Report - Nederlandse ambassade in Kigali, Rwanda

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Report - Nederlandse ambassade in Kigali, Rwanda
REPUBLIC OF RWANDA
MINISTRY OF AGRICULTURE AND ANIMAL RESOURCES
Report
Dairy Subsector Working Group
October 2010
Co Chairs
RARDA – Theogene RUTAGWENDA
Land O’Lakes – Roger Steinkamp
Heifer International – Charles KAYUMBA
Land O’Lakes Facilitators:
Vincent KALIMBA
Willy NYIRIGIRA
Charles BIZIMANA
Dairy Sector Working Group
RARDA/Land O’Lakes, Inc./Heifer Int.
TABLE OF CONTENTS
1.
Forward.......................................................................................................... 1
2.
Introduction ................................................................................................... 3
3.
Issues and Responsibilties (3rd meeting) ..................................................... 4
4.
Key Questions and Answers ....................................................................... 22
5.
Annex - Participant Lists............................................................................ 35
Dairy Sector Working Group
RARDA/Land O’Lakes, Inc./Heifer Int.
Forward
Roger Steinkamp, PhD
I have had the honor to serve in organizing the Dairy Sector Working Group (DSWG). People who responded to the call
to come together to identify and propose solutions to the group are to be commended for dedicating a full three days
of their time to this endeavor. It demonstrates their commitment to the dairy sector and willingness to continue the
discussions into the future as part of a continuous forum that will be hosted by the newly formed Rwanda National
Dairy Board (RNDB).
We have attempted to capture and summarize the views expressed by the group that came from all points along the
dairy value chain. I would make the following observations a general overview of their deliberations.
Three general points stand out when looking at the issues identified by the working group.
Milk quality
Identified by Land O’Lakes early in 2008 as the major constraint to growth of the dairy sector, the issue has become a
matter of discussion all along the dairy value chain. This is a problem that cannot be addressed sequentially, but rather
concurrently. The metaphor would be a symphony orchestra. The music only starts when all parts of the orchestra are
ready and able to play. To date, most of the focus has been on the farm. But farmers have demonstrated they can
deliver a low bacteria count milk to the collection centers if given an incentive to do so. The Golden Rule of quality milk
production is to cool milk to 4° C within two hours of milking and then keep it cold. This limits bacterial growth.
However, it has been documented that collection centers have two major problems. First they lack adequate water for
cleaning facilities, equipment and milk cans. Secondly, the cooling capacity of the bulk tanks cannot cool milk quickly
enough to preserve the quality of milk delivered. Typical tanks take 4-6 hours to cool a full tank from 30° C to 4° C.
Either the compressor needs resizing or the method of loading the tank (i.e. stagger milking times of farmers to load the
tank more slowly so the combined temperature of the tank never goes above 12° C) needs to be changed to correct
the problem.
The next link in the chain is equally weak. Milk picked up at 4° C rises to 22° C during typical transport in cans on the
back of an open truck. Insulated tanks could solve the problem.
When milk can be milked in hygienic conditions; cooled to 4° C in two hours and maintained at that temperature until
delivery to plant or seller, the quality problem will be solved.
Milk Pricing
The driving force for change in quality is milk pricing The common sense approach is to pay for what is desired and
reward those that produce it. This has two elements. First, reward those that produce low bacteria milk. Currently, it
is obvious there is no incentive to produce low bacteria milk. A farmer that spends little or no time and money on
washing cans or keeping his milking area clean receives the same price for dirty milk as the farmer that spends time and
money washing cans and keeping the area clean. This is just common sense. Prices should reflect what is desired. It
does not necessarily meaning raising prices, the market (consumer) determines that. It means paying less for milk that
does not meet the standard desired. Current platform tests are not sensitive enough to accomplish the task. In
addition, it is not economically feasible to test milk at the farm level unless the farm is producing hundreds of liters per
day. So, the testing routine should take place a point in the value chain that makes sense economically. Most likely this
is at the collection center where testing would add only about a 1 RWF to the price of a liter at the tank level. Prices
can then be determined according to bacterial counts of milk. The trick will be to start the process. Land O’Lakes has
proposed a program to accomplish this task. Platform tests can still be used to reject the worst milk.
Secondly, pay for the elements of milk that is desired. Added water is a common complaint. Buyers continue to
purchase milk by the liter. Switching to kg will not solve the problem either. Paying simply by volume or weight
actually gives farmers or MCCs an incentive to add water. Added water disappeared from the milk supply in the US
when buyers switched to purchasing milk on solids (fat and SNF). This could be considered. Otherwise the game
continues with people adding water and other elements attempting to fool the density test. Simple component testing
can be by the same lab that tests for bacteria.
1
Dairy Sector Working Group
RARDA/Land O’Lakes, Inc./Heifer Int.
Instantaneous testing is not essential for payment, but routine testing is. This is a common mindset among milk buyers.
The most affordable bacteria testing takes 48 hours to incubate the sample and count it. The farmer will be rewarded
or punished through the price that is paid. Will the milk find it’s way into the milk supply? Yes, in the short run. But,
once the system is in place and functioning, the supply will improve. In any case, it is no worse than the current supply.
Market price sensibility
One final observation that comes through in the work of DSWG is the sensitivity of the milk market to pricing. On one
hand plants continue to function at only a fraction of the installed capacity while the milk sellers appear to grow their
market. This was first put forward by Land O’Lakes in the milk audit and consumer survey in 2008. Since that time it
has become more evident that the market for milk selling above 600 RWF may be growing, it is still small and most
likely reflects purchasing power as opposed to demand or need. In other words many people desire milk but may not
have the disposable income to purchase it. When looking at the milk sellers, one finds a variety of prices in the kiosks
and ways of utilizing milk in about 48 hrs. This milk sells at prices between 150-300 RWF/liter. The newly formed RNDB
and Milk Sellers Assn can play a key role in expanding the market at all levels.
2
Dairy Sector Working Group
RARDA/Land O’Lakes, Inc./Heifer Int.
Introduction
The Dairy Sector Working Group was formed at the behest of the Honorable Minister Agnes Kalibata at the Joint Sector
Review on 15 April 2010. RARDA, Land O’Lakes and Heifer International were asked to Co-Chair the group. It was
tasked to identify the issues and propose the solutions.
The first meeting of the DSWG was called on April 21, 2010. Two more meetings were held on 16 June, 2010 and 16
August 2010. This document represents the compendium of issues defined by the group.
The co-chairs quickly agreed on the following principles:
Involvement of active participants in the dairy chain (producers, processors and sellers)
Take into account past work but more importantly get current input directly from industry
Arrive at a point where not only issues are indentified but who should be responsible for pragmatically
addressing the issues.
The chairs organized the first meeting using the ASWG mailing list plus the Rwanda Dairy Board list that included people
form along the dairy chain. Lists of participants are found in the annex “Participant Lists”. We knew from the outset
that the process would be long and consist of several meetings.
The first meeting focused on defining what we know (or conversely, what we don’t know). Rather than spending time
repeating a host of studies that tended to report similar things, and that many participants had already read at some
point, key questions were solicited about the three key areas of the dairy value chain (producers, processors and
sellers). The meeting took over ½ a day and the responses indicated which areas were least understood in the industry,
and provided a foundation for the next meeting.
The second meeting focused on finding answers to the questions raised in the first meeting and consolidating them into
issues to be addressed. Again, active members in the industry played a vital role in this meeting. Participants were
asked to divide into groups representing each area of the value chain to address the questions and formulate issues.
The results can be found in section (Answers to Key Questions). This meeting took an entire day.
Finally, the third meeting addressed what should be done about each issue and who should be responsible. The
overlying principle was not to simply shrug off responsibility for action to the government, but to assign responsibility
to those who are directly concerned by a given issue. Again, three groups were formed to address specific issues in
each of their parts of the value chain. Then observations were consolidated to illustrate which issues affected various
parts of the chain and reach consensus on actions to be taken and by whom. The result is found in the following
section of this report.
As the working group completed its task, it became evident that this is not a one-time task but an ongoing process that
will evolve. As result, the primary recommendation of the group was to turn this effort over to the Rwanda National
Dairy Board that would be tasked to organize quarterly meeting to monitor and report the health and issues of the
Dairy Value Chain. The RNDB has agreed to this process of hosting a form for discussions that currently take place in
many corners of government and NGOs and provide a forum open to anyone interested in the dairy sector.
