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Press Release

USAID Awards $5 Million to Improve Rwanda’s Dairy Sector

Kigali, Rwanda│Friday, December 14, 2007

The American people, through the United States Agency for International Development (USAID), recently awarded US$5 million over five years to Land O’Lakes, a U.S.-based agricultural cooperative, in order to improve the competitiveness of Rwanda’s dairy sector.

Land O’Lakes will implement the USAID Dairy Competitiveness Project in Nyagatare and Gatsibo Districts in the Eastern Province for the first three years and Nyanza and Muhanga Districts in the Southern Province during the final two years. The project will increase the productivity and profitability of dairy farms, expand opportunities in the dairy industry, and improve the lives of Rwandans in rural areas, especially people living with HIV/AIDS and orphans and vulnerable children.

The dairy sector in Rwanda is underdeveloped and dairy products are often imported from neighboring countries. The USAID Dairy Competitiveness Project will better the industry’s links – from the farmer, to processing center, to packaging factory, to the market – thereby improving the industry’s competitiveness in local and export markets.

Recognizing the relationship between economic development and health, the U.S. President’s Emergency Plan for AIDS Relief (PEPFAR) will partially fund the project. The project will target people infected and affected by HIV/AIDS through dairy-related income-generating activities.

Land O’Lakes is an American company that specializes in increasing agricultural competitiveness and productivity. Growth in the agricultural sector will be critical for Rwanda’s economic development and directly contribute to the Government of Rwanda’s objectives outlined in the Economic Development and Poverty Reduction Strategy.

“Land O’Lakes has been successful in developing dairy industries in other Sub-Saharan African countries, including Uganda,” explained George E. Lewis, Acting Director for USAID/Rwanda. “The USAID Dairy Competitiveness Project will improve the quality and value of dairy products in Rwanda and reduce poverty by increasing economic opportunities for vulnerable populations. With growth in the sector, Rwanda has the potential to move from a net importer of dairy products to a net exporter.”

© 2008 http://rwanda.usaid.gov