FACTORS AFFECTING PRODUCTION AND MARKETING OF RAW MILK BY JESA DAIRY FARM OUT PRODUCERS IN BUSUNJU, WAKISO DISTRICT BY KABUGGO EMMANUEL BSc. AGRICULTURE REG NO: 10/U/408 ASPECIAL PROJECT REPORT SUBMITTED TO THE SCHOOL OF AGRICULTURAL SCIENCES IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE IN AGRICULTURE OF MAKERERE UNIVERSITY 2014 1 DECLARATION I declare that the work presented in this special project report is original and has not been submitted before for a degree or any other award at this or any other university ……………………………... …………………………… KABUGGO EMMANUEL DATE This report has been submitted for examination with my approval as the special project supervisor ………………………………… ……………………………… DR. J. NAMBI-KASOZI DATE Department of agricultural production i DEDICATION This report is dedicated to my beloved parents Mr & Mrs Fokureeba. My success is attributed to their moral and financial support. ii ACKNOWLEDGEMENTS I thank God Almighty for the gift of knowledge, courage and strength that He has given me in pursuing my studies especially in writing this special project report. I sincerely extend my appreciation to my motherly supervisor; Dr. J. Nambi-Kasozi for her guidance in writing this report, may God bless you and your family. I gratefully extend my sincere appreciation to the farm manager Jesa Dairy Farm Dr. Yiga Emmanuel and the co-ordinator of Jesa Dairy Farm out producers Mr. Kibirige for helping me in mobilizing the dairy farmers during the interviews. To everyone who contributed directly or indirectly to the success of my research project especially my brothers; Benson and Kenneth, sisters; Alice, Annet, Abias and Shallon, thank you very much for the prayers and support. Lastly but not least, I am grateful to the Government of Uganda for sponsoring my undergraduate studies at the most prestigious institution; Makerere University. iii TABLE OF CONTENTS DECLARATION ................................................................................................................................ (i) DEDICATION ................................................................................................................................... (ii) ACKNOWLEDGEMENTS ............................................................................................................. (iii) TABLE OF CONTENTS ................................................................................................................. (iv) LIST OF TABLES........................................................................................................................... (vii) LIST OF FIGURES ........................................................................................................................ (viii) LIST OF ABBREVIATIONS .......................................................................................................... (ix) ABSTRACT ....................................................................................................................................... (x) CHAPTER ONE ................................................................................................................................... 1 INTRODUCTION ................................................................................................................................ 1 1.1 Background ..................................................................................................................................... 1 1.2 Problem statement .......................................................................................................................... 2 1.3 Justification of the study ................................................................................................................ 3 1.4 Major objective ............................................................................................................................... 4 1.4.1 Specific objectives....................................................................................................................... 4 CHAPTER TWO .................................................................................................................................. 5 LITERATURE REVIEW..................................................................................................................... 5 2.1 Overview of Uganda’s livestock sector ........................................................................................ 5 2.2 Uganda’s dairy sub-sector.............................................................................................................. 6 2.3 Challenges of the dairy sub-sector ................................................................................................ 7 2.3.1 Breeds and breeding methods ..................................................................................................... 7 iv 2.3.2 Feed resource utilization ........................................................................................................... 8 2.3.3 Livestock health management .................................................................................................... 8 2.3.3.1 East coast fever ......................................................................................................................... 9 2.3.3.2 Mastitis.................................................................................................................................... 10 2.3.4 Milk transportation .................................................................................................................... 11 2.3.5 Milk actors and marketing channels ........................................................................................ 11 2.3.6 Dairy co-operatives ................................................................................................................... 12 2.3.7 Storage and handling of milk.................................................................................................... 13 2.3.8 Milk supply and payment methods .......................................................................................... 13 CHAPTER THREE ............................................................................................................................ 15 MATERIALS AND METHODS ...................................................................................................... 15 3.1 Description of the study area ....................................................................................................... 15 3.2 Research design ............................................................................................................................ 16 3.2.1 Sampling and sample size ......................................................................................................... 16 3.3 Data collection .............................................................................................................................. 17 CHAPTER FOUR .............................................................................................................................. 18 RESULTS AND DISCUSSION ........................................................................................................ 18 4.1 Socio-economic characteristics ................................................................................................... 18 4.2 Farm characteristics...................................................................................................................... 20 4.3 Animal performance ..................................................................................................................... 22 4.3.1 Relationship between milk production and marketing with education level, land size and herd size............................................................................................................................................... 24 4.4 Feeding management.................................................................................................................... 