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Middlemen cash in on high milk prices, leaving farmers at a loss

Wednesday October 27 2021

Prices since July rose by almost a half at retail milk kiosks with a litre of processed milk selling at between Rwf1,300 and Rwf 1000

IN SUMMARY

  • Prices since July rose by almost a half at all shops and retail milk kiosks with a litre of processed milk selling at between Rwf1,300 and Rwf1,500 from Rwf1,000. It has emerged, however, that middlemen and other players along the chain pocketed much of margins at the expense of farmers countrywide.
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Despite a general steep rise in milk prices on the market, cattle farmers’ fortunes have not changed.

Prices since July rose by almost a half at all shops and retail milk kiosks with a litre of processed milk selling at between Rwf1,300 and Rwf1,500 from Rwf1,000. It has emerged, however, that middlemen and other players along the chain pocketed much of margins at the expense of farmers countrywide.

A mini- survey by Rwanda Today in key livestock producing areas indicated farm gate prices barely changed from Rwf200 a litre, which was set in 2018.

Non remunerative prices were cited as being the reason a section of the farmers are unwilling to invest, leading to further decline in milk production levels.

In arid livestock farming areas like Nyagatare, farmers only get Rwf194 a litre of milk after deductions of co-operative and union fees.

Thacien Nyiringango, a farmer in Ryabega area said he would have to sell up to seven litres of milk for him to afford one litre of the processed milk following a recent rise in market prices.

The 81-year farmer says milk production has declined from 80 litres a day to only 5 litres.

According to Mr Nyiringango, the dry season caused scarcity in feeds and water that left a farmer with 50 cows spending between Rwf80,000 and Rwf100,000 to purchase feeds every week.

“After considering these costs, I’m only able to buy small quantities for the cows to feed the calves. There is no milk to sell at times because the herd is not fed,” he said. Aloys Kamugunga, a farmer with 15 cows told Rwanda Today that farmers in Nyagatare continued to endure high production costs for the past eight months duringr which there have been no significant rain to grow anything or get water for livestock.

“Due to water shortage we hired people to fetch from a few functional water dams at a distance, and cost increased from Rwf50 a jerrican to Rwf100,” he said. Efforts to get response from the Ministry of Agriculture and Animal Resources proved futile by the time of going to press.

Farm gate prices for milk were found to be much lower in Burera District at only Rwf150 a litre, and Rwf180 at milk collection centres. Aloys Hakuzimana, area cattle farmer, says failure to adjust farm gate prices had seen middlemen take advantage of high prices.

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