Let’s travel back in time to ancient Mongolia, where warriors of the great Genghis Khan consumed a type of yogurt. But this was no ordinary yogurt; it was made from mare’s milk and known as “Kumis.” Imagine riding into battle after a hearty breakfast of this yogurt!

There are many stories related to dairy products. But did you ever think about where this dairy product comes from? Milk and any of the foods made from milk, including butter, cheese, ice cream, and yogurt are dairy products.

Now let’s talk about a country which has rich and potential for dairy products for the whole world. Uganda, an East African country, is powered by the mooing of cows and the dedicated hands of farmers. Here, milk is not just a drink, it is a potion that nourishes the community.

Let us join a journey through Uganda’s dairy lands. Here every drop of milk tells a story of hope.

Rapid Growth in Uganda’s Dairy Industry – Uganda’s dairy sector has seen impressive expansion, with milk production increasing by 37% to 3.85 billion liters in 2023, making it the second-largest agricultural export earner.

Major Dairy Players Driving the Market – Leading dairy companies like Brookside Dairy, Jesa Farm Dairy, and Amos Dairies are shaping the industry with high-quality dairy products and strong export potential.

Dairy Exports on the Rise – Uganda’s dairy exports have grown significantly, reaching UGX 750 billion in 2023, with key markets in East Africa, the Middle East, and North Africa.

Ankole vs. Holstein Friesian Cattle – Uganda’s dairy farming blends tradition and modernity, with the hardy, low-yield Ankole cattle alongside high-yield Holstein Friesians that produce up to 45 liters of milk per day.

Investment Potential in Uganda’s Dairy Sector – With strong government support, rising export demand, and major global investors, Uganda’s dairy industry presents lucrative opportunities for local and international stakeholders.

Uganda’s dairy sector is connected to its agricultural framework. The industry is supporting the livelihoods of many households. Especially in the southwestern regions. In this industry, we can see a mix of traditional smallholder farms and a few large-scale commercial operations.

The dairy sector in Uganda is indeed showing impressive growth. This sector is becoming a major contributor to the nation’s economy. It currently ranks as the second-highest source of export earnings in the agricultural sector. 

The sector’s value is estimated at about US $3.8 billion. Between 2018 and 2022, milk production increased significantly from approximately 2.51 billion liters to about 3.85 billion liters in 2023. Which indicates an average annual growth rate of 11%. This rate is among the highest for any sector in the Ugandan economy​. This growth happened because of strategic investments in dairy infrastructure. The government also focuses on improving dairy practices across the country.

Source: Researchtec Global

Figure: Overview of the dairy industry in Uganda

The major dairy companies in Uganda are shaping the country’s dairy industry. Here are some key insights and unique aspects about them:

Is one of the largest milk processors in East Africa. Brookside Dairy Limited stands out for its extensive range, producing fresh, long-life, flavored, and fermented milk, along with yogurt, butter, cream, and ghee. Brookside has a significant presence in Uganda through its subsidiary Fresh Dairy. It is a leading brand particularly known for its fresh and long-life milk products. The Est. revenue of the company is $19.65m.

Founded in 1988 by James and Sarah Mulwana. Jesa Farm Dairy has grown from a small operation to one of the largest milk processing companies in Uganda. Jesa offers a wide range of dairy products including pasteurized milk, UHT milk, yogurt, butter, and cream. It’s known for its market leadership in fresh pasteurized milk. They also have a considerable market share in Uganda. Jesa also supports local farmers through stable pricing and training. The Est. revenue of the company is $12.5m.

Amos Dairies is part of a New Delhi-based group that was established in 2013.  They are specialized in high-value products like ghee and casein protein powder. They support around 10,000 farmers. They also export a significant part of their product to Asian markets. The company has Est. revenue of $12m.

These companies play a critical role in Uganda’s dairy sector by production. Their processing capacities also contribute to the economy through job creation. and export revenues. By investing in the industry we can expect a promising future for dairy production in Uganda.

The revenue from the export of dairy products in Uganda has seen huge growth over the past few years. In 2020, the revenue was around UGX 480 billion, and this increased to UGX 750 billion by 2023. Specifically, the export value for the financial year 2020-2021 was USX 348.1 billion, up from UGX 196.5 billion the previous year. 

Additionally, dairy exports in the financial year 2021-2022 also showed a notable increase. Achieving a total of UGX 382 billion, which marks an 11% growth compared to the previous year. This shows the growth of Uganda’s dairy products in both regional and international.

