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Milk prices drop from Shs 800 to Shs 100 per litre in Mbarara

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Dairy Farmers in Mbarara and Kiruhura districts are stuck with over 150,000 litres of milk following the closure of the biggest milk processing plants in the area. Pearl Dairies stopped buying milk six days ago while Amos Dairies stopped a week ago.

The closure of the two biggest milk processors has taken a huge toll on dairy farmers. James Rwamunahe, a manager at a milk collecting center in Biharwe trading center, says they collect over 15,000 litres each but only sell 5,000 litres leaving a balance of 10,000 litres.

He says the whole of Kashari A collects over 30,000 litres but only 15,000 litres are taken by Abesigana Farmers Dairy Cooperative Society leaving a balance of 15,000 litres. Wilson Bagatuzire, a farmer in Kashari says he is worried about where to take his milk because Pearl Dairies, which used to buy the bulk of the milk, closed yet cooperatives cannot consume what they produce.

David Rwancumi, a Dairy farmer in Kiruhura district, says due to lack of market a litre of milk has dropped between Shs 700 and 800 to Shs 300. He also notes that the few cooperatives buying milk don’t give them a chance to negotiate for better prices. Alex Mubagizi, the Igongo farm manager says a litre of milk now costs between Shs 100 and Shs 300 s down from between Shs 700 and Shs 800.

Much as milk farm gate prices are low, a litre of milk in Mbarara business center costs between Shs 1000 and Shs 1200. Asaph Nagaba who owns a cooler at Fresh Milk Suppliers on Bulemba Road in Mbarara town says the closure of the milk plant doesn’t mean that they should reduce prices because they also have expenses to cover.

“We cannot reduce our prices just because the Indian has closed, we have other expenses like transport, taxes, polythene bags for packing and other things so we keep our prices high but not exorbitant,” he said.

Nathan Bahuku, a farmer in Biharwe has appealed to government to come up with a strategy of finding market for their milk to save them from losses.

Our reporter was denied access to Pearl Dairies. However, a source said that the factory has laid off three-quarters of its workers since it closed on grounds that they no longer export milk to Kenya. Pearl Dairies are the producers of Lato Milk products.

The company has been consuming over 300,000 litres per of milk each day collected from Kiruhura, Lyatonde and Mbarara districts.  Late last year, the then state minister for Animal Husbandry, Joy Kabatsi asked farmers to start cooperative societies to help them negotiate milk prices and find market for their products.

Source: The Observer

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FARM NEWS

Govt moves to set up food and agriculture regulatory authority

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Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026. (Credit: Maria Wamala)

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

KAMPALA – The Government has proposed the creation of a food and agriculture regulatory authority to bring food, animal medicines, agricultural chemicals and related products under one regulatory framework.

Agriculture minister Frank Tumwebaze tabled the Food and Agriculture Regulatory Authority Bill, 2026, for first reading in Parliament on August 25, 2026.

The Bill has been referred to the Committee on Agriculture for scrutiny. The proposed authority will regulate the manufacture, processing, importation, exportation, distribution, transportation, advertisement, labelling, storage, sale and supply of veterinary medicines, agricultural chemicals, veterinary equipment and devices.

It will regulate food and feed manufacturing, processing and distribution, oversee food and feed safety, develop standards, inspect and certify agricultural inputs, and establish traceability systems for regulated products.

The Bill’s memorandum presents a troubling picture of the current food and agricultural regulatory system, stating that the country is “flooded with counterfeit substandard veterinary medicines and agricultural chemicals.”

It cites concerns over medicines and chemical residues, aflatoxins, harmful microorganisms and heavy metals in food and feed, warning that such contaminants compromise public health and the safety of agricultural exports.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)The memorandum attributes the problem in part to “fragmented regulation”, which it says has resulted in weak and uncoordinated regulation by multiple agencies, duplication of efforts and inefficiencies in enforcement.

It argues that the absence of a single body overseeing the food and agriculture value chain “undermines the effectiveness of regulation” and creates uncertainty for stakeholders.

The proposed authority will inspect food premises, certify meat for public consumption, inspect and certify fish, regulate processed and semi-processed food, and oversee the storage and transportation of food.

The Bill seeks to regulate food packaging, labelling and advertising, while prohibiting the use of radioactive materials, heavy metals and banned substances in food. It provides for residue monitoring to detect harmful substances in food products.

Members of Parliament during Plenary on Tuesday. (Credit: Maria Wamala)

For agricultural chemicals, the Authority will license manufacturers, distributors, fumigators and commercial applicators. It would regulate the import and export of chemicals, as well as their packaging and labelling, storage, sale and advertising.

The Authority will have powers to recall agricultural chemicals and deal with prohibited, banned, restricted, falsified or adulterated products.

The Bill proposes inspectors and analysts with powers to access establishments, conduct sampling and analysis, seize adulterated products and oversee the disposal of obsolete, banned, prohibited and expired products.

Inspectors will, in certain circumstances, order the detention, return or destruction of non-compliant consignments.

The proposed authority will be a body corporate with perpetual succession. Its functions include the registration of veterinary medicines, veterinary devices, veterinary equipment, agricultural chemical application equipment and agricultural chemicals for use in Uganda.

The authority will be governed by a nine-member board appointed by the minister. The board will comprise a chairperson, six members with expertise in veterinary medicine, agriculture, pharmacy, standards and environmental science, and two representatives of farmers nominated by a recognised farmers’ federation.

The Bill contains 13 parts, 101 clauses and three schedules. It seeks to amend the Dairy Industry Act, Fisheries and Aquaculture Act, National Coffee Act and Animal Feeds Act, while repealing the Agricultural Chemicals (Control) Act and the Food and Drugs Act.

The proposed law seeks to give the Minister power to issue written policy directions to the authority.

The Government argues that the new framework would improve the quality and safety of agricultural inputs, strengthen consumer protection and help Uganda gain access to regional and international agricultural markets.

The Bill moves to the Agriculture Committee, where MPs are expected to examine its regulatory, institutional and enforcement provisions before it returns to the House for further consideration.

The public, including experts, are expected to provide their views on the Bill.

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FARM NEWS

Concern over low cassava yields in Bukedi region

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For decades, cassava has been more than just a crop in Bukedi Sub-region in eastern Uganda. It has served as a lifeline, providing a reliable source of food during droughts, a key source of household income and an integral part of the region’s cultural identity.

Across the districts of Budaka, Kibuku, Butebo, Pallisa and parts of Butaleja, cassava gardens once stretched across vast expanses of land. Families harvested the crop throughout the year, processed it into flour and sold surplus produce in local markets.

Today, however, those fields are shrinking. Farmers are increasingly abandoning cassava cultivation in favour of crops they consider more profitable and less risky, raising concerns about food security and the future of one of Bukedi’s traditional staples.

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Parliament gives Jinja land office three months to clear backlog

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Some staff of the Jinja Ministry Zonal Office meet members of the Parliamentary Committee on Land on August 27, 2026. PHOTO/TAUSI NAKATO.

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