3
DSWG final consolidated document (issues, specific actions and responsibilities)
Producers
Processors
Sellers
INFRASTRUCTURE
ISSUE
COMMENTARY
Farmers must be able to deliver milk to an MCC for
cooling within about an hour of milking. More sites,
closer to farmers will alleviate the problem. On the
other hand investment could be made in roads and
transport to allow for greater distances in the same
time allowance.
4
Increased number of MCCs
X
The rule is for milk to be at 4 C within 2 hours of
milking. Assuming farmers can deliver milk within an
hour of milking, that leaves 1 hour to cool.
Increase number of cooling facilities and
capacity to cool milk at below 10degrees So, either the TORs for tanks need to include this
information or farmers must milk at different times and
centigrade
deliver over a period of several hours, respecting the
golden rule of 4 C within 2 hours of milking. For
example, a tank can be loaded with about 400 liters of
milk and pull temperature within about 40 minutes.
Then more milk can be added, keeping the combined
temperature below 10 C.
Sustainability of MCC (Management of MCCs),
To put in place a simple model design of a modern
RARDA
BRD and other
banks
Cooperatives
Private
investors
RDB
Donors
RNDB
INTERVENTION
To put in place new MCCs, to play the lead role
Provide loans to cooperatives
Contribution to put in place MCCs
To invest money in this business
To sensitize investors
To support in purchase of coolers, road construction
Mobilization , Coordination on all dairy issues
RARDA/Land O’Lakes, Inc./Heifer Int.
X
rehabilitation and modernization of
MCCs
Virtually none of the current MCCs can cool milk in a
timely manner. The problem is the tanks that have
been and are being installed. They are designed to cool
milk on modern dairy farms from at least two milkings.
AGENCY
Dairy Sector Working Group
This section summarizes the issues, interventions and agencies that should be involved in their resolution. The check boxes on the left indicate the part of the dairy chain
that is most concerned about a given issue.
ISSUE
COMMENTARY
AGENCY
INTERVENTION
MCCs
small processing plants
X
increase the number of processors
5
improved feeder roads
X
X
Improve road infrastructure
To have mobile coolers ( refrigerated trucks)
There is a belief that processing plants closer to farms Private
will lead to increased market. Care should be exercised investors
since current plants operate at 10% capacity. Perhaps Cooperatives
more diversity of products for lower grades of milk
RBS
such as ghee or cheese could be considered. There is a
great excess in capacity for UHT, cup yogurt and
pasteurized milk that needs to be used before further
investment in this area. Transportation investment
may be cheaper than further investment in plant.
MININFRA
Improved roads will lead to faster delivery of milk and MINALOC
greater access of trucks to collection centers.
DISTRICTS
X
farm infrastructure
Farm infrastructure, such as a dry, clean place for
milking and access to water for cleaning is critical.
However, not all farms will qualify for normal loans.
New products may need to be developed to service
farms smaller than 3 cows.
BANKS
Individual
farmers
PSF Rural
consultants
through BDS
MFIs
Milk Sellers
Association
RNDB
Establishment of those small plants
To provide technical support in the design and
machine requirements(standard)
Initiate and execute road construction&
rehabilitation
Work through local administration to achieve this in
collaboration with MININFRA
Initiate and execute road construction&
rehabilitation
Monitoring role, orientation, technical support
To sensitize on current issues, mobilization, request
for support
Improve access to loan for farmers
Have to try to comply with the required (modern)
farm infrastructure
To help farmers to design viable proposals for bank
loans
To provide small loans
Advocacy for farmers
Facilitation in bulk purchase of equipments(making
them available for farmers)
RARDA/Land O’Lakes, Inc./Heifer Int.
RARDA
RNDB
Establishment of those small plants
Dairy Sector Working Group
Producers
Processors
Sellers
INFRASTRUCTURE
ISSUE
Rural electrification
X
X
electricity supply
6
water resource development
AGENCY
INTERVENTION
NGOs
Construction of improved shades…
Cooperatives To help farmers to get loans at Banks (to make easy
the linkage between farmers and banks)
MINALOC
Through districts/JADF
DISTRICTS
Advocacy through JADF
MININFRA
Work/support and link the population/coops with
electricity providers
Priority should be given to MCCs or farms large enough
Cooperatives Raise issues at concerned levels
to merit a cooling tank.
RECO/RWASCO Improve and increase electrification in rural areas
RNDB
Advocacy
NGOs
Advocacy and linkages between MCCs and
government/Electricity supplier
Same as for electrification issue above
NGOs
To provide potable water at MCCs and maybe farms
and bring about/study alternative water supply
techniques
Districts
should include water supply to farms, MCCs in their
performance contracts
Cooperatives
study and bring about alternative water harvesting
Priority needs to be given to MCCs for adequate water
techniques
for washing tanks and cans. Farms that deliver milk to
them would be the second priority since water could be
a return haul to the farms from the MCC.
RARDA/Land O’Lakes, Inc./Heifer Int.
water resources
X
COMMENTARY
Dairy Sector Working Group
Producers
Processors
Sellers
INFRASTRUCTURE
ISSUES
COMMENTARY
ON STANDARDS
AGENCY
There are several levels to applying standards.
RNDB
First there are RBS standards. Although all aspects of milk RARDA
Standards (availability and
and testing procedures are defined, they should be
dissemination)
prioritized. Total Bacteria Count (TBC) in milk is the
RBS
foundation of milk quality. The action of bacteria on milk
Cooperatives
Emphasis on high milk quality turns it sour and defines its ultimate use. The COMESA
standards and
standard for Class I milk is 300,000/ml. RBS Very Good milk
implement/use of a price
is 500,000/ml. Most milk currently is over 50 million/ml. In NGOs
incentives to obtain good
general, few understand the implications nor understand the
quality milk
need and means of cleaning the milk supply. There is no
compromise for high end products such as pasteurized and
Emphasis on health standards UHT products. Alcohol testing of milk is not proven sensitive
for all milk handlers along the enough to attain the quality needed. Real TBC counts are
value chain
simple to perform and a must.
INTERVENTION
Sensitize farmers
RARDA staff to assist in disseminating information
to farmers through Inspection at farm at farm level
Certificafication, exchange information with RNDB
Dissemination of standards to farmers, to ensure
milk quality at farmer level., Lab tests/results at
Cooperative level
Technical support, trainings
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
7
X
certification for the farming
X system
Milk Components would be the second most import factor in
“quality”. Not all milk is equal. Different components of milk
are essential to various products. For example, butter
makers value butterfat and pay for it. Cheese makers may
want more Solids-Non-Fat. Fluid milk only wants the
minimum amount fat required for labeling and marketing.
Excess fat is separated during standardization of milk before
packaging and used for high value products. Paying for milk
solids (whatever component is most important) makes more
sense that by volume. It eliminates the temptation to add
water to milk since it will lower it’s value and the milk check
will not increase.
Certification or inspection is poorly understood. In countries
RARDA/Land O’Lakes, Inc./Heifer Int.
Lower class milk can be used for in the 48 hour market (as is
it currently marketed) and for fermented products, especially
cheese and traditional ghee.
ISSUES
CONCERNING PRODUCERS
COMMENTARY
AGENCY
with effective inspection systems, it only guarantees that
producers processors and sellers have the potential to
produce and conserve quality. It checks that hygienic
environments are possible and temperatures are
maintained. It conducts routine checks on quality to monitor
the system. This is absent in Rwanda, but RARDA/RBS has
made a start.
At the farm level several issues become apparent.
RARDA
8
ISAR, ISAE
Work with producers
First is production. Feeding regimes influence the length of
(trainings…)
lactation and the components in the milk. It also is manifest
Private Companies
X X X farming practices/ guidelines in daily production. Conservation of feed for dry season,
Cooperatives
adequate water, and balanced rations are all issues.
Work with/suggest
NGOs
farmers/MCCs to haul milk Secondly, genetic improvement has been a priority. Daily
FAO
INTERVENTION
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
Improvement of Artificial Insemination
To link research with environment ( research in
improved feeds)
To provide services to farmers
To acquire basic equipment, incentives to improve
quality of milk
Provision of cow Feeding trainings
Technical Support i
RARDA/Land O’Lakes, Inc./Heifer Int.
