Dairy farmers decry delayed payments

“I love cows. You’ve got to love the cows to do this job. And I believe in dairy farming. I am proud to be involved in the production of milk… It has been hard work, but also very rewarding. However, now I feel I cannot go any extra mile in the business,” lamented Samuel Rugamba. Rugamba, a farmer based in Mucucu village, Kayonza District, is one of the dairy farmers complaining that delayed payment for their milk is stifling their operations. Milk in rural areas is bought by cooperatives that in turn sell it to outlets and factories in Kigali. “We are not happy with the price at which they purchase our milk. Rwf180 per liter is simply too little considering what we invest. This is exacerbated by the failure to pay us in time. Some cooperatives that buy our milk often return later to tell us that it was spoilt. The irony is that they give us the excuse a couple of days having earlier signed that the milk is in a good state when they were collecting it,” Rugamba complained. Like Rugamba, many other livestock farmers say they are considering abandoning the venture if the trend does not change. “It is no longer economically viable to engage in dairy farming. Even though I have an emotional attachment to the cows, I see no point in sticking to the business because I am incurring losses,” said another farmer who preferred anonymity. Farmers supplying milk to Murundi Farmer’s Cooperative (MUFCOS) and Gahini Dairy Cooperative also decried delayed payments. Vincent Rukwago, the chairman of the milk dealers, said the arrears have since April accumulated to over Rwf11 million and that their pleas for payment have gone unanswered. “We buy milk from farmers and supply the cooperatives, but they do not pay us the full amount. We have registered our complaints at different levels, but the local leaders have not helped us find a solution. We are being forced to sell our cows to clear the farmers who supplied us milk,” he said. Rugamba said farmers needed to access the market directly to avoid losing money to middlemen. “People are steadily embracing agriculture. If one grows maize or beans on two hectares, he is likely to harvest two tonnes. This will earn them over Rwf5 million. The amount increases if a farmer plants hybrid varieties. However, a farmer grazing cows on the same land may not even earn Rwf1 million in a year,” he said. John Nkusi, the chairman of Gahini Milk Cooperatives, admits that the farmers incurred losses, but blames it on Kigali-based dealers. “There are two businessmen that won the tender to buy milk from our cooperatives, but they have not been paying us. In fact, they owe us over Rwf12 million. We have decided to terminate their contracts; we decided to take the milk to Inyange Industries ourselves,” he said. “So, it is not only the farmers who have suffered losses, but cooperatives as well...it is a big mess. We are planning to hire a lawyer to seek legal redress,” he said. James Rwabuneza, the chief accountant of MUFCOS, also complained that the middlemen failed to pay them. “We are paying taxes yet we never received any payment. We shall go to court since we have evidence that the middlemen sold the milk to other traders and not Inyange Industries as originally agreed. They instead came back claiming that the milk went bad,” he said. Reacting to the farmers’ concerns, Kayonza mayor John Mugabo, said he had heard of the complaints but was yet to intervene. “I have heard of the issue, but I will need to establish facts. But I can assure the farmers and dealers that they will be given their money if they really deserve it.” editorial@newtimes.co.rw

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Dairy farmers decry delayed payments