President Museveni Emphasizes Local Production as he Launches Royal Milk Enterprises Factory

President Yoweri Kaguta Museveni on Wednesday, September 25, 2024, officially launched the Royal Milk Enterprises Factory in Nalukolongo, Kampala.

During the launch, the President emphasised the importance of local production in driving economic growth and ensuring food security.

Founded in 1995 by Hajji Buruhan Kigoye, Royal Milk Enterprises started as a small company in Masindi District, Bunyoro Sub-region.

Over the years, the company has evolved, with Hajji Kigoye’s children now actively involved in its operations. 

Today, the factory collects 200,000 litres of milk per day and sources its milk from 25 collection centres across Uganda.

President Museveni thanked Bunyoro farmers for heeding to his message of transitioning to commercial farming.

“I want to salute the old man Mzee Kigoye for listening to our message. The problem of Africa is not poverty; it is a conceptual issue. We need to understand where prosperity comes from,” the President said.

“Shifting focus from liquid milk to processed products for export is crucial. This is something you must take seriously,” he added, highlighting the potential for longevity and better prices in global markets.

President Museveni acknowledged Uganda’s current milk production of 5 billion litres annually and emphasised the need to explore international demand.

“We need to meet external market requirements. Liquid milk is heavy and costly for exportation, but if you take time to process it into powdered milk, it becomes lighter and less expensive. This I can assure you,” he urged.

He praised Hajji Kigoye’s children for stepping into their father’s shoes.

“I am very happy that the children of Mzee Kigoye have returned to the food sector. This is a good nucleus for expanding business opportunities.”

The President also highlighted the importance of transitioning to long-life products like Ultra Heat Treatment (UHT) milk from the pasteurised milk currently produced by the factory to enhance market outreach and reduce transport costs.

“Each person should consume about 210 litres of milk per year, but our production is currently 5.3 billion litres against a consumption of 800 million. We have a surplus of more than 4 billion litres of milk.”

Furthermore, President Museveni expressed his commitment to supporting the milk industry through government funding, urging local entrepreneurs to innovate and explore new markets.

The Minister of State for Youth and Children Affairs, Hon. Balaam Barugahara underscored the importance of youth engagement in national development.

“Thank you for listening to the President’s message on wealth creation,” Hon. Barugahara said.

He expressed gratitude to Mzee Kigoye’s children for embracing their father’s vision and urged them, “Not only did you follow your father’s vision, but you improved upon it. Here we are at the launch of this great factory.”

The Minister further emphasised the need for the youths to seize opportunities in the money economy.

“I encourage our young people to actively participate in this dynamic economic landscape and leverage the government’s programs,” he stated.

H.E. Jan Sadek, the Ambassador of the European Union (EU) to Uganda highlighted the significance of this project in realising President Museveni’s vision for Uganda’s industrial transformation.

“Your Excellency, you have consistently championed the importance of adding value to Uganda’s raw materials. Today, we see that vision in action,” the Ambassador stated.

“Royal Milk is a homegrown Ugandan company making strides in value addition, transforming milk into high-quality products. This is the kind of enterprise that drives real growth,” he added.

H.E. Sadek also expressed pride in the European Union’s relationship with Royal Milk.

“Ten years ago, we participated in creating the Yield Fund, Uganda’s first impact investment fund dedicated to small and medium agro businesses. This £20 million fund has been a game changer, attracting other investors and providing vital capital to companies like Royal Milk, enabling them to expand, innovate, and support smallholders. This is something I am very proud of.”

“Royal Milk is not just about milk; it’s about youths. The company is led by a dynamic team of young entrepreneurs who are creating jobs, driving innovation, and showing the world that Ugandan youth can achieve anything with the right vision.”

Mr. Saleh Kigoye, the Executive Director of Royal Milk Enterprises, spoke passionately about the company’s commitment to bridging gaps in the dairy industry.

“I want to start by thanking our father, who inspired us to join this dairy industry. His influence has been fulfilling and instrumental in our journey,” Mr. Saleh said, reflecting on the foundational support behind their enterprise.

He acknowledged the impact of government initiatives, particularly the Parish Development Model (PDM), stating, “From the day I started to listen carefully to your message on wealth creation, it changed my life. I want to report that we are beneficiaries of PDM, which has significantly boosted production among small-scale farmers through these loans.”

Mr. Saleh also highlighted the need for collaboration between government and private sector.

“We realised that there is a disconnect between government and private practice, especially in business. This is what we are addressing at Royal Milk. We have urged dairy farmers to come together to maximise our potential.”

To further enhance production, Mr. Saleh made an appeal to the President, saying, “We would like Your Excellency to assist us with an Ultra Heat Treatment (UHT) plant, which would double our production capacity. We believe this investment would take us far and employ more youths in the company.”

Responding to his request, the President pledged to support the company with the Ultra Heat Treatment Plant through government funding.

The event was attended by officials from the Dairy Development Authority (DDA), Resident District Commissioners (RDCs), and various dairy farmers, among others.