Uganda Brings in Shs730 Billion from Exporting Dairy Products

Uganda collected $205 million (about Shs730 billion) from exporting milk products in 2020, according to the Dairy Development Authority (DDA).

DDA Executive Director Dr. Michael Kansiime says this is an increase from the $131.5m (Shs 466bn) picked up from the sector in 2018.

The director, who presented the figures during a virtual orientation meeting with the new Minister of Agriculture, Animal Industry and Fisheries Frank Tumwebaze, said the main export items were casein, whey protein powder, UHT milk and milk powder, among others.

Most of the products were sold to UAE, Syria, Japan, Oman, USA, Nepal and Bangladesh.

The rise in revenue was attributed to increased compliance in the value chain and Dr. Kansiime says the country’s overall value of marketed milk stands at approximately $850 million, or about Shs3 trillion.

On the other hand, Uganda imported buttermilk, infant formula, milk powder, assorted ice cream, cheese and dairy machinery/spare parts and are estimated at $6.8m.

Dr. Kansiime says the government is ramping up efforts to boost import substitution.

“The sector is one of the leading agricultural commodity export income earners, second to coffee and slowly edging its way to be the leading agricultural export earner in the country,” he said.

Milk production in the country has increased from 2.5 billion liters in 2018 to 2.8 billion liters in 2020, a rise that is attributed to the expansion of milk collection centers across the country.

Currently, there are 483 milk collection centers countrywide with a total installed capacity of 1,938,522 liters, the agriculture ministry said in a Wednesday statement.

DDA is also rehabilitating and equipping milk collection centers, especially in Buganda, northern and eastern regions that the Authority inherited from the defunct Dairy Corporation.

Milk transportation has also greatly improved.

The country now boasts 329 road milk tankers with capacity of 2.16 million liters are on the road daily.

In the same vein, milk processing is one of the fastest-growing sub-sectors with 135 licensed companies that are processing with capacity of 2.8 million litres per day.

Dr. Kansiime noted that the percentage of the marketed milk that is processed stands at about 34%.

DDA is the government agency mandated to develop and regulate the dairy industry and has a core objective to provide proper coordination and efficient implementation of all government policies.