Dairy exports rise by 11% amidst challenges
What you need to know:
- DDA attributes the rise in the export earnings to the increased compliance of Uganda’s dairy products both regional and international standards.
Dairy exports fetched more than Shs382b for the economy compared to export earnings from the same sector in FY 2020/2021 despite the drought in some milk sheds in the country.
The annual dairy performance report for FY 2021 by Dairy Development Authority (DDA) shows that Shs382.2b was earned from dairy exports during the reviewed financial year (2021) compared to Shs344.2b in FY 2020 , an increase of 11 per cent.
DDA attributes the rise in the export earnings to the increased compliance of Uganda’s dairy products both regional and international standards.
“Uganda exported a total of 83,063 metric tonnes of dairy products to 16 countries,” the report reads in part.
It added: “Although the value of exports and related volume have recovered from the Covid-19 pandemic in the last two years, the country fell short of the National Development Plan III target of $121.7m for the year.”
Export destinations drop to 16
Despite the surge in the export volumes, the export destinations dropped from 18 countries in FY2020 to 16 countries after losing Qatar, UK, Czech Republic and Sri-Lank. Only two countries were registered as new market destinations, these are; United States and Somalia.
According to the report, the major exported products include; UHT milk, butter, casein powder, milk powder, whey protein, and cheese.
These were mainly exported to the East African Community (EAC), Comesa countries, Japan, US, Oman, India and Ethiopia.
DDA also noted an increase in the average international raw milk price estimated at Shs1,757 per litre from Shs1,120 in FY2020. The international market price is at least 48 percent higher than the national farm gate price recorded at Shs1,118.
However, whereas the authority described the farm gate milk prices as ‘relatively fair’, it noted that the national per capita milk consumption in Uganda is still very low, according to the World Health Organisation (WHO) standards.
“Our (Uganda) estimated domestic milk per capita consumption is 62 litres compared to the WHO recommendation of 200 litres,” DDA annual dairy performance report FY 2021/2022 reads in part.
The national milk production for FY 2021 stood at 3.2 billion litres, an average of 4.8 litres per cow.
Licensed milk collection centres have increased to 547 in the reviewed financial year with an estimated capacity of 2.3m litres compared to 475 in the previous year.