ISSUES
COMMENTARY
AGENCY
INTERVENTION
under good condition of
production potential has been the narrow selection criteria
temperature and time(use of for A.I. Many more factors and breeding schemes could be
cooling trucks…)
considered. Farmers often site hardiness of the animal as a
major concern. Exotics have high feed and care
Practices needing attention. requirements that many farmers may have difficulty
meeting. Rustic or crossbreds are hardier and can be bred
feeding regime
for milk specific milk production goals, given the feed and
improved AI
water supply. Feeding regimes may be more important than
disease control
genetic potential at this point.
Recording system
9
Fourth, once clean milk is “in the can” IT MUST reach a
collection center within an hour. The rule is “4 C within 2
hours of milking”. If that is obtained, quality is maintained.
ON LABORATORY FACILITIES Milk testing divides into two parts.
Cooperatives
Affordable lab facilities and
dairy technicians
First is screening milk as it arrives at a collection point. Most
MCCs do a preliminary test or acidity and added water.
X X X
These screens may get the milk to “an acceptable” level for Dairies
work closely with
processing. The quickest tests are alcohol and density with a NGOs
independent labs(to
hydrometer. However, this is not adequate for payment or
know/track the status of milk greatly improving quality to the level needed for pasteurized Private laboratory
To sensitize farmers on milk quality, to have lab for
basic test at cooperative level with support of
NGOs and work with private /independent lab for
advanced milk tests
??
To support cooperatives to implement small labs
and or private people to set up modern labs
should improve/increase the capacity to cover the
RARDA/Land O’Lakes, Inc./Heifer Int.
Thirdly, milk hygiene is important but solvable. Currently,
Link between farmer and
seller on farm diversification farmers have not incentive to produce “clean” milk. All it
really requires is water, soap and a bit of “Jik”. Water is the
through MCC
major constraint. Although it takes just a few liters to clean
Training of farmers on milk and sanitize equipment, it may have to be carried several
kilometers. Plus the added expense of soap is not
handling
compensated. In other words, a farmer who takes the time
Promote improved feeding and care to clean equipment and milk in a dry, clean place
receives the same price as someone who doesn’t. For the
technologies to allow
most part, farmers know what to do. They just need a
increased milk production
reason.
even during dry seasons
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
ISSUES
COMMENTARY
quality)
or UHT products.
Milk testing at the MCC
Second is definitive testing for payment. The foundation
should be total bacteria counts conducted by a reliable
laboratory. Currently, RBS is overpriced and lacks the
capacity to handle hundreds of samples needed daily. DQAL,
a private lab has set up to handle routine bacteria and
component testing at an affordable price. It can also screen
for antibiotics and somatic cells. RBS could backstop and
assure reasonable accuracy of testing at this level and
monitor the system in general.
AGENCY
RARDA/RBS
Carry out testing at sellers
level
INTERVENTION
whole country
Look at bringing about reference labs in high
production areas
10
Finally, milk grades need to be enforced. This can be
accomplished by routine but random testing at the seller
level and perhaps other control points along the chain.
ON MILK HAULING
Milk transportation is in a poor state. Cans are simply loaded Cooperatives
on open trucks and trundled to market. Measures made by
X X Improve/monitor milk hauling Land O’Lakes indicate that even milk hauled in the cool of
the morning has a rise in temperature from 2 C to 20+ C by Farmers
Ensuring milk products are
To improve production to have economy of scale
on transport, and improve quality, to attract
private investors
Improve hauling at farm level (bicycles,
motorcycles…)
RARDA/Land O’Lakes, Inc./Heifer Int.
Expense can be controlled by finding critical control points
that make sense. At present, a bacteria test may cost 2000
RWF. At the farm level that may only have 10-20 liters of
milk daily, testing at this level would exceed the value of the
milk. However, as milk is consolidated, the cost per liter
diminishes. A daily test of a 2000 liter bulk tank would cost 1
RWF per liter. That cost could be diminished with routine
random testing of tanks. The major cost is starting up the
system where milk could be tested at the can level and
farmers separated by class of milk. All this becomes possible
with price differentiation.
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
ISSUES
AGENCY
COMMENTARY
transported under good
the time it reaches market. At that point it may be either
Private investors
condition of
cooled again or boiled. The second cooling takes additional Dairies
temperature(from the plant hours.
RARDA
to the selling outlets)
MINICOM
The rule should simply be milk cannot rise above 8 C(maybe BRD
Good transport facilities
10 C) during transport. Trucks may not need to be
refrigerated, but should at least be insulated. The best
Use of proper equipment
system would be to haul milk in bulk in insulated tanks. Milk
along the whole value
can be pumped quickly and efficiently at collection centers
chain….use of clean
into these trucks. Conversely, insulated boxes with cans,
aluminum cans, cooling tanks, may work, but need testing.
refrigerated trucks etc
11
capacity building
X X
ON TECHNOLOGY
X
Improve processing
technology (reception,
cooling, new quality
Self explanatory.
Invest in milk hauling trucks
To invest in refrigerated trucks
To support mobile tanks
To support mobile tanks
To support with loans to farmers, MCCs and
privates, dairies for improving milk hauling
RBS
RARDA
Dairy plants
NGOs
Cooperatives
RNDB
RDB
Training on new technologies, standards….
Training to Cooperatives
Trainings on new technologies, quality assurance…
Trainings on different aspects of milk quality
Follow up and disseminate updates to their staff
Coordination
Look for and share/Provide information
RDB
RNDB
RARDA
ESADA
RBS
Provide information, to create linkages, trainings
Advocacy and coordination
Disseminate information to Dairies, RNDB
Disseminate information to Dairies, RNDB
On new standards (techniques…)
RARDA/Land O’Lakes, Inc./Heifer Int.
Improve transporters ability
to contain the milk at below 4
degrees centigrade
ON CAPACITY BUILDING
Updates and constant training is needed at all levels.
plant technician capacity
building
INTERVENTION
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
ISSUES
products....)
COMMENTARY
AGENCY
INTERVENTION
12
FAO
To provide technical support
Dairy plants
To explore low cost technologies
ON SELLERS
Stores are but one point in the chain. Milk needs to have a RBS/MINICOM/RARDA Regular Inspection to their milk selling shops,
certification
consistent cold chain to point of sale. Distributors routinely
Work with sellers
use simple cargo vans or pickups to deliver milk to stores.
MINICOM
Collaboration with sellers to link them with Banks,
(supermarkets…) to store
training of sellers, to support consumers
Again, simply apply the rule... not above 8-10 C. That would
milk in good quality cooling probably necessity efficient handling at pickup and deliver
association (capacity building)
facilities
plus insulation in between.
Dairy plants
To support sellers with some equipments as
marketing strategy, specify handling details to
X X X Seller should have proper
The unmentioned portion of the chain is the consumer.
customers and provide information
cooling facilities and hygienic Current practice necessitates the daily purchase of milk for PSF
To oversee sellers group activities
environment
the household because the vast majority(over 90%) do not Consumers
To report cases to MINICOM, to milk sellers
have refrigerators or electricity. Even for those who do, the Association
association
Investment in effective cold cost of electricity is prohibitive. Therefore one should
Milk sellers
Internal quality control within the association,
chains from producer to
anticipate the continued market for daily purchases. The
Association
establish standards/requirements for new start up
consumer
cost of UHT is prohibitive for households who do not yet
milk selling businesses, provide relevant
have the means to buy a refrigerator or have electricity.
information to members
Dairy Sector Working Group
Producers
Processors
Sellers
MILK QUALITY
RARDA/Land O’Lakes, Inc./Heifer Int.
ISSUE
ON FARM MILK MARKET
market guarantee
X
COMMENTARY
AGENCY
Farmers commonly would like a market/price
RNDB
guarantee. Traditionally, milk prices go up during
dry season as supplies dwindle and demand
MINICOM/MINAGRI/
increases. Although there is much talk about
Consumers/ RNDB
agreements to stabilize milk prices between
Cooperatives
seasons, buyers complain that farmers abrogate
these agreements when prices rise and farmers
complain that buyers do not purchase all their milk
in wet season when demand is less and prices drop.
