Dry spell drives milk prices through the roof

In the past couple of weeks, milk consumers have recorded a spike in milk prices, forcing some households to reduce the quantity of intake.

Some dairy farmers in the cattle corridor districts blame the situation on milk scarcity.

In Isingiro District, where the farm gate price per litre of milk was trading between Shs400 and Shs500 in May and June, it has since jumped to Shs1,000.

In Masaka City, where suppliers receive milk from districts of Sembabule and Gomba, a litre of milk is selling between Shs1,200 and Shs1,500 up from Shs800 a month ago.

A litre of processed milk is costing between Shs4,000 and Shs4,500, depending on the brand.

Mr Jackson Nyanzi, a dairy farmer in Kashari, Mbarara District, says: “The dry spell has greatly affected us here and we no longer have pasture and water for the cows, the milk we get from the cows is little. Personally, I used to get 20 litres, but now I get only 10 litres” .

Mr Nathan Kitaafa, a farmer from Bwensirabo Cell, Kazo District, says he had stored water for his animals but the dam has since dried up.

“The dams that the government constructed are not accessible because of poor roads, we have lost cows because of the diseases. We do not understand the diseases that are killing our animals, you can imagine the feeling of losing a cow that gives you 18 liters of milk daily,” he says.

Ms Pearl Namanya, the manager of Bushenyi Dairy Industry Cooperative Union, says the price is largely determined by forces of demand and supply.

“In the dry season, milk is very little and this is the reason we encourage our farmers to prepare silage. There is a possibility that milk price will continue to rise from the current Shs1,300 per litre,” she says.

 Ms Sarah Nahurira, who owns a restaurant on Kabiritsi Road in Ishaka Town, Bushenyi District, says a litre of milk now costs Shs2,000 up from Shs1,700.

“I have been forced to increase price for a cup of milk from Shs700 to Shs1,000 and this has reduced the number of customers,” she says

In Mbarara City, a litre of milk which was selling at Shs1,400 in June and May has since increased to Shs1,700.

 In Kigezi Sub-region, dairy farmers appeal to the government to establish mini-irrigation schemes to ensure enough pasture during dry seasons.

Mr Benjamin Turyahikayo, the chairperson Kigezi Dairy Cooperative Society, says planting extra fodder, rearing improved breeds through artificial insemination, can also improve the quality and quantity of milk.

“Most dairy farmers who used to operate in the wetlands were evicted following a presidential directive on wetland restoration thus opting to establish farmlands on raised grounds that are easily affected by the dry season,” Mr Turyahikayo says

He adds that while they have maintained paying farmers Shs1,110 per litre of raw milk supplied to the cooperative society, the price of milk to the customers has slightly increased from Shs1,200 to Shs1,300 per litre.

The General Manager of Kabale Tukore Dairy, Mr Joshua Tumusiime, says they have been forced to increase the price from Shs1, 000 to Shs1,500 due to scarcity of milk.

“While we used to receive about 1,500 litres of milk per day during the wet season, currently we get between 600 and 800 litres per day,” he says

Jinja situation

Mr Ivan Kibirige, a resident of Wanyange Village in Jinja North City Division, who owns two Friesian cows, says milk production has reduced due to scarcity of pasture.

 “My cow used to give me at least eight litres of milk every day, but now I get six litres because the feeding has reduced,” he says.

Mr Kibirige, however, says he could not raise the price of milk because of fear of losing customers, instead his profits have reduced.

Ms Oliver Kateme, who sells milk at the Nile in Njeru Municipality, says she buys a litre from the suppliers at Shs1,000 and sells at Shs1,500 or Shs2,000 depending on the supplier.

“My suppliers are complaining of the dry season, saying sourcing for animal feeds and water is very expensive, and have subsequently reduced production from 20 litres to 15 litres,” Ms Kateme says.

Mr George Kasigazi, a milk seller on Lubas Road in Jinja City, says the price of a litre of milk hasn’t changed.

“My customers are used to buying milk at Shs1,000, so I decided not to increase the price. I operate under losses, but the situation is temporary; the season will change and I have to maintain my clients,” he says.

Although customers are complaining of diluted milk due to the current dry spell, Mr Kasigazi dismisses the allegations as “baseless”.