25 v 4.5 Livestock health management ..................................................................................................... 27 4.6 Milk handling and transportation ................................................................................................ 31 4.7 Milk marketing systems used by farmers and milk suppliers.................................................... 33 CHAPTER FIVE ................................................................................................................................ 35 SUMMARY, CONCLUSION AND RECOMMENDATIONS...................................................... 35 5.1 SUMMARY .................................................................................................................................. 35 5.2 CONCLUSIONS .......................................................................................................................... 36 5.3 RECOMMENDATIONS ............................................................................................................. 37 REFERENCES ................................................................................................................................... 39 APPENDICES .................................................................................................................................... 48 Appendix 1: Questionnaire ................................................................................................................ 48 Appendix 2: Map showing the location of the study area. ............................................................... 53 vi LIST OF TABLES 1: Socio-economic characteristics of the respondents ................................................................. 18 2: Farm characteristics ................................................................................................................. 20 3: Animal performance characteristics ........................................................................................ 23 4: Test for the relationship between milk production with socio-economics and farmcharacteristics ........................................................................................................................ 25 5: Feed management .................................................................................................................... 26 6: Animal health management ..................................................................................................... 29 7: Milk handling and transportation .............................................................................................. 32 vii LIST OF FIGURES 1: Age of the respondents ............................................................................................................ 19 2: Grazing land size of the farmers ............................................................................................. 22 3: Milk production among the dairy farmers ............................................................................... 24 4: Common parasites affecting livestock production................................................................... 30 5: Milk marketing channels ......................................................................................................... 34 viii LIST OF ABBREVIATIONS % Percentage AI Artificial Insemination BOU Bank of Uganda DDA Dairy Development Authority ECF East Coast Fever FAO Food and Agricultural Organisation of United Nations GDP Gross Domestic Product IDF International Dairy Federation ILCA International Livestock Centre for Africa ILRI International Livestock Research Institute Km Kilometre MAAIF Ministry of Agriculture Animal Industry and Fisheries MFPED Ministry of Finance Planning and Economic Development mm millimetres n Sample size o Degrees Centigrade P Probability value SPSS Stastical Package for Social Scientists UBOS Uganda Bureau of Statistics UHT Ultra Heated Temperature WHO World Health Organisation C ix ABSTRACT This study was conducted at Jesa Dairy Farm Limited in Busunju, Wakiso district to establish the factors that affect production and marketing of raw milk by Jesa Dairy Farm out producers. A sample of sixty farmers was randomly selected and data collected through interviews using open ended structured questionnaires. Data collected included socio-economic information, farm characteristics, feeds and feeding practices, quantity of milk produced, mode of sale of the milk and challenges encountered at the milk collection centre (Jesa Dairy Farm Limited). The data was analyzed using the Stastical Package for Social Scientists. The findings of the study indicated that 98.3 % of the respondents were males and only 1.7 % females with majority being 20-30 years. Largest percentage of respondents had attained formal education with majority (48.3%) having completed Ordinary Level. Natural mating was found to be dominant method of breeding (90%) compared to AI (8.3%). Herd size among dairy farmers was generally low with majority (50%) owning less than 20 cows while milk production estimated at 20-40 litres per day. Animals mainly depended on natural pasture (71.7%) with less concentrate supplementation. Ticks were the main parasites hindering dairy production while East coast fever as a popular livestock disease. Farmers generally travel long distances (0-10 km) to milk collection centres (66.7%) with mechanical breakdown of bicycles and motorcycles reported as the major challenge encountered on the way. The socio-economic characteristics of the respondents were not related with the quantity of milk produced. Milk marketed per day was related to the socio-economic characteristics of the respondents. The farm characteristics were significantly related with milk production x Basing on the findings of the study, farmers need to access dairy information and adopt modern dairy production methods like the use of AI technology and conserving forages in times of plenty to avoid wastage. The government and other dairy development agencies need to help farmers by establishing milk collection centres near their farms such that more milk is delivered to the market before it’s spoiled. Availability of affordable motor cycles on loan basis and dairy cooperative societies will help farmers to deliver milk in time and at share costs. Farmers with large pieces of land are encouraged to expand their farms and those with less land can adopt intensive systems of dairy production like zero grazing. Farmers need to follow routine disease management measures like vaccination, deworming and spray or dip animals regularly to control parasites but most importantly, farmers should always seek advice from qualified veterinary persons. xi CHAPTER ONE INTRODUCTION 1.1 Background Uganda’s agricultural sector contributes 22.5 % to the national GDP (MAAIF, 2011). The livestock sub-Sector contributes 13.1 % to the agricultural GDP and 4.2 % to the national GDP (MFPED, 2007) with the dairy sub-sector contributing more than 50%. This indicates great contribution of the dairy industry to poverty alleviation to the people of Uganda in relation to employment, food and household income generation (Ssewanyana and Okidi, 2007). The national cattle herd is estimated at 11.4 million with more than 90% being local and intermediate breeds compared to only 6.4% improved breeds (DDA, 2009). Although the largest percentage of the national herd consists of indigenous breeds, they are able to produce a reasonable amount of milk estimated at 1.5 billion litres annually (DDA, 2010). This indicates that Uganda has great potential to produce a lot of milk in case the animal breeds are improved. Milk