by 2030. As part of the plan, which commits $47 million over three years, Mars will work with a cohort of industry partners to implement on-farm interventions focused on areas including enteric methane reduction, efficient manure management and sustainable feed production. It includes a collaboration with Netherlands-based dairy cooperative FrieslandCampina for a program that will dedicate a group of farms to Mars' dairy supply and serve as a platform where new practices and innovations can be refined and scaled-up, with an ultimate goal of broader adoption across the entire co-op.  (Company reports)

U.K.-based dairy cooperative Dale Farm said it is investing £70 million (about US$75 million) in its Dunmanbridge, Northern Ireland, cheddar processing facility. The expansion will include enhanced technologies and equipment that the company says will boost production by 20,000 MT per year to meet growing customer demand across the UK, Europe and beyond. The expanded operations are expected to begin in February 2025.  (Company reports)

Some major Chinese dairy processors struggled amid slow growth in 2023, a year marked by a continuing low birth rate and other challenges in the sector. Even processors based in nearby markets but serving China cited difficult Chinese market conditions for their own struggles.

In Japan,  Meiji Holdings  cut its forecast profit due to impairment charges that the dairy company said it is incurring “on non-current assets related to the drinking milk and yogurt business operated by subsidiaries in China.” In a company filing with the Tokyo Stock Exchange, Meiji said, “the sales environment for the drinking milk and yogurt business in China has been significantly changed. The price competition in the market intensified, leading to a decline in our profitability.”

• Shanghai Milkground Food Tech  net profit dropped nearly 54% in 2023 while revenues fell 16% from the previous year. The company said the rising cost of raw materials resulted in a year-on-year decline in the gross profit margin of the company's cheese segment. In 2023, the cheese segment accounted for nearly 99% of the company’s total gross profit, up 3% compared to the previous year. Revenue dropped from ready-to-consume nutrition products (such as lollipop-shaped cheese) and “cooking cheese” (such as cheese slices). In the future, the company plans to diversify the consumption scenarios of cheese products. The company has seen some slight improvements in the first quarter of 2024, with down only 7% YOY and net profit up 71%.
• Mengniu Dairy’s  profits dropped 9% YOY to US$664 million in 2023, a decline the company attributed to higher tax expenditures and reduced earnings. Revenue lifted 6.5% YOY to US$13.6 billion. The company said its core fluid milk business experienced continuous growth, driven in part by market share gains made by its flagship “Milk Deluxe” product. It also noted its global expansion, including the growth of its ice cream business in Southeast Asia, where it says its Aice brand reached the top market share position in Indonesia while also entering Thailand, Vietnam, Cambodia and Laos.
• In its FY 2023 report,  China Feihe  said group revenue declined 8% and group profit dropped 33% from the previous year. The Chinese organization blamed China’s low birth rate and competitiveness in the dairy industry for the decreases. Feihe’s infant milk formula business, which comprises more than 90% of its entire business, saw revenues drop 10%. But its other dairy products, including liquid milk and adult milk powder, saw revenue climb 23%. Looking ahead, Feihe Chairman Leng Youbin believes the infant formula milk market in China will remain stable and be driven by premium products in 2024.  (USDEC China office; Company reports; Just Food, 4/9/24; Food Navigator Asia; 4/9/24 Yicai Global, 3/27/24)

Irish dairy co-operative Tirlán reported 2023 results the company characterized as “reflecting a resilient performance during an extremely challenging year for the Irish dairy, grain and wider agriculture sector.” Turnover fell 17% from the previous year, a drop the company attributed to lower commodity market prices. Profits fell 5%, with the company citing factors including inflationary pressures and its commitment to supporting farmers through a difficult year. The company said Tirlán’s dairy business continued to grow new markets, noting in particular the expansion of its Avonmore brand Professional UHT range in China and Vietnam, and entering the new markets of Malaysia, Thailand and the Philippines in Southeast Asia. Looking forward, the company said it will continue to focus on adding value to its portfolio through ongoing product innovation to grow international markets.  (Company reports)

Netherlands-based FrieslandCampina moved its UK headquarters and opened a new technology center in Malaysia as part of a push to upgrade its overseas operations. A desire to create a “more modern and dynamic” workspace ahead of expanding in the U.K. and Ireland led the company to relocate its U.K. headquarters from West Sussex to London. In Malaysia, the company’s new Technology Excellence Centre will focus on expanding global IT initiatives to impact the future operations of FrieslandCampina’s seven business groups. Operations at the center, which is located at FrieslandCampina subsidiary Dutch Lady Milk Industries, include data and analytics, cloud and platform engineering services, and IT service management.  (Food Manufacture, 4/30/24; Company reports)

As part of its efforts to strengthen its Medical Nutrition portfolio in the U.S., French dairy giant  Danone  completed the acquisition of  Functional Formularies , an Ohio-based whole foods tube feeding business. A Danone official said the deal will make the company “even better positioned to support the nutritional needs of tube-fed families and patients.”  (Company report)

