Dairy Industry Act

Section Interpretation Section In this Act, unless the context otherwise requires— “ Authority ” means the Dairy Development Authority established under section 2 ; “ Board ” means the Board of Directors established under section 6 ; “ cooperatives ” means cooperatives dealing in milk or dairy products ; “ currency point ” has the value assigned to it in Schedule 1 to this Act; “ dairy corporation ” means the Dairy Corporation established by the Dairy Industry Act, 1967; “ dairy products ” means the same as milk products; “ farmer ” means a keeper of animals kept for the purposes of producing milk ; “ functions ” includes powers and duties; “ milk ” includes milk from cows, buffaloes, goats, camels, donkeys and sheep; “ milk product ” includes any product prepared or manufactured from milk by any process and includes cream, butter, clarified butter, ghee, buttermilk, cultured milk , toned milk , standardised milk , evaporated and semi evaporated buttermilk or cultured milk , milk sugar (lactose), cheese, whey preparations, milk powder, condensed whole or separated milk , casein, yoghurt, ice cream, margarine and any other commodity of which milk is a substantial ingredient; “ Minis...

Section Establishment of Dairy Development Authority Section There is established an authority to be known as the Dairy Development Authority . The Dairy Development Authority shall be a body corporate with perpetual succession and a common seal and shall be capable of suing or being sued in its corporate name. The application of the seal of the Authority on any document and the conduct of business at meetings of the Board of Directors shall be governed by Schedule 2 to the Act.

Section Powers and functions of Authority Section The Authority may, for and in connection with its objectives and functions under this Act— solicit, receive, coordinate and manage— donor-financed grants and credit lines for investment in milk collection and processing; proceeds from the sale of shares of the Dairy Corporation Limited at the time of divestiture; the funds accruing to the dairy farmers on account of the Danish International Development Agency grant at the time of rehabilitation of the Dairy Corporation; promote dairy training institutions to ensure local availability of well-trained human resources to support the dairy industry; advise the Government on dairy industry development policies and legislative measures in respect of provision of linkages between research, extension staff and extension support to dairy farmers; borrow money; impose a cess on producers of processed milk and dairy products ; purchase, hold, manage and dispose of any property, whether movable or immovable; enter into any contract and other transaction as may be expedient; and charge for services provided by it and do any act as may be done by a body corporate.

Section Objectives of Authority Section The Authority shall facilitate the dairy industry— The objectives of the Authority shall be to provide proper coordination and efficient implementation of all Government policies which are designed to achieve and maintain self-sufficiency in the production of milk in Uganda by promoting production and competition in the dairy industry and monitoring the market for milk and dairy products . to raise the incomes and standard of living of small-scale farmers through increased and continuous returns in dairy farming; to achieve and maintain self-sufficiency in milk and dairy products and to export any surplus; to promote increased dairy productivity with the use of available cost-effective technology and breeding policy and to foster its sustainability with due regard to cordial environmental equilibrium; to establish liberal but harmonised dairy markets and to promote competition in milk collection, milk processing and milk marketing; to regulate and control the market for milk and dairy products and to promote production and competition in the market; and to improve human resources capacity for the development of the dairy sector.

Section Duties of Authority Section For the attainment of its objectives under section 4 , the Authority shall— register and license milk processors and traders ; support dairy fanners’ marketing organisations; register dairy farmers’ groups; advise the Government on milk standards and coordinate the enforcement of those standards in liaison with the Uganda National Bureau of Standards; control and regulate dairy and dairy-related import and export activities in conformity with the External Trade Act, but without violating the Animal Diseases Act; implement Government policy designed to promote the development of the dairy sector; support various dairy development activities such as dairy extension, dairy breeding, dairy research, dairy training, dairy products development and general market promotion, including promotion of dairy export; appoint and supervise the management and staff of the Authority ; in conjunction with the Ministry responsible for animal industry, coordinate the Authority ’s regulatory and development activities; act as arbitrator in any conflict between dairy companies and processors; coordinate all dairy processing and marketing promotional activities, such a...

Section Composition of Board of Directors Section There is established a Board of Directors which shall consist of— the Chairperson of the Board ; the Executive Director of the Authority who shall be an ex officio member; three members from the dairy cooperatives , dairy associations and cattle keepers groups; one member from dairy farmers (medium and large scale); one member from dairy processing companies; one member from the Uganda Veterinary Association; one member from dairy traders , organised by the Uganda National Chamber of Commerce and Industry; one member from the Ministry responsible for agriculture, animal industry and fisheries; and one member from the Ministry responsible for planning and economic development. The Minister shall appoint the Chairperson who shall be a practising dairy farmer . The members of the Board referred to in subsection (1) shall be appointed by the Minister on the recommendation of the Ministry or body to be represented.

