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Diary Sector Profile

Characteristics of the sector

  • The national cattle herd is estimated to be 11.4 million cattle
  • It is estimated that Uganda currently produces 1.5 litres of milk per year, whereby 30% is consumed and 70% is marketed.
  • Out of the marketed milk, about 85% is annually sold through informal marketing channel as raw
  • 15% of marketed milk is sold through the formal marketing channel as processed
  • Most of processed milk is exported to Kenya, Tanzania, Rwanda, Burundi, Democratic Republic of Congo and Mauritius 

Current activities in the Diary sector Uganda

Milk production

  • A large proportion of the total milk produced comes from local cattle breeds, which account for over 95% of national herd.
  • The total national milk production has been having steady growth
  • Uganda has five milk sheds that is South Western, Mid East, Central, Eastern and Northern though South Western accounts for over 36% milk production
  • The increase in milk production has been mainly due to favourable weather conditions and diary development programs instituted by government
  • Uganda has a total of 98% milk collection centers which collect about 445,000 litres per day

Diary processing and marketing

There are at least ten large and small diary processors with  installed processing capacity of over 389,000 litres per day. The main products processed and marketed include; powdered milk, UHT milk, yoghurt, cheese, better, ice cream and ghee.

Competitive advantage of Uganda’s Diary Sector

  • Uganda has more potential in the diary sector mainly due to favourable weather conditions.
  • The regulatory and legal framework is in place
  • There are well organized diary processors associations including  Uganda Diary Processors’ Association
  • Available local and  export markets
  • The population of Uganda and the region is increasing
  • There is commitment from the government to support the sector.

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