consumption in Uganda is still very low estimated at only 58 litres per capita compared to the 200 litres recommended by the World Health Organization (Mbowa et al., 2012). This is one of the reasons why milk production is still low since little money goes back to the dairy farmers to enable them adopt and implement improved milk production technologies. Milk production in Uganda is categorized into milk sheds that include South-western, Midwestern, Central, Northern, Eastern and Karamonja region (DDA, 2010). The traditional milk producing sheds are the South-western and central regions that contribute 33.7 and 31.7 % respectively to the total milk produced in Uganda (DDA, 2010). This may be due to adoption of 1 improved milk production methods in addition to favourable climatic conditions in these regions compared to the other regions. The smallholder dairy farmers own over 90% of the national herd (MAAIF, 2004) but they encounter several constraints to milk production ranging from poor breeds, poor feeding, low milk prices, poor insemination methods and prolonged drought periods (Muwanga, 1994). The marketing of milk has been recognized as one of the main constraints that limit dairy production in developing countries including Uganda but little research has been carried out to find out what exactly takes place during milk marketing (ILCA, 1990). 1.2 Problem statement Although milk production is increasingly becoming an important activity with estimated growth rate of 3% per annum, several economic and social challenges still exist (Nakiganda et al., 2006). Dairy farmers encounter several challenges in production and marketing of milk ranging from low farm gate milk prices, poor management practices, poor disease control and high costs of drugs, insufficient government assistance, poor breeding methods and lack of; supplementary feeds, training from extension workers and transport (Mbabazi, 2005). The low ratio of extension workers compared to the number of dairy farmers impacts negatively on the quality and quantity of milk produced since farmers don’t get enough advice on feeding and other management practices. The poor transport network and impassable roads especially in the rainy season makes logistical supply to the farms and delivery of milk to the markets difficult. This increases incidences of milk wastage and cuts off the continuity of the supply chain (Mbabazi, 2005). 2 There is need to clearly understand how the above factors influence milk production and marketing so as to make appropriate recommendations to the government and other stakeholders so that they can improve dairy production which would lead to employment generation and increased household incomes. 1.3 Justification of the study Uganda’s population is one of the fastest growing in the world with an annual growth rate of 3.5% (UBOS, 2012). One way to address food insecurity resulting from rapid population increase is to increase milk production efficiency (MAAIF, 2000). The social and economic importance of smallholder dairy production in improving the welfare of the households and its effect on the economy are well known. These include among others the generation of regular income for farm households and provision of highly nutritious food to infants and breast feeding mothers and provide manure for soil nutrient recycling and bio-gas production. To realise such social and economic advantages, informed and detailed understanding of the current and dynamic conditions of production, marketing and consumption of milk and dairy products is necessary (ILRI, 2009). This is in agreement with the main objective of Uganda’s government which is aimed at increasing milk production and encouraging the transformation of subsistence smallholder dairy farmers to commercial dairy farmers (Naggayi, 1997). Understanding the factors underlying the production and marketing of raw milk among dairy farmers is vital for the government and other development agencies to improve the conditions of dairy farmers in Uganda. With improved conditions, Ugandans can fight malnutrition especially among children, generate higher household incomes, save money for educating their children and 3 improve the overall national economy through increased milk exports and employment creation at the different milk value chain. 1.4 Major objective The major objective of this study was to establish the factors affecting production and marketing of raw milk among Jesa Dairy Farm out producers in Busunju, Wakiso district. 1.4.1 Specific objectives 1. To determine the socio-economic characteristics of Jesa Dairy Farm out producers. 2. To investigate the factors affecting production and marketing of raw milk by Jesa Dairy Farm out producers. 4 CHAPTER TWO LITERATURE REVIEW 2.1 Overview of Uganda’s livestock sector Livestock directly supports about 600 million smallholder farmers in developing countries (Thornton, 2010) and in Uganda, 4.5 million households keep at least one type of livestock (MAAIF, 2011). Human population depends on livestock for meat, milk and other products like butter, ghee and cream (Hausner, 2011). Cattle contribute the largest proportion of the milk produced compared to other livestock animals like goats, camels and buffaloes (Twinamasiko, 2001). The cattle stock in Uganda comprises of both indigenous and exotic breeds. The local breeds mainly Ankole Long Horned (Sanga), Small East African short horned Zebu and Nganda constitute about 96% of the national cattle herd while the exotic breeds; Ayrshire, Holstein Friesians and Jersey contribute only 4% (MAAIF, 2002). Despite the fact that the local breeds which are genetically poor producers dominate the dairy industry, there has been a steady increase in milk production since 1970. Milk production increased from 3.53 and 4.36 million litres in 1970 and 1980 respectively to 7.86 million litres and 1.5 billion litres in 2000 and 2010 respectively (Twinamasiko, 2001; FAO, 2005; DDA, 2010). The dairy production systems in Uganda are mainly categorized on the basis of input-output level (Otto et al., 2005). The systems range from extensive, semi-intensive to intensive systems depending on the level of management, capital investment, number and breeds of cattle reared (Mbuza, 1993; Okwenye, 1994; MAAIF, 1996). Under extensive dairy production systems, 5 farmers have large sizes of land usually located in areas which experience low and unreliable rainfall. The system is also characterized by low level of inputs and outputs. Examples of such systems include pastoral, agro-pastoral and dairy ranching (Kasirye, 2003). Semi-intensive dairy production systems include crop-livestock mixed production, tethering and fenced dairy production systems. Animals spend some time confined in stalls or grazing paddocks (ILRI, 2008). Part of the land is used to grow fodder crops to feed the animals (Baltenweck et al., 2007). Intensive systems include zero grazing system, peri-urban dairy production where farmers use all or part of their land for fodder crop production (Twinamasiko, 2001). This system accounts for 7 % of the total number of cattle in the country and contribute about 60% of the total volume of milk produced in Uganda (FAO, 2004). 2.2 Uganda’s dairy sub-sector The dairy sub-sector has gone through economic transformation from independence when programs to stock dairy farms with improved breeds were initiated (Otto et al., 2004). Dairy farming is a source of food nutrients obtained from different milk products like yoghurt, ghee and butter, beef from bull calves and the culled animals. It also generates income to a number of household through the sale of dairy products and encourages sustainable use of soil through nutrient recycling from the cattle manure (Nakiganda et al., 2006). With the growth rate of 3% per annum, the dairy sector is set to be leading agricultural sub-sector in the eradication of poverty among farmers (Okidi, 2007). Despite the importance of dairy industry to the economy of Uganda, various challenges which include poor feeding, poor breeds of cattle, poor insemination methods and dependence on natural pasture exists. 