George Mbanju, a dedicated member of the Kinyogoga Dairy Cooperative, resides in Kinyogoga, a rural area of Uganda with his wife and 12 children. Together they maintain a herd of 80 cows on his 200-acre piece of land, which is above the rural Ugandan average of 100 acres per farmer. George faced numerous challenges in his farming enterprise before the intervention by Emata, an innovative enterprise supported by the WE4F initiative. Farmers like George that live in the region must endure harsh climatic conditions leading to drought, which severely limits milk production and financial stability.
Dairy farmers in Uganda lack cooling facilities
After the Government of Uganda abolished the transportation of unrefrigerated milk, it became difficult to transport milk to Kampala as many farmers used open trucks for collection and transportation. The East Africa Dairy Development Project stepped in to mobilize farmers, encouraging them to form cooperatives and providing them with loans to purchase chilling machines. This enabled the Kinyogoga cooperative to install chilling facilities and secure contracts with milk processing companies. While this one challenge was tackled, farmers also struggled with low milk volume due to drought, which severely limited milk production and financial stability for farmers. The lack of income meant they could not afford to purchase cow feeds, resulting in cows having to graze free range. On top of this development, unreliable weather conditions began to negatively impact overall milk production. To make ends meet, farmers resorted to leasing out their land and investing in equipment for long-distance milk transportation, such as motorbikes. Additionally, the cooperative provided soft loans to farmers, which however, came at a cost.
How Emata brought Change into George’s Farming
The partnership between Kinyogoga Dairy Cooperative and Emata began in 2020, bringing transformative changes to George’s farming enterprise. Emata provided extensive support and training to cooperative leadership, guiding them through the loan application process. They also introduced a management information system (MIS) that digitized customer information and loan management. In turn, the cooperative staff worked closely with farmers, assisting them in the loan application process and ensuring smooth access to funds. They started off with a loan period of 1-6 months, which has now been extended to 9-12 months.
George’s farming business changed significantly with the implementation of Emata’s MIS database. The accurate tracking of milk deliveries under individual farmers’ names improved creditworthiness assessment and assignment of loan limits. Additionally, Emata’s loans are easily accessible, approved within a week, and disbursed to farmers with only a 4% monthly interest rate and no additional charges. The accessibility and efficiency of Emata’s loans, and minimal charges, have enabled George to expand his farming enterprise further.George successfully borrowed and repaid three loans from Emata, amounting to UGX 1,000,000 (~$260 USD), UGX 2,500,000 (~$655 USD), and UGX 1,700,000 (~$450 USD), respectively. He utilized these funds to purchase animal feed during the dry season and acquire additional cows for crossbreeding, resulting in the improved quality of his herd. Now George delivers 30-40 liters of milk per day to the cooperative, a significant increase from the initial 20 liters. He plans to continue investing in more and better breeds of cows to enhance milk production. George also aims to construct a store for animal feed preservation, ensuring a consistent and sustainable supply for his livestock.
One of many success stories thanks to Emata
The partnership between Emata and Kinyogoga Cooperative exemplifies the positive changes that can be achieved when innovative solutions are combined with targeted support. The impact of Emata’s partnership with the Kinyogoga Dairy Cooperative extends beyond George. As of May 2023, Emata has already issued 50 loans to farmers from the cooperative, with 38 loans being fully paid and 12 still active. These loans empowered smallholder farmers to overcome financial constraints, improve their farming practices, and enhance their livelihoods.
George Mbanju (left) and Sharif of Emata Uganda (right) after a consultation at Kinyogoga Cooperative’s offices.
George Mbanju’s transformation exemplifies the positive outcomes achieved through supporting innovative enterprises throughout WE4F. It serves as an inspiring story of how strategic interventions and access to financial resources can create a ripple effect of improved incomes, increased production, and enhanced living conditions benefiting an entire community and contributing to the socioeconomic development of Uganda.