Section Tenure of office of members of Board Section A member of the Board shall hold office for a term of four years and shall be eligible for re-appointment, but his or her tenure of office shall not exceed two consecutive terms. An appointed member may at any time resign his or her office in writing signed by him or her and addressed to the Minister or may be removed from office by the Minister due to inability to perform the functions of his or her office whether arising from infirmity of body or mind or for any other cause. Subject to subsection (2) , where an appointed member dies, resigns, is removed from office or for any other reason ceases to hold office before the expiration of his or her term of office, the Minister may appoint another person qualified to be appointed to take his or her place; and the person so appointed shall hold office until the expiration of the term of office of the member in whose place he or she is appointed. For the avoidance of doubt, a person appointed under subsection (3) is eligible for re-appointment as a member of the Board.

Section Functions of Board Section The functions of the Board shall be— to formulate and review the policy and strategic plan of the Authority ; to provide guidance to the Executive Director and the Authority ’s staff; to approve the appointment of technical and professional staff on the advice of the Executive Director; to monitor and evaluate the performance of the Authority against budgets and plans; to establish and approve rules and procedures for the appointment, discipline, termination and other terms and conditions of service of staff; and any other duties as assigned to it by this Act.

Section Secretary Section In addition to any other functions that may be conferred upon the Secretary by the Board , the Secretary shall have the custody of the seal of the Authority and be responsible for— The Authority shall have a Secretary who shall be appointed by the Board on such terms and conditions as the Board may determine. taking the minutes of the meetings of the Board and the Authority ; and keeping the records of all activities of the Board and the Authority . In the performance of his or her functions under this Act, the Secretary shall, except where the Board otherwise directs, be responsible to the Executive Director.

Section Other staff Section There shall be other officers and employees of the Authority as the Board may determine. The Board may, on terms and conditions it deems fit and with the approval of the Minister , fix remunerations, grant pensions, gratuities or other benefits on retirement or termination of service of the officers and employees of the Authority and may require them to contribute to any pension, provident fund or super annuation scheme.

Section Protection against civil liability Section Nothing done by an officer or employee of the Authority shall, if done bona fide for the purposes of putting this Act into effect, subject him or her to any civil liability.

Section Executive Director Section There shall be an Executive Director of the Authority who shall be appointed by the Board on terms and conditions that the Board may determine. The Executive Director shall be the Chief Executive Officer of the Authority and shall be responsible for the day-to-day operations of the Authority . Subject to this Act and the general supervision and control of the Board , the Executive Director shall be responsible for the management of the funds, property and business of the Authority and for the administration, organisation and control of the staff of the Authority . The Executive Director shall be a member of the Board . The Executive Director shall, from time to time, in writing, keep the Board and the Minister informed of the progress of the business of the Authority .

Section Funds of Authority Section The funds of the Authority shall consist of— grants from the Government, the initial grant being a sum of one thousand five hundred million shillings charged upon the Consolidated Fund; the balance of the Dairy Development Committee funds after the dissolution of the Dairy Development Committee; the funds accruing from the Dairy Development Committee credit scheme; money appropriated by Parliament; a levy imposed on imported dairy products , dairy equipment, raw milk and milk products in areas with pasteurising facilities; counterpart funds towards donor-financed grants and credit lines for investment in milk collection and processing; any funds raised or borrowed by the Authority under this Act; any money accruing to the Authority in the course of the discharge of its functions under this or any other enactment; and all other money or other property which may in any manner become payable to or vested in the Authority in respect of any matter incidental to the performance of its functions . The funds of the Authority shall be applied for the purpose of sustainable development of the dairy industry throughout Uganda. The Board shall prepare annual...

Section Borrowing powers Section The Authority may, subject to section 37 of the Public Finance Management Act, borrow sums of money as may be required by it for meeting any of its obligations and for discharging any of its functions under this Act.

Section Advances and guarantees Section For the purpose of enabling the Authority to defray expenditure properly chargeable to capital account, including defraying initial expenses and provision of working capital, the Government may make advances to the Authority . The Government may guarantee by the undertaking of the Minister responsible for finance, in such a manner and on such conditions as he or she thinks fit, the payment of the principal, interest and other charges on any authorised borrowings of the Authority made otherwise than by way of advance under subsection (1) . Any sums required by the Government for fulfilling any guarantee of borrowings of the Authority under this Act are charged on the Consolidated Fund. As soon as may be practicable, the Minister responsible for finance shall lay before Parliament for approval by resolution a statement of the guarantee to be given.

Section Repayment of advances by Authority Section The Authority shall make to the Minister at such times and in such manner as he or she may direct— payment of such amounts as he or she may so direct in or towards the repayment of advances made to the Authority under section 15 ; payments of any sums issued in fulfilment of any guarantee under section 15 ; and payment of interest on any amount outstanding for the time being in respect of such advances, and payments of any other loans issued, at such rate as he or she may so direct; and different rates of interest may be directed as respects different advances or sums, and in respect of interest for different periods. The Minister shall lay before Parliament a statement of any payment due from the Authority under this section which is not duly paid to him or her as required by this section.

Section Preliminary expenses Section Any acts done and preliminary expenses sanctioned by the Minister in connection with the establishment of the Authority shall have the same effect and validity as if the acts had been done and the expenses incurred by the Authority . The Authority may continue any action or thing commenced by the Minister remaining unfinished at the date of the coming into force of this Act as if the action or thing had been initiated by the Authority .