6 The liberalisation of the economy has led to mushrooming of various milk cooling and processing factories countrywide. However, over 80% of milk produced in Uganda is marketed through informal channels unprocessed (DDA, 2010). The estimated number of cows milked per day is about 1.52 millions producing 1.85 million litres of milk daily (MAAIF, 2009), however, average milk production differs from breed to breed with the indigenous ones producing 2-3 litres compared to 15-20 litres per day by the exotic breeds like the pure Holstein-Friesian, Ayrshire and Jersey (World Bank, 2011). Poor reproduction and management practices have been implicated for low milk production (Musisi et al., 1999; Nakiganda, 2006). 2.3 Challenges of the dairy sub-sector The dairy industry in developing countries is constrained by economic, social and technical challenges (Fekadu, 1994). These include poor breeding methods characterized by small number of dairy farmers using AI to improve local breeds, poor control of parasites and diseases, communal ownership of land that doesn’t encourage establishment of improved pastures, dependence on natural pasture with less concentrate feed utilisation and relaxed policies on milk market chain that exposes dairy farmers to exploitation by milk market actors (Mpairwe et al., 1998; Nakiganda et al., 2006). 2.3.1 Breeds and breeding methods Good dairy farming requires proper selection of animal breeds and good replacement regimes (Bibangambah, 1977). The largest percentage of national herds in tropical Africa is dominated by local breeds partly because they are resistant to diseases and require fewer maintenance costs 7 compared to the Friesians and their crosses (Dobson, 2005). However, they are low milk producers. The use of artificial insemination among dairy farmers in Uganda is still low (MAAIF, 1996). This is attributed to limited access, high costs and wide spread misconception that A.I produces disproportionately more bulls. This interferes with the interventions by government and other support organizations to increase milk production through introduction of improved dairy breeds. Dairy farmers own poorly managed big herds rather than reducing their numbers to acquire improved herds (Mbabazi, 2005). This is due to cultural values that are attached to cattle numbers other than quality performance. 2.3.2 Feed resource utilization Feed costs in dairy enterprises represent a substantial portion of expenses than most of the other costs incurred (Muwanga, 1994). In Uganda, animals mainly depend on natural pasture with less supplementation (Preston and Leng, 1987; Clariget et al., 1998). The pastures are abundantly available in the rainy season compared to the dry season (Okello-Ouma, 1982) and the nutritional composition considerably decline with maturity and season where crude fibre is high in dry season compared to crude protein (Butterworth, 1984). The few forage legumes that contain high crude protein are not readily accessible by the animals (Sabiiti et al., 1993) since they out compete by bushes. 2.3.3 Livestock health management Diseases and parasites impact negatively on dairy enterprises through increased costs of production incurred in treatment of animals and restricted movement of dairy products from infested areas to the market (Pearson, 2006; FAO, 2009). Poor management of the farms which 8 encourages bush establishment hinders the control of disease vectors such as ticks which are causative agents of east coast fever. The drugs required for treatment of sick animals are very expensive to smallholder dairy farmers and this is coupled with unreliable, poor but yet expensive veterinary services (Mutugi et al., 1988). Therefore, animals take long periods without being vaccinated or dewormed and the large percentage of farmers treat animals on their own yet they have no qualifications and skills (Mbabazi, 2005). East coast fever and mastitis are the major livestock diseases hindering dairy production in Uganda (Norval et al., 1992) and (Byarugaba et al., 2008) respectively. 2.3.3.1 East coast fever East coast fever (ECF) is a form of theileriosis caused by protozoan Theileria Parva transmitted by parasite ticks Rhipicephalus appendiculantus (Norval et al., 1992). It is the major disease of 11 countries of Eastern, Central and Southern Africa with estimated one million cattle dying every year (Mukhebi et al., 1992). East coast fever results into high economic losses to both the government and individual farmers through the costs incurred in the treatment of the disease, mortality of animals and costs incurred by the government in providing research, training and extension services to contain the disease. The exotic breeds and their crosses have been identified as more prone to ECF compared to the indigenous breeds (Morzaria et al., 1988). Mortality rates in calves range from 0-50% in the endemically stable conditions and 80-100% in recent outbreak areas (Lawrence, 1992). The animals that recover from ECF infection suffer weight loss, low milk production and delayed maturity as well as remaining carriers of the disease (Brown, 1985). 9 East coast fever is conventionally checked by the control of vector ticks through application of acaricides to the surface of the animals by dipping, spraying or hand-washing to kill the ticks. In areas that are heavily infested with ticks, cattle are treated with acaricides twice per week (Young et al., 1990). The treatment of ECF requires identification of the disease through surveillance and diagnosis followed by administering appropriate drugs which is usually expensive to smallholder dairy farmers (Mutugi et al., 1988). 2.3.3.2 Mastitis Mastitis is known to destroy the milk factory (mammary glands) in lactating cows. (IDF, 1987). The pathogenic microorganisms enter through the teat canal, multiply in the udder and produce toxins that are harmful to the mammary glands. The damage caused to the mammary glands increases vascular permeability where the blood constituents, serum, proteins, enzymes and salts leak into the milk which changes its composition (Harmon, 1994). Mastitis can occur as clinical or sub-clinical. In clinical cases, there are visible symptoms like flakes or clots in the milk, swelling and discolouration of the udder, high temperatures of the udder and fever (Akers, 2002). In sub-clinical cases, there are no visible signs of infection and it’s the most prevalent form of mastitis since it’s hard to detect and treat (Akers, 2002). Mastitis can also be classified on the duration of infection as acute or chronic where by sudden onset of the disease defines acute while chronic mastitis is characterized by inflammatory processes that last for months (IDF, 1987). Mastitis is of great economic importance to dairy farmers because it has negative effect on the cows’ and herds’ performance (Kossaibati, 1997). The results into increased costs like veterinary costs, discarded milk and reduced milk yield and quality and increased risks of culling 10 (Esslemont, 1997). The constant exposure of cattle antibiotics during mastitis treatment has been identified as the major factor contributing to development of resistant bacteria (Mevius et al., 2005). 2.3.4 Milk transportation Smallholder dairy farmers use bicycles and motor cycles to transport milk to collection centres. Bicycles and motor cycles are affected by poor roads especially in the rainy season and are also reliable to mechanical breakdown along the routes (Dobson, 2005). The complexity of the marketing chain from the producers to the processors exposes the milk to multiple opportunities for adulteration, contamination with dust, dirty hands and unhygienic cans and bulk tanks (Dobson, 2005). Producers whose milk has been rejected for poor quality or adulteration can easily sell the rejected milk to other processors especially in the dry season when milk is scarce. This is attributed to lack of clear milk quality control measures and paying milk on basis of volume rather than composition (Dobson, 2005). 