background
I was always afraid of cows (called "Walter" in the local language), especially during milking. When they grow up, I watched from afar while Aleppo grandfather. I can not trust the cow does not get angry (the mammary glands have touched) and provide a good kick aimed at the gonads!
from the nutritional point of view (for those readers who do not know, such as foreign and Mars), the milk needed for growth of basic food items along the way from childhood to adult hood, and provide the necessary protein and calcium to the body.
in Uganda, a large number of households consume milk processor sold in the retail price of SHS. 1400 shillings per liter compared with the manufacturer's milk which is sold in the SHS. 00 liters shillings
Why invest in dairy farming in Uganda. ?
in Uganda milk and dairy products, mostly earned from cattle and a small percentage of goats and sheep. Areas of Mbarara, Moroto, Bushenyi, Kotido, Masaka, Mbale, Kabarole, Mukono, Ntungamo, Kamuli and dominate the production in this sector.
The herds of cattle in Uganda is estimated according to the census of 08 cattle to be the last 11.4m. It is estimated that the local strains account for about 84% while representing exotic breeds and expressed his balance. It is also estimated that Uganda currently produces 1- 1.5 billion liters of milk annually, which is 30% consumption on the farm (or family) and sold 70%.
Although the local market is a key market for dairy products and milk, and are exported some of the milk processed and value-added dairy products to regional markets such as Kenya, Rwanda and the Democratic Republic of Congo, South Sudan and Tanzania.
Where are the investment opportunities in the diary sector in Uganda?
Given that Uganda's population will continue to grow by more than 3% per year, as well as get richer (with people below the poverty line limit) there are special opportunities in the distribution and processing of milk. In particular, include windows opportunity that I notice for the dairy sector as follows:
- investment in milk collection centers
- investment in the milk supply tanks
- investment in pasteurized milk distribution system packaged
- upgrade from official bodies in the dairy mini
- upgrade from dairy factories located
- investment in the integrated / Business Agriculture dairy processing
- investment cleaning tanker transport facility.
Even with the above in mind, how do you try to make money ( "sente" in the local language) from cows ( "ENTE")?
for the first time sees
(1). Bottlenecks marketing
one of the most important problems facing dairy farmers in Uganda have been recognized as that of the marketing of their milk.
due to poor access to markets (for example, due to poor road conditions and the lack of information on market prices).
solution for the farmer "advanced thinking" would be to enter into a partnership with the regional cooperatives in the supply of milk because they already transport and infrastructure well-established systems.
There is also the option to get in touch with the milk processors and large-scale provided. The downside is that their prices are often lower than retail prices, but the upside is the content of the market for your product.
(2). Low animal productivity
in Uganda, and dairy farmers are small-scale farmers to a great extent. Production of many household consumption and offer only available on the market surplus. More than rely on a herd of traditional indigenous people, known to be very low productivity. In addition, they rely mainly on natural green pastures to feed without any dietary supplements
to think about advanced farms, it would be wise to use an improved local dairy and exotic breeds that are known to produce large amounts of milk at the same time the implementation of the zero grazing while offering supplementary feed to promote animal feed.
also recommend planting elephant (Napier) grass before the establishment of the farm about 3 months.
(3). The availability of funding
Traditionally, the agriculture sector has been viewed as high risk, therefore there are financing options are limited, says of the venture capital and private equity firms (some of them specifically not lend sector).
However, there are about a growing number of regional and international commercial banks, including development banks that provide long-term funding for projects viable in this sector.
I would recommend that in order for the farmer to have the highest chances of getting loans, and keep farm produce records, showing that they have no cases of high low milk production (which is one of the factors that makes it high risk sector to lend) .
Another option is to get the membership of a cooperative group or something like that where they can get a loan through schemes SACCO. Donors and other relief projects for agriculture also often prefer to lend to cooperatives and farmers' groups similar.
interest rates on loans to commercial banks in April 2013 prices averaged about 25%, while SACCOs seem to provide the amount in the range of 10%.
THE PROS
(1). High demand for milk in the local and export markets alike
reliable data on the consumption of milk in Uganda, there is still a severe shortage. However, there are strong indications to show that the dairy products market is growing fast and steady rate. An estimated milk production growth rate of more than 8% per annum. On the other hand there is the supply of ink on paper for a coffee in the export market with the leader in the field of manufacturing and distribution companies are not able to fulfill their own supply markets. The largest milk processor, Sameer Agricultural Livestock Ltd (SALL), for example, claims that in the 17-nation markets, but constrained by low supply in these countries service.
The "advanced thinking" Farms has the opportunity to enter into a partnership with the milk processors to produce them. However you will need to make sure that it has the systems in place to comply with strict requirements for quality control of these processors.
(2). Food and wealth security
There are a large number of households in Uganda own cow (although many of the indigenous breeds) and the simple reason is that each of milk cows and negotiable too, in the event of financial distress, they provide food Security (milk for the family) and can be easily sold, especially the rare desired extremely breeds.
Oh and let's not forget (at risk the wrath of feminists) that these cows are very important part of the dowry source (or "bride price") in Uganda .
(3). ROI
financial forecasting model, and I have developed. I estimate the return on investment (ROI) for this sector as follows:
· startup capital (A): Shs.44, 27300
· Profitability (b): SHS. 10589863
· return on capital (A / B): 4.18 years
Now the basics you must get right before investment in this sector.
- feed. In addition to dietary supplements, herb plant elephant in advance. This ensures that the cows are fed adequately. The production of breast milk, and is directly related.
- buy cows. I suggest you buy pregnant cows. My research shows you can get them cheaper than those who are not pregnant. You thereby doubling your equity quickly. Purchase, be sure to choose strains (perhaps through strains) that fit the local area (climate and disease resistance);
- Technical Support Visit a typical farm practice good farm management to improve your knowledge;
- records. Keep farm records to make sure you can be evaluated daily milk crops as well as evaluating the quality of milk you have. This will be particularly necessary as you expand and we say we want to supply a wider range of milk processors. And
- water. Make sure you have enough water in the nearby . Cows drink plenty of water, and therefore need either a tank or as you advance, build a well for water supply.
final word
I still fear kicked by a cow which exude so, I still say, "No thank you, sir, I'll stick to hiring a shepherd from the village a friend in Nyakahita, Mbarara. "
lighter humor aside, dairy production has the potential to be a lucrative business opportunity for farmers in Uganda. There is always room for growth, both for the farmers startup as well as more established players.
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