A man inspects cattle. The 2024 value-for-money audit report on the regulation of Uganda’s dairy industry by the Dairy Development Authority (DDA) shows that milk consumption has gone up from
46 litres per person in the 2020/2021 financial year to 64 litres in 2022/2023. PHOTOS/FILE
The 2024 value-for-money audit report on the regulation of Uganda’s dairy industry by the Dairy Development Authority (DDA) shows that more Ugandans are now drinking milk.
The report says that milk consumption has gone up from 46 litres per person in the 2020/2021 financial year to 64 litres in 2022/2023. However, this is still far below the 200 litres per person recommended by the World Health Organisation. Auditor General Edward Akol also says milk production has grown by 37 percent — from 2.81 billion litres in 2020/2021 to 3.85 billion litres in 2022/2023. The dairy industry has also earned more from exports, rising from Shs276 billion to Shs358 billion during the same period.
Mr Akol says this growth is a result of the efforts by the Dairy Development Authority (DDA), which now operates under the Ministry of Agriculture, Animal Industry and Fisheries (MAAIF) after the government merged agencies under the Rationalisation of Government Agencies and Public Expenditure (Rapex) programme.
DDA’s goal has been to boost milk production, improve quality, and make Uganda’s dairy products more competitive in the market. The auditor general further notes that the number of registered dairy processors has increased from 130 in 2022 to 160 in 2024. Also, milk collection centres have gone up from 483 in 2022 to 729 in 2023. The number of milk coolers has risen from 355 in 2016 with a capacity of 1.5 million litres, to 791 in 2023 with a total capacity of 2.8 million litres.
“This has been done through regular inspection of some milk handling premises, analysis and on-spot testing of milk and milk products, market surveillance of raw milk sales outlets, milk collection centres, bulking centres, supermarkets and other dairy products selling outlets,” Mr Akol says.
He also points out that more milk and milk products now meet international standards, which has helped increase export earnings from $102.6 million in 2021/2022 to $264.5 million in 2022/2023.
Gaps However, the report also highlights some issues that still need to be fixed. Mr Akol says while the Authority has made good progress in regulating the industry, some areas still need improvement for it to work better. These include gaps in the current laws, failure to register all people handling dairy products, weak enforcement and monitoring, and poor follow-up on inspection recommendations, among other challenges.
“It was noted that the current regulations (Dairy Marketing and Processing of Milk and Milk Products Regulations, 2003) being used to regulate the industry by DDA were developed in 2003 and last updated in 2015, which is nine years ago. Within these nine years, the industry has experienced substantial growth and changes which limit the regulatory effectiveness of the regulations,” Mr Akol notes.
He explains that the current regulations only cover the sale and marketing of processed dairy products, but leave out raw milk, other milk products, and dairy inputs.
Namutumba District and Namutumba Sub-county leaders inspect a milk cooler machine in Nakyere Village, Namutumba Sub-county which has remained idle since 2007 when it was installed. Stakeholders in the Dairy sector say the coolers are expensive to maintain, especially in terms of electricity
Mr Akol also says the rules only set fees for large- and small-scale processors, but ignore medium- and cottage-scale processors. They also do not mention the use of vaccines and drugs by dairy handlers, which are regulated under MAAIF. “DDA revealed that the authority drafted amended regulations and held a consultative meeting with the Ministry of Justice and Constitutional Affairs, MAAIF and other stakeholders in 2022. However, the process of updating the regulations has never been completed. The delay to undertake the update of the regulations was due to the lengthy stakeholder engagements,” the report reads. Mr Akol further notes that 60 dairy handlers, which is 28 percent of those inspected, are operating without licenses. He says this is mainly because the DDA had only 19 inspectors out of the required 28 by August 2024, limiting inspection coverage.
“These handlers were operating from unhygienic places and dealing in unprocessed milk, which exposes the public to health risks,” Akol notes. He adds: “From inspections undertaken in a sample of 12 districts, it was observed that out of the 211 dairy handlers inspected, 60 (28percent) were operating without licenses, which further confirms that dairy handlers are operating without licenses and registration.” The Auditor General stresses the need to improve the quality of inspections to make sure only dairy handlers who meet the required standards are registered. The value-for-money report also shows that 92 out of 211 registered dairy handlers inspected — about 44 percent — are not following the hygiene standards set by DDA. According to the report, some handlers use non-food grade materials and operate in dirty environments, which puts the public at risk of consuming unsafe dairy products.
“It was established that although DDA had undertaken sensitisations, these were insufficient given the geographical coverage and the large number of diary handlers. It was further observed that the DDA system in place was not effectively tracking unregistered dairy handlers,” Mr Akol notes in the report.
