Rwanda Proposes Dairy Board to Enhance Milk Industry Regulation
The Rwandan government is taking steps towards forming a dairy board to regulate the milk value chain, in response to ongoing challenges within the sector. These challenges include high production costs, low returns for farmers, and weak coordination among industry stakeholders. Jean Claude Ndorimana, Director General for Animal Resources Development at the Ministry of Agriculture and Animal Resources (MINAGRI), highlighted that the board would enhance oversight and regulation of the dairy industry, citing successful examples fr om Kenya, Tanzania, Uganda, and India.
According to Ndorimana, the proposed board would help farmers by addressing issues such as delayed payments and ensuring fair milk pricing. In India, for instance, milk delivered to collection centers is graded based on quality and fat content, with payments made accordingly. This system benefits both farmers and consumers by ensuring that only high-quality milk reaches the market.
A task force is currently working on drafting the concept for the board, alongside a presidential order, with completion expected by April. Subsequent consultations with stakeholders will follow to refine the proposal. The proposal was also discussed in a recent parliamentary session, wh ere lawmakers from MINAGRI sought updates on its progress.
Sperto Gahiga Gashumba, president of the Nyagatare Dairy Farmers Union, expressed support for the initiative, noting that previous attempts to establish a similar structure lacked sufficient authority and representation. He emphasized the need for a government-mandated board to bring together all players in the value chain with the power to make enforceable decisions.
Challenges remain for dairy farmers, such as the discrepancy between production costs and farmgate milk prices. Milk prices have been stagnant at about Rwf400 per liter for nearly two years, despite rising input costs. Farmers have called for improved access to affordable animal feed and better cattle breeds to boost productivity.
Bienfait Karehe, president of the Dairy Farmers Union in Nyabihu District, echoed these concerns, advocating for a milk price of at least Rwf600 per liter to align with investment costs. He underscored the potential role of a dairy board in improving breeding practices to increase milk production, which currently averages about 15 liters per cow per day in Nyabihu.
