Dairy industry in Uganda

Economic impact

It was first estimated that livestock contributed 1.7 percent to total national GDP in 2009. That estimate was later revised to about 3.2 percent. By 2014, that contribution had risen to 9 percent of national GDP.

The cattle kept are predominantly indigenous breeds, accustomed to the weather and husbandry practices as practiced by the herder communities, conditions that many exotic breeds could not withstand. Exotic breeds have been introduced, but the majority of farms have mixed breeds, whose productivity, although higher than the traditional breeds, does not match that of the exotics.

Current

According to the government Dairy Development Authority (DDA), in July 2012 annual national milk output stood at 1.8 billion liters. In 2014, the national milk volume stood at about 2.5 billion liters annually.

Dairy farming is a major activity in the southwestern, central, and northeastern parts of the country, with the sector contributing significantly to the economic, nutritional, and employment opportunities of the rural communities in those areas. Uganda's Central and Western Regions account for about 50 percent of national milk production. This production is predictable and available all year round. During the dry season, the northern, northeastern, and eastern parts of the country experience a drastic reduction in milk output.

Regulatory environment

In 1998, the Ugandan Parliament promulgated the Dairy Industry Act, which created the Dairy Development Authority (DDA), the new industry regulator. DDA started its operations in 2000. The erstwhile national monopoly known as the National Dairy Corporation was privatized in 2006 as part of Brookside Dairy Limited from Kenya. The Ugandan government maintains a minority shareholding.

Major milk processors

From 1993 to 2006, fifteen medium to large scale processing plants were licensed. In 2014, total national installed capacity was about 400,000 liters per day. The major milk processing companies in Uganda included the following:

1. Brookside Dairy Limited
2. Jesa Farm Dairy
3. Pearl Dairy Farms Limited
4. Amos Dairies Uganda Limited
5. Paramount Dairies Limited
6. GBK Dairy Products Limited
7. Lakeside Dairy Limited
8. Rainbow Industries Limited
9. Kooky Enterprises Limited
10. Holland Dairy Limited
11. Vital Tomosi Dairy Limited