Project Snapshot: DFCD and Quality Milk Dairies

This disclosure notice summarises SNV’s support to Quality Milk Dairies Limited (QMD), a Ugandan dairy company connecting approximately 100,000 registered active smallholder farmers to markets through a network of 51 milk collection centres across 20 districts. QMD aggregates and processes milk for domestic and regional markets, while its collection centres also provide a platform for quality control, extension services and farmer support. Through this project, QMD aims to build a more climate-resilient, inclusive and investment-ready dairy value chain, strengthening farmer productivity and resilience alongside the reliability and quality of its milk supply.

Uganda’s dairy sector is increasingly exposed to climate risks, including drought, erratic rainfall, heat stress and declining pasture quality, which threaten milk productivity, farmer incomes and food security. The project will strengthen QMD’s farmer support model through improved fodder production and conservation, water access, breeding, animal health and milk hygiene, alongside renewable-energy cold-chain solutions. It will also strengthen food safety and certification readiness, environmental and social management, biodiversity considerations, and gender equality and social inclusion (GESI). Particular attention will be given to improving farmers’ access to services and finance and strengthening opportunities for women and other underserved farmers.

The project is supported by a €375,000 grant from the DFCD Origination Facility, complemented by €125,000 in co-financing from QMD, and is expected to help prepare the company to mobilise approximately €10 million in follow-on financing. By strengthening climate resilience, milk quality, farmer services and QMD’s investment readiness, the project aims to support more stable dairy production, reduce milk losses and improve livelihoods and incomes for approximately 50,000 dairy farmers, while enabling QMD to sustainably grow its business and continue investing in its farmer network.