Uganda Crane Creamery Cooperative Union (UCCCU)

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