The producers and dealers in milk and milk products have a case to smile after Kenya government have lift a ban on Uganda`s milk exports to her market, where at the same time government have secure a new lucrative market in Algeria.
The Executive Director of Diary Development Authority (DDA) Samson Akankiza Mpiira told reporters at Uganda Media Center in Kampala that the sub-sector has registered some improvement in 2022 despite still grappling with the effects of Covid-19.
Kankiza while presenting the 2022 sector`s performance to journalist revealed that the Dairy exports bounced back to US dollars 102,6 million of value in the financial year 2021/22 from US dollars 92.2 in FY 2020/21 were as the imports stood at only US dollars 4.2 million.
The overall, milk production according to the sectors report, rose significantly to 3.22 billion litres, during the period of review despite the challenge of drought that occurred in some selected milk sheds in the country.
Licensed milk collection centers have also increased from 475 with a total installed capacity of 2.21 million litres in 2020/21 to 547 with a total estimated capacity of 2.3 million liters in 2021/22 to match the every rising milk production.
He urged the herders to stay in the business of raising the cows by feeding them with nutrients that can give them sufficient milk that can feed the growing market potential.
`The sector still faces challenges for instance the packaging materials for the processed milk products are very costly, low milk chain infrastructures, limited budgetary support and a huge demand for storage facilities, international standards compliance and a very low local consumption which limits the local market.“ Kankiza said.
He said that DDA has put some interventions to over come some of the challenges for instance support has been extended to 15 dairy farmer cooperatives and 22 farmer groups with farming inputs such as milking machines, milk cans, chuff cutters. milking buckets and pasture seeds in the last financial year.
In an effort to increase milk production and enhance productivity in the sub-sector, the Authority has trained a total of 79 dairy farmer groups and 88 dairy farmer cooperatives across the country and these translates into more than 8,535 dairy stakeholders who have been trained and equipped with modern dairy farming practices such as feed production management and value addition.
The Authority is also working to wards professionalizing the dairy stakeholders and as a result, it has trained 124 stakeholders who are now equipped with skills of milk processing and value addition at Entebbe Dairy Training School.
Keneth Oticar he DDA economist said that the national gate milk prices averages 1.181 UGX ($0.32) while retail prices averaged 1.667 UGX per litre ($ 0.45). This puts Uganda`s dairy sub-sector at a nominal value of UGX 3.8 trillion.
“The value of milk produced and earned in the country cumulatively in the last 12 months increased by 60% and this had a multiplier effect in terms of increased net profits and employment opportunities.“ Oticar said.
Akankiza said those in the dairy industry should talk about quality as packaging should have the quality required by other countries to attract Ugandan milk in bulk.
The executive director said they have been able to work there to talk about the amount of milk exported to the market by 2022 they were exporting 2.8billion little and by 2023 they have started exporting 3.2billion little.
By George Bukenya and Daniel Mugula