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Museveni commissions Royal Milk factory

Peter 1st Oct, 2024 Agriculture PPU
Museveni commissions Royal Milk factory

President Museveni (with hat) takes a guided tour of the new Royal Milk factory at Nalukolongo Industrial Park in Kampala. PPU PHOTO


Speaking at the commissioning of Royal Milk factory at Nalukolongo Industrial Park in Kampala recently, the President urged the proprietors to ensure value addition into powder milk for the lucrative export market.

“Liquid milk is heavy and costly for exportation, but if you take time to process it into powdered milk, it becomes lighter and less expensive. Shifting focus from liquid milk to processed products for export is crucial. This is something you must take seriously,” he said.

Founded in 1995 by Hajji Buruhan Kigoye, Royal Milk Enterprises started as a small company in Masindi District. Over the years, the company has evolved, and collects 200,000 litres of milk per day from 25 collection centres across the country.

  • “I want to salute the old man Mzee Kigoye for listening to our message. The problem of Africa is not poverty; it is a conceptual issue. We need to understand where prosperity comes from,” the President said.

President Museveni acknowledged the country’s current milk production of five billion litres annually and emphasised the need to explore venturing further into the international market.

A large-scale dairy farmer himself, the President also urged the investor to transition to long-life products like Ultra Heat Treatment (UHT) milk from the pasteurised milk currently produced by the factory to enhance market outreach and reduce transport costs.

  • Furthermore, President Museveni expressed his commitment to supporting the milk industry through government funding, urging local entrepreneurs to innovate and explore new markets.

H.E. Jan Sadek, the Ambassador of the European Union (EU) to Uganda, highlighted the significance of the project in realising President Museveni’s vision for Uganda’s industrial transformation.

“Royal Milk is a homegrown Ugandan company making strides in value addition, transforming milk into high-quality products. This is the kind of enterprise that drives real growth,” he added.

Sadek also expressed pride in the European Union’s relationship with Royal Milk.

“Ten years ago, we participated in creating the Yield Fund, Uganda’s first impact investment fund dedicated to small and medium agro businesses. This £20 million fund has been a game changer, attracting other investors and providing vital capital to companies like Royal Milk, enabling them to expand, innovate, and support smallholders. This is something I am very proud of.”

  • Royal Milk is one of about 30 registered dairy processing facilities in the country, with the sector presenting a promising investment landscape, given the numerous opportunities for economic growth and development.
  • Currently, Royal Milk, which employs more than 400 Ugandans directly, produces pasteurized milk, yoghurt, butter and cream.

The investment is impacting over 100,000 farmers, collecting an average of 250, 000 liters of raw milk per day from cattle farmers.

With support from the EU, they have introduced innovative farming practices and modern technology and scaled up their operations to reach more farmers across the country.

With IFAD support, farmers are also connected to broader agricultural networks, opening up new opportunities for growth and development.

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