New Zealand’s Fonterra Co-operative Group announced it was exploring divestment options for its global consumer business and its integrated businesses Fonterra Oceania and Fonterra Sri Lanka—operations that collectively accounted for NZ$7.2 billion (about US$4.7 billion) in revenues in 2023. “We believe we can grow further value for the co-op by focusing on being a B2B dairy nutrition provider, working closely with customers through our high-performing Ingredients and Foodservice channels,” said CEO Miles Hurrell. It would be a massive change for Fonterra that includes selling several domestic and global retail brands, such as Anchor, Mainland, Anlene, Anmum and Fernleaf. The Fonterra Oceania business also includes foodservice and ingredients segments, and Fonterra Sri Lanka sells to the foodservice sector. The business also includes 17 manufacturing sites (nine in Australia and others in New Zealand, Indonesia, Malaysia, Sri Lanka and Saudi Arabia). Together, all the operations on the chopping block accounted for 19% of Fonterra’s earnings in the first half of fiscal 2024. “A divestment of these assets would help create a simpler, higher performing co-op with our focus on our core Ingredients and Foodservice business and doing what we do best,” said Hurrell. Fonterra said it had previously received unsolicited interest in parts of the businesses. The company plans to appoint an advisor to assist with divestment options. The process should take 12-18 months and require shareholder approval. In conjunction with the announcement, Fonterra Global Markets CEO Judith Swales is stepping down effective July 31, 2024.  (Company reports)

Canada-based Saputo announced that President and CEO Lino Saputo will transition to the role of executive chair of the board later this year. The company said Carl Colizza, currently president and COO for North America, will step into the role as the new president and CEO. Colizza joined Saputo in 1998 as an engineer, and has held several senior management positions in the Dairy Division, including leading the Dairy Divisions in Canada and Argentina. He was named President and COO of North America in 2019. The transition is scheduled to take effect on Aug. 9, the day of the company’s annual general meeting.  (Company reports)

The British arm of Denmark’s Arla Foods announced plans to invest more than £300 million (about US$324 million) across five of its UK sites in 2024. The investment will update and expand Arla’s dairies in an effort to create more opportunities for British milk and cheese production. In a company statement, Arla said the investments will allow its Lockerbie Creamery to expand and grow over the coming years. In Stourton, the upgrades will expand Arla’s capabilities in ESL milk, as well as introduce a capability to supply milk in cardboard cartons. Aylesbury, which is the U.K.’s biggest fresh milk site, will get additional automated box packing capabilities, which will give customers greater flexibility with packaging formats. At Arla’s Taw Valley Creamery, the company will incorporate state-of-the-art technology and new jobs that will enable the business to export mozzarella around the world. Arla said it will explore further milk powder export opportunities related to investments at its Westbury facility.  (Company reports)

To promote sustainable development practices across the Sino-French dairy industry, China’s Mengniu Dairy Co . and France-based Bel Group signed a “Sustainable Development Cooperation Proposal.” Under the agreement, both companies will collaborate to address climate issues by sharing best sustainable development and food decarbonization practices, including low-carbon farming practices, nutritional awareness programs and the fight against food waste. Joint initiatives outlined in the agreement include research and development to promote sustainable and regenerative agriculture practices; sharing expertise and applying it to their dairy production processes to optimize carbon emission management; and exchanging solutions for sustainable dairy product packaging and adopting more sustainable packaging processes and materials. The companies also said they will collaborate on public welfare initiatives including the “Nutrition for All” campaign for children and adolescents.  (Company reports)

In response to a drop in milk volumes, Irish dairy co-operative Dairygold said it will reduce cheese production over the coming summer months. The processor said the decision was made in response to a 9% decrease in milk output this year compared to the same period in 2023, and an anticipated decline of 7% for the full year. Irish dairy farmers have been struggling with extreme wet weather in 2024, and year-over-year milk deliveries throughout the country have been down significantly since the last quarter of 2023. A company spokesman said these challenges are making it “necessary for us to adapt and redistribute our milk volumes to other areas of our operations.”  (The Dairy News, 5/21/24; Agriland, 5/20/24)

China’s Yili Industrial Group Co. reported a record-breaking operating income of 126.2 billion yuan (about US$17.6 billion) for 2023. The company said its liquid milk business posted an operating income of 85.5 billion yuan (about US$11.9 billion) and that revenue from its milk powder and dairy products increased 5% from the previous year. Yili also said its overseas business increased by 10% from the previous year, with products sold to more than 60 countries and regions, including notable growth in Southeast Asia and Africa. The company credited improvements in its global supply chain network and continuous adoption of new technologies for its performance, including the ongoing construction of the new lactoferrin factory of its Westland Dairy subsidiary and the development of a new “lactoferrin directional extraction and protection technology, which increased the lactoferrin retention rate in UHT milk from 10% to over 90%.”  (Company reports)

