March 27, 2013

Uganda's milk prices increase

Uganda's milk prices rose due to high demand outside Uganda despite increased local production, but prices are expected to stabilise after government plans to increase production of bear fruit in that period of time.

Uganda's State Minister for Animal Industry Bright Rwamirama said this in Kampala.

Uganda last year exported 1.6 billion litres of milk earning the country approximately US$11.5 million most of which was sold within the east African region. But regardless of the high market prices, farmers continue to earn meagrely from the dealers who pay them very little compared to what they put in. Prices have been going up in the past few months causing panic in low and middleclass consumers who are finding it hard to afford milk and it's by-products like ghee and yoghurt.

The increased number of processing plants in the value addition chain has also played a part in the escalating prices because now suppliers prefer selling to these processers than retailing in low end markets. The minister said Uganda sells its milk to the East African region, Mauritius, South Sudan, Southern Africa and powdered milk is sent to the Middle East. The government has continued to advocate for value addition and a shift from consumption of raw milk to processed dairy products. Because of this, processing plants in the country have increased to 31 spread across the cattle corridor.

Sameer Agriculture Livestock Limited, G.B.K. Dairy, Jesa Dairy Farm, Shumuk Dairy and Birunga Dairy are the biggest processing plants consuming a combined 694,000 litres of milk annually.