Batuma Dairy Products

  • March 13, 2023

 

Batuma Dairy Products

Investment Rationale

Visual Illustration of Cottage Industry Products — Under development at the Dept. of Product Manufacturing

Market Analysis

Agriculture constitutes around 24% of Uganda’s $37 billion GDP, with an estimated 5% contribution from livestock, making it roughly a $1.48 billion industry of which, the Dairy sector is responsible for 50%; a $925 million industry that is growing at approximately 15.84% (CAGR) per year. The majority of the population are subsistence farmers and therefore do not buy milk. Our primary market in Kabale Municipality alone there are 50,000 approximately people that consume over 2 million Ltrs/Year which is equivalent to 5000 Ltrs of milk a day.

Ken Research announced latest market research report on “Uganda Dairy Products Market Outlook to 2020 — High Demand for Flavor Milk, yoghurt and Ice Cream in Uganda is Projected to Spur the Dairy Market” provides a comprehensive analysis of the dairy product market in Uganda. The report includes the market share contributed by the sales of different dairy products including processed milk, yoghurt, cheese, ice cream, butter, flavored milk and milk powder in Uganda. The study also enlists the key market indicators which include consumption per capita, total consumption and production, average per unit and price, and import and export data by value and by quantity. Trends and developments and regulatory framework are also added in the study for clear understanding about the factors responsible for present scenario of the market. The future analysis of overall Uganda dairy product market has also been discussed along with recommendations from analyst view.

The flavored milk market and yoghurt segments have shown significant growth during the period due to the increasing product variety offered by the manufacturers and strong retail distribution of flavored milk and yoghurt in the country. The presence of a large number of small and large players in the market which majorly include Sameer Agriculture and Livestock, Charms Uganda, and Jesa Farm coupled with the diverse product portfolio of these companies offering a large number of flavors is the major reason which has resulted in high growth of the segment in Uganda.

“In order to penetrate into the Uganda dairy product market, the market players are recommended to use proper hygiene and sterilized production practices in order to earn the trust of the domestic customers in Uganda. The packaging mix should be provided to customers in affordable cost to meet the demands of people of economically sensitive country.” according to Research Analyst.

The retail sale volume has doubled during the period resulting which the increased per capita consumption of flavored milk and yoghurt in the last 3 years.

Batuma Fresh Yoghurt1_8dEOKrqhrtrN6qmWZYb-Sw

In recent years, yogurt has become one of the fastest-growing categories of Dairy Products. In addition, customer engagement in consumer brands has gradually deepened thanks to the popularity of social media. As a functional drink “fresh yogurt” has a stronger emotional connection with the more health-conscious customers compared to the traditional yoghurt products on the market.

Batuma Fresh Yoghurt presents a rapid growth opportunity in the wave of dairy product consumption and quickly spreads as the reputation of this unique yoghurt brand grows in the Kabale/Kigezi area.

 
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Batuma Fresh Yoghurt adopts an online and offline promotion strategy of a double wheel driven to encourage users to participate in all aspects of yoghurt production and designs a series of social activities to build a closed loop of online and offline user interaction and bring a new yoghurt consumption experience to customers, this heavily relies on social networking tools.

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Batuma Dairy Products _ Pitch Deck v2
Batuma Holdings _ Company Profile (1)
 

Batuma Holdings Limited is located in Kabale District in South Western Uganda. Founded in the mid-1960s by the late Canon Dr. Seduraka John Batuma (Chairman | Kigezi Africa Wholesale, Founding Member | Kigezi Dairy Cooperative, Industrialist | Banapo Wine). A veterinary doctor by profession, he opted to import exotic breeding animals (10 from Kenya (Nakuru), 31 from Germany and 27 from the Netherlands in the years 1965, 1968 and 1996 respectively), as opposed to keeping the local breeds; which was the common practice in Kigezi at the time & successfully establish a pioneering commercial dairy farm.

The company has grown and evolved over the last 50 years into a family-owned conglomerate and the parent company under which Beatrice Dairy Farm (BDF), Keirungi Mixed Farms (KMF), Batuma Breeding Centre (BBC), Highland Hotel (HH), Batuma Memorial Airfield (BMA), and Beatrice Garden Estate (BGE) in Kabale/Rubanda district belong.

The business idea was born out of a market environment which — at the time — was characterized by high local demand for dairy products against the low supply thus creating a huge gap in the market. Today, this gap widens with the opening of new markets thanks to the African Continental Free Trade Area (AfCFTA), established in 2021.


Canon Dr. Seduraka John Batuma | Founder - Batuma Holdings Limited



Batuma Holdings Vision:

“Our founder’s vision was to build a pioneering commercial dairy farm through the use of innovation, technology, and best farming practices. Today, we are actualizing that vision with the principles of disciplined management, community building, and evidence-based decision making.”

Mission Statement: Inspiring the next generation of dairy farmers in East Africa to produce for the future and lead the Pan-African dairy industry.

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