After announcing in January that it was assessing options for the release of its interest in its  Froneri  ice cream joint venture with  Nestlé , Paris-based private equity firm  PAI Partners  is reportedly in talks with investors to maintain its 50% stake in the business. Reports indicate the company is exploring a continuation fund to house the investment.  (Bloomberg, 5/10/24)

Mexican ice cream brand  Tropicale Foods  said it will close its Modesto, California, plant and shift production to its existing facilities in Lubbock, Texas, and Ontario, California. The closure, which will affect nearly 300 employees, is expected to occur on July 19. … Norway-based  Kavli  introduced a new dairy brand in the UK with the launch of a line of whipped cheddar spreads. The new products are currently available in Tesco stores, with plans for further rollouts later this year.  (The Dairy News, 5/21/24; The Modesto Bee,5/16/24)

Finland-based Valio is investing more than €60 million (about US$65.2 million) to enhance its cheese production plant in Lapinlahti. The investment includes adding about 22,000 square feet to its existing facilities, replacing outdated manufacturing equipment, renewing packaging operations and equipment, and adding a new power substation and back-up power. Construction on the plant, which is one of Valio’s largest, will begin this summer, with the enhanced operations to begin in spring of 2026.  (Company reports)

Fonterra Co-operative Group’s Anlene business in Indonesia launched a new adult milk powder containing habbatussauda, a black seed with many purported health benefits that is revered by Muslim consumers. The seed, which is commonly called “black seed” or “black cumin,” has been used medicinally for centuries in Southeast Asia and claims to offer health benefits ranging from heart health and weight loss to boosting memory, fighting inflammation, and treating coughs and colds. The product, called Anlene Gold 5X habbatussauda, was soft launched in more than 2,700 stores across Indonesia during the month of Ramadan, with a formal product launch to follow.  (FoodNavigator-Asia, 5/21/24)

To meet increasing global demand for medical nutrition, French dairy giant Danone invested €70 million (about US$76 million) in its Steenvoorde production facility in France. The majority of the investment (about US$65 million) will go toward producing roughly 30 recipes of the company’s oral nutritional supplement under its Nutricia specialized nutrition range. The remaining investment will be used for new infrastructure, including a biomass boiler that aims to reduce the site’s carbon footprint by 70%. The site is expected to produce nearly 20 million liters of medical nutrition products per year.  (The Manufacturer, 5/23/24)

In a move to strategically expand into adjacent segments of the dairy market. Italy-based dairy group  Sabelli  has acquired fellow Italian cheese producer  Stella Bianca  from  Mila Cooperative . The deal is expected to be completed next month. … Private equity firm  Hoffmann Family of Companies  (HF Companies) bought  Oberweis Dairy  and its assets in a bankruptcy auction. The Hoffmann bid beat an initial offer for Oberweis from the owner of dairy and egg marketer  Dutch Farms . HF Companies said it did not plan to close the Oberweis processing plant in Aurora, Illinois.  (NBC Chicago, 5/30/24; Just Food, 5/24/24)

Japan’s  Meiji  held an opening ceremony to celebrate the start-up of its new US$90-million ice cream plant in Shanghai (which began commercial production in late March). … Fonterra’s  Anchor Food Professionals  is switching distributors in China. Effective Aug. 1, the company will partner with  Maihi Ltd. , a subsidiary of Uni-China Business Group that specializes in food trading and foodservice. Anchor currently works with  Sims Trading . The new relationship is expected to further help increase penetration in the Chinese bakery sector. …  Yum China  signed a cooperation agreement with state-owned  China Supply and Trade Group  to focus on expansion in lower-tier cities. … Israel-based food tech startup  NewMoo  has developed a new technology that uses plant molecular farming to produce casein proteins that it claims can be used to create animal-free cheese alternatives.  Click here  to read more about the innovation and how it differs from current dairy-free production methods.  (USDEC China office; FoodBev Media, 5/28/24)

New Zealand dairy producer Synlait Milk continues to face difficulties as it works to overcome high costs, declining sales and unpaid debt. More than half of its 300 suppliers have reportedly notified the company that they intend to stop supplying milk after their current contracts expire. A company statement downplayed the potential exodus, saying the notices signal that the farmers “want to see Synlait’s balance sheet deleveraged, so advanced rates can be lifted further, and submitting a cessation notice provides an option, rather than a clear intention to sign with other processors.” To reduce its debt, the company is working to sell its manufacturing plants in Auckland and Pōkeno, and is also looking to sell its consumer Dairyworks business, which owns brands such as Rolling Meadow. Synlait also agreed to the terms of a NZ$130 million (about US$80) loan with its major shareholder, China’s Bright Dairy (subject to a pending shareholder vote). The company expects to draw down the full amount of the loan to meet its prepayment obligation to the company's senior lenders, which is due on July 15.  (Company reports; The Post, 6/3/24; Radio New Zealand, 6/3/24)

