All is not well within farmers in the Ankole corridor, sources within the area say. According to reports from the corridor, the price of milk has fallen from Shs 1,200 to Shs 1,300 per litre to Shs 400 to Shs 450 per litre over the last one week.
The cause of the fall in price is believed to be new prices set by Amos Diaries, a milk products production firm in the area. Farmers are reportedly pointing fingers at the district Chief Administrative Officer (CAO) and LC5 Chairman Rev. Samuel Katugunda of Kiruhura district, for supporting Amos Diaries in setting its new prices for purchasing milk. Both deny involvement in determining milk prices, although they say they support investors who provide market for milk products.
A source close to Amos Diaries however told this newspaper that “our firm has nothing to do with this price cut. It is market forces that shape everything we do. Prices are determined by the forces of supply and demand.”
Amos Diaries is located in Akageti Kiruhura District in Western Uganda. It is a subsidiary of Amos Diaries Limited, a diary processing company located in Ludhiana, Punjab State India. It manufactures Anhydrous milk fat, Ghee, Casein, Whey and many other products.