INTERVENTION
Coordination/ link stakeholders to allow long
term contracts
To set minimal prices according to production
costs and seasons
To seek and initiate business contracts with
regular buyers
Dairy Sector Working Group
Producers
Processors
Sellers
MARKET ISSUES
13
What few surveys exist tend to indicate that both
price and demand fluctuations are exaggerated.
Prices may vary 50-100 RWF. Observations of milk
sales during 10 months of the year (rainy season(s)
would indicate even the informal milk market is
being met.
PROMOTION
Use publicity to encourage milk
consumption throughout the year.
X X X Enhance purchasing power of buyers
Educate the youth on milk advantages
to install culture of milk consumption
deep study/awareness of the
Production costs are the highest in the region
The market is where information is most lacking.
RNDB
Consolidating actual sales of milk products by the
three processors would be helpful instead of
reporting capacity. By most accounts, the market is
growing but one must keep that in perspective.
MINAGRI/
Plants have been operating at about 10% of their MINEDUC/MoH
installed capacity. With new plants coming on line, MINICOM
there is over capacity for production of preRCA / Cooperatives
packaged milk products.
RBS
The issue here is on the cost of milk ????? / The
MINAGRI
Sensitization on the nutritional value of milk ,
marketing strategy for milk, identify and promote
quality selling kiosks, promote milk consumption
in nutritional centers
School milk program, nutritional centers for
demonstration
Mass communication
Sensitization to farmers on the nutritional value
of milk
Certification for quality milk selling kiosk
Promote feed industry to reduce production
RARDA/Land O’Lakes, Inc./Heifer Int.
Better reporting of sales would be helpful.
ISSUE
market(size, demographics...)
COMMENTARY
habit of not drinking milk is a reality in Rwanda.
There no diversity of milk products in Rwanda
Improve processors marketing
strategies (publicity/bring awareness of
the advantages/disadvantages of selling
good/substandard milk products
respectively...)
14
For example, one cooperative has developed a
“hot” chain that delivers effectively pasteurized
milk hot to clients who can serve it right out of the
can. This eliminates at least one distribution
network and packaging while delivering what
essentially is a wholesome product of done
correctly.
School feeding is another area that could be
explored for cost effectiveness. Would it be more
cost effective for surrounding farmers to deliver
milk directly to a school where it could be boiled
and served each day as opposed to taking a
INTERVENTION
costs, and allow increase in consumption
RARDA/Land O’Lakes, Inc./Heifer Int.
On the other hand, the informal market has the
capacity to handle milk in bulk and deliver it to
consumers who, in turn, boil it at the point of
consumption. The milk sells for half the price of
packaged milk, and until the number of consumers
explore contract markets and niches
with disposable income that permits the purchase
Marketing strategy enabling increase in of refrigerators and electricity increases, this
milk consumption especially in areas of market will continue to grow at fast pace.
production
A main concern is how to deliver milk to consumers
at a minimal price to serve the largest population.
Little work has been done to explore cheaper milk
models. Eliminating excess processing in the chain
is one way to keep prices down.
AGENCY
Dairy Sector Working Group
Producers
Processors
Sellers
MARKET ISSUES
ISSUE
COMMENTARY
AGENCY
INTERVENTION
circuitous route through a dairy with redistribution
and refrigeration requirements?
Finally, anecdotal evidence is building that many
children do not have the habit of drinking milk. This
provides an opportunity to promote milk or milk
based product consumption in children.
Affordability will most likely be the key issue.
Good question that needs consideration.
MINAGRI
ON PRODUCTS?
X
Dairy Sector Working Group
Producers
Processors
Sellers
MARKET ISSUES
??? subsidies ???
Why not manufacture low
price/affordable products??
X X X
ISSUE
Provide price incentives
Price differentiation (incentives to
producers to deliver quality milk)
Pricing strategy (cost of production)
payment based on quality
encourage subsidy cautiously
Introduce quality based price
differentiation system
Harmonization of prices among milk
sellers
COMMENTARY
AGENCY
INTERVENTION
The most fundamental issue in the dairy chain is
milk pricing. Milk pricing has been the prime
RCA /
To set prices based on quality attributes of milk
motivator for production and quality virtually
Cooperatives/Processor
anywhere in the world. Rwanda current pays by the s/
liter with few controls. As result the milk has been RBS
Disseminate milk quality grade to be referred to
extremely low in quality not suitable for modern
for milk quality based pricing
processing.
MINICOM
Inform the public on milk prices
Cooperatives/RNDB/ Collaborate in and advocate milk quality based
In several tests, farmers have dramatically improved MINICOM
pricing system
milk quality when paid differentially for milk of
higher and lower class.
RARDA/Land O’Lakes, Inc./Heifer Int.
Producers
Processors
Sellers
15
PRICING ISSUES
ISSUE
COMMENTARY
RBS developed standards that are appropriate for
today’s milk. COMESA standards could be a goal
but unrealistic for most milk produced.
AGENCY
INTERVENTION
Dairy Sector Working Group
Producers
Processors
Sellers
MARKET ISSUES
16
The start of a pricing system is the most difficult.
First milk needs to be graded and farmers paid
according to grade. To start, actual bacteria counts
should be used for grading and paying. With DQAL,
the means are available. The four grades could be
the RBS standards for bacteria... Very Good, Good,
Bad, Very Bad. Alcohol, pH, titratable acidity, etc.
can still be used for screening on the platform as an
accept/reject method. But payment needs more
sophisticated counts that can actually categorize the
milk.
Finally other factors can be added with time, such a
somatic cell counts and antibiotic.
Cost is the critical factor. Daily testing at the farm
level is out of the question for small farms. For
large farms producing over 500 liters, it may be
feasible. This needs to be worked out. In the case
of small farmers, they will need to agree on casting
their lot into one consolidated test.
As a pricing system begins to take root, the need to
RARDA/Land O’Lakes, Inc./Heifer Int.
Then payment based on solids rather than volume
can help eliminate added water to milk.
ISSUE
COMMENTARY
segregate milk by category is apparent. MCCs will
either need to add tanks or designate which will
collect a certain grade.
AGENCY
INTERVENTION
Dairy Sector Working Group
Producers
Processors
Sellers
MARKET ISSUES
Another consideration is what to do with lower
grades of milk, and this will most likely make up the
bulk of milk produced in the near future. The
tradition market can continue to absorb it.
However, milk sellers can also start differentiating
milk according to grade, and perhaps command
higher prices for higher grades. This system needs
to be worked out through certification/inspection
with RARDA/RBS.
17
RARDA/Land O’Lakes, Inc./Heifer Int.
ISSUE
CREDIT/FINANCE
COMMENTARY
All stakeholders in the chain indicate the need for
access to credit or financing.
Government/banks...subsidize/exonerate At the minimum, people can pool their resources in
importation of processing materials,
forms of savings groups to make loans the
packaging materials, equipment,
members.
AGENCY
INTERVENTION
18
RARDA/Land O’Lakes, Inc./Heifer Int.
MINICOM/MINAGRI/ To do advocacy to Banks, farmers collateral funds,
MINICOFIN
specific farmers loan schemes (development
financial products for agriculture)
Farmers /
Develop proposals based on their needs
cooperatives
MINAGRI
Specific Grants and or fund for dairy subsectors
Advocacy (farmers' specific loans)
Banks and MFIs need to develop products suitable RCA/ Umurenge
To provide financial support
to wide range of operations. Collateral
SACCO
collective savings transitioning to farmers requirements and timeliness of loans is critical in MINAGRI
Organize promotion competition for farmers
bank
agriculture. Loan committees that take months to
X X X
process a loan is untenable.
Invest more in equipment and
infrastructure
Finally, government or donor intervention may be
required where risks are untenable for financial
Invest in training on modern
institutions or to jump start a new industry.
technologies
improve/increase working collaboration
with institutions such as RARDA, RBS,
Donors, Banks…for a continuous
updates, advice, technical support,
investment
increase business development services Probably needed at many levels.
