Raw milk dealers want Shs43b compensation

Milk traders carry milk cans off trucks in Katwe on Tuesday. Milk traders have asked government to compensate them before putting them out of business due to hygiene concerns. PHOTO BY RACHEL MABALA

Kampala- Raw milk traders across the country are demanding compensation to the tune of Shs43 billion from government before the implementation of the ban on selling raw milk.

Addressing the media on Tuesday in Katwe, a Kampala suburb, the traders under their association Uganda National Dairy Traders Association (UNDTA), said the money, if paid, will be used to pay back debts and capital investments incurred when starting their businesses.

“When we computed our investments, it came to Shs43 billion in setting up milk coolers, buildings, generators and others things. In case government implements this ban, our property will be mortgaged,” Mr Khalid Matovu, the executive secretary of UNDTA, said.

The association has 3,000 members and buys milk from 50,000 farmers across the country.

Last year, Mr Bright Rwamirama, the State Minister for Agriculture and Animal Industry, said government had banned the sale of milk, citing hygiene issues.

This attracted strikes from traders but government has not yet heeded their pleas to reverse the ban.

When contacted by phone, Mr Rwamirama said the ban is still on and advised the traders to instead accept “transformation” like other traders have done.

“They are just dreaming. We compensate them for what? They asked for a six months’ extension two years ago which we granted. We are not chasing anyone from the city but we have stopped milk vending because it is dangerous,” Mr Rwamirama, said.

The minister said the traders can still use the accrued capital investments for various businesses or better still, take them to rural areas.

Mr Edward Butera, the public relations officer of UNDTA, said this is unfair because the milk processors are targeting urban centres where demand is high and so should be the raw milk traders.

“Let customers decide. In case, not all people want or can afford processed milk,’’ Mr Butera said.

The minister acknowledged that milk vending is a lucrative business, a main reason why majority traders do not want to leave the business.