Dairy farming is a class of agricultural, or animal husbandry enterprise, for long-term production of milk, usually from dairy cows but also from goats and sheep, which may be either processed on-site or transported to a dairy factory for processing and eventual retail sale. It is a lucrative business, which can fetch big profits due to the increasing and ready market for dairy products.
The production capacity is based on the quality and number of animals raised on the farm. However, for 5 Friesian Cows, 100ltrs of milk will be produced as each Dairy Animal is capable of producing 20 Litres of milk per day.
Capital Investment Requirements and Equipment
This project will be operated locally on small scale, i.e. 5 Friesian Cows operated on 5 acres of land. The Fixed Capital Investment required to start this project is approximately US$ 73,521, generating a revenue potential of USD 374,400 per annum. The net profit margin... Read more
Dairy farmers in Uganda are smiling to the bank after their pay from milk processor Fresh Dairy shot up from Shs 60bn in 2016 to Shs 70bn last year – a signal of growing fortunes for the sub-sector, according to the company.
Fresh Dairy said in statement: “Investment in a robust livestock extension programme had begun to bear the fruits, with more of its contracted farmers adopting climate-resilient dairy practices to grow milk production.”
Farmers’ fortunes in the dairy industry come as a result of impressive growth in milk production countrywide. Uganda Bureau of Statistics (Ubos) reports in the 2017 statistical abstract that from 2012 to 2016 milk production surged to 1.7bn litres from 1.4bn litres.
Last year, production touched 1.8bn litres, say official data. Even with these figures, the statistics body says some farmers are still using traditional means and are battling climate change effects with prolonged droughts that at times... Read more
The SNV Uganda school milk the programme reaches 210 primary schools with over 70,000 children now drinking milk while at school.
SNV Uganda through the Embassy of the Kingdom of the Netherlands (EKN) funded Inclusive Dairy Enterprise Project (TIDE) established a sustainable and innovative school milk programme within the six program target districts in southwestern Uganda, Bushenyi, Isingiro, Kiruhura, Mbarara, Ntungamo and Sheema. The driving aim behind the School Milk Program, was to;
Alleviate malnutrition and temporary hunger among school children and subsequently increase school enrollment and class attendance
Develop the dairy sector by increasing milk sales in the short term and milk demand and market in the long term.
The school milk programme target was initially designed to reach 5,000 primary school going children within the 6 target districts. The programme which started as an invention of the TIDE project was later modified and became a... Read more
SNV's Rinus shares his thoughts on why dairy may soon replace coffee and tea as the lead export in Uganda.
The dairy sector is slowly inching its way into Uganda’s top exports, next to coffee and tea. The pull of the exporters is largely responsible for this transformation. In the last 10 years, the value of milk and milk products exported from Uganda has increased astronomically from $5 million USD in 2008 to 130 million USD in 2017. Dairy exports in 2017 amounted to approximately 300 million litres, which is more than 10% of the total milk produced in Uganda; currently estimated at 2.5 billion litres per annum.
The dairy sector is currently growing at an average of 7% per annum, with some areas in South Western Uganda averaging at 10 – 15% per year. The growth in the sector can be attributed to favourable natural conditions as well as dairy development programmes instituted by government and development partners.
Ho... Read more