MINAGRI
Should include it in its projects and trainings
RCA/MINICOM
Work through cooperatives to improve BDS at
X
farm and coop level
NGOs
Increase and improve BDS at all levels of the value
chain
Dairy Sector Working Group
Producers
Processors
Sellers
FINANCE ISSUES
organization of cooperatives
X
AGENCY
INTERVENTION
Cooperatives tend to be organized more from the RCA
top. Efforts could be made to improve not only
their managerial capacity but to empower
members. Ultimately they are responsible for their
own success.
Cooperatives
Take the lead to build capacity of cooperatives,
train on management of resources ( qualified
staff- Manager, accountant), organize regular
audits in cooperatives
To seek experienced and qualified staff for specific
task within the cooperative
To support cooperatives both technically and in
practice(follow up and training)
19
Problem of management
NGOs / Local
Cooperatives have many responsibilities beyond
government
their capacity
Cooperative law states that committees members
are not be paid
Cooperative law reformed now tough on funds
embezzlement
No department within government Although MINAGRI has PADBL, perhaps consideration RARDA/
To follow up dairy issues
NA specifically tasked with dairy issues should be given to assigning dairy full time to one
RNDB
department or individual.
licensing system
Simple licensing systems could be considered in several RBS/RARDA
areas.
Districts
Simple inspection forms have already been developed RNDB
and sector veterinarians trained their use for farms,
MCCs and selling points. The system may need finetuning. For example, the inspection interval and
certificates could be developed. At the same time,
nominal inspection fees could be charged to finance
the operation. Not all farms may need inspection. For
example, a farm may need inspection only when milk is
offered for sale.
To provide license to those inspected (or recommended by
RNDB)
Support in the validation/enforcing of licenses as delivered
To register all players in the chain and recommend them to
RBS or RARDA for further inspection and licensing
SWG 2010
X
COMMENTARY
Sellers
ISSUE
Issues and Responsibilities
Producers
Processors
MISCELANEOUS ISSUES
A biker may have a requirement to know basic hygiene
of cleaning cans and the responsibility to deliver within
2 hours of milking if not refrigerated, or to have the
milk below 10 C if outside that window.
Issues and Responsibilities
Hauling milk is wide open at this point. Milk transport
ranges from a jerry can on top of the head to an
insulated tanker. Again, the determination on whether
or not to inspect someone could be when milk is
offered for sale. However, there needs to be flexibility.
A person on a bicycle is quite a different story from a
truck. Two examples.
Trucks , on the other hand, would essentially have
similar requirements. Trucks picking up milk from the
farms would need to meet the time requirement and
transport trucks, the temperature requirement.
Again, nominal fees can be charged.
20
The essential ingredient is time and temperature. The
ultimate arbiter is the total bacteria count at critical
control points along the way that is reflected in the
price. For the small hauler delivering direct from farm
to customer, a simple license focusing on knowledge of
hygiene may be sufficient.
Licenses only verify that a basic knowledge to do a
given job is mastered through perhaps a SIMPLE exam.
SWG 2010
Stakeholder/Agency
Stakeholder/Agency
Stakeholder/Agency
MINAGRI
RNDB
Rwanda National Dairy Board
RMSA
Rwanda Milk Sellers Assn
RCMC
Rwanda Cheese Maker
Company
RDB
Land O’Lakes
PSF
Private Sector Foundation
BRD
Send A Cow
MINICOM
MINALOC
MINIFRA
RARDA
21
Government
Sector
RBS
Private Sector
Heifer International
Issues and Responsibilities
Listing of potential stakeholders and agencies
ABS
Techno Serve
NGO Sector
SNV
RCA
Cooperatives
JICA
NUR
Banks
IFAD
WDA
Micro Finance
EADD
UPU
AFD
ISAE
Inyange Dairy
ISAR
Savannah Dairy
SWG 2010
Key Questions and Answers -
June 16, 2010
PRODUCERS/ABOROZI KEY QUESTIONS
KEY QUESTIONS
Questions on quality/ Ibibazo k'ubwiza bw'amata
Possible Answers
1
Are there quality standards? If yes, are they known?
Standards on farming practices
Hari ibipimo by'ubuziranenge ku mata bihari?
YES; (RBS standards)
2
Are there incentives for good quality milk?
NO; pricing is not based on quality factors
other than accept/reject of spoiled or
adulterated milk
NOT ALL; (There is still a need to reach out)
Hari uduhimbazamusyi dutangwa ku mata meza?
3
Do all producers have the technical know how to
handle the milk?
Baba aborozi bose bafite ubumenyi bwo
gutunganya amata?
4
Do they have the knowledge to improve the
quality?
Do they have the capacity?
Ese bafite ubumenyi bwo kongera ubwiza
bw'amata?
YES and NO; NO is dominant as motivation
lacks.
5
What percentage of milk is lost/spoiled?
Hangirika/hapfa ubusa amata angana iki?
??
6
Are collection centers profitable or managed well?
7
Ese amakusanyirizo yaba yunguka?cyangwa
aracungwa neza?
What is the quality of milk actually produced?
Generally, hygiene is lacking and cooling may
not be a function of management but
engineering. The debt load seems to be high.
Ubwiza bw'amata aboneka ubu buhagaze bute?
Quality produced is in the 4 categories of the
RBS Standards Range - most milk is over 50
million CFU/ml, but no routine testing is
conducted for bacteria.
Milk is checked for added water and
sometimes for acidity.
Questions on market supply/Ibibazo birebana n'isoko(kubona amata)
8
Do we have breeds for enough quality milk
production?
Apparently; milk is turned away in many MCCs
during high production season, and the market
shows signs of saturation for 300 RWF milk
(retail).
Ese dufite ubwoko bw'inka butanga amata
ahagije?
9
Do producers have means to reach the market?
Aborozi bafite uburyo bwo kwigerera kw'isoko
ry'amata?
22
NO; Farmers close to markets fare quite well.
BUT many are simply too far from a sales point
to deliver milk within an hour of milking. More
and perhaps smaller collection points may be
needed.
Direct delivery to sales points is an option near
Kigali and other urban centers.
Key Questions and Answers -
June 16, 2010
10 What percentage of milk consumed by the
producers, and what is available to the market?
kw'ijanisha, amata anywebwa mu rugo angana
iki?ajyanwa kw'isoko angana iki?
11 Do they have the knowledge to increase the
quantity?
Ese hari ubumenyi bwo kongera ubwiza bw'amata?
12 Do producers have access to quality inputs?
Ese aborozi babona ibiryo/imiti.. by'amatungo byiza
13 Do they have the ability to provide milk throughout
the year?
Observations indicate that about 10 liters of
surplus milk is needed to justify joining an
MCC. Less than that, it is consumed by the
family and friends with occassional local sales.
40%-on farm and 60% to the market
Limiting factors of land /feed and access to AI
services appear to be more critical than
knowledge. Plus vet services and supplies
In many cases, no; there is limited access to
inputs but affordability and return on inputs is
key. A good example is molasses and urea.
Most farmers find it profitable to supplement
but need a distribution system.
YES; Milk production is increasing
Aborozi bafite ubushobozi bwo kubona amata
umwaka wose?
Questions on market demand/Ibibazo birebana no gushaka kw'isoko
14 Do they have enough milk for processing?
YES; production is enough, processed products
have a limted market
Ese amata aboneka arahagije ku isoko?
15 Do they know the status of their milk(in terms of
standards and affordability)?
Ubwiza bw'amata aboneka ubu buhagaze bute ku
bipimo by'ubuziranenge?
NOT ALL; (milk testing is recommended for the
producers to know their actual status)
Questions on organization/ Ibibazo birebana n'imikorere
16 Are all producers in coops?(if no, at what
percentage)
NO; some are on individual basis
Aborozi bose bakorera mu
mashyirahamwe/coperative?(niba ataribyo,
abazirimo bangana iki ku ijanisha)
17 Do they want to go directly to the market?
YES; they prefer it direct than through the
transporters/intermediaries
Ese aborozi bose bifuza kwigurishiriza amata yabo
kw'isoko
Questions on finances/ Ibibazo birebana n'ubukungu
18 What is the ease of access to financial services?
Ese Kubona amafaranga(imfashanyo/inguzanyo)
biraborohera?
19 What do producers need money to do?
Amafaranga aborozi bakenera ni ayo kubafasha iki?
