Rwanda is set to construct its first powdered milk factory in a bid to boost profit for the country’s livestock sub-sector.
This is after a joint venture firm owned by South African and Rwandan investors in collaboration with dairy farmers in Gicumbi District agreed to invest US $38m towards the development.
The dairy powder plant will be situated in Byumba Sector of Gicumbi District in Northern Province. Construction of the plant is expected to start by the end of this year, and it will take a year for the factory to be completed.
Largest milk-processing factory
The planned factory being the first of its kind in Rwanda, is set to be the largest milk-processing factory in the country and will offer a major relief to the dairy farmers. According to the Ministry of Trade and Industry, the installed capacity of that factory will allow it to process 252,000 litres per day. The dairy farmers will get return of their investment through profits from milk sales which would take 5 years to settle.
The factory will be owned and operated by a company called East African Dairies, a shareholding between TRIOMF East Africa and dairy farmers in Gicumbi District. TRIOMF East Africa will have 80%, while farmers will own 20% of the shares.
“We were struggling to get an additional market for our produce. This factory would be a relief for us as it will enable us to get a ready market for our produce. Overall, the cooperatives in Gicumbi District collect some 95,000 litres of milk per day. We have the will to process milk into powder because it can be easily and safely preserved, and there is also a market for that product in neighbouring countries such as (DR) Congo,” said Antoine Juru Munyakazi, Executive Chairman of TRIOMF East Africa.
Source: Construction Review Online