Dutch Lady Milk Industries Berhad (DLMI) , a subsidiary of Netherlands-based Royal FrieslandCampina (RFC), opened a new dairy plant in Malaysia that the company says will be able to double its production capacity to meet the growing demand for high-quality and nutritious dairy products in the region. Previous statements from DLMI said the new production facility “will revolutionize our supply chain processes to enable us to produce DLMI’s range of nutritional products, with the added scalable capacity to manufacture other innovative variations in the future driven by consumer trends and occasions.” The company said the plant is also designed to achieve a 30% reduction in energy and water consumption by 2030, compared to its 2022 baseline.  (Company reports, Dairy Industries, 4/20/21)

Idaho-based Suntado opened a 190,000 sq.-ft. production facility in its headquarters city of Burley  (see Global Dairy eBrief, 3/24/23) . The new plant can handle more than 450 MT of raw milk per day, processing it into shelf-stable and ESL milk as well as other fluid dairy products. The site opening comprises phase one of a three-phase project the company projects will triple future capacity.  (Food Engineering, 5/30/24)

Müller UK & Ireland , the British division of German dairy manufacturer Unternehmensgruppe Theo Müller, is acquiring West Lancashire-based Yew Tree Dairy, a maker of milk powder, fresh milk and cream. Muller plans to use Yew Tree’s powder capabilities (Yew Tree operates a drying facility in Skelmersdale, West Lancashire) to become a major producer and exporter of powdered milk products. “This acquisition will enable us to tap into global dairy consumption growth, unlock additional export opportunities and continue to drive supply chain resilience,” said Rob Hutchison, CEO at Müller Milk & Ingredients.  (Company reports)

Ireland’s  Lakeland Dairies  is asking £9.5-11 million (US$12-14 million) for its site in Banbridge, Co. Down, Northern Ireland. The co-op shuttered the butter manufacturing and powder storage facility (and two other sites) earlier this year as part of a restructuring plan announced last fall. Sweden-based dairy alternative company  Oatly  confirmed it has scrapped plans for its first UK plant-based beverage facility. The company said it is “identifying new ways to serve the UK market [by] utilizing existing facilities across Europe.” … California-based dairy processor  Clover Sonoma  named John Coletta as its new CEO effective July 1. Coletta, who has 35 years of food industry experience, succeeds retiring CEO Ken Gott.  (Company reports; BBC, 5/30/24; Agriland, 5/30/24)

Citing a decrease in milk production volumes, German dairy co-op DMK Group said it will close its Dargun site and reduce capacity at its sites in Edewecht, Hohenwestedt and Everswinkel. A company statement said optimizing its plant structure and product portfolio must include strengthening products with higher added value and reducing those with lower returns, and that the affected sites mainly produce “standard products.” The company expects to implement the measures, which affect roughly 150 employees, by spring 2025.  (Company reports)

In its results for the fourth quarter and fiscal year ended March 31, 2024, Canadian dairy processor Saputo reported revenues increased 1.7% and net earnings dropped 42.1%. Chairman, President and CEO Lino A. Saputo said the company has completed the bulk of the major capital projects under its Global Strategic Plan (GSP) and is ramping up commercial production at several of its facilities. U.S. priorities for the near-term include executing on the planned closures of the Lancaster, Wisconsin; Big Stone, South Dakota; Green Bay, Wisconsin; and South Gate, California, facilities and continuing to ramp up its new automated cut-and-wrap facility in Franklin, Wisconsin. Looking ahead globally, the company said it expects global demand for dairy products to remain moderate, alongside subdued international dairy market prices due to macroeconomic conditions. Priorities included in its GSP include driving retail volume through consumer advertising and innovation, onboarding new private label customers in Europe, and consolidating and rebalancing its business between domestic and export activities in Australia.  (Company reports)

Japanese probiotic beverage producer Yakult Honsha will open a second factory in the Philippines to meet growing demand for its Yakult probiotic milk beverage. The $34-million facility, which is located in El Salvador City, is expected to ultimately produce nearly 2.8 million bottles per day following a “facility enhancement.”  (Just Food, 6/5/24)

Three months after acquiring  Sovos Brands Inc. ,  Campbell Soup Co.  said it will sell the Noosa yogurt brand from the portfolio. At the time of the acquisition, CEO Mark Clouse said yogurt would not be “core to our strategy.”  (Global Food Industry News, 6/6/24)

Fonterra Co-operative Group  is building a new application center in Wuhan in China’s Hubei Province. It will be Fonterra’s sixth such site in China. The company expects to open it this September. …  Mona Dairy , the UK-based cheese manufacturer that launched in 2022 as a net-zero dairy that aims to pay premium prices to carbon-neutral farmers, has been placed into administration. In May, the dairy’s owners announced they were unable to secure the funding necessary to continue current operations. The dairy’s new joint administrators said they were focused on finding a solution for the business and invited any interested parties to come forward.  (USDEC China office; BBC, 6/10/24)

