Jump to content

Dairy industry in Uganda

Add links
From Wikipedia, the free encyclopedia

The dairy processing industry in Uganda is young, rapidly growing, and vibrant.[1]

Economic impact

[edit]
See also: Agriculture in Uganda
USAID Measuring Impact Conservation Enterprise Retrospective
USAID Measuring Impact Conservation Enterprise Retrospective

It was first estimated that livestock contributed 1.7 percent to total national GDP in 2009. That estimate was later revised to about 3.2 percent.[2] By 2014, that contribution had risen to 9 percent of national GDP.[1]

The cattle kept are predominantly indigenous breeds, accustomed to the weather and husbandry practices as practiced by the herder communities, conditions that many exotic breeds could not withstand. Exotic breeds have been introduced, but the majority of farms have mixed breeds, whose productivity, although higher than the traditional breeds, does not match that of the exotics.[1]

Current

[edit]
USAID Measuring Impact Conservation Enterprise Retrospective
USAID Measuring Impact Conservation Enterprise Retrospective

According to the government Dairy Development Authority (DDA), in October 2018, annual national milk output stood at 2.2 billion liters,[3] up from 1.8 billion liters annually, as of July 2012.[1] As of 2017, per capita milk consumption in Uganda stood at 62 liters, up from 25 liters in 1986.[3] 80 percent of the milk produced is marketed while 20 percent is consumed by the farming households.[3] 33 percent of the marketed milk is processed, while 67 percent is sold as raw milk.[3]

Healthy Friesian Cows in Uganda
Healthy Friesian Cows In Uganda

By June 2019, annual milk production in the country had risen to 2.4 billion liters, with export earnings from the sector, bringing in US$100 million per year. However, the earning potential could increase to US$500 million annually, if the country would control the high death rates in exotic cattle, attributable to tick-borne diseases, and resistance of the ticks to available acaricides.[4] As of December 2021, the country produced 2.81 billion liters of milk annually. 800 million liters were consumed within Uganda, with over 2 billion liters available for export annually. During the 2019/2020 financial year, Uganda earned US$131.5 million, from milk exports.[5][6][7] As of December 2022, according to the Food and Agriculture Organization (FAO), as reported by the Daily Monitor, Uganda's annual milk output amounted to 3.2 billion liters.[8]

In January 2024, Ugandan media reported than annual milk production in the country had increased to 3.85 billion litres annually. In the twelve months until then, milk exports had fetched US$264.5 million (approx. UGX:1 trillion), compared to US$102.6 million (approx. UGX:388 billion), in the twelve months before that.[9] By June 2024, the Ugandan head of state estimated the annual milk production at 5.3 billion liters annually, with annual national consumption estimated at 800 million liters.[10]

Annual milk production figures
Historical population
YearPop.±%
20121.8—    
20182.2+22.2%
20192.4+9.1%
20212.8+16.7%
20223.2+14.3%
20233.9+21.9%
20245.3+35.9%
source:[3][4][5][6][7][8][9][10]
  • Note: Figures slightly off due to rounding.

Overview

[edit]

Dairy farming is a major activity in the southwestern, central, and northeastern parts of the country, with the sector contributing significantly to the economic, nutritional, and employment opportunities of the rural communities in those areas. Uganda's Central and Western Regions account for about 50 percent of national milk production. This production is predictable and available all year round. During the dry season, the northern, northeastern, and eastern parts of the country experience a drastic reduction in milk output.[1]

Regulatory environment

[edit]

In 1998, the Ugandan Parliament promulgated the Dairy Industry Act, which created the Dairy Development Authority (DDA), the new industry regulator. DDA started its operations in 2000. The erstwhile national monopoly known as the National Dairy Corporation was privatized in 2006[1] as part of Brookside Dairy Limited from Kenya. The Ugandan government maintains a minority shareholding.[11]

Major milk processors

[edit]
Main article: List of milk processing companies in Uganda

From 1993 to 2006, fifteen medium to large scale processing plants were licensed. As of August 2017, total national installed capacity was about 1,400,000 liters per day.[12] The major milk processing companies in Uganda included the following:[1][13][14]

  1. Brookside Dairy Limited[15]
  2. Jesa Farm Dairy[16]
  3. Pearl Dairy Farms Limited[17]
  4. Amos Dairies Uganda Limited[18]
  5. Paramount Dairies Limited
  6. GBK Dairy Products Limited[19]
  7. Lakeside Dairy Limited
  8. Dairyman's Cheese[20]
  9. Vital Tomosi Dairy Limited[21]
  10. Royal Milk Enterprises[22]

The international market

[edit]

As of June 2023, according to The EastAfrican, Uganda's dairy products are marketed to a number of countries including Burundi, Democratic Republic of the Congo, Egypt, Kenya, Ethiopia, Japan, United Arab Emirates, Tanzania among others. In addition, Algeria was in the process of negotiating the purchase of 1.4 billion liters of milk annually from Uganda.[23][24] Other destination markets for Uganda's milk products include Bangladesh, Malawi, United States, Syria, South Sudan and Zambia.[25] As of December 2023, Uganda was actively negotiating with Indonesia, Serbia and Senegal to see if any one of them would consider buying Uganda's milk.[26] In September 2024, Ugandan online media reported that Nigeria had intentions of importing some of Uganda's estimated 5.7 billion liters produced annually.[27]

