Milk and cream market in Uganda

Earlier Report Observations

The Ugandan milk and cream market volume grew from 2 067 тыс. т in 2018 to 3 822 тыс. т in 2023, a period marked by significant capacity expansion. This rise was initially fueled by a rapid increase in dairy processing companies, which numbered 135 by 2018, and the entry of new players like Brookside Dairy Limited in 2019. These developments boosted production capabilities, while high import duties of 60% shielded the domestic market. Volume growth paused in 2020, but initiatives to improve milk traceability and quality helped maintain output.

From 2021 onward, sustained investment in dairy infrastructure and a growing number of registered processors continued to drive market expansion. By 2022, national milk production reached 3.2 billion liters, supporting the rise in market volume. New export agreements with Algeria and Nigeria provided additional outlets, and the launch of facilities like the Ben Foods factory, processing 10 000 liters daily, added further capacity in 2023. However, this growth faced headwinds from Kenya's import bans on Ugandan milk, creating trade tensions.

Regulatory reforms led by the Dairy Development Authority, focused on enhancing milk safety and value chain efficiency, underpinned the sector's development. Concurrently, sustainable farming initiatives promoted by major processors helped ensure a steady increase in milk supply. These factors collectively supported the consistent growth in Uganda's domestic market for milk and cream over the six-year period.

Production milk and cream in Uganda

In kind, 2017-2020, K t

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Uganda's milk and cream production remained stable in 2020, with output reaching 2 835 K t, showing little change from the previous year. Looking at the broader period from 2017 to 2020, production grew by 66.7%, which translates to an average annual growth rate of 18.6%. The most significant increase occurred in 2019, when production rose by 33.4%.

Annual dynamics of production in Uganda in kind, 2017-2020, K t

In value, 2017-2020, M $ US

Following two years of growth, Uganda's milk and cream production value declined in 2020. The output was valued at 1 786 M $ US, marking a 3.7% decrease compared to 2019. Over the four-year span from 2017 to 2020, production value increased by 39.3%, averaging an 11.7% annual growth rate. The peak value was recorded in 2019 at 1 854 M $ US, with the largest increase that year at 23.6%.

Annual dynamics of production in Uganda in value, 2017-2020, M $ US

Exports milk and cream from Uganda

Exports in kind, t

Uganda's milk and cream exports declined for the second year in a row in 2020. The country exported 61 398 t, representing a 10.4% drop from the previous year. The highest export volume was in 2018 at 69 232 t, which also saw the largest increase of 11.5%.

Annual dynamics of product's exports from Uganda in kind, 2017-2020, t

From 2017 to 2020, Uganda's milk and cream export market was highly concentrated, with Kenya accounting for 92.1% of total exports in volume terms.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Uganda in kind, 2017-2020

Exports in value, K $ US

Milk and cream exports from Uganda fell for the second consecutive year in 2020, totaling 38 677 K $ US, a significant reduction of 13.7% from 2019. Between 2017 and 2020, exports decreased by 17.4%, averaging a 6.2% annual decline. The highest value was recorded in 2018 at 48 892 K $ US, with the largest increase that year at 4.5%.

Annual dynamics of product's exports from Uganda in value, 2017-2020, K $ US

During the 2017–2020 period, Uganda's milk and cream exports in value terms were almost entirely dependent on Kenya, which held a 91.2% share of total flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Uganda in value, 2017-2020

Imports milk and cream to Uganda

Imports in kind, t

Uganda's milk and cream imports showed notable fluctuations from 2017 to 2020. The lowest volume was recorded in 2019 at 48 t, while the highest was in 2018 at 10 724 t, resulting in a peak-to-trough ratio of 222 times. In 2020, imports reached 53 t, up 10.5% from the previous year. The largest decline occurred in 2019 at 99.5%, and the largest increase was in 2018 at 15,581.6%.

Annual dynamics of product's imports to Uganda in kind, 2017-2020, t

Between 2017 and 2020, Uganda's milk and cream imports in volume terms were highly concentrated, with Rwanda responsible for 98.4% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Uganda in kind, 2017-2020

Imports in value, K $ US

The market for milk and cream imports into Uganda was volatile from 2017 to 2020. The lowest value was in 2020 at 108 K $ US, down 23.4% from the previous year, while the highest was in 2018 at 2 915 K $ US, creating a 27-fold difference between the peak and trough. The largest decline was in 2019 at 95.2%, and the largest increase was in 2018 at 1,545.1%.

Annual dynamics of product's imports to Uganda in value, 2017-2020, K $ US

From 2017 to 2020, Rwanda was the leading supplier of milk and cream to Uganda, accounting for 84.1% of total imports in value terms, with the remainder distributed among various other countries.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Uganda in value, 2017-2020