Rwanda’s New Milk Powder Plant: A Game-Changer for the Dairy Industry

Image Credit, Congerdesign

In a story first reported by CGTN, Athan Tashobya for Kigali, Rwanda’s Eastern Province, a new $54 million state-of-the-art powdered milk plant is set to revolutionize the country’s dairy sector, offering new opportunities for local farmers and positioning Rwanda as a key player in the regional dairy market. Located in Nyagatare, the Inyange Milk Powder Plant is designed to process an impressive 650,000 liters of milk daily, translating into 15,000 tonnes of powdered milk annually. This development is expected to have a profound impact on the Rwandan economy and the livelihoods of dairy farmers across the nation.

One of the local farmers set to benefit from this development is Francoise Mukase, who has been involved in dairy farming through Rwanda’s Girinka program. What started with a single cow has grown into a thriving enterprise, with Mukase now owning 18 cows that produce over 120 liters of milk daily. Mukase has been able to invest in land and her children’s education, a testament to the profitability of the dairy sector. At the plant’s launch in July, she expressed her optimism about the future, highlighting the timely payments and support provided by processors.

The Inyange Milk Powder Plant will primarily produce skimmed milk powder, which will make up 80% of its output, alongside whole milk powder, ghee, butter, and UHT products. The plant’s ability to process 50,000 liters of milk per hour marks a significant increase in Rwanda’s dairy processing capacity, which began with a modest 10,000 liters per day when Inyange Industries was founded in 1997. The company has since diversified into dairy products, juices, and mineral water, and by 2024, it is expected to process up to 850,000 liters per day.

Rwanda’s milk production has seen steady growth over the years, rising from 121,400 tonnes in 2005 to nearly 900,000 tonnes in 2020. The addition of the new milk powder plant is anticipated to further boost these figures, enabling Rwanda to meet its 2023/2024 target of over 1.2 million tonnes. This expansion is also expected to drive milk exports, generating over $6.6 million monthly for farmers and stimulating the local market.

Inyange Industries has already attracted interest from international markets, with countries such as Egypt and Saudi Arabia expressing interest in the company’s UHT milk products, which are made using powdered milk. Additionally, the plant is targeting business-to-business opportunities, such as supplying Africa Improved Foods, a Rwandan company that currently imports milk powder from abroad and uses 5,000 tonnes per day.

Rwanda’s Prime Minister, Edouard Ngirente, emphasized the significance of the new plant at the launch event. He highlighted that the facility would provide a ready market for milk produced by farmers, thereby increasing their incomes and improving the overall dairy sector in the country.

Despite these positive developments, challenges remain for dairy farmers in Rwanda, particularly those in the East who face issues related to water access, feed, and infrastructure. The Rwandan government has committed to addressing these challenges by investing in infrastructure improvements aimed at further boosting the dairy sector. These efforts are essential to ensuring that the benefits of the new milk powder plant are fully realized by the local farming community.

The launch of the Inyange Milk Powder Plant marks a significant milestone for Rwanda’s dairy industry. It represents not only a substantial increase in the country’s processing capacity but also a beacon of hope for local farmers like Mukase, who stand to gain from the expanded market opportunities and improved incomes. As Rwanda continues to develop its dairy sector, the new plant is poised to play a critical role in driving economic growth and enhancing the livelihoods of many families across the country.

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