23
Financial Institutions are relactant to giving out
loans
purchase animals
improve infrastructure and equipment
Key Questions and Answers -
June 16, 2010
Issues
1
Infrastructure;
Increased number of MCCs
small processing plants
improved feeder roads
farm infrastructures
Rural electrification
water resources
rehabilitation and modernization of MCCs
Standards (availability and dissemination)
farming practices/ guidelines
Providing price incentives
Affordable lab facilities and dairy technicians
location and improvement of MCCs
market guarantee
increase the number of processors
explore contract markets and niches
Marketing strategy enabling increase in milk
consumption especially in areas of production
organization of cooperatives
licensing system
investment in effective cold chains from
producer to consumer
2
Quality;
3
Market;
4
Pricing; (Fluctuation & Differentiation)
Pricing strategy (cost of production)
payment based on quality
certification for the farming system
encourage subsidy cautiously
5
Quantity/ Production > Consumption (On farm
loss)
feeding regime
improved AI
disease control
Recording system
on farm diversification
water resource development
6
Financial; (Limited access to finance/high interest
rate)
Advocacy (farmers' specific loans)
collective savings transitioning to farmers bank
increase business development services
7
Lack of Capacity
capacity building
24
Key Questions and Answers -
June 16, 2010
PROCESSORS/INGANDA
Questions on quality/ Ibibazo birebana n'ubwiza
bw'amata
Plausible answers and comments
1
No; (no incentives available to producers
to improve quality….)
- yes, because it is tested prior to
reception(and the best/good quality is the
one selected)
- No, because not all of them dispose of
good milk testing machines; and most of
what they receive it is substandard(RBS)
Do they get quality milk from producers?
Ese inganda zakira amata meza?
2
Do processors have the capacity to produce/sell
milk that meets international standards?
No; quality processed products come from
quality raw milk received
Inganda zacu zaba zifite ubushobozi bwo gukora
amata yujuje ubuziranenge mpuzamahanga?
3
Do they provide incentives to producers to
produce quality milk?
No;
Ese abanyenganda baha uduhimbazamusyi
aborozi kugirango bagere ku mata meza?
4
Do they have standards?
Hari ibipimo by'ubuziranenge ku nganda z'amata
bihari ?
Yes; poor awareness of the standards;
5
What is the actual quality of processed
products(how to know that)?
Yes; Refer to tests/ studies; use
independent labs..
Ubwiza bw'amata(n'ibiyakomokaho) ava mu
nganda buhagaze bute?((bumenyekana bute)?
6
Who measures the quality of their milk/cheese...?
Ubwiza bw'amata bupimwa na nde?
milk buyers/processing plants - but an
impartial lab is better to avoid disputes on
payment
Questions on market supply/Ibibazo birebana n'isoko(kubona amata)
7
Do they get enough milk to process?
Amata inganda zakira arahagije ?
Yes,(it depends on the market demand,
processing capacity-cheese makers)
8
How sustainable is the link between processors
and producers?
- producers often break agreements to sell
on the open market
- MCCs often don't buy all milk presented
Imikoranire yabanyenganda n'aborozi ihamye
cyangwa se ikomeye bingana iki?
9
10
11
Do they have direct access to the producers?
Ese inganda zihurira ubwazo n'aborozi?
Is milk separated and paid according to its
quality/milk grading system?
Haba hari uburyo bwo kwishyura amata
hagendewe ku bwiza bwayo?kuyashyira mu
byiciro by'ubwiza?
Do they have their own cows?
yes
No, milk still being paid by volume(liter)
Normally not but some do, selling direct
25
Key Questions and Answers -
June 16, 2010
PROCESSORS/INGANDA
Questions on quality/ Ibibazo birebana n'ubwiza
bw'amata
Ese abanyenganda bagira inka zabo?
Plausible answers and comments
from the farm
Questions on market demand/ Ibibazo birebana no gushaka kw'isoko
12
What are the products?
Ni ibihe bicuruzwa bikenewe/biri kw'isoko?
raw milk, Ikivuguto, Ishyushyu, ghee,
processed milk, yoghurts, cheese
13
How can processors expand their market?
Ni gute inganda zishobora kwagura isoko ryazo?
listen to demand...
LOW END but largest segment
- Milk at <300 FRW/liter
- explore even cheaper prices
HIGH END, Niche market (very small, little
growth)
- making/bringing (demanded or new)
quality products; export to neighbouring
countries….
14
What are the different demographic markets?
Refer to studies
15
Isoko ry'amata riri mu bihe byiciro
(by'abaturage)?
Why is there no UHT milk produced in Rwanda?
Kuki nta amata ya UHT akorwa mu Rwanda?
16
Why is there so much milk products from
Uganda/Kenya...?
Kuki hari amata menshi yinjira mu Rwanda ava
hanze?
highly demanding to process(require good
quality raw milk, expensive to process
therefore expensive as a product on the
market)
Is there? Compared to domestic supply, it
is a tiny niche. Less than one collection
center produces.
Lack of means/machines to produce some
products(UHT)...
Milk products produced in rwanda still
expensive???
17
Do they know what the consumers want?
Absolutely. Look at sales.
- kiosk sellers vary prices according to
seasonal demand (but usually not more
than 50 RWF. usually between 200-300
RWF/liter for raw and up to 600 RWF/liter
served at a milk bar.
- processors vary prices according to
calculated price of production, not as
demand driven, although sales are
stagnant at about 6000 liters per day for all
processed product, indicating a small
niche.
Ese inganda zizi ibyo abakiriya bifuza?
26
Key Questions and Answers -
June 16, 2010
PROCESSORS/INGANDA
Questions on quality/ Ibibazo birebana n'ubwiza
bw'amata
Plausible answers and comments
18
Are they processing what is needed/demand
driven?
Ese inganda zikora ibicuruzwa hifashshijwe icyo
isoko ryifuza?
Refer to studies
19
Is the production cost competitive ?
Compared to what? Processed product
will find it hard to compete with direct
sales because of energy and packaging.
Neither are essential to a vibrant market.
Processed, packaged product serves a
specific niche of the market.
As of two years ago, processing plants
operated at less than 10% capacity. Now
the total capacitiy is many times that, yet
sales are relatively flat. So they are
operating at even less of their capacity.
Ese igiciro cyo gutunganya amata gituma
inganda zishobora kunguka/guhatanira isoko?
Questions on organization/ Ibibazo birebana n'imikorere
20
What is their capacity?
total of plants capacities
- operational plants = 48,000 l/day
(Rubarizi, Nyanza, Eastern, Inyange (old
plant)
- total constructed = 178,000 (+new
Inyange, Ruinzi)
- cheese plants?3000??
- thousands of milk bars making ikivuguto
and pasteurizing milk in bulk
Inganda zifite ubushobozi bungana iki bwo
gutunganya amata?
21
What is the capacity of them to package?
same as processing
Inganda zifite ubushobozi bungana iki bwo
gupakira amata?
27
Key Questions and Answers -
June 16, 2010
PROCESSORS/INGANDA
Questions on quality/ Ibibazo birebana n'ubwiza
bw'amata
Plausible answers and comments
22
Some provide advice, milk
containers/cans….
What kind of support do they give the
producers?
Ese inganda zaba hari uko zifasha/zunganira
aborozi?gute?
Questions on finances/ Ibibazo birebana n'ubukungu
23
Can processors manage collection centers?
most of the MCCs are farmers coop
owned;
processors can just have agreement with
MCCs(farmers)
Ese inganda zishobora kuyobora/gucunga
amakusanyirizo
24
25
Are the plants profitable, and if so why aren't
they operating at capacity?
Ese inganda zirunguka?,niba ari byo, kuki
zitageza ku bushobozi bwazo bwose mu
gutunganya amata?
Who determines the price of the processed
products?
- Not making profit(due to the size of the
market, processing technology, purchasing
power of the market, poor marketing...)
- milk kiosks make money
- plants operating under capacity is most
likely lack of demand for their product
since the milk market is extremely price
sensitive
- processors for packaged product
- customer driven in the milk selling points
but lately appears collusion sets prices, not
demand
Ninde ushyiraho ibiciro by'amata mva ruganda?
Plausible Issues
Proposed measures
Poor quality milk(received&processed)
1. Price differentiation(incentives to
producers to deliver quality milk)
2. work closely with independent labs
3. work with producers(trainings…)
4. Work/monitor milk hauling
5. plant technicians capacity building
6. improving processing
technology(reception, cooling....)