The Auditor General recommends that the accounting officer steps up efforts to educate dairy handlers on the importance of registration and licensing. He also advises setting up a follow-up system to make sure all dairy handlers are properly registered. He further urges the Authority—now part of MAAIF—to work with the Ministry of Finance, Planning and Economic Development (MoFPED) and the Ministry of Public Service (MoPS) to solve issues related to old vehicles and staff shortages. The report also shows that enforcement, market surveillance, and follow-up inspections are not enough to cover milk production and handling before it reaches collection centres. This is because DDA depends on the Directorate of Animal Production under MAAIF, which is not carrying out these tasks.
The Auditor General recommends that the Authority work with the Ministry of Public Service to fill inspector vacancies and replace staff who have left. The report adds that DDA’s registration requirements ban the use of non-food grade materials, demand clean working conditions, require medical health certificates for workers who handle milk, call for regular quality tests of milk samples, and insist on the use of protective gear during handling. “These handlers were operating in an unhygienic environment, lacked protective gear, and were using non-food grade materials among other violations, and ideally should not have been registered by DDA,” Mr Akol notes.
The Auditor General recommends that the accounting officer improve the quality of inspections to make sure only dairy handlers who meet the required standards are given licenses. However, the report shows that 92 out of 211 licensed dairy handlers inspected — about 44 percent — do not meet these requirements, yet they still hold valid licenses issued by DDA. Mr Akol also points out that 66 (76 percent) out of 87 recommendations made by DDA inspectors were not followed up. He says this is because of staff shortages and high staff turnover caused by uncertainty during the RAPEX process, which undermines the purpose of inspections.
Stakeholders say some farmers cannot afford proper equipment such as milking cans
He further notes that two out of six milk sheds lack dairy laboratories, and the four that are working are not well equipped. The Auditor General also reveals that the National Dairy Laboratory is not accredited by the Uganda National Bureau of Standards (UNBS), which affects the quality of milk and milk products. The report further shows that dairy products from 27 out of 39 sampled processors — about 69 per cent — are not certified by UNBS. This is mainly because the certification process takes too long, which could pose health risks to the public.
Stakeholders speak out
Meanwhile, Mr Charles Eboona, the general manager of Dwaniro Dairy Farmers Cooperative in Kiboga District, raises concern over the unstable milk prices, especially during the rainy season. He blames this on the few milk processors in the area. “Farmers invest heavily in their animals, yet they make little or no profit because there are not enough processors to absorb the milk produced. At the moment, we mainly rely on JESA. If anything affects its operations, all farmers in Kibooga are left stranded with their milk,” Mr Eboona explains. He also points out the growing issue of fake acaricides on the market. He says many farmers end up buying ineffective drugs, which harms animal health and causes financial losses. He calls for stronger government action, especially tighter monitoring and enforcement by the National Drug Authority.
Another key concern is the effect of prolonged drought. Mr Eboona says farmers are losing animals and milk production is dropping sharply because of water and feed shortages during dry seasons. He appeals to the government to help set up valley dams and solar-powered water systems in cattle corridors. Unreliable electricity is also a big challenge. Mr Eboona says many farmers depend on expensive generators to run milk coolers. This drives up their costs and puts milk at risk of spoiling when generators break down. “These milk coolers require a stable electricity supply. Unfortunately, some areas lack access to the national grid, and generators are expensive to operate and maintain,” he notes. Transport infrastructure is another issue brought up by farmers. Mr Eboona emphasises that poor road networks delay milk delivery from farms to collection centres, compromising quality.
“Milk should ideally be delivered to the collection centre within an hour of milking. But the roads from farms to collection points are in very poor condition. Even from the collection centres to processors, trucks sometimes get stuck, affecting milk quality,” he explains. He adds that the high cost of equipment is a significant barrier for many farmers.
Auditor General Edward Akol
“Routine equipment like milk cans and coolers are still very expensive. A brand-new 5,000-litre milk cooler can cost between Shs100 million and Shs150 million,” he says. The chairperson of Namutumba District Dairy Farmers Sacco, Mr Juma Igaga, expresses concern over the continued use of indigenous cattle breeds, which he says results in low milk production and lower income for farmers. He calls on the government to support efforts to improve cattle breeds, so farmers can shift to higher-yielding improved breeds.
Mr Igaga also points out that farmers are struggling with poor pasture, widespread animal diseases, and a lack of modern equipment for storing and chilling milk. “If we, as a cooperative, can be supported with a milk cooler, it would make a big difference. It would not only help us store milk safely but also assist in mobilising more farmers to join and increase our milk collection volumes,” he says. Uganda is one of the top 10 milk producers in Africa and ranks second in East Africa, after Kenya.
The country’s dairy sector has grown rapidly over the years, and demand for its milk products keeps rising both locally and internationally. Dairy is one of the key agricultural products that the Government of Uganda continues to focus on under the Parish Development Model and the National Development Plan III (NDP III). This is because dairy plays a big role in boosting the country’s economy, creating jobs, improving household nutrition, supporting food security, and bringing in foreign exchange.
