Uganda's Dairy Industry in 2023

Uganda stands out as a major player in East Africa's dairy sector, characterized by substantial investments, robust milk production, and active trade in dairy products.

Dairy Cattle Population

As of 2023, Uganda is home to approximately 2.5 million dairy cattle, providing a steady supply of milk essential for the country's dairy production.

Milk Production

Uganda's annual milk production is estimated at 2.4 billion liters, showcasing the country's capacity to meet domestic demand and maintain a strong dairy processing industry.

Milk Processing

Uganda processes approximately 800 million liters of milk annually into various products such as pasteurized milk, yogurt, and cheese.

Cheese Production

Uganda produces around 15,000 metric tons of cheese each year, including varieties like Gouda, cheddar, and mozzarella, catering to both local and export markets.

Milk Powder and Whey Production

The country produces an estimated 10,000 metric tons of milk powder and 5,000 metric tons of whey annually, which are important for storage and export.

Key Dairy Enterprises

• Brookside Dairy Limited: A prominent player in East Africa's dairy industry with extensive operations in Uganda.
• Jesa Farm Dairy: Known for its high-quality dairy products, including milk, cheese, and yogurt.
• Dairy Corporation Limited: One of Uganda's oldest and largest dairy processors, offering a wide range of dairy products.

Major Dairy Farms

• Farm Uganda: A leading dairy farm known for high milk yield and quality breeding practices.
• Kampala Dairy Farm: Supplies raw milk to various processing plants and local markets.
• Hoima Farms: Focuses on sustainable dairy farming practices, significantly contributing to regional milk production.

Export of Dairy Products

Uganda exports about 100 million liters of milk and dairy products annually to neighboring countries, including Kenya, Rwanda, and South Sudan.

Import of Dairy Products

Uganda imports approximately 30 million liters of dairy products each year, mainly specialized products not widely produced locally.

Significant Dairy Market Events

In 2023, a major milestone was achieved with a $35 million investment to enhance Uganda's dairy sector and strengthen food security. This investment aims to modernize dairy farms, improve milk processing facilities, and expand export capabilities.

Technological Advancements

Digital receipts are improving transparency in the dairy supply chain. In Uganda, 13 dairy cooperatives implemented digital receipts to benefit smallholder farmers by reducing information asymmetries and improving milk quality.

Climate-Resilient Dairy Production

The Ugandan government participates in the DaIMA programme, focusing on developing climate-resilient dairy production.

International Business Expansions

Dodla Dairy's first international expansion was in Uganda, marking its entry into Africa in 2013 through an acquisition.

Uganda’s National Agricultural Research Organisation (NARO) and Trade for Jobs Uganda have signed a memorandum of understanding to expand the use of dairy technologies and support employment. The agreement links agricultural research with commercial applications, with plans to involve businesses in bringing innovations to farmers and dairy enterprises. The agreement follows an expansion in Uganda’s milk output and export earnings.