French companies Danone and Michelin have teamed up with North Carolina-based biotechnology startup DMC Biotechnologies and Crédit Agricole Centre France to create a biotechnology platform with the goal of accelerating the development of precision fermentation. The Biotech Open Platform plans to enable the scale-up of products and processes already tested in the laboratory. The initial investment is €16 million (about US$17 million), and by 2025 the project plans to install an initial demo-scale production line, including a fermenter and purification equipment. Additional equipment is planned for subsequent years, including a second production line. (Company reports)

In the year ended December 2023, Oceania Dairy posted a loss of NZ$19 million (about US$12 million) and saw revenue drop 14% from the previous year. The New Zealand-based dairy processor, which is owned by China’s Yili Group, said in its annual report that revenue from customers within the Yili Group was down from the previous year, while revenue from external customers and other revenue, including milk sales, increased. (eDairy News, 6/10/23)

Foodservice provider Bidcorp U.K. acquired UK-based ice cream manufacturer Northern Bloc Ice Cream . Northern Bloc currently supplies retail and foodservice customers including Booths, the National Trust and Wagamama. (Yahoo Finance, 6/17/24)

Australian Dairy Nutritionals appointed Mahi Sundaranathan as its new CEO. Sundaranathan, who replaces the recently resigned CEO Peter Skene, has more than 20 years’ experience in international markets including senior roles at the a2 Milk Co., Danone MG Australia, and Fonterra brands Australia. … Lactalis is closing its manufacturing plant in Miercurea Ciuc, Romania, and will focus on its four remaining sites in the country. (Company reports; Just Food, 6/17/24)

New Zealand’s Fonterra Co-operative Group disclosed several changes to its executive team. To help lead the co-op’s shift in strategic direction, Richard Allen, Fonterra’s president Atlantic, was appointed to the role of president, Global Markets Ingredients, and René Dedoncker, Fonterra’s managing director, Oceania, was appointed to the role of managing director, Global Markets Consumer and Foodservice. In addition, the co-op said Emma Parsons, managing director, Strategy & Optimization, was appointed to the role of CEO for Kotahi Logistics LP, a joint venture between Fonterra and Silver Fern Farms that works to ensure New Zealand maintains a sustainable and secure supply chain to remain competitive on the world stage. (Company reports)

As part of its ongoing efforts to revitalize its dairy sector, the Gombe State Government in Nigeria announced a strategic partnership with Moroccan dairy company COPAG Bladna to tap into the state’s livestock resources and foster a profitable dairy business. The announcement came during Governor Muhammadu Inuwa Yahaya’s recent visit to COPAG’s largest dairy factory in Taroudant, Agadir, Morocco, which was part of an investment mission aimed at replicating COPAG’s successful dairy model on a smaller scale in Gombe. (USDEC MENA Office; Dairy Business Africa, 6/10/24)

Trade tensions within the East African Community (EAC) between Uganda and Kenya continue, despite a recent commitment from both nations to improve relations and unlock trade barriers. Kenya is historically Uganda’s largest dairy export market, but dairy farmers in surplus producer Uganda are facing stalled growth due to trade restrictions, including a ban on permits for exports to Kenya. Last year, the Kenya Dairy Board announced a halt on milk powder imports to protect its local dairy sector. In May, Ugandan President Museveni and Kenyan President William Ruto issued a joint statement advocating for removing quotas on intra-EAC trade goods, including dairy products, but so far, the restrictive measures remain in place. (USDEC MENA Office; Dairy Business Africa, 6/18/24)

Kerry Group Ireland opened a new Cheesestrings facility in Charleville, County Cork. The Kerry Group subsidiary’s new plant, which is expected to boost production by 50%, received financial support from the Irish government’s Capital Investment Scheme for Agriculture Products. Minister for Enterprise, Trade and Employment of Ireland, Peter Burke, said the investment will help ensure that Kerry Dairy Ireland “has the world-leading processing capabilities needed to continue to grow the brand globally while directly supporting the local economy here in Charleville through the creation of jobs.” (FoodBev Media, 6/20/24)

French dairy giant Danone announced its mid-term strategy and value creation journey for the 2025-2028 period, which includes building on the fundamentals of science and innovation, operational and executional discipline, and proactive portfolio. The company said it will increase its focus on Health and Nutrition by gradually pivoting the way it addresses its categories—including Protein and Gut Health; broadening some of its business models; accelerating in Away-from-home and Medical Nutrition; and further expanding its geographic footprint. (Company reports)

Canadian dairy company Saputo completed the sale of its fresh milk processing facilities in Laverton North, Victoria and Erskine Park, New South Wales, to Australian supermarket, retail and consumer services chain Coles Group Ltd . A company statement said the transaction, which is valued at approximately CDN$95 million (about US$70 million), is part of Saputo’s overall network optimization strategy, which includes adapting its manufacturing footprint to focus on higher-value growth opportunities. The two sites will continue to process fresh milk products. (Company reports)

