The Government of Rwanda has announced plans to change how the price of milk is determined, allowing dairy farmers, milk buyers and processing companies to negotiate and agree on the price together, while the government will remain a facilitator to ensure the discussions are fair and productive.
The announcement was made on July 31, 2026, by the State Minister for Agriculture and Animal Resources, Dr. Solange Uwituze, during the launch of a training manual designed to help livestock farmers improve dairy production and produce high-quality milk.
During the event, dairy farmers said the current price of Rwf400 per litre no longer covers the cost of production. They explained that expenses such as animal feed, veterinary medicines, water, electricity, fuel and workers' salaries have continued to rise, making dairy farming less profitable.
Among those raising the concern were Rwamugema Henry from Karama Sector and Butare Musoni Alex from Rwempasha Sector. They said the current farm-gate price does not reflect market realities and urged authorities to support a pricing system that allows farmers to earn a sustainable income.
Responding to the concerns, Dr. Uwituze said, "Just as it was done for maize and potatoes, the price of milk will also be agreed upon by both sides, based on figures that show the actual cost of producing it." She added that the government's responsibility will be to bring all stakeholders together and guide the negotiations.
She also said discussions are expected to be completed before the end of August 2026 so that the newly agreed milk price can be introduced without delay.
The Ministry of Trade and Industry also confirmed that the policy of allowing producers, buyers and processors to jointly set prices began in 2025. Karangwa Cassien, who is responsible for value chain analysis at the ministry, said negotiations are almost complete and the final decision could be announced next week.
The meeting also focused on the seasonal decline in milk production. Officials cited Nyagatare District as an example, where daily milk output can fall from about 120,000 litres during the rainy season to around 35,000 litres in the dry season.
To reduce such losses, dairy farmers were encouraged to prepare for dry periods by storing enough animal feed and improving livestock feeding practices so that milk production remains stable throughout the year.
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