The agricultural sector in Uganda remains a cornerstone of the economy, employing approximately 72% of the population and contributing about 24.1% to the GDP. Within this sector, the dairy industry stands out, valued at US$3.8 billion and generating US$106.2 million annually from exports. Milk and dairy products play a crucial role in combating hunger and ensuring food security in the region.
Despite this impressive growth, the dairy sector faces significant challenges. These include strong seasonal fluctuations in raw milk supplies, underutilized processing capacity, prevalent informal trade, quality issues that limit international trade, and a dependency on demand from key export markets like Kenya.
Household milk consumption in Uganda is also low, with Ugandans drinking only around 0.5 liters (550 milliliters) per day, which is significantly below the recommended intake by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO).
In response to these challenges, Uganda’s Dairy Development Authority (DDA) initiated the Dairy Policy Action Plan, adopted in August 2022. This multi-year plan engages stakeholders to implement policy interventions aimed at boosting consumption, incentivizing production, improving quality, and accessing new markets.