The Ministry of Trade and Industry recently revised milk prices, setting the minimum price of raw milk delivered by dairy farmers to milk collection centres (MCCs) at Rwf400 per litre. This review increases the raw milk price that a farmer will receive by 30 per cent, up from the August 2022 prices. This is a positive move to incentivise farmers to invest in dairy farming, which will undoubtedly increase milk production. The 2022 prices had discouraged some dairy farmers who complained that the prices were out of touch with the current reality, especially given that inflation had hiked the cost of livestock farming inputs such as water, fodder, and labour. As a result, some farmers were forced to reduce their milk production, and this had a ripple effect on the entire dairy value chain. In some instances, this led to scarcity in milk and increased retail prices. Dairy farming is a critical sector for the economy. In fact, some presidential and parliamentary candidates who are campaigning this year have made promises to build capacity for the sector. Presidential aspirant Frank Habineza, for instance, pledged to build factories and milk collection centres both in Gicumbi and Nyaruguru districts to enable farmers to get access to where they can supply their milk, enabling them to access reliable markets. Independent parliamentary candidate Janvier Nsengiyumva, too, campaigned in Nyagatare and Gatsibo districts where he promised those who will vote for him that he will boost milk production by establishing small milk-processing plants that help improve the milk value chain. Rwanda’s annual milk production registered a steady growth, reaching more than one million tonnes in 2023, from 891,326 tonnes in 2020, and more than 372,600 tonnes in 2010, according to the Ministry of Agriculture and Animal Resources. Given that the pace at which demand is set to increase, there is a need to raise milk production and this can only happen by increasing the capacity of farmers. We must constantly ensure that farmers for whom the entire dairy value chain relies on are compensated fairly.
