Surge in Uganda's Dairy Exports to Kenya: Market Value Triples to Ksh 29 Billion
Source: The DairyNews
Kenya's reliance on dairy imports from Uganda has soared, nearly tripling in the year leading up to June 2023, with the trade volume reaching Sh29 billion.
he surge is attributed to heightened production in Uganda and an increased demand from Kenyan processors.
Figures from the Uganda Dairy Development Authority (DDA) reveal that Uganda exported dairy products worth USh810.56 billion (Sh29.2 billion) to Kenya during the specified period, accounting for 83 percent of Uganda's total dairy exports. This robust trade relationship solidifies Kenya's status as Uganda's primary dairy market. The value of dairy exports to Kenya marks a substantial 187.6 percent growth from the preceding year when Uganda exported products valued at USh281.83 billion (Sh10.15 billion) to Nairobi by June 2022. Overall, Uganda's dairy exports witnessed a remarkable 158 percent increase, amounting to $264.5 million (Sh37.86 billion) during the same timeframe.
This surge is underpinned by Uganda's impressive 37 percent increase in milk production, reaching 3.85 billion liters compared to 2.81 billion liters in the previous year.
The Uganda Dairy Development Authority reported, "Dairy exports have been increasing over time except for the financial year 2020/21, which showed a drop due to the Covid-19 pandemic; however, in the last financial year 2022/23, there was a sharp increase in the value of exports by about 158 percent."
Interestingly, the substantial growth in dairy imports from Uganda to Kenya occurs despite restrictions imposed by Kenya on certain dairy products from its East African neighbor. Uganda had expressed concerns last year regarding Kenya's limitations on import permits for milk from Kampala.
Samson Mpiira, the acting Executive Director of the DDA, noted that talks to secure broader access to the Kenyan market were ongoing at the highest policy levels.
The influx of dairy products from Uganda, coupled with increased local production, has played a role in stabilizing milk prices in Kenya, providing a positive impact for consumers. According to data from the Kenya National Bureau of Statistics, a 500-milliliter packet of fresh cow milk was retailing at Sh57.31 last month, highlighting the market's resilience amid these trade dynamics.
Figures from the Uganda Dairy Development Authority (DDA) reveal that Uganda exported dairy products worth USh810.56 billion (Sh29.2 billion) to Kenya during the specified period, accounting for 83 percent of Uganda's total dairy exports. This robust trade relationship solidifies Kenya's status as Uganda's primary dairy market. The value of dairy exports to Kenya marks a substantial 187.6 percent growth from the preceding year when Uganda exported products valued at USh281.83 billion (Sh10.15 billion) to Nairobi by June 2022. Overall, Uganda's dairy exports witnessed a remarkable 158 percent increase, amounting to $264.5 million (Sh37.86 billion) during the same timeframe.
This surge is underpinned by Uganda's impressive 37 percent increase in milk production, reaching 3.85 billion liters compared to 2.81 billion liters in the previous year.
The Uganda Dairy Development Authority reported, "Dairy exports have been increasing over time except for the financial year 2020/21, which showed a drop due to the Covid-19 pandemic; however, in the last financial year 2022/23, there was a sharp increase in the value of exports by about 158 percent."
Interestingly, the substantial growth in dairy imports from Uganda to Kenya occurs despite restrictions imposed by Kenya on certain dairy products from its East African neighbor. Uganda had expressed concerns last year regarding Kenya's limitations on import permits for milk from Kampala.
Samson Mpiira, the acting Executive Director of the DDA, noted that talks to secure broader access to the Kenyan market were ongoing at the highest policy levels.
The influx of dairy products from Uganda, coupled with increased local production, has played a role in stabilizing milk prices in Kenya, providing a positive impact for consumers. According to data from the Kenya National Bureau of Statistics, a 500-milliliter packet of fresh cow milk was retailing at Sh57.31 last month, highlighting the market's resilience amid these trade dynamics.
