7 How Will Grazing Animals Help Plants To Become Established How Profitable Is Dairy Farming in Uganda?

You are searching about 7 How Will Grazing Animals Help Plants To Become Established, today we will share with you article about 7 How Will Grazing Animals Help Plants To Become Established was compiled and edited by our team from many sources on the internet. Hope this article on the topic 7 How Will Grazing Animals Help Plants To Become Established is useful to you.

How Profitable Is Dairy Farming in Uganda?

Background

I was always afraid of cows (called “ente” in the local language), especially during milking. Growing up, I watched from afar as my grandfather milked. I couldn’t trust the cow not to get angry (at having her mammary glands touched) and give her gonads a well-aimed back kick!

Nutritionally (for those readers who aren’t aware, like aliens and martians), milk is an essential food substance needed for our growth all the way from baby hood to adult hood, providing essential protein and calcium for the body.

In Uganda, a large number of households consume raw milk which is sold at a retail price of Shs. 1400 shillings for a liter compared to processed milk sold in Sh. 2000 shillings per litre

Why invest in dairy farming in Uganda?

In Uganda, milk and milk products are mainly obtained from cattle and a small percentage from goats and sheep. Mbarara, Moroto, Bushenyi, Kotido, Masaka, Mbale, Kabarole, Mukono, Ntungamo and Kamuli districts dominate production in this sector.

The cattle population in Uganda was last estimated according to the 2008 cattle census to be 11.4 million. It is estimated that indigenous breeds make up about 84% while exotic and crossbred breeds make up the balance. It is also estimated that Uganda currently produces 1-1.5 billion liters of milk per year, of which 30% is consumed on the farm (or household) and 70% is sold.

Although the domestic market constitutes the main market for milk and milk products, some processed milk and value-added milk products are exported to regional markets such as Kenya, Rwanda, Democratic Republic of Congo, South Sudan and Tanzania.

Where are the investment opportunities in the newspaper sector in Uganda?

Considering that Uganda’s population will continue to grow at over 3% per year, as well as become more affluent (with people below the poverty line decreasing), there are opportunities especially in milk distribution and processing. In particular, the opportunities I see for the dairy sector include the following:

  1. Investments in milk collection centers
  2. Investment in milk supply tankers
  3. Investment in the distribution system of packaged pasteurized milk
  4. Improvement of informal actors in mini dairies
  5. Improvement of existing dairy factories
  6. Investment in integrated farming/dairy processing business
  7. Investment in the cleaning facility for transport tanks.

So, given the above, how do you try to make money (“sente” in the local language) from cows (“ente”)?

BEFORE OBJECTIONS

1. Marketing constraints

One of the most critical problems facing dairy farmers in Uganda is known to be the marketing of their milk.

This is due to poor access to the market (for example due to bad roads and lack of information on market prices).

The solution for the “advanced thinking” farmer would be to partner with regional cooperatives in milk supply as they already have well established transport systems and infrastructure.

There is also the possibility of contacting large-scale milk processors to supply them. The downside is that their prices are often lower than retail prices, but the upside is the sure market for your product.

2. Low animal productivity

In Uganda, dairy farmers are mostly smallholder farmers. Many produce for home consumption and supply only the surplus available in the market. Most rely on the traditional indigenous herd, known for very low productivity. Moreover, they mainly rely on natural green pastures for feeding without any food additives

For forward-thinking farmers, it would be wise to use improved domestic and exotic dairy breeds, which are known for producing large quantities of milk and at the same time carry out zero grazing while providing nutritional supplements to increase animal feed.

I also recommend planting elephant grass (napier) about 3 months before the farm is set up.

3. Availability of financing

Traditionally, the agricultural sector has been seen as high risk and thus has limited funding opportunities, say from venture capital firms and private equity firms (some of which specifically do not lend to the sector).

However, there are an increasing number of regional and international commercial banks, including development banks, that provide long-term financing for sustainable projects in the sector.

I would recommend that the farmer has a higher chance of getting a loan, keep records of their farm produce to show that there is no high incidence of low milk yield (which is one of the factors that makes the high-risk sector. to lend).

