Transforming Uganda's Dairy Industry: The Quality-Based Milk Payment System

Driving Sustainable Transformation

The QBMPS pilot, initiated in 2018 by SNV's The Inclusive Dairy Enterprise (TIDE), aims to enhance milk quality, reward farmers for superior quality products, and bolster food safety standards. The project received enthusiastic participation from farmers, milk collection centres, dairy processors, and regulatory bodies such as the DDA. Through this joint effort, the project has yielded impressive outcomes, providing invaluable insights for future replication and nationwide implementation.

The success of the QBMPS pilot can be attributed to the collaborative efforts of various stakeholders. SNV/TIDE project Phase II, in partnership with DDA, played a crucial role in facilitating knowledge transfer, providing technical support, and establishing a commercial input market for dairy businesses. Training, coaching, and education programs were delivered to over 1,400 farmers, three dairy processors, and ten milk collectors, fostering improved relationships and trust among all actors.

The QBMPS pilot drew on lessons learned from a similar initiative implemented in Kenya by Happy Cow Ltd, with co-funding from SNV's Kenya Market-led Dairy Programme. Recognizing the challenges faced in imposing all quality parameters and standards at once, the Ugandan pilot adopted a phased approach, allowing for smoother implementation and greater success.

Inspiring Cross-Border Collaboration

The success of the QBMPS pilot in Uganda has sparked interest in its application in other regions. Recently, a learning visit was organized for Abyssinia, a selected processor in Kenya, to integrate the QBMPS into its business. Led by Dr Catherine Kilelu, the QBMPS solution lead within the Netherlands East African Dairy Partnership (NEADAP), the visit aimed to share experiences and knowledge, paving the way for further cross-border collaboration. You can read more about the visit here.

Current Developments and Future Prospects

The QBMPS in Uganda continues to make strides in improving milk quality and promoting compliance with safety standards. Key recent developments include the distribution of 30 additional milk analyzers to eight new milk processing participants, with 50% grant support from TIDE/ The Integrated Smallholder Dairy Program (ISDAP). Additionally, antibiotics testing has been incorporated into the system as part of an ongoing pilot project. An agreement has been signed with a local company to provide calibration and maintenance services for the milk analyzers. Moreover, with over 65% of national milk production collected by milk traders, their engagement in the QBMPS is gaining traction. To further enforce compliance, the DDA and police have introduced roadblocks, including nighttime checkpoints, to monitor proper milk transportation and conduct raw milk quality checks, crucial elements of the QBMPS.

QBMPS has emerged as a transformative force within Uganda's dairy industry. By prioritizing milk quality, fostering collaboration among stakeholders, and leveraging valuable experiences, Uganda is making significant progress in enhancing the sector's productivity and competitiveness. As the QBMPS pilot expands and garners interest from neighbouring countries, it holds the potential to revolutionize the dairy industry across East Africa, empowering farmers, ensuring food safety, and propelling economic growth.