In Summary

Determined. Price movements in the milk industry, unlike in the last few months, has for long been determined by weather.

For the first time in many years, milk farm-gate prices have remained stable despite seasonal weather changes.
During dry seasons milk prices tend to move northwards due to reduced supply while in wet seasons they nearly collapse due to over production.

Dairy farmers and milk processors say a litre of raw milk, in a worst case scenario, has since the start of the year fetched not less than Shs800, far from the usual.

“For the first time in a wet season we sold a litre of milk at Shs1,000. Before the prices could drop to even Shs300 per litre” the chairman of the supervisory committee, Mubende Livestock Farmers Cooperative Society, Rev Enock Kasirabo, said in an interview last week during a Farmers’ Field day event in Mubende.

“In dry seasons we earned Shs1,200 per litre. I have never seen such stability in prices for a long, long time,” he added.
The price stability, according to Rev Kasirabo, guarantees sustainable and improved production.

Eighty per cent of Uganda’s milk is marketed, according to Dairy Development Authority while 20 per cent is consumed by farming households.

Uganda, according to Mr John Gethi, the, Brookside Dairy director of milk procurement, has a high potential of milk production.

Therefore, he says, there is need to enable farmers double the average of five litres per cow to 10 litres.
Uganda is a key exporter of milk and milk products, with the value of exports currently standing at about $80m (Shs284.8b).
This has been made possible by growing a diversified milk exports market with processors such as Fresh Dairy, a subsidiary of Kenyan-based Brookside Dairy, being among the largest exporters.

Fresh Dairy currently has capacity to process 560,000 litres per day and its exports have grown from $13m (Shs47.4b) in 2015 to $18m (Shs65.7b) last year.

Other processors such as Pearly Dairy, among others have also played a big role. Dr Juliet Sentumbwe, the Animal Resources director, said farmers must be engaged at different levels because they are a key factor in the value chain.

However, she took note of structural challenges that have brought about resistant ticks, fake inputs and power challenges.
According to Dairy Development Authority, Uganda currently produces 2.2 billion litres.

Dairy farming is a major activity in the south western, central, and north eastern parts of the country
The central and western regions account for about 50 per cent of national milk production.

According to Dairy Development Authority, the per capita milk consumption in Uganda has increased from 25 litres in 1986 to 62 litres in 2017.
Only 33% of the marketed milk is processed and 67% is marketed raw.

Consumption rate
According to Dairy Development Authority, Uganda currently produces 2.2 billion litres with per capita consumption standing at 62 litres in 2017 down from 25 litres in 1986.
Only 33% of the marketed milk is processed and 67% is marketed raw.