Germany-based dairy processor DMK agreed to acquire the remaining stake in Polish sales and distribution business Mlekoma Dairy from its venture partner, Saudi Arabia-based Saudia Dairy & Foodstuff Co. (Sadafco). A DMK spokesperson said the co-op is looking to promote its branded business in Poland and will make an effort to grow its Milram brand in the country’s foodservice and retail markets. … Spain-based Idilia Foods acquired 50% of local dairy-drinks business Cacaolat from Barcelona-based beer company Damm . The agreement, which will create the largest smoothie group in Spain, is part of a move to further accelerate growth in the dairy shake market at a national and international level. … As part of its strategy to strengthen its presence in the U.K. market, Germany-based dairy company Ehrmann acquired Cornwall, England-based Trewithen Dairy . (Company reports; Just Food, 6/26/24; Just Food, 6/24/24)

New Zealand dairy processor Miraka signed a new supply and research agreement with Chinese dairy processor Theland to supply a new range of premium “low-carbon,” A2 milk products. … Irish dairy co-operative Tirlán announced a cost reduction program that includes offering a “voluntary redundancy scheme” that may put about 150 jobs at risk. The co-op cited rising operational costs and a decline in milk supply volumes for the move. … Five western Canadian dairy co-ops are building a new C$75 million (about US$55 million) “dewatering” plant in Alberta under the name Dairy Innovation West . The plant will be able to concentrate up to 300 million liters of milk per year, reducing transportation costs to manufacturing facilities. (Company reports; Dairy Global, 6/25/24; Rural News Group, 6/25/24)

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The  U.S. Dairy Export Council   fosters collaborative industry partnerships with processors, trading companies and others to enhance global demand for U.S. dairy products and ingredients. USDEC is primarily supported by  Dairy Management Inc.   through the dairy farmer checkoff.

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Uganda’s exports to Kenya decline on trade disputes

Workers loading eggs into a car.

By  Constant Munda

Business Reporter

Nation Media Group

Expenditure on imports from Uganda declined 9.09 per cent in the first quarter of the year, pointing to the impact of an on-and-off tiff between Nairobi and Kampala over the entry of key farm goods such as eggs and milk powder.

The value of goods trucked into Kenya from Uganda through formal routes dropped to Sh7.48 billion in the three months through March 2024 compared with Sh8.23 billion the year before, according to provisional official trade statistics.

Reduced imports from Uganda at the time exports grew 7.17 per cent to Sh33.02 billion, helped widen Kenya’s goods trade surplus with its largest business partner to Sh25.54 billion from Sh22.58 billion the year before.

Exports to Uganda surge in 10 months

Kenyan exports to Uganda cross Sh100bn on weak shilling

Uganda has over the years complained of a blockade of goods such as eggs, sugar, milk powder, and grains in protectionist policies aimed at shielding Kenyan farmers.

The rising trade barrier between the two nations was part of the agenda during Uganda’s President Yoweri Museveni’s two-day State visit to Nairobi in early May.

“We have agreed that trade between the two countries is unimpeded either by tariff or non-tariff barriers or arbitrary levies,” Kenya’s President William Ruto said on May 16 following Mr Museveni’s visit.

“We have agreed that the common principle will be the full implementation of the EAC customs and other infrastructure that support trade between East African countries. Therefore, all the issues around rice, juice, furniture, eggs, chicken, and sugar are now resolved.”

Brookside Limited, owned by parent company Brookside Dairy of Kenya, however, said it is among the most affected businesses, with up to 114 export permits denied by the Kenya Dairy Board since March last year.

Read:  Export permit delays hurt Kenya-Uganda milk trade

“We were delighted to read the communique signed by the two countries when the two heads of State met in Nairobi, as we believe it was key to unlocking trade barriers that have existed since March last year. However, a month later, we are yet to receive export permits for our long-life milk, which includes powder and ultra-high temperature (UHT) processed milk,” Benson Mwangi, Brookside Limited’s general manager, told a media briefing in Kampala last week.

Although Kenya has been Uganda’s main market for dairy products, emerging trade restrictions have seen Kampala search for new markets, mainly in North and West Africa.

Mr Mwangi said Brookside Limited had written several reminders to the Kenya Dairy Board (KDB) on the pending permit applications.

Still, unfortunately, no response has been received so far from the regulator. “We are optimistic that KDB could soon implement the tenets of the communique by the two heads of state, which would unlock the impasse and allow us to resume export of our products,” Mr Mwangi said.

East African Community (EAC) Customs Union Protocol, the bloc’s first integration breakthrough which came into force in 2005, allows the free movement of goods, services, capital, and labour within the bloc.

The seven-member trading has, however, continued to experience unending trade tiffs, slowing growth in intra-regional trade despite the bloc being the most integrated in Africa.

Imports from Tanzania, for instance, fell by a third (32.69 percent) in the first quarter of 2023 to Sh7.99 billion when Dar es Salaam restricted sale of grains to neighbouring countries.

