UGANDA – The Ugandan Dairy Development Authority (DDA) has reported a significant reduction in milk production, totaling approximately 3.5 million liters per day.
The decline has consequently notably impacted key dairy by-products, particularly butter, leading to a supply shortage in several supermarkets across Kampala.
According to industry stakeholders, the reduction in milk supply is largely attributed to a shortage of feeds and a prolonged drought affecting the cattle corridor.
Mr. Ponsiano Ngabirano, proprietor of Capital Shoppers Supermarkets, noted that the decreased supply of butter is a direct result of lower production rates from various manufacturers.
“The current shortage of feeds has resulted in reduced milk yields, ultimately affecting butter production,” he stated.
Historically, Uganda has seen an increase in milk production and related products; however, the country is currently facing uneven production patterns due to adverse weather conditions.
Agriculture Minister Frank Tumwebaze pointed out that erratic weather is the primary driver behind the current milk scarcity, emphasizing that most dairy farmers depend on rain-fed farming, which has been disrupted.
The milk shortage has also triggered a rise in farmgate milk prices, with the cost per liter increasing to over Shs 1,000 from just Shs 450 earlier in the year. Concurrently, the price of feed has also escalated, putting further strain on dairy farmers.
Mr. Sam Akankiza, the executive director of the DDA, reported that daily milk production has dropped significantly from 10.2 million liters to 6.7 million liters, impacting cream separation processes that account for 3.6% of the milk by-products.
While projections indicate that milk production may increase with the expected rains by December, Mr. Tumwebaze urged stakeholders in the milk value chain to collaborate with the government to adopt supplementary feeding and zero-grazing (intensive farming) methods.
Despite facing trade barriers from its largest client, Kenya, Uganda remains committed to elevating its dairy industry on the global stage.
Dairy production is a vital economic activity in the country, employing an estimated 100,000 people and contributing 6.5% to the Agricultural Gross Domestic Product (GDP), as highlighted by Dr. Rwamirama Bright Kanyontore, the Minister of State for Agriculture, Animal Industry, and Fisheries.
Industry stakeholders are working tirelessly not only to ensure the survival of the dairy sector but also to promote its growth in a highly unpredictable regional and global market.
The country witnessed a remarkable growth rate of 37%, increasing milk production from 2.81 billion liters in FY 2020/21 to 3.85 billion liters in FY 2022/23.
Moreover, exports surged by 158% in FY 2022/23, reaching US$246 million, demonstrating the resilience and potential of Uganda’s dairy industry amid ongoing challenges.
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