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The plant, managed by Dwaniro Dairy and Livestock Cooperative Society, will focus on producing yogurt and cheese, helping local farmers move beyond raw milk sales and capture higher-value markets.
Held at the Dwaniro Cooperative premises in Bukomero sub-county, the event was attended by cooperative members, local leaders, and stakeholders in the agricultural sector.
Dwaniro Cooperative was selected as one of eight cooperatives across Uganda to receive government support for dairy processing facilities due to its exemplary practices in livestock and dairy management.
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Government’s Support for Agricultural Value Addition
Minister Rwamirama congratulated Dwaniro Cooperative on its achievements and urged members to make the plant’s operations sustainable.
“We provide support to deserving cooperatives,” he said. “It is now your responsibility to ensure the factory’s success and expansion. Government has given you a starting point.”
He also emphasised the importance of productivity over herd size, advising farmers to focus on raising high-yield cattle breeds better suited to Uganda’s climate.
“Modern farming isn’t about the number of cattle but rather about how productive they are,” the Minister remarked.
A Milestone for Dwaniro Cooperative
The new processing plant has the capacity to process 4,000 litres of milk daily, which, according to Dwaniro Cooperative Board Chairman Mr. Kwesigabo Johnson, represents a milestone for the cooperative. “This achievement symbolises that we, as farmers, can add value and create market-ready products,” Mr. Kwesigabo said.
Mr. Kwesigabo highlighted the role of Uganda Development Bank (UDB) as the cooperative’s primary financier. UDB provided loans that the cooperative pools to support its members in purchasing quality livestock, building valley dams, and improving pastures.
“Borrowing as a cooperative allows us to lend smaller amounts to individual farmers, who then use these loans to enhance their productivity,” he explained.
Since its founding in 2009, Dwaniro Cooperative has grown from 15 members collecting 2,000 litres of milk daily to over 800 farmers contributing 35,000 litres.
The cooperative supplies a significant portion of its milk to Jesa, one of Uganda’s leading dairy processors, providing a stable market for its members.
UDB’s Role in Agro-Industrialisation
UDB’s role in supporting agriculture and agro-industrialisation in Uganda has been substantial.
In 2023, the bank allocated 30.6% of its funds (UGX 187 billion) to agricultural projects, creating approximately 51,841 jobs across the agriculture, agro-processing, and manufacturing sectors. UDB’s support has not only provided funding but also business advisory services, helping cooperatives like Dwaniro achieve sustainable growth.
Future Plans and Focus on Quality
Minister Rwamirama encouraged Dwaniro Cooperative to prioritise quality in milk handling, especially as Uganda seeks to access international markets.
He also urged the cooperative to nominate representatives for training in artificial insemination, part of a government initiative to enhance livestock productivity.
The Ministry of Agriculture will supply the necessary equipment for this training, which is aimed at improving cattle quality and output.
“Uganda’s per capita milk consumption is 64 litres annually, well below the World Health Organization’s recommended 200 litres. With limited local consumption, we need to export more, and this requires adherence to high standards,” the Minister explained.
Also in attendance were Dr. Samuel Mugasi, Executive Director of the National Agricultural Advisory Services (NAADS); Samson Mpiira, Executive Director of the Dairy Development Authority (DDA); and Kiboga’s Resident District Commissioner, Hajj Ddumba Moses.
The launch of the Dwaniro processing plant is a promising step towards enhancing value addition in Uganda’s dairy industry, empowering local farmers and contributing to rural economic growth.