By Lucas Musisi
The Ugandan dairy sector is surging in both production and demand, not just within its borders but also internationally. This was the focal point of the 16th African Dairy Conference and Exhibition held recently at Hotel Africana, Kampala.
Exceptional Growth
Samson Akankiza Mpiira, the acting executive director of the Dairy Development Authority (DDA), highlighted the sector’s remarkable growth. Over the past five years (2018-2022), Uganda has seen its milk production rise from 2.51 billion litres to 3.4 billion litres. “This accounts for an 11% annual growth rate, making it one of the fastest-growing sectors in the economy,” he stated.
Market Dynamics
Of the current 3.4 billion litres produced, 80.2% (2,566,400,000L) enters the market, while 19.8% (633,600,000L) is consumed at farms. Interestingly, 66% of the marketed milk remains unprocessed. It’s worth noting that 10% of this unprocessed milk is sold directly to households, while 56% reaches consumers via sales outlets. On the other side, 34% of the milk undergoes processing into various milk products like pasteurized milk, yogurt, UHT milk, and cream, among others.
Infrastructure and Logistics
Mpiira also spoke about advancements in milk collection and cold chain infrastructure. This ensures that the milk retains its quality from farm to market. “Currently, 198 registered milk tankers of varying capacities operate across the country. At the farm level, food-grade milk cans are predominantly used,” he said.
Global Market
Ugandan milk finds its way into numerous international markets, including the East African Community (EAC), COMESA, SADC, and even countries like the USA, Malaysia, and Japan. Leading exporters include renowned names like Vital Tomosis Dairy Limited, Jesa Farm Dairy Limited, and GBK Dairy Products Limited, among others. The most exported products comprise milk powder, yogurt, and cheese, to name a few.
Regulatory Vigilance
“As we celebrate Uganda’s 60 years of independence, we want to assure Ugandans that we are committed to providing them with safe and nutritious dairy products,” Mpiira pledged. DDA conducts regular inspections and on-the-spot testing to verify the quality of milk and milk products.
Investment Opportunities
According to Mpiira, Uganda’s dairy sector offers rich investment avenues, especially in:
- Milk Collection Centers
- Cold chain infrastructure
- Milk transportation
- Investment in cleaning equipment for milk road tankers
- Breed improvement and supply of stock
- Dairy-related support services such as farm input supplies and lab consumables
- Dairy processing and value addition
- Animal waste/by-product conversion into biofuels and other materials
The dairy sector stands as a shining example of successful collaboration among stakeholders, including the government’s role in fostering a conducive environment. With its significant growth rate, increasing exports, and the government’s focus on quality and safety, the sector provides a promising landscape for both current operators and potential investors.