2.3.5 Milk actors and marketing channels According to DDA (2010), 80-90% of the milk produced in Uganda is marketed through informal markets compared to 10-20% marketed through formal markets. The formal milk marketing channels are characterized by organized distribution structures and hygienic milk handling practices while informal milk marketing channels involve adulteration and sell of raw milk in dirty plastic containers (Elepu, 2006). Milk producers either sell milk directly to consumers, vendors, licensed milk traders or processors who determine the price of milk due to relaxed dairy polices which exposes dairy 11 farmers to exploitation by huge uncontrolled number of milk actors in the market (Huff, 2003). Therefore, dairy improvement strategies should target on reducing milk handling stages to avoid contamination, reduce wastage and avoid exploitation of dairy farmers by milk market actors (MFPED, 2007; Artukoglu et al., 2008; Tsougiannis et al., 2008). The choice of milk marketing channel by farmers and other suppliers heavily depends on the price of milk offered and its reliability (Artukoglu et al., 2008); Tsougiannis et al., 2008). Choice is usually on channels that offer higher price for milk supplied than those that offer low prices (Qi Wen’e and Tang Wenshan, 2009). 2.3.6 Dairy co-operatives Dairy cooperative societies enable smallholder dairy farmers to participate favourably in the formal milk market by reducing the transaction costs faced by individual farmers through sharing risks, lowering unit collection costs, making inputs available and enhance their bargaining power (FAO, 1993). There are few milk producer and marketing cooperative societies in Uganda since most of them were disrupted in the late 1970s’ and early 1980s’ (Tsougiannis et al., 2008). Compared to Kenya, most dairy farmers are organized into co-operative societies where they have easy access production and market information, credit services and dairy inputs with better bargaining power (Otieno et al., 2009). Since the liberalisation of economy in Uganda, dairy co-operatives have on the increase. 12 2.3.7 Storage and handling of milk The absence of cooling equipment due to limited capital by smallholder dairy farmers and the inappropriate transport infrastructure makes milk production and marketing difficult (Naggayi, 1997). Milk producers are always on tension to sell off the milk before it’s spoiled even when the prices are low (Dobson, 2005). The surplus milk produced in the wet season coincides with periods of weak seasonal demand of milk by processors which push farm gate milk prices downwards (Dobson, 2005). Farmers would help to stabilize the milk prices by owning the processing facilities near their farms but the high costs of borrowing capital to establish these facilities and lack of management experience limits them (Dobson, 2005). Therefore, there is need for the government and other development agencies to intervene so as to build the capacity of dairy farmers to own and manage milk processing facilities. 2.3.8 Milk supply and payment methods Milk payment in Uganda is based on volume rather than nutritional composition which weakens quality control measures and exposes milk to adulteration (Dobson, 2005). The milk processors and transporters normally reject milk on grounds that it is either diluted with water, supplied in dirty containers especially plastic jerry cans, is from sick cows (mastitis) or it is delivered late to the collection centre (Mbabazi, 2005). This is even worse in the wet season when milk supply is very high. The milk buyers have a habit of cheating farmers by not paying them regularly and when they accumulate a lot of debts they might change the location of the milk collecting centres which discourages farmers hence low milk is put on formal market (Mbabazi, 2005). 13 All these challenges along the milk supply chain have made it difficult for farmers to increase productivity and efficiency on the farm level hence resulting into a struggling milk industry in Uganda. Therefore, there is a need for better co-ordination between producers, processors and market chain actors, government and other development agencies to avoid confusion and stagnation of the dairy sub-sector. 14 CHAPTER THREE MATERIALS AND METHODS 3.1 Description of the study area The study was conducted at Jesa Dairy Farm Limited located about 42 km North West of Kampala city along Kampala-Hoima road in Namayumba sub-county Wakiso District. Wakiso district lies at 0o 24 North and 32o 39 East and receives an average annual rainfall of 1100 mm. The mean maximum and minimum temperature of 25 ºC and 17 ºC respectively are favourable to dairy farming. Agriculture is the main economic activity in the district with a number of commercial dairy farms along Kampala-Hoima road. Jesa Dairy Farmer Limited is one of such farms on which pure Holstein Friesian cattle are kept under semi-intensive grazing system. The farm has a dairy processing plant which uses milk produced on the farm and milk from out dairy producers as raw material to produce several quality products such as yoghurt, full cream milk, UHT, ghee and butter. The farm is surrounded by a wet land where water for farm use is pumped from. The vegetation is characterized by different pasture species, scattered woody trees and shrubs. The main natural grassland pasture species on the farm include Congo signal grass (Bracharia spp), thatching grass (Hyperrhenia rufa), star grass, small Setaria and Guinea grass (Panicum maximum). The farm mainly grows Rhodes grass (Chloris gayana) and Guinea grass (Panicum maximum) for hay while elephant grass (Pennisetum purpureum) is grown in the valley for cut and carry. The farm has well drained brown soils uphill and poorly drained sand-clayey soils in the lowland 15 which is normally flooded during heavy rains but the soils fertilised with manure from the cow barns supports the growing of maize for silage mainly fed to animals under intensive production. Due to establishment of the processing factory on the farm, the milk requirement was high. In 2000, a nucleus of about 60 out dairy farmers was established to supply additional milk to the processing factory. Therefore, this study was carried out to find out the factors affecting production and marketing of raw milk by these farmers who supply additional milk. 3.2 Research design The research was a survey that involved collection of quantitative and qualitative data using open ended structured questionnaires. Primary and secondary data was collected which included socio-economic characteristics, farm characteristics, animal performance, feeding and livestock health management, milk handling, transportation and marketing channels used. Secondary data involved review of literature on Uganda’s livestock sector, status of Uganda’s dairy sub-sector, breeds and breeding methods, feed resource utilization, livestock health management, farm labour, milk transportation, market actors and marketing channels, storage and handling of milk, milk supply and payment methods. 3.2.1 Sampling and sample size A sample size of sixty respondents was randomly selected for interviews at Jesa Farm milk collection centre. The respondents comprised of Jesa Dairy Farm out producers and milk suppliers. The out producers were interviewed about the factors of milk production and the 16 challenges they face on their farms while the milk suppliers provided information related to marketing and challenges faced along the marketing chain. 