Sustainable farming initiatives boost Uganda’s dairy sector

UGANDA – A transformative effort to enhance Uganda’s dairy industry is yielding significant results, improving livelihoods and strengthening food security across rural communities. 

Reported by the International Finance Corporation (IFC), a partnership with Pearl Dairy Farmers Limited is empowering smallholder farmers through training, better market access, and sustainable practices, positioning Uganda as a key dairy exporter in East Africa.

In western Uganda’s Mbarara region, dairy farming is a cultural cornerstone, with long-horned cattle symbolizing both tradition and economic potential. 

However, many farmers have historically struggled to meet rising milk demand due to outdated techniques. Pearl Dairy, a leading milk processor, has stepped in to bridge this gap. 

According to the IFC, the company has trained over 10,000 farmers, including Joseph Nsereko, who doubled his farm’s daily milk output from 180 liters to over 360 liters. 

“The training changed everything for me,” Nsereko said. “I learned how to improve milk quality and increase production without needing more cows.”

The initiative focuses on sustainable practices, such as better cattle feeding and hygiene, aiming to raise productivity to 20-25 liters per cow daily, a benchmark for top-performing dairy regions. 

Pearl Dairy has also introduced financial incentives, including pre-negotiated loans for farm upgrades, timely payments, and new milk collection centers to ease logistics. 

A report by the IFC highlights that these efforts have created 150 direct jobs and are projected to increase farmers’ annual revenues by US$3 million by boosting milk output by 100,000 liters daily.

The dairy sector, contributing 6.5% to agricultural GDP, supports over 2.5 million households. Domestic milk production has grown from 2.08 billion liters in 2015 to 2.81 billion in 2021, with exports rising from US$131.5 million in 2018 to US$205 million in 2020.

“We’re not just improving farms; we’re building a stronger economy,” said a Pearl Dairy representative. 

The IFC’s investment in cold-storage infrastructure and advanced technologies further ensures milk quality, reducing waste and enabling exports to regional markets.

Despite challenges like climate variability and limited processing capacity, only 20% of milk is processed. 

The initiative is a model for sustainable agriculture. By integrating smallholders into global supply chains, it reduces income disparities and enhances nutrition through increased local dairy consumption. 

As Uganda’s dairy sector continues to grow, these efforts signal a promising future for farmers and the nation’s economy.

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