References

[edit]
  1. ^ a b c d e f g FBAM (July 2014). "Industry Focus: Dairy Industry in Uganda". Food Business Africa Magazine (FBAM). Retrieved 17 March 2016.
  2. ^ ICPALD (2012). "The Contribution of Livestock to the Ugandan Economy" (PDF). Nairobi: IGAD Centre for Pastoral Areas and Livestock Development (ICPALD). Retrieved 17 March 2016.
  3. ^ a b c d e Ismail Musa Ladu (1 October 2018). "Milk prices steady amid weather changes". Daily Monitor. Kampala. Retrieved 1 October 2018.
  4. ^ a b Halima Abdallah (19 June 2019). "Uganda Dairy Sector Performing Below Full Potential". The EastAfrican. Nairobi. Retrieved 22 June 2019.
  5. ^ a b Rachael Nabisubi (1 April 2022). "Annual milk production rises to 2.81 billion liters". Daily Monitor. Kampala, Uganda. Retrieved 12 April 2022.
  6. ^ a b Javira Ssebwami (8 April 2022). "JESA's capacity expansion nears completion with promise of increased quantity to meet market demand". PML Daily. Kampala, Uganda. Retrieved 11 April 2022.
  7. ^ a b Javira Ssebwami (18 May 2022). "Milk production jumps to 2.8billion liters". PML Daily. Kampala, Uganda. Retrieved 19 May 2022.
  8. ^ a b Tausi Nakato (7 June 2023). "Annual milk production increases to 3.2 billion litres". Daily Monitor. Kampala, Uganda. Retrieved 3 October 2023.
  9. ^ a b Uganda Radio Network (12 January 2024). "Uganda Milk Exports Double". The Independent (Uganda). Kampala, Uganda. Retrieved 21 February 2024.
  10. ^ a b Michael Odeng (18 June 2024). "Trade Barriers Stifling Uganda's Diary Sector, Says Akankiza". New Vision. Kampala, Uganda. Retrieved 21 July 2024.
  11. ^ The Star Kenya (1 May 2015). "Uganda: Brookside Buys Sameer's Uganda Dairy Operations" (via AllAfrica.com). The Star (Kenya). Nairobi, Kenya. Retrieved 17 March 2016.
  12. ^ Jonathan Adengo, and Mark Keith Muhumuza (2 August 2017). "Firms scale up investment in milk processing". Daily Monitor. Kampala. Retrieved 2 August 2017.
  13. ^ Special Reports (27 June 2013). "History of the dairy sub-sector". Daily Monitor. Kampala. Retrieved 17 March 2016.
  14. ^ UNDP (12 September 2012). "Processed Milk Products Market Analysis under the UNCDF Local Financing Initiative for Uganda: Domestic Market and Competitors". Kampala: United Nations Development Program (UNDP). Retrieved 17 March 2016.
  15. ^ Juma, Victor (11 November 2013). "Kenyatta business empire goes into expansion drive". Business Daily Africa. Nairobi. Retrieved 17 March 2016.
  16. ^ Administrator (15 January 2013). "Ugandan Entrepreneur James Mulwana Dead". The Red Pepper. Mukono. Retrieved 17 March 2016.
  17. ^ Ciuri, Simon. "Uganda's Pearl Dairy to build plant in Kenya". Business Daily Africa. Nairobi. Retrieved 17 March 2016.
  18. ^ Vision Reporter (13 May 2014). "Uganda targets 20 billion litres of milk annually". New Vision. Kampala. Retrieved 17 March 2016.
  19. ^ Baguma, Raymond (3 May 2005). "Uganda: GBK Denies Being in Financial Crisis". New Vision via AllAfrica.com. Kampala. Retrieved 17 March 2016.
  20. ^ Mwesigwa, Alon (3 July 2012). "New cheese firm opens". The Observer (Uganda). Kampala. Retrieved 17 March 2016.
  21. ^ Businge, Julius (25 May 2014). "Big dairy opportunity". The Independent (Uganda). Kampala. Archived from the original on 30 March 2016. Retrieved 23 March 2016.
  22. ^ New Vision (26 September 2024). "Museveni Emphasizes Local Production, Launches Royal Milk Enterprises Factory". New Vision. Kampala, Uganda. Retrieved 28 September 2024.
  23. ^ Daily Monitor (13 June 2023). "Kenya's restrictions leave Uganda stuck with 24m litres of milk" (The EastAfrican Quoting Daily Monitor). The EastAfrican. Nairobi, Kenya. Retrieved 17 August 2023.
  24. ^ ChimpReports (1 October 2023). "We Can Produce Any Amount Of Milk, Museveni Tells Algerian Investors". ChimpReports.com. Kampala, Uganda. Retrieved 3 October 2023.
  25. ^ Ruth Jean Komugisha (17 July 2023). "Dairy Industry in Uganda 2022-2023". Researchtecgolbal. Kampala, Uganda. Retrieved 17 August 2023.
  26. ^ Isaac Nuwagaba. "Milk Processors Urged To Invest In Casein, Powdered Milk". Kampala, Uganda. Retrieved 29 December 2023.
  27. ^ Lindah Nduwumwami (19 September 2024). "Nigeria to Import Ugandan Milk and Coffee". Nile Post Uganda. Kampala, Uganda. Retrieved 20 September 2024.
[edit]
Retrieved from "https://en.wikipedia.org/w/index.php?title=Dairy_industry_in_Uganda&oldid=1248237878"