Read:  Value of dairy imports from Uganda nearly triples to Sh29bn

The measures were part of food export restrictions which Dar es Salaam started enforcing in 2022 to ensure food security in a trading bloc that perennially experiences deficit in maize, a staple.

The rules taken by Samia Suluhu’s administration last year required traders to open and register offices in Dar es Salaam for purposes of getting licences to export maize and other grains as well as obtain tax clearance certificates.

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Nabbanja wants the poor to pay the price

The Prime Minister, Ms  Robinah Nabbanja (left), speaks to banana farmers during an agriculture expo in Masaka District on June 30, 2024. PHOTO | ISSA ALIGA

By  Issa Aliga

What you need to know:

• The overseer of government business says the government would start dragging citizens to the police to record statements to explain why they are still poor, yet the government has sunk billions of shillings in household income-generating programmes to lift them out of poverty, writes Issa Aliga.

In a dramatic, yet hilarious, and perhaps odd proposal, Prime Minister Robinah Nabbanja has now suggested a unique way of forcing Ugandans out of poverty. 

Her unique proposition is that the government will be compelled to ask Ugandans who have failed to embrace various government projects to get out of poverty to record statements at police stations. 

Ms Nabbanja said it is self-defeating for people to just look on as poverty alleviation programmes that include the Parish Development Model (PDM), Emyooga, and Uganda Women Entrepreneurship Programme (UWEP} are being rolled out across the country and they deliberately fail to empower themselves economically. 

“The government has done so many things, but our common people, have not got rich. If they don’t want to get rich in peace, we shall make you rich by force. We shall take you to the police and make a statement on why your brother is rich as you remain poor. Yes, you will make a police statement explaining why you got the PDM money but never got rich, why you got the Emyooga money but remain poor. 

“You have land amounting to five, or six acres but you are not using it, are we together.? We are now talking humbly but time will reach and we say, ‘we want rich people’. Our master, the President loves you so much that is why he brought these various poverty alleviation programs like PDM, Emyooga, for women....’’ Ms Nabbanja said while launching the Semwanga Development Foundation in Rakai District on Saturday. 

The development foundation is the brainchild of Buyamba County legislator, Mr Gyaviira Ssemwanga.  

Ms Nabbanja also regretted that fishermen have been left out under the various government programmes, but she said this time round they would be financially supported. 

“The President has already ordered the Ministry of Agriculture to support fishermen who were chased away from water bodies over illegal fishing so that they can acquire recommended fishing gear and boats,” she said. 

Interestingly, President Museveni in 2021, at the naming of his new Cabinet to run his sixth elective tenure in office, dubbed it a Cabinet of “fishermen.” 

He said they were in touch and in sync with the minds and needs of common Ugandans, unlike their predecessor cabinet that was elitist and aloof.   

“On the issue of the proposed Cabinet, I decided to surprise everybody as Jesus [Christ] did. When Jesus started his movement, there were intellectuals like the Pharisees, but he went for the fishermen,”  Mr Museveni said.

Ms Nabbanja succeeded premier Dr Ruhakana Rugunda, and before him was Amama Mbabazi, who came after Prof Apolo Nsibambi.

Ms Nabbanja, who is fondly referred to as majegere or bulldozer, is known for her jerky and spur-of-the-moment handling of public affairs. 

In July 2021, the premier threw out an assortment of cheap relief items meant for flood victims in Kasese District. This was quickly followed by the arrest and charging of three OPM staff with corruption and abuse of office. 

In September 2021, Ms Nabbanja personally carried emergency relief items to flood victims in Kayunga District, sidestepping the line ministers.

Little wonder that during her tour in Greater Masaka sub-region at the weekend, Ms Nabbanja suspended the disbursement of PDM funds to Masaka District following complaints from residents that some beneficiaries don’t fall in the category of people being targeted under the programme. 

The residents said some of the beneficiaries are rich large-scale coffee farmers and dealers instead of the poor who are subsistence farmers. 

“The government is struggling to ensure that 39 percent of the rural poor households are lifted from subsistence economy to commercial production, but it is the rich people in Masaka who are benefiting. What are the parish chiefs and top district officials doing to ensure this money goes to the rightful beneficiaries?’’ Ms Nabbanja asked. 

The premier, who was officiating at an agricultural expo for Masaka District organised by the Office of the Prime Minister at Kamuzinda Village on Sunday, ordered: “I’m directing that distribution of these funds [PDM funds] is suspended and the parish chiefs investigated for failing to do their work.”

She ordered Ms Teopista Senkungo, the Masaka Resident District Commissioner, to take over the responsibility of verifying the right beneficiaries before payouts resumes.  

Ms Nabbanja instructed Mr Haruna Kasolo, the state Minister for Micro-finance, who was in attendance, to visit all parishes in Masaka District and find out what went wrong with the PDM programme and file a report.

