Dairy industry in Uganda

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

Economic impact[]

See also: Agriculture in Uganda

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[]

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]

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]  

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[]

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.[5]

Major milk processors[]

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.[6] The major milk processing companies in Uganda included the following:[1][7][8]

  1. Brookside Dairy Limited[9]
  2. Jesa Farm Dairy[10]
  3. Pearl Dairy Farms Limited[11]
  4. Amos Dairies Uganda Limited[12]
  5. Paramount Dairies Limited
  6. GBK Dairy Products Limited[13]
  7. Lakeside Dairy Limited
  10. [14]
  11. Vital Tomosi Dairy Limited[15]

References[]

  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 Ismail Musa Ladu (1 October 2018). "Milk prices steady amid weather changes". Daily Monitor. Kampala. Retrieved 1 October 2018.
  4. ^ Halima Abdallah (19 June 2019). "Uganda Dairy Sector Performing Below Full Potential". The EastAfrican. Nairobi. Retrieved 22 June 2019.
  5. ^ Star Reporter (1 May 2015). "Uganda: Brookside Buys Sameer's Uganda Dairy Operations". Nairobi: The Star (Kenya) via AllAfrica.com. Retrieved 17 March 2016.
  6. ^ Jonathan Adengo, and Mark Keith Muhumuza (2 August 2017). "Firms scale up investment in milk processing". Daily Monitor. Kampala. Retrieved 2 August 2017.
  7. ^ Special Reports (27 June 2013). "History of the dairy sub-sector". Daily Monitor. Kampala. Retrieved 17 March 2016.
  8. ^ 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.
  9. ^ Juma, Victor (11 November 2013). "Kenyatta business empire goes into expansion drive". Business Daily Africa. Nairobi. Retrieved 17 March 2016.
  10. ^ Administrator (15 January 2013). "Ugandan Entrepreneur James Mulwana Dead". The Red Pepper. Mukono. Retrieved 17 March 2016.
  11. ^ Ciuri, Simon. "Uganda's Pearl Dairy to build plant in Kenya". Business Daily Africa. Nairobi. Retrieved 17 March 2016.
  12. ^ Vision Reporter (13 May 2014). "Uganda targets 20 billion litres of milk annually". New Vision. Kampala. Retrieved 17 March 2016.
  13. ^ Baguma, Raymond (3 May 2005). "Uganda: GBK Denies Being in Financial Crisis". New Vision via AllAfrica.com. Kampala. Retrieved 17 March 2016.
  14. ^ Mwesigwa, Alon (3 July 2012). "New cheese firm opens". The Observer (Uganda). Kampala. Retrieved 17 March 2016.
  15. ^ Businge, Julius (25 May 2014). "Big dairy opportunity". The Independent (Uganda). Kampala. Archived from the original on 30 March 2016. Retrieved 23 March 2016.

External links[]

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