Mini Dairy Processing Plant Unveiled in Kiboga to Boost Agricultural Value Addition

The Minister of State for Animal Industry, Bright Rwamirama, has inaugurated a mini dairy processing plant in Kiboga District, furthering the government’s commitment to enhancing value addition for agricultural products.

The plant, operated by Dwaniro Dairy and Livestock Cooperative Society, will focus on producing yoghurt and cheese. The launch event, attended by cooperative members, local leaders, and other agricultural stakeholders, took place last week at the Cooperative’s premises in Bukomero sub-county, Kiboga District.

In his remarks, the Minister highlighted Dwaniro’s selection as one of eight farmer cooperatives receiving government support for exemplary practices.

“I congratulate Dwaniro Cooperative. This support is for those who truly deserve it. Now, it’s up to you to run this factory sustainably and work towards expansion. The government has provided a starting point,” Rwamirama encouraged the Cooperative’s members and management team.

He further noted, “Modern farming isn’t about the number of cattle but productivity. Focus on breeding resilient cattle suited to our local climate.”

Kwesigabo Johnson, Chairman of Dwaniro Dairy and Livestock Cooperative Society, celebrated the plant's launch as a major milestone.

“This facility allows us to process 4,000 litres of milk daily. It’s a significant achievement, showing that we can add value, enter the market, and produce accepted products,” Kwesigabo stated.

He acknowledged the Uganda Development Bank (UDB) as their primary financier, noting that while individual farmers may be too small to access funding, borrowing as a cooperative enables them to provide small loans to members.

Farmers have used these funds to purchase high-quality animals, construct valley dams, and improve pasture. Kwesigabo reported that the Cooperative has successfully repaid three credit rounds—UGX400 million, UGX800 million, and UGX1.5 billion—from UDB.

“This confidence from UDB has been one of our greatest motivators,” he added.

Beyond financing, UDB supports cooperatives with business advisory services. Of the UGX610 billion disbursed by UDB last year, 30.6% (UGX187 billion) was allocated to agro-industrialisation projects. UDB-backed enterprises contributed approximately UGX236 billion in domestic taxes in 2023, with manufacturing at 47%, agro-processing at 27.9%, and primary agriculture at 15%.

The funded projects created or maintained around 51,841 jobs, with primary agriculture accounting for 39%, agro-processing 32%, and manufacturing 16%.

Established in 2009 with only 15 members and 2,000 litres of milk daily, Dwaniro Dairy and Livestock Cooperative Society has grown to handle over 35,000 litres daily. Serving over 800 farmers in Bukomero, it now has 400 registered members. The majority (about 80%) of milk produced in the community is supplied to Jesa, a leading dairy company producing fresh milk, ESL milk, flavoured yoghurt, butters, Bonga yoghurt, and cream.

Dwaniro’s plant is one of eight mini dairy plants the government has helped establish, alongside those in Kyankwanzi, Kamuli, Kamwenge, Isingiro, Ntungamo, Kabale, and Kabarole districts. Dwaniro is part of the 45,000 cooperatives registered in Uganda, which collectively have over 18 million members.

The Minister encouraged the Cooperative to appoint representatives for Ministry-led training in artificial insemination to boost livestock productivity. Trainees will receive essential equipment from the Ministry.

“I must emphasise handling milk to the highest standards. The international market is very quality-conscious,” he stressed.

Citing World Health Organization (WHO) recommendations, Hon. Rwamirama highlighted that an individual’s average annual milk consumption should be 200 litres, whereas Uganda’s is only 64 litres. “Since we don’t consume all the milk we produce, we need external markets, which demands high standards,” he concluded.

Dignitaries present included Dr. Samuel Mugasi, Executive Director of the National Agricultural Advisory Services (NAADS); Samson Mpiira, Executive Director of the Dairy Development Authority (DDA); and Hajj Ddumba Moses, RDC of Kiboga.