Rwanda Dairy Competitiveness Program II Quarterly Report

The program was designed to reduce poverty through expanded marketing of quality milk that generates income and employment, and improves nutrition of rural households. RDCP II will upgrade the entire dairy value chain by stimulating investment and helping improve management practices at key points along the value chain, from the smallholder producer to milk cooling centers, milk transporters, and milk processors. The program will also build capacity of sector-wide institutions, including relevant departments in MINAGRI and the Rwanda National Dairy Board (RNDB), empowering them to lead the dairy industry and advocate for policy initiatives and reforms. The program will focus on addressing the challenges faced by the Rwandan dairy industry, including the dominance of the informal sector supplying low-quality raw milk. RDCP II will stimulate investment and improve management practices at key points along the value chain, from the smallholder producer to milk cooling centers, milk transporters, and milk processors. RDCP II will also build capacity of sector-wide institutions, including relevant departments in MINAGRI and the Rwanda National Dairy Board (RNDB), empowering them to lead the dairy industry and advocate for policy initiatives and reforms. Progress in improving the competitive position of Rwanda's dairy industry will be measured by tracking export market expansion, change in farm-level dairy income, number of new products that meet industry quality standards/awarded Rwanda Seal of Quality (RSOQ), value of non-RDCP II resources leveraged for the sector's development, and number of policy reforms advocated for and/or enacted. The program will also focus on gender mainstreaming, building the capacity of women at all levels within the dairy sector. A gender mainstreaming plan will be drawn up, and a Gender Advisor will be employed to handle broader gender-related activities and gender awareness. Interviews were held for the Gender Advisor position in February and March, and it is expected that a candidate will be identified and start soon after. RDCP II will draw on the experience and achievements of its predecessor project, the USAID Rwanda Dairy Competitiveness Project (RDCP I). RDCP I demonstrated that producers could produce good-quality milk as long as price incentives are offered, and assisted milk cooling centers to improve water supply and develop can wash facilities. The program also collaborated with the East Africa Dairy Development project (EADD) on several issues, including the Rabo Bank memorandum of understanding (MOU) in three milk sheds across the country. RDCP I also assisted the development of small enterprises with PLWHA entrepreneurs, including molasses sellers and distributors, ghee and milk sellers, and Napier grass suppliers. The program helped create and support organizations to oversee the activities of the dairy industry, including the Rwanda National Dairy Board (RNDB) with three key member groups – producers, processors, and milk sellers. RDCP I also funded the establishment of a private raw milk-testing laboratory, the Dairy Quality Assurance Laboratory (DQAL), which has improved milk quality and contributed towards Rwanda's dairy sector achieving COMESA standards.