$35 million investment aimed at enhancing food security
In Uganda, the agricultural industry continues to be the backbone of the economy, employing over 72% of the workforce and making up roughly 24.1% of the country’s GDP.
The dairy industry alone is worth US$3.8 billion, and US$106.2 million is made from exports each year.
Dairy products and milk are essential in the fight against hunger and maintaining food security in the area.
The dairy industry has shown remarkable expansion, but it still confronts several obstacles, including significant seasonal variations in the supply of raw milk, underutilized processing capacity, a high prevalence of informal trading, quality difficulties that restrict international trade, and reliance on demand from important export markets like Kenya.
Ugandans consume very little milk in their households—roughly 0.5 liters (550 milliliters) per day—much less than the FAO and WHO’s recommended daily intake.
In response, the Dairy Development Authority (DDA) of Uganda started work on the August 2022 adoption of the Dairy Policy Action Plan.
Through the implementation of policy interventions targeted at increasing consumption, encouraging production, enhancing quality, and opening up new markets, stakeholders are involved in this multi-year plan.
A prominent step toward resolving these issues is the USD 35 million senior loan financing that Delphos has obtained for Pearl Dairy Farms Ltd., a well-known dairy processor in East Africa.
With the backing of Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V. (FMO) and the International Finance Corporation (IFC), Pearl Dairy Farms Ltd. will be able to improve its powdered milk plant in Uganda and acquire a packing facility in Kenya.
It is anticipated that this investment will improve smallholder farmers’ access to the raw milk market, which will have a significant effect on both Kenya and Uganda.
More than 15,000 local farmers will gain from Pearl Dairy Farms Ltd.’s extensive Dairy Development Program, which is funded by the IFC. It offers training on best practices and data access to increase productivity and profitability.