3.3 Data collection The information was collected by translating the questions into Luganda during the interviews and the responses were recorded in questionnaires. 3.4 Data analysis The data collect using open ended structured questionnaires was coded using numerical values and entered into Stastical Package for Social Scientists. Descriptive statistics including frequencies, percentages, means, charts and chi-square tests to check for relationship of variables were used to describe the data obtained. 17 CHAPTER FOUR RESULTS AND DISCUSSION 4.1 Socio-economic characteristics Sex, marital status, age and education level were the main socio-economic characteristics studied (Table 1). Majority of the respondents were males (98.3%) compared to 1.7% females. Most of the farmers were youths (20-30 years) (35%), married (75%) and highly educated with 48.3% of the respondents having completed O’level compared to only 8.3% who had no formal education. Table 1: Socio-economic characteristics of the respondents Variable Sex Male Female Marital status Married Single Divorced Age 20-30 31-40 41-50 51-60 61-70 71-80 Education level Primary O’level A ‘level Diploma University No formal education Frequency (n=60) Percentage (100%) 59 1 98.3 1.7 45 12 3 75 20 5 21 18 12 6 2 1 35 30 20 10 3.3 1.7 17 29 3 2 4 5 28.3 48.3 5 3.4 6.7 8.3 18 The largest percentage of respondents in this study were males mainly because the research was carried out at milk collection centre whereby majority of milk producers and suppliers that are able to travel long distances on bicycles and motorcycles are males. Dairy projects to large extent are directed towards men who own large pieces of land and women who dominate the zero grazing are neglected hence benefiting the already well off farmers (Kabirizi, 2006). On the side of education level, highly literacy level is vital to any development program. The adoption of introduced dairy technology has been related to high education levels among farmers (Omiti et al., 1999). This is attributed to the ability to interpret dairy literature, make informed decisions and easy application of technical advice from research centres. Majority of respondents were in youth category. This was attributed dairy activities like mixing feeds, herding, milking and milk delivery that require a lot of energy that can be provided by young farmers. Figure 1: Age of the respondents 19 4.2 Farm characteristics The farm characteristics studied included size of land holdings, breeding methods and grazing systems (Table 2). The largest percentage of farmers (33.3%) kept the animals on 0-10 acres of land with few (8.3%) owning more than 70 acres of grazing land. Natural mating was the main (90%) breeding method used on the farms which are predominantly (50%) under continuous grazing system. Table 2: Farm characteristics Parameter Frequency (n=60) Percentage (100%) Grazing land size (acres) 0-10 20 33.3 11-20 16 26.7 21-30 6 10 31-40 3 5 41-50 6 10 51-60 3 5 61-70 1 1.7 Above 70 5 8.3 Breeding methods Natural mating 54 90 Artificial insemination 5 8.3 Natural mating and Artificial insemination 1 1.7 Grazing systems Continuous grazing 30 50 Paddock grazing 19 31.7 Zero grazing 4 6.7 Continuous & Zero grazing 1 1.7 Continuous & Paddock grazing 3 5 Paddock & Zero grazing 3 5 20 The small acreage owned by the farmers was mainly attributed to the increase in human population and expansion of arable cropping (Abate et al., 1991). Shrinking acreage implies that little milk will produced due to lack of enough forage pastures for the animals since most farmers depended on natural pastures. Farmers should be encouraged to adopt intensive system of grazing where planted fodder crops, crop residues and supplementary feeds are used. Breeding methods used to a large extent determine the quantity of milk produced on the farm. Natural mating and artificial insemination are the main breeding methods used in Uganda. Mbowa et al. (2011) found out that only 7% of Uganda’s dairy farmers utilised artificial insemination in a survey carried out in 2008. Their findings are in agreement with the results of this study which revealed that only 8.3% of the farmers used AI. The limited use of AI is attributed to its limited access, high costs and wide spread misconception that AI produces disproportionately more bulls (MAAIF, 1996). Rodriquez-Martinez (2012) reported that AI is the most important breeding method to genetic improvement of dairy breeds in Sub-Saharan Africa. Therefore, farmers should be encouraged to adopt AI technology to improve their breeds for more milk production. On the hand, continuous grazing was the dominant system of grazing due to low input requirements in terms of supplementary feeding and establishment of improved pastures. 21 Figure 2: Grazing land size of the farmers 4.3 Animal performance Animal performance was studied in terms of herd size and milk production (Table 3). Half of the respondents (50%) had less than 20 cows compared to only 5% who had more than 120 cows. Milk production was generally low with 40% of the respondents producing only 20-40 litres of milk per day. 22 Table 3: Animal performance characteristics Parameter Frequency (n=60) Percentage (100%) Below 20 30 50 20-40 14 23.3 41-60 8 13.3 61-80 3 5 81-100 1 1.7 101-120 1 1.7 Above 120 3 5 Milk production (litres) Below 20 15 25 20-40 24 40 41-60 4 6.7 61-80 4 6.7 81-100 5 8.3 101-120 3 5 121-140 1 1.7 Above 140 4 6.7 Herd size (cows) Muia et al. (2011) reported that the average number of animals per household in Uganda is 5.3 heads of cattle. The small herd size was attributed population pressure and expansion of commercial crop production. This is in agreement with the findings of this study which revealed that farmers with bigger acreage of land had more animals hence more milk production. 23 On the other side, low milk production was attributed to several factors including poor breeding methods since majority of the farmers used natural mating compared to AI and high dependence on natural pasture with less supplementation of protein containing feeds. Figure 3: Milk production among the dairy farmers 4.3.1 Relationship between milk production and marketing with education level, land size and herd size The quantity of milk produced per day was not related to education level of the farmers (P>0.05). The findings of this research do not agree with Arinaitwe et al. (2007) who stated that farmers with high education level produce larger amounts of milk than the uneducated ones. The grazing land size and the number of cattle owned were correlated with quantity of milk produced (P<0.01). Farmers with large pieces of land produced more milk since they kept more 24 animals. This is in agreement with Tsougian et al. (2008) who stated that the grazing land and herd size owned by farmers have a significant effect on the volume of milk produced and traded. Dairy farmers with large sizes of grazing land have large quantity of herbage available for animals. The quantity of milk marketed per day was significantly (P<0.05) related to education level of the respondents. Majority of the respondents had attained formal education. Education helps milk suppliers to follow up on the quality control measures at the milk collection centres and bargain for better pay of their milk. Table 4: Test for the relationship between milk production with socio-economic and farm characteristics. Produced Parameter P-value Education level 0.091 Grazing land size 0.0 Herd size 0.0 Marketed Education level 0.014 4.4 Feeding management Natural pasture was the most popular feed resource (71.7%) utilised by farmers while silage was the least used (Table 5). Among the concentrate feeds, maize bran was the most commonly used 25 (46.7%) while cotton seed cake (3.3%) was the least utilised. Inadequate availability and high cost of concentrates