Presentation by Clayton Arinanye, General Manager Uganda Crane Creameries Cooperative Union (UCCCU) - Uganda

1. Uganda Crane Creamery
Cooperative Union (UCCCU)
Clayton Arinanye, General Manager UCCCU, Uganda
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2. Dairy sector in Uganda: the context
• Revival of the sector starting in the early 90’s
– Regulatory framework started in 1993 (Dairy Master plan)
– Steep increase in national milk between 1990 and 2015
• Contribution of the sector to the GDP: 3-4%
• Annual growth of the sector 8-10% per annum
– Total national production: 1.8 billion litres per year
– +/- 10 big processing companies in Uganda (UHT, yoghurt, cheese, casein), mainly
exporting in the region
• Opportunities
– Favourable conditions for dairy production in South West Uganda (climate, soil)
– Domestic potential demand for dairy products higher than production
– Export potential (Kenya)
• Challenges:
– 80% of the domestic milk supply: informal sector (unstable supply, demand & quality)
– Seasonal fluctuations in supply up to 70% due to “rain fed” cattle feeding
– Leading to high price instability: USh 450 – USh 1.200 in one month
– Important post harvest losses up to 40 - 50 % in the flush period
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3. Uganda Crane Creamery Cooperative Union
(UCCCU)
• Economic wing of the Uganda National Dairy
Farmers Association (UNDAFA) since 2005
• > 18 000 individual members organised in
– 10 district cooperative unions
– 138 primary cooperatives
• Operates in Southern Uganda
– Good soil & climate for cattle, allows intensification
– 36% of the national milk production
• 18.000 members produce between 500.000 and 700.000 l/day
– Average of 39 l per day per member
– Average about 10 cows per member

4. UCCCU is partner of AgriCord
• WeEffect, agri-agency of the Swedish farmers’ organisations: since
2012 to date:
• Supporting the internal organisation of UCCCU (membership base, governance,
management)
• Support to opening new markets and conform quality requirements
• Implementation of the cold chain collection & distribution of dairy products
• Agriterra, agri-agency of farmers’ organisations and their cooperative
businesses from the Netherlands through punctual interventions :
• 2011: UCCCU company assessment
• 2012: Support to make UCCCU’s business plan bankable
• 2012: Advice on organisation of the cold chain collection & logisitics
• Expertise mobilised from the Dutch dairy sector (Agriterra) for advice on collection
and cold chain systems: Friesland Campina
• AgriCord funding from EU/IFAD FFP/Africa

5. UCCCU coordinates its partners
• UCCCU manages complementarity between AgriCord
network and other partners
– All contributed to the strategic plan of the farmers’ organisation
– A coherent plan of the famers’ organisation leads to
complementarity
• aBI Trust: Ugandan multi-donor entity for private agribusiness
development: Support focussed on the primary cooperatives
• Heifer International (international NGO): Support to the biogas
production
• Land O’Lakes inc: US cooperative since 1921: Support to initiate the
cooperative spirit
• Dairy Development Authority, statutory body under Min. of Agriculture
– Assistance to registration of processors and traders, arbitrator in conflicts
– Advise on quality standards for milk
– Promotional actions
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UCCCU makes the value chain work
• UCCCU’s established its own extension services to dairy farmers to
increase efficiency and quality of milk (improved pastures, feeding practice
and veterinary services)
• Realisation of a cold chain for the collection of milk (via coolers in primary
cooperatives)
– Collecting 250 000 l/day (=daily capacity of one “big” processor) – Increasing …
– 140 collection centres, 10 milk tankers, 120 coolers installed in 92 of 138 coops
– Farmers contributed 50% (loans from aBI Finance)
– Reduction of post harvest losses from 40% to 2% (-38%)
• New market outlets to private processors and supply to primary school milk
programme
– Improved nutrition, reduce absenteism, increase farmers incomes
– Only 2% of the schools in SW Uganda covered …
• Preparation for a farmers’ owned processing plant is on-going
– Farmers contributions so far: land (6 acres) and buildings
– Negotiations with banks and equipment suppliers are ongoing.

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8. UCCCU’s members benefit
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• Increased productivity per cow of +5%
• 40% of milk of members is sold to the “formal milk collection” – national
average is 20%
• Improved quality of milk and increased bargaining power of members
lead to increased price to members of +33%
• Members’ income (after costs) increased by +48%
• Membership of UCCCU increased by 12% :
– From 16.000 (2013) to 18.000 (2015)
– Expected to reach 20.000 by the end of 2016
• Off farm employment : 500 youths in the milk collection & distribution