Quality Milk
Quality Milk works to develop and improve the dairy value chain in Uganda by providing quality services such as market access and training to smallholder farmers, thereby reducing on-farm and marketing barriers.
Investment
País: Uganda
Fecha de primera inversión: February 2023
Sector: Agriculture
Instrumento: Loan
Inversión inicial: 400,000 USD
Company Description
Quality Milk is a family business born in 2017 as a limited liability company. In 2019, the company commissioned its factory in Nalukolongo Industrial Park and started distributing fresh pasteurised milk under the Royal Milk brand, and is now positioning itself as a modern vertically integrated dairy business in Uganda .
Initially, the company collected milk from farmers and sold it to processors in the capital, Kampala. Over the years, the company has built up its processing capacity and is now involved in both processing milk into various products (pasteurised milk, yoghurt, etc.) and selling it to larger processors.
Quality Milk has milk collection and aggregation centres, located in different districts of central-western Uganda (Masindi, Nakasongola, Nakaseke, Luweero), through which it buys raw milk from small-scale farmers and transports it to its processing plant in Kampala for sale to larger processors.
Social Challenges Addressed
Uganda’s dairy sector is a source of nutrition and income for households. However, the sector has not yet reached its full potential. Only 33% of the milk produced is processed. The remaining 67% is not formally collected, and much of it is lost.
95% of milk production comes from small-scale farmers living in impoverished rural areas, where productivity per cow is very low. This is attributed to a lack of farmer training and advisory services.
Strategic support to the sector can improve milk quality and reduce seasonal variability in production.
Proposed Solution
Quality Milk works with small farmers, livestock farmers, cooperatives formed by women’s and youth groups, non-profit organisations and government agencies to improve the quality of milk and thus increase the income of local farmers. They work mainly with small-scale farmers (70%), the remainder are medium-sized (30%).
Quality Milk Dairies employs more than 200 full-time staff and has a modern plant in Nalukolongo (Kampala), and another in Masindi.
In addition, the company is launching a mobile application called Sente Mata, which aims to harness farmers’ data on milk supplied to offer them tailor-made credit/finance products to improve their farms.
Key SDGs Supported
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Global Social Impact Investments SGIIC SAU is an impact investment funds manager that helps investors achieve positive social and environmental impact together with financial returns.
GSI is part of Santa Comba Gestión SL, a family holding that brings together projects promoting freedom through knowledge.
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