Dairy products play an important role in providing a well-balanced diet for all Ugandans. Milk is mainly produced in the Western part of Uganda. The dairy farmers are united in the Uganda Crane Creameries Cooperative Union (UCCCU). Many of these farmers in this region have no access to electricity. They live in rural areas and only about 10% is connected to the grid.
Access to light and electricity is one significant determinant of social and economic development. For the UCCCU project, SN has entered into a partnership with Barefoot Power Uganda (BFPU) and Uganda Crane Creameries Cooperative Union (UCCCU) to provide dairy farmers and their households with high quality, affordable and sustainable solar lighting systems.
SolarNow (SN), UCCCU and Barefoot Power Uganda partnered to create a project that will enable 12,094 dairy farmer households and helpers in West Uganda benefit from improved family living conditions, farmer's production and financial gain. It is assumed that these positive developments result in an increase of the amount of milk dairy farmers produce. In this way, the project contributes to the overall goal of enhancing food security in Uganda. Therefore these organizations have designed a partnership to provide dairy farmers with access to high quality and affordable solar products with reliable after sales service. SN and BFPU have proven that their quality solar solutions are clean, safe and affordable. A contribution from the Dutch embassy makes these products more affordable for dairy farmers, thereby accelerating the access to solar energy.
When the Dutch Embassy contributes EUR 1mln to the total budget of EUR 2.4mln, SN and BFPU can provide 12,000 solar products. Based on the assumption that one member buys one product, 12,000 farmers and their families and helpers are reached. This means that a total of around 60,000 people benefit from the opportunities that solar products have to offer. 90% of the contribution will be used to realize a discount on the solar products for the UCCCU members. This will be a significant discount ranging from 30% for all solar products that costs more than 500,000 UGX, to 40% for all solar products that costs less than 500,000 UGX. In this way, the UCCCU members are the main direct beneficiaries of the Dutch contribution, and the farmers with the lowest income benefit the most. It is expected that a 30-40% discount will result in a significant higher number of UCCCU members that can afford a solar product, while at the same time the market will not be distorted, e.g. no products are being sold below wholesale prices. The weighted average discount for UCCCU members is EUR 74, which means they will contribute EUR 142 themselves to buy the product. Consequently this results in a weighted average price of EUR 216 for which they will receive on average a solar system with 4 lights. To limit the amount of contribution a single dairy farmer can benefit from, the sales for UCCCU members is capped on 1000W in total per member. This allows a farmer to benefit from both cooling solutions for his farm and typical household solutions such as lighting but prevent one farmer from benefiting non-proportionately.