Another option is to join a cooperative or similar group where they can access group loans through SACCO schemes. Donors and other agricultural aid projects also often prefer to lend to cooperatives and similar groups of farmers.

Commercial bank lending rates in April 2013 averaged around 25%, while SACCOs seem to lend in the 10% range.

PRO

1. High demand for milk in both the domestic and export markets

Reliable data on milk consumption in Uganda is seriously lacking. However, there are strong indications that the market for dairy products is growing at a fast and steady pace. The growth rate of milk production is estimated at over 8% per year. On the other hand there is an undersupply of milk in the export market with major processing and distribution companies unable to meet their supply markets. The largest milk processor, Sameer Agricultural and Livestock Limited (SALL), for example, claims to have existing markets in 17 countries, but is limited by low supply in serving these countries.

The “advanced thinking” farmer has the opportunity to partner with dairy processors to produce for them. However, he will need to ensure that he has systems in place to meet the rigorous quality control requirements of these processors.

2. Food and wealth security

A significant number of families in Uganda own a cow (albeit many of them indigenous breeds) for the simple reason that milk and cows are highly marketable and thus in case of financial difficulties, they provide food security (milk for the family) and can be sold. easily, especially the highly desired exotic breeds.

Oh and let’s not forget (at the risk of feminist outrage) that these cows are a very important source of dowry (or “bride price”) in Uganda.

3. Return on investment

From a financial forecasting model, I have developed; I estimate that the Return on Investment (ROI) for this sector is as follows:

· Initial capital (A): Shs.44, 273,900

· Profitability (B): Shs. 10 589 863

· Return on capital (A/B): 4.18 years

Now the basics you should get before investing in this sector.

  1. Nutrition. In addition to nutritional supplements, pre-plant elephant grass. This will ensure that the cows are fed adequately. Nutrition and milk production are directly related;
  2. Buying cows. I suggest you buy pregnant heifers. My research shows you can get them cheaper than non-pregnant ones. This is how you double your stock quickly. When buying, be sure to choose breeds (perhaps cross-breeds) that are suitable for the local area (climate and disease resistance);
  3. Technical support. Visit a demonstration farm practicing good farm management to improve your knowledge;
  4. Data. Keep farm records to ensure you can estimate your daily milk yields as well as assess the quality of your milk. This will be especially necessary when you expand and say you want to supply milk processors on a larger scale; AND
  5. Water. Make sure you have enough water nearby. Cows drink a lot of water and therefore you need a tank or as you progress, build a borehole to provide water.

The last word

I am still afraid of being kicked by a milking cow, so, I still say, “no thank you sir, I will continue to hire a herdsman from a friend’s village in Nyakahita, Mbarara.”

Light humor aside, milk production has the potential to be a profitable business opportunity for farmers in Uganda. There is always room to grow, both for beginning farmers and more established players.

Video about 7 How Will Grazing Animals Help Plants To Become Established

You can see more content about 7 How Will Grazing Animals Help Plants To Become Established on our youtube channel: Click Here

Question about 7 How Will Grazing Animals Help Plants To Become Established

If you have any questions about 7 How Will Grazing Animals Help Plants To Become Established, please let us know, all your questions or suggestions will help us improve in the following articles!

The article 7 How Will Grazing Animals Help Plants To Become Established was compiled by me and my team from many sources. If you find the article 7 How Will Grazing Animals Help Plants To Become Established helpful to you, please support the team Like or Share!

Rate Articles 7 How Will Grazing Animals Help Plants To Become Established

Rate: 4-5 stars
Ratings: 1124
Views: 65462164

Search keywords 7 How Will Grazing Animals Help Plants To Become Established

7 How Will Grazing Animals Help Plants To Become Established
way 7 How Will Grazing Animals Help Plants To Become Established
tutorial 7 How Will Grazing Animals Help Plants To Become Established
7 How Will Grazing Animals Help Plants To Become Established free
#Profitable #Dairy #Farming #Uganda

Source: https://ezinearticles.com/?How-Profitable-Is-Dairy-Farming-in-Uganda?&id=7792643