were the major challenges (41.7% and 31.6% respectively) to utilisation of concentrates. Table 5: Feed management Parameter Major feed resources Natural pasture Percentage (100%) 71.7 Elephant grass 6.7 Maize bran & brewers waste 1.7 Maize bran & elephant grass 3.3 Crop residues & elephant grass 1.7 Maize bran, crop residues and elephant grass 3.2 Silage 1.7 Silage & maize bran 1.7 Natural pasture & maize bran 8.3 Concentrate utilisation Maize bran Cotton seed cake Dairy meal Others Challenges faced in utilizing concentrates Expensive Not readily available poor quality Price fluctuation Competition from poultry industry Other challenges 46.7 3.3 5 45 31.6 41.7 1.7 5 5 15 The findings of this study were in agreement with Clariget et al. (1998) who found that animals in Uganda mainly depend on natural pasture with less concentrate supplementation. Cattle on 26 natural pasture produce low milk since tropical forages usually contain high fibre and low protein. High dependence on natural pasture might be attributed to high capital investment to establish improved pastures and low level of knowledge on how to efficiently utilise crop residues. Inadequate concentrate feed supply was reported by Potter (1987) as the major constraint in dairy production in Sub-Saharan Africa. This is in agreement with the findings of this study which revealed that majority of the farmers (Table 5) had limited access to concentrate feeds. Studies elsewhere in Central Uganda revealed that 89% of the dairy farmers supplement animals with salt lick only without protein rich feeds. Low protein supplementation leads to low milk production due to limited volatile fatty acids required in milk synthesis. 4.5 Livestock health management Ticks were the most (68.61%) disturbing parasites on the farms followed by worms and liver flukes at 18.34 and 8.72% respectively (Table 6). East coast fever was reported to be the most (56.7%) devastating livestock disease among the farmers. Most of the farmers (76.7%) treated mastitis on their own using intramammary tubes commonly known as multiject tubes while only 3.3% called veterinary doctors to treat the animals. The most important parasite control measures were deworming and spraying with majority of the farmers (53.3%) deworm the animals every three months to control internal parasites and spray the animals control external parasites once every week. 27 28 Table 6: Animal health management Parameter Percentage (100%) Common livestock diseases East coast fever 56.7 Mastitis 26.7 Foot and mouth disease 8.3 Lumpy skin disease 1.7 Calf scouring 1.7 Pink eye 1.6 Other diseases 3.3 Mastitis control measures Use of intramammary tubes 76.7 Call veterinary doctors to treat animals 3.3 Other control measures 20 Common livestock parasites Ticks 68.61 Worms 18.34 Liver flukes 8.72 Tsetse flies 4.33 Deworming frequency Three times per year 46.7 Four times per year 53.3 Spraying & dipping frequency Once per week 72.9 Twice per week 27.1 East coast fever presents the biggest problem to dairy farmers in Uganda (Staal et al., 2003). This is in agreement with the findings of the research which revealed East coast as the most dangerous disease to dairy farming communities. High prevalence of East coast fever is attributed to resistance of ticks against acaricides and their wrong usage. Spraying or dipping 29 animals once a week (MAAIF, 1996) and twice per week in heavily infested areas (Young et al., 1990) control most of the external parasites. This is in agreement with the findings of this study which revealed that most of the farmers spray or dip animals once per week while others spray or dip twice per week. Mastitis was reported by the farmers as one of the most dangerous disease on the farms. This is in agreement with Byarugaba et al. (2008) who reported that mastitis is highly prevalent among dairy farmers in Uganda and highly responsible for low milk production. High prevalence of mastitis was attributed to failure of early detection which delays the treatment measures and poor hygiene in milk sheds. Ticks 18.34% worms Liver flukes 68.61% Ticks 8.72% Tsetse flies 4.33% Figure 4: Common parasites affecting livestock production 30 4.6 Milk handling and transportation The information on distance to the milk market centre was analysed as an indicator of access to market. The results revealed that 66.7% of the dairy households travelled 0-10 km mostly on motor cycles and bicycles to deliver milk to the collecting centre (Table 7). The milk suppliers and farmers encounter several challenges on their way to the milk collection centres. Mechanical breakdown of bicycles and vehicles was reported to be the biggest challenge (45%). As it is for any milk processing factory that values human safety, milk tests have to be carried out before milk is accepted to be processed into various products. Majority of respondents (58.3%) of respondents revealed that milk was rejected when found to contain unacceptable volume of water in addition to other reasons like late delivery (23.3%) and delivery in dirty cans (6.8%). Although farmers and milk suppliers encounter several challenges on their way to milk collection centres, they still find more problems at centres. A substantial percentage of respondents (33.3%) revealed that the collection centre (Jesa) is always congested and so they have to be in line for queue long time before milk is tested. Majority of respondents (38.3%) did not report any problems after reaching the collection centre. 31 Table 7: Milk handling and transportation Parameter Percentage (100%) Distance travelled (km) 0-10 66.7 11-20 23.3 21-30 6.7 31-40 1.6 41-50 1.7 Challenges along the route Mechanical breakdown of bicycles & vehicles 415 Poor roads 36.7 Insecurity on roads 6.7 Poor roads & insecurity 1.7 Find no challenges 3.3 Accidents and milk spillage 5 Other challenges 1.6 Reasons for rejecting milk High volume of water 58.3 Late milk delivery 23.3 Low milk density 3.3 Low milk density & late delivery 3.3 Poor quality 5 Dirty cans 6.8 Other challenges at the milk collecting centre Congestion 33.3 Lazy workers 8.3 Inadequate time given to collect the milk 6.7 Rude & misbehaved workers 13.4 No challenges 38.3 32 Distance from the collection centre adversely affects milk marketing. Long distances coupled with poor roads negatively influence quantity of milk delivered to the market since the profit margin is reduced significantly (Foodnet, 2002). Long distance to the collection centre is characterized by high mechanical breakdown of bicycles, motor cycles and milk trucks (Mbabazi, 2005) which is in agreement with the findings of this study. Addition of water into the milk is the highest form of adulteration and it is attributed to payment systems which are based on quantity of milk supplied rather than quality and composition (Dobson, 2005). This is in agreement with the findings of this research that reported detection of added water into the milk as the major reason for milk rejection. A substantial percentage of respondents attributed congestion on the collection centre to the low number of laboratory technicians to perform different tests. 4.7 Milk marketing systems used by farmers and milk suppliers Farmers mainly delivered the milk to the collecting centres as individuals (95%) while only 3% delivered the milk through associations (Figure 5). 33 Farmers who sell milk as an individual 95% 3% 2% farmers who sell milk in An association farmers who sell milk in both channels(As individual and in Association Figure 5: Milk marketing channels Dairy farmers belonging to dairy associations are able to share marketing risks, lower unit collection costs, make inputs available and enhance their bargaining power (FAO, 1993). According to DDA (2010), majority of dairy cooperative societies are found in Western Uganda (69%) while central region has 30%. This This is attributed to more organised milk marketing systems in South-western western region compared to other parts of the country. 