Uganda earned $205m (Shs750b) from exporting dairy products in 2020, Dairy Development Authority (DDA) has revealed.
The figure marks about 80 per cent increase from $131.5m (Shs480b) earned in 2018. The exported dairy products include casein, whey protein powder, UHT milk and milk powder.
This was revealed by Dr Michael Kansiime, the DDA Executive Director, during a virtual orientation meeting with Mr Frank Tumwebaze, the new Minister of Agriculture, Animal Industry and Fisheries, on Tuesday.
Dr Kansiime said Uganda’s dairy sector is currently growing at an average rate of 8% per annum.
“The sector is one of the leading agricultural commodity export income earner second to coffee and slowly edging its way to be the leading agricultural export earner in the country,” he noted.
He further noted that DDA is working to promote import substitution, increased export earnings, employment creation and improved household incomes. Dairy imports include buttermilk, infant formula, milk powder, assorted ice cream, cheese and dairy machinery/spare parts and are estimated at $6.8m (Shs25b).
Uganda’s milk exports mainly go to regional markets, UAE, Syria, Japan, Oman, USA, Nepal and Bangladesh.
Dr. Kansiime noted that the percentage of the marketed milk that is processed stands at approx. 34%.
“Products range from powdered milk, ghee, butter, UHT milk and casein/whey. Others include pasteurized milk, yoghurt, cream, ice cream, fermented milk and cheese, to mention but a few,” he said.
The domestic market now consumes at least 50,000 litres of milk per day up from 30,000 litres in 2019.
Domestic demand stands at only 800 million litres per annum compared to 2.6 billion litres produced by the country annually.
The lack of demand in the local market has been detrimental to, especially dairy farmers, who have witnessed a drop in farm gate prices due to restrictions put on Uganda’s milk products in countries where dairy products producers export.