28
Key Questions and Answers -
June 16, 2010
PROCESSORS/INGANDA
Questions on quality/ Ibibazo birebana n'ubwiza
bw'amata
Plausible answers and comments
Market (Low profitability)
1. very small size of the market
2. Pricing Vs low purchasing power of the
market/population
3. subsidies from governement??
4. Improve processors marketing strategies
5. deep study/awareness of the market
6. publicity/bring awareness of the
advantages/disadvantages of selling
good/substandard milk products
respectively
7. Subsidise/exonerate importation of
processing materials, machines,..
Milk products transportation and storage
1. Work/suggest with farmers/MCCs to
haul milk under good condition of
temperature and time(cooling track…)
2. Ensuring milk products are transported
under good condition of temperature(from
the plant to the selling outlets)
3. Work with sellers(supermarkets…) to
store milk in good quailty cooling facilities
1. improve/increase working collaboration
with institutions such as RARDA, RBS,
Donors, Banks…for a continous updade,
advice, technical support, investment
Partneship with other dairy stakeholders
through RNDB
29
Key Questions and Answers -
June 16, 2010
SELLERS/ ABACURUZI B'AMATA
Questions
Plausible Answers
quality/ Ibibazo birebana n'ubwiza bw'amata
1
Do sellers have the knowledge about milk
quality standards?
Baba abacuruzi bafite ubumenyi ku birebana
n'ibipimo by'ubuziranenge bw'amata?
2
Do they have technical know how for milk
handling?
Bafite ubumenyi bukwiye mu
gutunganya/kubika amata?
3
4
5
What quality controls exist between the sellers
and consumers?
Ni iki gikorwa mu kugenzura ubwiza bw'amata
hagati y'abacuruzi n'abakiriya/abanywi
b'amata?
What are the criteria of milk reception?
Ni iki kigenderwaho mu kwakira amata?
Are they selling standard milk?
Ese hacuruzwa amata yujuje ubuziranenge?
6
What kind of shelf life of the milk sold?
Ese amata acuruzwa aba ashobora kumara igihe
kingana iki?
7
What type of inspection service is there?
Hakorwa ubuhe bugenzuzi/Inspection?
8
No.
There is a need to make milk sellers aware
of RBS milk standards. Simple, regular
inspection can play a role. Some sellers
conduct basic milk tests acidity and added
water.
Some.
There is a need to make milk sellers aware
of RARDA inspection sheet guidelines
which provide all requirement for milk
handling
Need to show and tell people on hygiene
need to define and follow up quality
No control.
Usually density is checked for added water.
Some do alcohol, clot on boiling
NO.
Not aware of that. But according to
Consumer survey conducted by Land
O'lakes most of milk sold on market is in
4th category (very bad milk) - bacteria
standards would be good but they don't
know them.
About 2 days.
As most of milk bought is in very bad
category thus the shelf life of milk is very
short. However, strategies of fermenting
milk from ishushyu to ikivuguto can give up
4 days. Ghee is long life, and cheese
depends on type.
RBS and City Council Inspection
RARDA has the capacity to conduct farm,
MCC and kiosk inspections and
collaborates with Kigali City and MoH
Presence of refridgerator, running water,
aprons, health certificate, proper floor,
insect repellant or killer Tiles and toilets
far from facility
What are the minimum requirements to sell
milk?
Ni ibiki bisabwa nibura kugira ngo umuntu
acuruze amata?
Questions on market supply/Ibibazo birebana n'isoko(kubona amata)
9
Where do they get their milk from/traceability?
30
From dealers who get milk from MCC and
farmers
Key Questions and Answers -
June 16, 2010
SELLERS/ ABACURUZI B'AMATA
Questions
Plausible Answers
Amata acuruzwa aturutse he?hari uburyo bwo
kuhakurikirana?
10
Do they get enough milk? is it at the right time?
Ese abacuruzi bakira amata ahagije? Ku gihe
gikwiye?
11
Do they have direct access to producers, and
what is the relationship between them?
During high production periods the market
is satisified at current prices.
Dry season sales actually increase as do
prices, indicating a slightly higher demand.
Processors experience shortages as sales
shift to direct sales from many farms.
In very few cases yes; It is more a matter of
organization. Small kiosks normally would
have less contact and receive deliveries
from a trusted hauler.
Hagati y'abacuruzi b'amata?( Ese abacuruzi
bagera ku borozi my buryo butaziguye?
Imikoranire iteye ite?
Questions on market demand/Ibibazo birebana no gushaka kw'isoko
13
What do they want to sell?
Hakwiye gucuruzwa iki?
Both fresh and processed milk of good
quality
14
Do they have enough capacity to sell?
Yes
Ese abacuruzi bafite ubushobozi buhagije bwo
gucuruza amata?
15
Is the pricing consumer or supplier driven?
Ese ibiciro bigendera ku gushaka kw'abaranguza
amata cyangwa abanywi bayo?
16
Is the marketing strategy consumer or supplier
driven?
Ese imicururize y'amata igendera ku gushaka
kw'abaranguza cyangwa abanywi b'amata?
17
Who buys what(demographics..)?
Amata agurwa na nde(mu nzego z'abaturage…)
18
Do they have products in different
quality/prices?
Ese amata acuruzwa ku biciro bijyanye n'ubwiza
afite?
Questions on organization/Ibibazo bijyanye n'imikorere
19
Do they have appropriate cooling/storage
facilities?
Ese abacuruzi bafite ibyuma byo kubikamo
amata bikonjesha byabugenewe?
Pricing is supply driven.
Prices are more a function of
manufacturing costs than market forces in
the commercial plants.
Neither.
When the market is over-supplied, prices
are level. When milk supplies are lower,
the informal market responds and more
milk is attracted. However, the marketing
strategy should be developed
Buyers who consume; take home and
some buy to sell.
Several consumer studies yield
inconclusive results. There is a need of
reliable demographic information breaking
the population down by income.
NO
Some have but most equipment needs to
be replaced. Inspection will catch up with
them
31
Key Questions and Answers -
June 16, 2010
SELLERS/ ABACURUZI B'AMATA
Questions
Plausible Answers
20
Why is milk sold in bulk as opposed in packages?
Kuki amata acuruzwa nk'amasukano kurusha mu
ma karito?
Do they get complaints from the consumers?
Ese hari ibyifuzo abacuruzi bajya bakira biva ma
bakiliya?
It's according to purchasing power of
consumers. Packaging adds to the price of
milk
Most likely.
What is the status of milk hauling in Rwanda?
Hauling does not comply with RARDA
guidelines. Refer to inspection sheet at
MCC.
Under current conditions, cans are bent
and rarely sanitized. Perhaps washed.
21
22
Ubwikorezi bw'amata mu Rwanda bwifashe
bute?
Questions on finances/Ibibazo birebana n'ubukungu
23
#
1
Can sellers upgrade facilities to meet RBS
standards?
Ese abacuruzi bashobora gutunganya
imikorere/ibikoresho byabo kugira ngo
bubahirize ibipimo by'ubuziranenge bya RBS?
MILK SELLERS GROUP
Key Issues
Quality
Yes but need finance and awareness on
standards. Upgrading facilities to meet
standards requires much investment
(equipments, infrastructure, ….)
They can move gradually to meet required
standards
POSSIBLE SOLUTIONS
Link between farmer and seller through
MCC——
Good transport facilities
Seller should have proper cooling facilities
and hygienic environment
Milk testing at the MCC
Training of farmers on milk handling
Emphasis on high milk quality standards
and implement/use of a price incentives to
promote obtention of good quality milk
Carry out testing at sellers level
2
Use of proper equipment along the whole
value chain….use of clean alluminum cans,
cooling tanks, refrigerated trucks e.t.c
Emphasis on health standards for all milk
handlers along the value chain
Improve road infrastructure, and electricity
supply
Promote improved feeding technologies to
allow increased milk production even
MARKET SUPPLY ISSUES
32
Key Questions and Answers -
#
3
June 16, 2010
MILK SELLERS GROUP
Key Issues
POSSIBLE SOLUTIONS
during dry seasons
Increase number of cooling facilities and
capacity to cool milk at below 10degrees
centigrade
Improve transporters ability to contain the
milk at below 10degrees centigrade
Harmonization of prices among milk sellers
MARKET DEMAND ISSUES
Enhance purchasing power of buyers
4
INVESTMENT ISSUES
5
PRICING ISSUES
Use publicity to encourage milk
consumption throughout the year.
