A new project of the Ministry of Agriculture and the International Fund for Agricultural Development (IFAD), aims to transform Rwanda’s dairy sector.

Launched on Friday, August 30, the Rwf166.5 billion project, known as RDDP II, is set to benefit over 175,000 smallholder dairy farmers across 27 districts, building on the achievements of its first phase, which concluded two months ago.

The RDDP II is expected to boost efforts to increase annual milk production, which stood at one billion liters in 2023.

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The project&039;s goals include establishing a new dairy breeding centre to supply quality breeds to farmers, enhancing milk collection facilities, adopting scientific fodder handling practices, and improving access to financial services.

These initiatives are designed to empower smallholder farmers to expand and modernize their operations, setting the stage for a more prosperous dairy sector.

Olivier Kamana, Permanent Secretary in the Ministry of Agriculture, highlighted the project's focus on the cold chain.

"The project will focus on improving the cold value chain to enhance the quality of milk reaching collection centers. It will also prioritize providing farmers with high-quality dairy breeds. A new breeding center will be established to support the Isonga breeding hub,” Kamana said.

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He added that while the RDDP I reached 100,000 farmers, the second phase targets over 175,000, with a budget of $100 million, plus an additional $25 million by the end of the year.

Over the next six years, the project will construct or rehabilitate 164 milk storage and processing facilities and equip 95 milk collection centers with a digitalized milk transaction management system.

This expansion includes 13 new districts, scaling up efforts to boost the dairy sector nationwide.

Officials anticipate that under the project, 80 per cent of households involved in dairy farming will achieve a 30 per cent increase in income while creating 3,400 new jobs. Additionally, 45 per cent of these households are expected to enhance their nutritional security.

The project aims to support 85,000 households engaged in the dairy sector by improving access to financial resources, with a particular focus on empowering women and youth, targeting 45 per cent and 25 per cent participation, respectively.

Floride Nyirangirababyeyi, a smallholder farmer from Nyarugenge Sector in Bugesera District, expressed her optimism for the project.

"Farmers have been lacking training on how to increase productivity,” Nyirangirababyeyi said, adding that thanks to training she got her weekly milk harvest had increased by 40 per cent.

"If the project trains more farmers on the best practice related to livestock, dairy productivity will increase,” she said.

The project will also provide policy support, manage activities, and emphasize monitoring, evaluation, and knowledge management.

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Financial institutions will be linked with farmers to facilitate access to low-interest loans.

Alice Ikirezi, the Head of Investment and Social Impact at Equity Bank, stressed the importance of understanding the unique needs of the dairy sector.

"We realized that a farmer can hardly afford an 18 percent market interest rate, so we lowered the rates to make them affordable. Financial institutions need to structure loans that meet the needs of farmers,” Ikilezi said.

While 24 rural districts will deal with efforts of increasing dairy productivity, districts in the City of Kigali will focus on value addition and processing dairy products.

Historically, dairy farmers have struggled with low-quality feeds and inadequate access to breeding services, leading to low milk yields.

The RDDP II project aims to eliminate these challenges by providing high-quality inputs and services.

"One of the biggest challenges we have is the lack of space to stock fodders, equipment for water management and low-quality breeds,” said Elias Mugabowakigeli, a resident in Karangazi Sector.

"We are very happy about the new project because it promises to address these challenges, which dwindle milk production.”