The government is considering establishing a dairy board to regulate the milk value chain and address persistent challenges in the sector, including high production costs, low returns for farmers, and weak coordination among stakeholders.

Jean Claude Ndorimana, Director General for Animal Resources Development at the Ministry of Agriculture and Animal Resources (MINAGRI), said the proposed board would strengthen oversight of the dairy industry, drawing lessons from countries such as Kenya, Tanzania, Uganda, and India, where similar institutions have proven effective.

"A dairy board helps to oversee the entire milk value chain. In other countries, these institutions are strong and play a key role in regulating the sector,” he said.

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Ndorimana explained that such a body would help farmers address issues like delayed payments without necessarily waiting for government intervention.

He cited India as an example, where milk delivered to collection centres is graded based on quality and fat content, with payments determined accordingly.

He added that this system also benefits farmers as consumers, as organised collection and quality control processes ensure that only safe, high-quality milk reaches the market.

"The board would help ensure fair milk pricing and address challenges related to inputs needed in dairy farming,” he added.

Ndorimana noted that a task force is currently drafting the concept for establishing the board, alongside a presidential order, with the process expected to be completed by April. This will be followed by consultations with stakeholders.

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The proposal was also discussed during a recent parliamentary session with MINAGRI, where lawmakers sought updates on progress.

Farmers call for stronger, inclusive structure

Sperto Gahiga Gashumba, president of Nyagatare Dairy Farmers Union, welcomed the move, saying a functional and empowered dairy board is long overdue.

"We, as farmers, recognised the need for such a body and, together with other stakeholders, attempted to establish a similar structure before. However, it was not adequately empowered. It was later turned into a company registered with the Rwanda Development Board (RDB) and replaced by the Rwanda National Dairy Platform,” he said.

The platform brings together farmers, processors, milk traders, service providers, and some consumer representatives, but Gashumba noted that it lacks full representation and sufficient authority.

"We need a board established by government order that brings together all players in the value chain and has the power to make and enforce decisions,” he said.

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He pointed to Kenya as an example, where a dairy board regulates milk prices and enforces sector standards.

Gashumba also highlighted ongoing challenges facing dairy farmers, particularly the mismatch between production costs and farmgate milk prices.

"The market exists, but prices do not match the cost of inputs, which continues to burden farmers,” he said.

He cited issues such as inadequate follow-up on veterinary services, limited access to quality breeds, and the absence of strong breeder associations to guide farmers.

Milk prices have remained at around Rwf400 per litre for nearly two years, even as input costs continue to rise. While increasing prices could affect consumers, Gashumba said improving access to affordable animal feed could help strike a balance.

"There is competition for crops like maize and soybeans, which are used for both human consumption and animal feed. We need to promote affordable fodder production,” he said, adding that irrigation systems used in crop farming should also be extended to livestock farming.

Calls for better pricing and productivity

Bienfait Karehe, president of the Dairy Farmers Union in Nyabihu District, echoed similar concerns, noting that a dairy board could help align milk prices with production costs.

"The first challenge is the mismatch between milk prices and investment costs. We believe the price should be at least Rwf600 per litre, instead of the Rwf400 we earn today,” he said.

Karehe also emphasised the need to improve cattle breeds to boost productivity.

"Currently, the average production is about 15 litres per cow per day in Nyabihu. With better breeding, this could increase significantly, and the dairy board could play a role in achieving that,” he said.

Stakeholders believe that, if well-structured and empowered, the proposed dairy board could address longstanding bottlenecks and create a more sustainable and profitable dairy industry.