These figures underscore a huge upward trend in the export sector of Uganda’s dairy industry. An increase in production capacity and improvements in quality that meet international market demands.

Ankole cattle are indigenous to the grasslands of East Africa. A region across Uganda, Rwanda, and Burundi. It is for this reason that they are easily recognizable since they have a very distinct look. By their long, large, and spirally curved horns which may be as long as 8 feet. It is not only beauty that is valued in these cattle but the ability as well. They are specifically suited for the arid and dry regions of their origin. It is also adaptable to different harsh conditions of the environment, which other breeds cannot withstand.

Figure: The Beautiful Long Horned Ankole Cows of Uganda

Ankole cattle are primarily kept for their milk. Which is rich in fat and favored for its creamy texture and distinct flavor. However, they are not high-volume milk producers. On average, Ankole cattle produce between 1.5 to 2.7 liters of milk per day. Which is less than commercial dairy breeds. But their milk has rich traditional and qualitative value in Uganda.

They are one of the widely known dairy breeds known internationally. They were initially from the Netherlands and some parts of Germany. It is noteworthy that Holsteins are present in all continents for their outstanding ability to produce milk. It is a common breed found in commercial dairy farms mainly because of its ability to produce milk.

Figure: Holstein Friesian

Holstein cows are known to produce an average of 23 liters of milk per day. Some of the cows go as far as producing up to 45 liters. This breed has been developed for the purpose of milk production and so it has been bred to produce large amounts of milk. Holstein milk is also characterized by lesser fat content than some of the other dairy breeds. Which makes it suitable for different types of dairy products like cheese, and butter among others. However, this breed needs a lot of attention in terms of care and feeding in order to sustain high production.

An inspiring real-life story from Uganda’s dairy sector is that of AGDI Dairy Farm. It was founded by retired Colonel Dick Buyingo and his wife Agnes in 2010. After a career in the military, Colonel Buyingo turned to farming. At first with traditional cattle and then shifting to commercial dairy farming with a business-oriented approach. The company won two prestigious awards in 2014 (Dairy Development Authority: Premium Award National Large Scale Dairy Farmer and New Vision: Best Farmer South Western Uganda).

The farm became a model of success in the local community. They also partnered with organizations like SNV to promote sustainable dairy practices. Which involves the youth in agriculture.

Another noteworthy example is JESA Farm Dairy. Which began as a small operation in 1989 and has grown into one of Uganda’s leading dairy producers. The company has innovated and expanded. Recently establishing a new plant that earned the prestigious Africa Food Award in 2023. This recognition underscores their commitment to quality and innovation in the dairy sector.

Source: The Farmer’s Journal Africa

Figure: Uganda’s Jesa Farms Wins Prestigious Africa Food Award

These stories highlight the transformation and success of Uganda’s dairy industry through innovation, strategic planning, and community involvement.

Investing in a dairy farm in Uganda offers several benefits. It is a promising venture for both local and international investors. Here are some key reasons to consider:

Strong Growth in Dairy Production: Uganda’s dairy industry has experienced huge growth. With milk production rising by 37% to 3.85 billion liters in the 2022-2023 period. Despite challenges like drought in some areas, the industry is still doing great.

Increasing Export Markets: The dairy sector in Uganda is not just filling local demand but is also expanding its reach into international markets. For example, Uganda’s dairy products, especially milk powder are exported to markets beyond East Africa. In the Middle East and North Africa, Uganda’s dairy products are their top priority. This is supported by the Uganda Dairy Development Authority. Which helps the identification of high-potential dairy products and foreign markets for exports​​.

Investment by Major Global and Regional Players: The sector has attracted investments from major global and regional players. For instance, The Rise Fund and Brookside Dairy have invested in local dairy companies such as Pearl Dairy. That will help to expand operations and enhance productivity.

In summary, Uganda’s dairy sector presents huge opportunities. They are backed by a growing production base. The expanding export markets, strong government, and international support are favorable for investments.

From the traditional Ankole cattle to the high-producing Holstein Friesians that have become symbols of modern dairy. There are strands of tradition and innovation in Ugandan dairy farms.

As we bid farewell to the story of Uganda’s dairy dreams, let not the country be seen as one with milk flowing but one that is leaping towards the potential that is limitless. In one way or the other, whether drinking tea mixed with Ugandan milk or taking a scoop of ice cream produced from raw materials sourced from Uganda, the consumers are consuming part of a developing story.

The dairy sector in Uganda is not just an industry but a culture of one cow, one farmer, and one investor at a time.