34 CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATIONS 5.1 SUMMARY This study was conducted to establish the factors that affect production and marketing of raw milk among Jesa Dairy Farm out producers in Busunju, Wakiso district. Sixty randomly selected respondents were interviewed and the data obtained was analyzed using SPSS. Majority of the respondents were males, married, aged 20-30 years and highly educated. Continuous grazing was the dominant grazing system and zero grazing was least utilised. Farmers with bigger herd size and large pieces of land produced more milk but the majority of the farmers had less than 20 cows kept on less than 10 acres of land. Natural pasture emerged to be the most utilised feed resource and maize bran as the main concentrate feed. Inadequate availability was reported as the major hindrance to concentrate utilisation. East coast fever and mastitis were identified as the major diseases hindering milk production in the area. Ticks and worms emerged to be the highly ranked parasite with spraying and deworming as the main control measures. Majority of respondents travelled 0-10 km to the milk collection centres and mechanical breakdown of the bicycles and the motor cycles was identified as the main challenge faced to the collection centre. Adulteration of milk with water and late delivery were reported to be the major reasons for rejecting the milk. 35 5.2 CONCLUSIONS The research findings indicated that farmers are not utilising the advantage of high education levels to produce more milk. The animals mostly depend on natural pasture with less concentrate supplementation hence low milk production. Natural mating dominated the breeding methods compared to artificial insemination which is a negative indicator on the genetic improvement of dairy breeds to increase milk production. Farmers own few animals due to land shortage yet milk production was found to be positively correlated to land size and herd size hence there is a need to adopt intensive production systems. Livestock diseases especially east coast fever and mastitis pose a serious challenge to milk production. Poor road network and long distances characterised by mechanical break of motor cycles, bicycles and milk trucks negatively affect milk production and marketing. Milk adulteration especially water addition is a threat to the milk industry. Few farmers make deliver their milk to the collection centres yet dairy co-operatives would help them to have better bargaining power on the price of milk, inputs, share costs and risks involved in transporting milk to the collection centres. Therefore, any development intervention should address the various challenges found out in this study. 36 5.3 RECOMMENDATIONS Farmers should utilise their education levels to obtain more information on dairy production and adopt the modern and intensive productions systems. Artificial insemination should be encouraged by availing AI facilities nearby the farmers and at affordable costs to improve dairy breeds. Pasture legumes and multipurpose trees should be planted by farmers to reduce dependence on natural pasture. Farmers with large pieces of land are encouraged to expand their farms to keep more animals for increased milk production. Areas with land shortage can adopt intensive production systems like zero grazing which uses cut and carry systems and utilisation of crop residues to increase milk production. For disease control measures especially east coast fever and mastitis, farmers are encouraged to follow route management measures like vaccination, spraying, deworming and good hygiene in cow barns. Farmers should also endeavour to contact veterinary doctors for help and should avoid treating animals on their own unless recommended by qualified veterinary person. For the issues of poor roads, the government should play her role to enable farmers access the markets at reduced transport costs resulting from mechanical breakdown of vehicles and motorcycles. Farmers should be provided with affordable motorcycle loans to enable them deliver milk to the market in time. 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District………………………..Sub county………………………….Parish……………………….Village……………………........... 2. SOCIO-DEMOGRAPHIC CHARACTERISTICS Age (years)……………………………………………………………………………………….. Gender Male Female Marital status Single Married Divorced Widowed Education level (years)…………………………………………………………………………….. PART II FARM CHARACTERISTICS AND MANAGEMENT 3. What is the estimated size of your land in acres? ……………………………………………………………………………………………………... 4. Which system of grazing do you use on your farm? 48 Continuous Paddock Intensive (zero grazing) system Other (specify)…………………………………………………………………………………… 5. Which breeding/mating method do you use on your farm? Artificial insemination Natural mating 6. What are the common diseases and parasites affecting your livestock? Disease Frequency of occurrence Damage caused Control measures 7. Common livestock parasites affecting dairy production PARASITES (Liverflukes, Ticks, Worms) control measures (Drenching,Dipping,Spraying) Parasites Damage caused Control measures Frequency of control 8. What do you do to animals with mastitis? ………………………………………………………………………………………………............ 9. Who treats your animals? ……………………………………………………………………………………………………… 10. How fast do veterinary doctors (personal) respond when call them to come and help you on the farm? ……………………………………………………………………………………………………… PART III FEEDS AND FEEDING 49 11. What are the major feed sources do you have on your farm? ……………………………………………………………………………………………………… 12. Do you use concentrate feeds on your farm? YES NO Type of concentrate Cost per kg of concentrate Challenges in using the concentrate 13. Do you grow pasture on your farm? YES NO If yes, mention some of the pastures grown on your farm ……………………………………………………………………………………………………… 14. Do you do preserve pasture on your farm? YES NO 15. In which form do you preserve the pasture? Silage Hay Others (specify)…………………………………………………………. 16. What other challenges do you find in feeding your animals? ……………………………………………………………………………………………………… PART IV MILK PRODUCTION 17. How much milk do you produce from your farm per day in litres? ……………………………………………………………………………………………………… 18. How much do you sell out of what you producer from the farm ……………………………………………………………………………………………………… 50 19. When do you get payments for the supplied milk? ............................................................................................................................................................ 20. Which challenges do you face with such method of payment? ..................................................................................................................................................... 21. How far is your farm from where you sell the milk (km)? ........................................................................................................................................................... PART V MODE OF SALE OF THE MILK 22. Are you member of farmers association? YES NO 23. How much milk do you sell through/as Channel Quantity of milk Association Individual Both channels PART VI MAITAINING MILK QUALITY 24. Which containers do you use in/to Milking Transporting milk for sale Challenges in using the containers 51 25. What challenges do you face along the routes as take milk for sale? PART VII RECEPTION ON THE FARM 26. Does the milk collection centre sometimes reject your milk? YES NO 27. Why do you think your milk is sometimes rejected? …………………………………………………………………………………………………....... 28. What other challenges do you face after reaching the milk collection centre? …………………………………………………………………………………………….............. 52 Appendix 2: Map showing the location of the study area. 53