The first milk powder plant owned by Inyange Industries Ltd, a leading food processing company in Rwanda, is set to process 650,000 litres of milk per day.

The $54 million factory, inaugurated by Prime Minister Edouard Ngirente on Wednesday, July 24 in Nyagatare District, will produce skimmed milk powder, whole milk powder, ghee, butter, and UHT products.

The substantial growth in milk production at the farm level motivated Inyange’s stakeholders to invest in the Milk Powder Plant (MPP), according to officials. The milk powder will primarily serve industrial applications, particularly in infant formulations, baking, and other uses.

The plant is equipped with fully automated machinery employing cutting-edge technology, managed by local technicians trained at polytechnic institutes.

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Speaking after launching the factory, Prime Minister Edouard Ngirente pledged continued government support for dairy farmers through capacity building, fodder provision, water supply, feeder roads, and disease control to boost milk production. He also urged farmers to embrace the government-subsidized livestock insurance.

"Farmers should also embrace zero grazing by dedicating a big part of the pastureland for fodder growing as a way of increasing milk production,” he said. To enforce zero grazing, the Ministry of Agriculture ordered 70 percent of pastureland in the Eastern Province to be cultivated with crops for cow fodder, while 30 percent is set aside for cow sheds.

There are over 500,000 cattle in Eastern Province, out of the 1.6 million cattle across the country.

James Kagaba, the Managing Director of Inyange Milk Powder Plant, said the factory became operational in April 2024 and has so far received 4.2 million litres of raw milk from Rwandan farmers, who were paid Rwf1.3 billion.

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The plant will produce 41 tonnes of milk powder per day and has created 270 permanent jobs. The plant will also produce 25.6 tonnes of butter per day and 11.3 tonnes of Ghee per day.

Farmers Upbeat

Francoise Mukase, a farmer from Gicumbi District, said that she has 18 cows which will enable her to supply milk to the factory.

"I got one cow in 2001 under the One Cow Per Family Programme. This cow reproduced 40 cows. I sold some and I currently have 18 cows, each producing 40 liters of milk per day. I am ready to supply the new processing factory," she said.

Gahiga Gashumba, a farmer in Nyagatare District, said that farmers need to buy fodder chopper machines to prepare and store livestock feed during dry seasons so that milk production is not affected.

"The factory should also closely work with farmers to help them get loans so that they can buy improved dairy breeds and other facilities needed to increase production,” he said.

The recent cattle registration data (2022) indicates that 84 percent of the cattle population, estimated at 1,436,676 heads, is made up of improved dairy breeds and/or their crosses.

NCBA Rwanda announced it is proud to be the key financial partner of Inyange that supported the construction of the milk powder plant.

"We pledge to continue this collaboration and build on it to impact the farmers and community to see that it changes the economic prosperity of the Eastern Province, Rwanda, and the region,” the bank stated.

Diane Mukunde, the Head of Corporate Banking at NCBA Bank, said the bank is partnering with the government under the Commercialization and De-Risking for Agricultural Transformation Project (CDAT) to provide loans to farmers at a 9 percent interest rate to afford the needed investment to increase milk production.

"We will not request farmers to present collateral because they will have contracts to supply milk to the milk powder factory. Farmers&039; contracts help secure bank loans," she said.

Government Initiatives

Stephen Gasana, the Mayor of Nyagatare District, said there are over 25 valley dams in addition to other water supply projects for livestock farmers to increase milk production. He added that the CDAT project has various interventions to help farmers increase milk production.

"Artificial insemination is also key to having improved breeds which provide good milk production," he added.

Inyange Industries Ltd began its journey in 1997 with a small factory focused on processing and selling pasteurized milk and yogurt.

Recognizing substantial domestic demand, the shareholders initiated an ambitious expansion project, investing heavily to construct a state-of-the-art factory in Masaka.

Inaugurated in 2010, this facility incorporated advanced food processing technologies, increasing Inyange’s production capacity tenfold.

The company’s commitment to quality and innovation has enabled it to expand its product range to include milk and dairy products, fruit juices, and natural mineral water under the brands "Inyange," "Mukamira," "Savannah," and "Giheke."

This enhanced capacity not only meets local demand but also allows Inyange to expand its market to neighboring countries, leveraging Rwanda’s membership in the East African Community (EAC) and its customs union.

Inyange products hold certifications from esteemed national and international bodies, including the Rwanda Standards Board, Rwanda FDA, and ISO 22000. Additionally, the company meets Halal certification standards, ensuring compliance with Islamic quality requirements.

Inyange Industries Ltd Managing Director, James Biseruka, said they currently have five milk processing factories with capacity to process 850,000 litres per day including the inaugurated milk powder plant

Currently one Kilogramme of milk powder goes for $3.5, he said adding that supply to the market will start by the end of July.

"We have also demand from export markets such as Egypt, Saudi Arabia, among others. We also have demand for Ghee from Oman, Saudi Arabia, Kenya and others" he said.