September 23, 2004

Milk Prices Plunge In Uganda

The retail price of milk in Uganda has fallen from Shs 1,200 to Shs 900. Sources at the Dairy Development Authority attribute the fall to the increasing rains and improved climate in the districts of South and South Western Uganda.

"Production is going to increase if rains increase even in other areas. We are going back to a situation where more milk is going to be produced," said Mr Henry Kanyike, DDA Board Chairman. The retail prices countrywide had hiked two months ago due to a prolonged drought that hit the milk-producing areas.

"Production has now reached 50,000 litres per day, up from 20,000 litres when there was drought," according to the Dairy Corporation Ltd (DCL) Marketing Manager, Mr Edison Kadoma.

DCL's normal production capacity is about 80,000 litres on a daily basis. Uganda exports milk and its products to neighbouring Tanzania, Kenya and Rwanda.