Uganda misses out on Algeria’s US$1B dairy market

UGANDA – A report by Ugandan milk companies has revealed a missed opportunity in Algeria’s US$1 billion dairy market. 

This was highlighted on Saturday, January 11, during a meeting between Uganda’s President Yoweri Museveni and Algeria’s Minister of Agriculture and Rural Development, Mr. Youcef Cherfa. 

The discussions, held on the sidelines of the African Union Extraordinary Summit on the Comprehensive Africa Agriculture Development Programme in Kampala, focused on strengthening trade ties between the two nations, particularly in the coffee and milk sectors, and addressing broader African concerns.

Minister Cherfa, delivering a message from Algerian President Abdelmadjid Tebboune, reported progress in coffee trade.

 He noted Algeria’s growing interest in Ugandan coffee, citing a recent contract signed in late 2024 for 800 tonnes, with the first shipment scheduled for February 2025. 

“We are prepared to increase imports to 20,000 tonnes annually,” he said.

However, Cherfa expressed disappointment regarding milk trade, revealing that efforts to source milk from Uganda had faced setbacks. 

“Despite submitting tenders and offering competitive prices, no Ugandan companies responded. Language barriers and limited engagement appear to have slowed progress,” he said.

Algeria’s annual milk import bill grew from US$800 million to US$1 billion in 2024, and the country has sought to redirect a significant portion of its US$700 million dairy import budget toward Uganda due to the quality of its fresh milk. 

By mid-2024, Uganda’s milk production stood at 5.3 billion liters annually, with a national consumption rate of 800 million liters. 

Although prominent Ugandan companies such as Brookside, Amos Dairies, and Pearl Dairies were positioned to export to Algeria, other companies like Milkman, Jesa, and Lakeside were still preparing to enter the market.

Cherfa assured Uganda of Algeria’s commitment to resolving the bottlenecks and improving engagement with Ugandan businesses. 

“We will revisit the process and ensure clear communication, as directed by President Tebboune,” he said.

President Museveni pledged to address the concerns with Ugandan milk producers. “I will follow up to understand why they did not respond,” he said. 

Museveni also reiterated his dedication to enhancing trade with Algeria and fostering peace and stability in Africa. “We must turn the freedom we fought for into peace, prosperity, and democracy,” he added.

The leaders also discussed pressing continental issues, including instability in Libya, Sudan, and Palestine. 

Museveni condemned the prolonged suffering in Libya and called for elections, stating, “This is a betrayal of what we fought for as Africans.” 

He urged African leaders to adopt a united stance, emphasizing the need for peace in Sudan and a resolution to the Palestinian conflict.

Minister Cherfa praised Museveni’s leadership and assured him that Algeria shared Uganda’s concerns, promising to convey the message to President Tebboune.

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