Educate the youth on milk advantages to
instill culture of milk consumption
Invest more in equipment and
infrastructure
Invest in training on modern technologies
Introduce quality based price
differentiation system
33
Participant List
ANNEX
Rwanda Dairy working group meeting 21/04/2010
Co Chairs
RARDA – Theogene Rutagwenda
Land O’Lakes – Roger Steinkamp
Heifer International – Charles Kayumba
Land O’Lakes Facilitators:
Vincent KALIMBA
Willy NYIRIGIRA
Charles BIZIMANA
Attendance list
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Name
Dr. Innocent Matabishi
Betty Rwamuhizi
Bigirimana Jean Damascène
Kayisanabo Fina
Karamuzi Dennis
Nick Buckley
Zephanie Niyonkuru
Dr Ngarambe Michel
Frank de laat
Chris van Zastraw
Ndahiro M. Emmanuel
Bazigaga Odile
Karangwa Frederick
Lowe Alexandra
Karenga John
Organization
SNV-Rwanda
EADD Rwanda
RMSA
USAID
Heifer Rwanda
OTF group
OTF group
RARDA
Dutch embassy
Starbucks FSC
RNDB
RNDB
RNDB
MINAGRI
Inyange
Email
jmatabishi@snvworld.org
Ebetty2020@yahoo.com
bijdamas@yahoo.fr
fkayisanabo@usaid.gov
dkaramuzi@gmail.com
nbuckley@otfgroup.com
zniyonkuru@otfgroup.com
Ngarambemic2000@yahoo.fr
Frank-de.laat@minbuza.nl
cvonzast@starbucks.com
ndahiroemmanuel@yahoo.com
Kfreddy2002@yahoo.com
a.lowe.minagri@gmail.com
karengajohn@yahoo.com
34
Telephone number
0788309056
0788309038
0788652698
0788304369
0788305014
0788304330
0788508082
0788301828
0788442233
0788766960
0788222111
0783852702
0788309485
Participant List
ANNEX
2nd DSWG meeting participants
16 June 2010
Co-chairs
RARDA – Theogene Rutagwenda
Land O’Lakes – Roger Steinkamp
Heifer International – Charles Kayumba
Land O’Lakes Facilitators:
Vincent KALIMBA
Willy NYIRIGIRA
Charles BIZIMANA
Name
NSENGIYUMVA Jeremiah
RUTAGWENDA Theogene
NGARAMBE Michel
Innocent MATABISHI
UWERA Agnes
KAGARAMA Juvenal
Fina Kayisanabo
Nyanza Dairy
Rubilizi Dairy
V/P TWAGIRAMUNGU Danny
P : NGAMIJE FRANCOIS
V/P : BIGIRIMANA
DAMASCENE
Hadgi Said HAVUGIMANA
NGABIRE BERICK
KARANGWA FREDERICK
Ngendo Alphonse
Ndahiro Emmanuel
Mbare MCC
Isabelle Jardon
Frank de Laas
Nigaba Eric
Wibabara Angelique
Ndayambaje E
Simon Anyona
Dr Frank MBUZA
GAHIGA
Nsabiyumva Diomede
BAZIGAGA Odile
Organization
Syndicat Agricole du
RWANDA
RARDA
RARDA
SNV
TNS
Umutara
Poloytechnique
USAID
Processing plants
Processing plants
Cheese makers
Milk sellers
email
Phone
staverorg@yahoo.fr
rutagwendat2006@yahoo.com
ngarambemic2000@yahoo.fr
jmatabishi@snvworld.org
uwera@tnsrwanda.org.rw
0788420647
0788 30 33 09
0788 50 80 82
0788 30 90 56
0788 52 27 99
philip@brierley.org
fkayisanabo@usaid.gov
twagiraemery@yahoo.fr
rubilizidairy@yahoo.fr
dannysoni3@yahoo.fr
ngamijef@yahoo.fr
0788 85 28 50
0725 46 20 07
0788 53 66 57
078 68 98 32
Milk sellers
Milk sellers
Milk sellers
Milk sellers
Producers
Producers
MCC
FAORW / VNU
Netherlands Embassy
RBS
RBS
SACR
SNV Rwanda
MUTARA Polytechnic
RNDB
RNDB
RNDB
bijdamas@yahoo.fr
0788 86 52 69
0788 59 69 36
ingabirich@yahoo.fr
0788 49 49 26
kfreddy2002@yahoo.com
0788 22 21 11
0788 67 56 65
ndahiroemmanuel@yahoo.com 0788 44 22 33
augumutngama@yahoo.com
0788 59 53 91
Isabelle.Jardon@fao.org
078-313 40 35
frank-de-laat@minbuza.nl
nigeric@yahoo.fr
0788 30 36 09
wibabarange@yahoo.fr
ndayambajeegene@yahoo.fr
0788 43 04 05
sanyina@codit.org
254,723,793,542
mbyzaooo@yahoo.com
0788 83 15 91
0788 77 43 00
0788 55 80 16
0788 76 69 60
35
Participant List
ANNEX
3d DSWG meeting participants
17 August 2010
Co-chairs
RARDA – NGARAMBE Michel
Land O’Lakes – Roger Steinkamp
Heifer International – Charles Kayumba
Land O’Lakes Facilitators:
Vincent KALIMBA
Willy NYIRIGIRA
Charles BIZIMANA
#
Name
1 Innocent Matabishi
2 Erik
3 Froduald Munyankiko
4 Ndavi Muia
5 Steve Dildine
6
7
8
9
Alexandra Lowe
Isabelle Jardon
Gahima Manasseh
Nigaba Eric
10 Mutera Augustin
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Turatsinze James
David Mupenzi
Alex
Dativa
Gahiga Gashumba
Boniface
Leonard Mugenzi
Alphonse Ngendo
Frederick Karangwa
Emmanuel Ndahiro
Odile Bazigaga
Francois Ngamije
Jean Damascene
Bigirimana
Dany Twagiramungu
Emmanuel Kageruka
Innocent Karuranga
Musabyeyezu
DR. Clarisse Ingabire
Dr. Michel Ngarambe
Aimable Ntukanyagwe
Dr. Charles KAYUMBA
Organization
SNV
SNV
Send a Cow
Rwanda
EADD/TNS
TNS
MINAGRI planning
FAO
Gahini Diocese
RBS
Mbare MCC
president
Rwabiharamba
MCC president
DQAL
Ntebbe Farm
MINICOM
RNDB
RNDB
RNDB
RNDB
RNDB
RNDB
RNDB
RMSA
RMSA
RCMC
RCMC
RCMC
STAVER
MINAGRI
RARDA
IFAD
HPI
email
jmatabishi@snvworld.org
ewaveren@snvwold.org
froduald.munyankiko@
sendacowrwanda.org.rw
ndavi@tnsrwanda.org.rw
steven.dildine@gmail.com
Phone
0788309056
0788301537
0788301425
0783852702
a.lowe.minagri@gmail.com
Isabelle.Jardon@fao.org
gahima7@yahoo.com
nigeric@yahoo.fr
0783134035
0788308313
0788303609
0788593341
augumutunganwa@yahoo.com
0788531437
dqalservices@gmail.com
newsixela@yahoo.fr
dativniyonzima@yahoo.fr
bonifacetwahirwa@yahoo.com
kfreddy2002@yahoo.com
ndahiroemmanuel@yahoo.com
ikaranga@yahoo.fr
bijoamas@yahoo.fr
dannysoni3@yahoo.fr
ikaranga@yahoo.fr
musadio@yahoo.fr
claring14@yahoo.fr
ngarambemic2000@yahoo.fr
a.ntukanyagwe@ifad.org
charles.kayumba@gmail.com
36
0788693272
0788300204
0788553152
0788831591
0788303914
0788858303
0788675665
0788222111
0788442233
0788766960
0788689832
0788652698
0788536697
0788465258
0788522785
788472168
788978173
788505082
788389898
788302803
Participant List
ANNEX
37