Section Estimates Section The Executive Director shall, not later than three months before the end of each financial year, prepare and submit to the Board for its approval estimates of income and expenditure of the Authority for the next ensuing year and may, at any time before the end of the financial year, prepare and submit to the Board for approval any estimates supplementary to the estimates of a current year. No expenditure shall be made out of the funds of the Authority unless that expenditure is part of the expenditure approved by the Board under the estimates for that financial year in which that expenditure is to be made or in the estimates supplementary to that year’s estimates.

Section Accounts, audit and annual report Section The Authority shall, within three months after the end of each financial year submit— to the Minister an annual report in respect of that year containing— The Authority shall prepare accounts and records of its transactions and affairs and shall ensure that all money received is properly accounted for, all payments of its money is correctly made and properly authorised and that adequate control is maintained over its property and over the incurring of liabilities by the Authority . The annual accounts of the Authority shall be audited by the Auditor General or any qualified firm of auditors appointed by the Auditor General. financial statements; general information relating to the activities and operations of the Authority and the dairy industry during the preceding financial year; and other information as the Minister may, prior to the completion of the annual report or any supplement to the report, request in writing; and to the Auditor General or the firm of auditors appointed under subsection (2) the accounts of the Authority for the financial year ended, The Minister shall cause copies of each annual report, together with a cop...

Section Registration to engage in production and marketing of dairy products Section On application by any person, the Authority may, in accordance with regulations made under this Act, register that person to undertake the following— The Minister may, by statutory instrument, on the recommendation of the Board , prescribe the terms and conditions for registration, including— dealing in milk production, processing and marketing; and dealing in the production and marketing of dairy products . The Authority may refuse to register an applicant under subsection (1) if the application does not meet the requirements prescribed and revoke or suspend a registration where the registered person fails to comply with the terms and conditions of the registration; and the revocation or suspension shall be in addition to any other penalty to which the registered person may be liable under this Act. A person shall not be refused registration solely by reason that he or she has not previously been engaged in any of the activities prescribed under subsection (1) . Any person aggrieved by a refusal for registration or revocation or suspension of his or her registration may appeal to the Minister agai...

Section Offences and penalties Section Any person who— impedes, obstructs or assists another person to impede or obstruct an official of the Authority in the performance of his or her duties under this Act; or contravenes a provision of this Act or a condition of registration,

Section Replacement of lost or destroyed registration certificate Section If a registration certificate issued under this Act is lost or destroyed, the holder of the certificate may apply to the Authority with proof to the satisfaction of the Authority of the loss or destruction of the registration certificate, and the Authority shall issue a certified copy of the certificate on payment of the prescribed fee; and the certified copy of the registration shall be a registration for the purposes of this Act.

Section Contracts Section Contracts on behalf of the Authority may be made in the following manner— a contract which, if made between private persons would be by law required to be in writing, and if made according to any law for the time being in force in Uganda is required to be under seal, may be made on behalf of the Authority under the common seal of the Authority ; or a contract which, if made between private persons would be by law required to be in writing signed by the parties to be charged therewith, may be made on behalf of the Authority in writing, signed by any person acting under its authority, express or implied. A contract made under subsection (1) shall be effectual in law and shall bind the Authority and its successors and all other parties to the contract. A contract made under this section may be varied or discharged in the same manner in which it is authorised in this section to be made.

Section Byelaws of Authority Section The Board may, with the prior approval of the Minister , make byelaws consistent with this Act regulating the conduct of the business of the Authority and, without derogating from the generality of the foregoing, regulating the following matters— the books and accounts to be kept by the Authority ; and the conduct of legal proceedings.

Section Regulations for registration, cess and licences Section The Minister may, after consultation with the Authority , by statutory instrument, make regulations— Regulations made under subsection (1) may apply to— The Board may, with the prior approval of the Minister , by statutory instrument, make regulations— for the registration of producers for the purposes of section 20 ; for the payment and collection of cess imposed under section 3 ; for the granting of licences to producers or processors and the qualifications for the granting of the licences; prohibiting any producer or processor from engaging in the production, supplying, cooling, processing, manufacturing, distribution or sale of milk or dairy products in any case where his or her licence has been suspended or revoked; prescribing the manner of producing, cooling, supplying, processing, manufacturing, transporting and storing of milk or dairy products ; restricting by means of quotas or any other means the quantities of milk or dairy products which may be sold or disposed of by any person; requiring such estimates, returns and other information to be furnished to the Authority as may be demanded by the Authority and...

Section Ministries, departments to cooperate with Authority Section Every Ministry, department and other division of the Government, parastatal body or private company shall afford the Authority all reasonable opportunity for consultation and shall, subject to any law, provide the Authority with any information that the Authority may require.

Section Regulations Section The Minister may, after consultation with the Authority , make regulations for giving full effect to this Act.

Section Power to amend Schedules Section The Minister may, by statutory instrument, with the approval of Cabinet, amend Schedule 1 to this Act. The Minister may, after consultation with the Authority , by statutory instrument, amend Schedule 2 to this Act.