Growth continues to be registered in milk production, milk collection infrastructure, transportation, processing and exports with a resultant reduction in imports. Currently, Uganda’s milk production was at 2.2 billion liters as of December 2016 compared to 1.5 billion liters in 2010. About 80% of the total National milk production was marketed and 20% consumed by the farming households. Unfortunately, only 33% of the marketed milk was processed and 67% was marketed raw. The value of exported dairy products was estimated at $85m compared to the $5.2m in 2016. The total value of marketed milk was estimated at $752m in 2016.
Players were however worried that the struggling retail chain could impact on the sector. “Any retail chain that goes down is of no benefit to the industry. Any processers that as well go down is also of no benefit to the industry. So as far as the retail end is concerned, we would like to put out an appeal even to the government to see what they can try to do to rescue the situation because some of these retail chains form some substantial parts of the marketing channels. ” Said, John Gethi – Director Milk Procurement Fresh Diary.
“There are people who don’t buy from supermarkets, they buy from cans, they buy from buveras you know it, they buy from cups, they come with a jug and buy. That market is out there and that one will continue. People still put up in trading a center and there is a cooler here and they buy from that place. Now there are those in the middle class who have been Supermarket shoppers but even they also buy from other Supermarkets. Because of packed milk Jesa, Fresh Diary you can also find it in other Supermarkets. So the big one that is making a loss is the big ones when they close. But you can sure that the consumers will go another middle level or lower Supermarket and still be able to find their diary. So the exist of the big Supermarket I don’t think it will affect the dairy industry.” Said, Dr. Fredrick Muhumuza – Senior Economist MAK.
The value was projected to rise owing to the increased demand for milk and milk products in the region and beyond. But although the per capita consumption of milk increased over the last 10 years from 40 liters per annum in 2001 to 60 liters in 2016; it was still below the 200 liters per person per annum as recommended by the World Health Organization and the FAO Food and Agricultural Organization.
