August 10, 2004

Uganda Milk Prices Rise As Drought Persists

Prolonged drought in many parts of Uganda is taking its toll on milk prices. A litre of the processed milk from the Dairy Corporation Ltd is Shs1,200, up from Shs900.

Mr Charles Beisa, the Managing Director of Dairy Corporation Ltd (DCL), said a countrywide drought from May has affected milk production.

Output at DCL has dropped to about 20,000 litres per day from 80,000 litres and factory prices for the different packages are now well above Shs900 minimum from Shs640.

Most cooling plants in and around Kampala that sell unprocessed and semi-processed milk have also increased prices to Shs700 a litre from Shs500.

"These days we get very little milk from our suppliers in Nakasongola and Sembabule," said Ms Tinnah Kyakuwa, a milk vendor in Mengo.

In some supermarkets like Uchumi, the price per litre is Shs1,000. But it is being rationed to only four litres per buyer at a time.

Mr Edison Kadoma, the Marketing Manager DCL, said they have stopped packing milk for export, but are selling the Ultra Heat Treated which has been in the stock.

"When there is less milk we do not export milk. What is being exported is what was packed during the times of plenty," he said.