Mr Khadijah Nakitto, a customer in Jinja, says: “I have been buying a litre of processed fresh milk at Shs3,000 for the past few months, but the price has increased to Shs3,300.” 

Mr Otieno Were, the human resources officer at Amos Dairies Ltd, says the rise in milk products is majorly a result of changing weather patterns.

“During dry seasons, the production goes down slightly yet the demand remains the same, and whenever such a situation happens, the prices of our products increase,” Mr Were says.

He, however, says some farmers are also taking advantage of the booming market for raw milk in Kenya.

During this year’s International Milk Day celebrations in June in Sembabule District, Mr Fred Bwino Kyakulaga, the State minister for Agriculture, advised farmers to add value to milk.

“Our call to both local and international investors is that they should invest more into adding value to our milk into products like powdered milk, yoghurt, butter and cheese, among others. This will be a lasting solution to the milk surplus that usually leads to the price fluctuation,” he says.

Mr Samson Akankiza Mpiira, the executive director of Dairy Development Authority (DDA), says the dairy sub-sector has significantly bolstered the economy, with export earnings of approximately $200 million (about Shs73.2billion) annually.

“This figure not only represents the economic potential of our industry but also the reach of our high quality Ugandan dairy products across borders. Our ambition is not simply to maintain these numbers, but to see them grow sustainably,” he says.

Price remain unchanged

Ms Gloria Namuli, a resident of Oli B Cell in Central Division, Arua City and dealer in milk products, says the price of raw milk has remained the same (Shs2,000 a half-a litre ) for a year since there are few customers in the area.

 “The only cost is transporting the milk from Kampala or Masaka which has increased from Shs50,000 to Shs60,000,” she says

She adds that she has now resorted to buying milk from suppliers in order to cut costs.

“If you increase the price of milk, you fail to sell it faster yet it is perishable. So, you don’t need to raise prices anyhow,” she says.

In the meantime, a cup of milk (half a litre) in Arua City costs Shs2,000 and this price has been maintained since last year.

Arua City and other parts of the West Nile sub-region rely heavily on milk imported from Central or Western Uganda regions because few livestock farmers engage in commercial milk production.

In Moyo District, a cup of raw milk is at Shs1,500.

At Ndirindri Market in Palorinya Sub-county in Obongi District, a cup of raw milk costs Shs1,000.

Other areas

In both Nakasongola and Nakaseke districts, the farmers reveal that despite the change in the weather, the prices of milk hasn’t changed.

Mr Benjamin Ssemuddu, a farmer in Nabiswera Sub-county, Nakasongola District, says a litre of milk goes for between Shs750 and Shs800. This price has not changed for the last four months.

Mr Muwonge Lutalo, the chairperson Nakitoma Sub-county in Nakasongola District, reveals that the prices are stable when there is enough water and pasture supply.

“We still sell the milk at Shs800 per litre because the farmers have the water and pasture for the animals,” he says

In Ngoma Sub-county Nakaseke District, the price per litre of milk has not changed for the last three months.

“We are lucky that the farmers can still afford to get water and pasture for the animals. This perhaps explains why the milk prices in Nakaseke have not changed in the last 3 months,” Mr Edmond Mugisha, a milk dealer, reveals.

In Lyantonde, farmers say during dry spells, milk prices rise every 15 days. Here, a litre of milk was selling at Shs400 in April, but it currently costs Shs700.

“If the dry spells persist, a litre of milk will be costing between Shs1500 and Shs2000 in mid-August,” he says.

 Mr Ronald Bameka, the Lyantonde District veterinary officer, says farmers without access to dams should move to areas where there is both water and pasture to save their animals.

“But in doing this, they should also be mindful of cattle diseases, especially foot-and-mouth diseases,” he says.

The plan

Value-addition The Dairy Development Authority Strategic Plan 2021-2025 focuses on rolling out dairy cottages to invest in small scale value-addition, boosting milk production and productivity countrywide, strengthening quality assurance for exports and boosting local consumption of milk and milk products.

Compiled by Al-Mahdi Ssenkabirwa, Dan Wandera, Catherine Ankunda, Philip Wafula, Abubaker Kirunda, Tausi Nakato, Denis Edema, Ronald Seebe, Felix Ainebyoona, Milton Bandiho, Coslin Nakayiira, Julius Byamukama Felix Warom Okello Scovin Iceta,Robert Muhereza & Julius Hafasha