- Investment in the value chain has meant creating opportunities along the way for different players, including suppliers.
Uganda’s dairy sector has continued to shoot with milk production hitting 2.8 billion liters in 2020, Dairy Development Authority has indicated. In 2018, the country produced a 2.5billion liters.
The rise in milk production has been attributed to continued investment in the sector and the expansion of milk collection centers across the country.
Currently, there are 483 milk collection centers countrywide with a total installed capacity of 1,938,522 liters.
DDA Executive Director, Dr. Michael Kansiime, said the dairy sector was currently growing at an average rate of 8% per annum, mainly due to the strategic interventions of the government.
“The sector is one of the leading agricultural commodity export income-earners second to coffee and slowly edging its way to be the leading agricultural export earner in the country,” he noted.
Geoffrey Mulwana, the JESA Dairy Executive Director, one of the leading producers and processors of milk, said that with more milk produced, it was important for processors to continue to invest in the sector’s value chain, especially in areas that ensure the quality of the products that reach the market.
“Our going investment in capacity expansion is creating empowerment along the value chain and this ensures that the benefits of the growth of the sector are felt by the people on the ground,” Mulwana added.
Investment in the value chain has meant creating opportunities along the way for different players, including suppliers.
David Wambuzi, one of the direct beneficiaries of this growth and JESA supplier, said since he started supplying JESA products to different retail shops and restaurants in Kampala, things have never been the same.
Milk processing is one of the fastest-growing sub-sectors with 135 licensed companies with a processing capacity of 2.8 million liters per day. Records show that the percentage of the marketed milk that is processed stands at approx. 34%.
According to Dr. Kansiime, DDA is spearheading the rehabilitation and equipping of milk collection centers, especially in Buganda, northern and eastern regions that DDA inherited from the defunct Dairy Corporation.
On the other hand, milk transportation has greatly improved, thanks to the increase in milk tankers. Currently, there are 329 road milk tankers with a capacity of hauling 2.16 million liters on the road daily.