Mr Joseph Kamoga, 52, of Kamulegu Village, told Ms Nabbanja that he was deliberately left out of the PDM programme yet the parish chief had included his name on the list of beneficiaries.  

‘‘I am among the poor in our village with only two pigs.  I wanted to get the money to improve my piggery project so that I could increase my household income, but I didn’t get the money,’’ he said. 

Mr John Henry Wasswa Ssempijja, the Masaka District Commercial Officer, said the district has 460 PDM beneficiaries in 18 parishes, with 361 of them female and 99 male. Some of the selected enterprises include poultry, banana, maize, dairy farming, rabbit rearing and passion fruit growing, coffee, and piggery. 

Ms Nabbanja advised farmers to utilise their small pieces of land to plant high-value crops like coffee that would help them earn richly from their produce and save part of the money.

“You should emulate President Museveni’s one-acre model so that you earn highly from the small piece of land,’’ she advised.

The PDM programme that was rolled out in 2022 aims to get 39 percent of poor households into the money economy. 

From the outset, a section of Ugandans, especially Opposition politicians, have expressed skepticism on whether PDM will achieve the desired goal of lifting households out of poverty. 

The government is expected to splurge Shs1 trillion annually on the programme intended to use a bottom-up approach.  Each parish is expected to receive Shs100 million from which eligible beneficiaries can borrow up to one million shillions.

There are more than 10,000 PDM Saccos across the country, with 367 of them in Greater Masaka, which includes Ssembabule, Lyantonde, Lwengo, Kalangala, Kalungu, Kyotera, Masaka, and Bukomansimbi districts, where Shs22 billion was released to Saccos.   

Masaka District alone received Shs1.18 billion. 

PDM, whose aim is to help fight poverty, mirrors a range of other poverty alleviation programmes, among them Emyooga, Poverty Eradication Action Plan, Poverty Alleviation Programme, Entandikwa, Plan for Modernisation of Agriculture, National Agricultural Advisory Services (Naads), Operation Wealth Creation, and special Interest funds like the Youth Livelihood Programme, which altogether have posted less than satisfactory outcomes.

Govt poverty alleviation programmes over the years

The Parish Development Fund (PDM)

The Parish Development Model (PDM) is the latest strategy for wealth creation. It was launched on February 26, 2022.

It aims at transforming the 39 percent of Ugandans trapped in poverty from subsistence to the money economy.

Under this strategy, each parish is expected to be allocated Shs100m which is distributed among members of respective Saccos. Beneficiaries are expected to pay back in the revolving fund after two years.   

Youth Livelihood Programme (YLP)

YLP was introduced in 2013 targeting the poor and unemployed youth. It covered 112 districts. Cabinet and Parliament approved a budget of Shs265b for the first five years of implementation for 2013-14 to 2017-18.

The programme was launched on January 24, 2014 to empower youth to harness their socio-economic potential and increase self-employment opportunities.

The Presidential Initiative on Wealth and Job Creation (Emyooga) was launched in August 2019. Its overall objective was to promote job creation and improve household income.

The initiative focused on boda boda riders, women entrepreneurs, carpenters, salon operators, taxi operators, restaurant owners, welders, market Vendors, youth leaders, Persons with Disabilities (PWDs), produce dealers, mechanics, tailors, journalists, performing artists, veterans and fishermen  among others.

Bonna Bagaggawale (Prosperity For All)

It was launched in 2007 to extend cheaper credit to Ugandans who accessed the funds through Saccos. The funds allocated to the beneficiary Saccos members were channeled through Post Bank.

The programme aimed at alleviating poverty, especially among people in rural areas. There were two loans that targeted traders and farmers.

The Poverty Eradication Action Plan (PEAP) 2004/5 2007/8

According to the Ministry of Finance, the PEAP provided an over-arching framework to guide public action to alleviate poverty.

It was prepared through a consultative process involving central and local government, parliament, donors, and civil society.  PEAP focused on creating economic growth and transformation through modernising agriculture and developing industries. 

Operation Wealth Creation

Operation Wealth Creation (OWC) was launched in July 2013 to facilitate socio-economic transformation, with a focus on raising household incomes and wealth creation by transforming subsistence farmers into commercial farmers to end poverty. 

The Presidential Initiative on Skilling the Girl-Child

The programme was launched in 2017 to empower underprivileged girls with various skills in tailoring, weaving, embroidery, knitting, shoe making, hairdressing and bakery,  among others.

The programme considers vulnerable girls who have dropped out of school, those who haven’t attained any formal education, unemployed girls, and orphans. 

The 4-Acre Model

This initiative was started by the President with the aim of skills development and capacity building in mainly commercial agriculture, manufacturing, ICT and services.

The ultimate objective of the initiative is to identify ways of creating wealth and jobs to foster growth in household income and, promotion of industrialisation.

Entandikwa It was a credit scheme that was initiated in 1995 as the country prepared to hold the first national elections, a decade after President Museveni took over power through a guerrilla war.

Compiled by Jane Nafula

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