This week, food processing company Inyange Industries Ltd inaugurated the first powdered milk processing plant worth $54 million (approximately Rwf71 billion) in Nyagatare District in the Eastern Province of Rwanda.
The facility is expected to produce skimmed and whole powdered milk, butter, ghee, and other ultra-high temperature (UHT) milk products.
The plant is capable of processing 650,000 liters of raw milk daily. Its expected daily output includes approximately 41 tonnes of milk powder, 25.6 tonnes of butter, and 11.3 tonnes of ghee.
This is a great move for Rwanda’s dairy sector.
First, because dairy farmers will now have a guaranteed market for their milk supplies, especially those in the Eastern Province where almost 70 per cent of the country’s cattle population is based.
This development will also empower dairy farmers to negotiate better prices for their milk, as the increased demand from Inyange, the country's largest milk processor, will strengthen their bargaining position.
Most importantly though is that the presence of such a facility will rid Rwandan consumers of highly priced powdered milk products. The Rwandan market is currently flooded with imported powdered milk products such as Nido, Linda, Fontela, Highland, Dvit, Lato, and Al Mudhish, to mention but a few.
These imported products are prohibitively expensive and way out of the ordinary consumption power. The current retail price of good quality milk powder such as that from Lato and Nido range from Rwf80,000 to Rwf90,000 for a package of 2.5 kilogramme of powdered milk.
While Inyange is initially focusing on industrial clients for its powdered milk, such as infant formula and baking industries, the company plans to expand its reach to the general public starting in August.
They plan to price a kilogramme of powdered milk at $3.5 (approximately Rwf4,600). This will be significantly cheaper compared to the existing price points where a kilogramme of imported milk powder currently retails in the north of $27 (Rwf36,000).
This means that consumers who have been struggling with storage will find relief since powdered milk has a long shelf life.