By Felix Oketcho
President Yoweri Museveni has flagged off the shipment of the first batch of 500 tonnes of whole powdered milk valued at $8 million to Algeria.
According to the president, during his visit to Algeria in March 2023, he had good discussions with His counterpart His Excellency President Abdelmadjid Tebboune regarding Algeria’s interest in importing milk from Uganda.
“I am, therefore, happy to see the first shipment of whole powdered milk, starting with an initial batch of 500 tonnes valued at $8 million,” the President noted.
In 2023 President Museveni visited Algeria where he discussed Algeria’s plan to buy powdered milk worth 150 million US Dollars. The two leaders were addressing a business forum in Algiers during which several memorandums of understanding were signed including the milk one.
As of January 2024, Uganda produced about 3.85billion liters annually which represents a significant increase from 2.81 billion litres in 2021 and 3.2 billion in 2022, according to the Uganda diary Development Authority (DDA) report.
Apart from Powdered milk, Uganda is looking forward to export other products including Coffee, and Tea while importing products from Algeria such as petroleum jelly and petrochemicals.
With the Algeria’s interest in buying milk from Uganda worth 500 million dollars, the President’s continuous efforts in strengthening bilateral trade relations are bearing fruits.
Uganda’s currently milk production volume
In 2024, Uganda’s milk production was estimated at 5.3billion litres annually with national consumption around 800 million liters. This represented significant growth from 3.85 billion liters in January 2024 and 2.81 billion liters as of December 2021. The dairy sector is a major contributor to Uganda’s economy, with the dairy industry valued at US$3.8 billion. In 2024, Uganda’s dairy exports saw a mixed performance. While Uganda exported a record 604 MT of natural vanilla, indicating strong growth for that particular product, overall dairy exports were more complex. For instance, in June 2024 total exports decreased by 23.2% to $717million. The dairy sector, a key component of Uganda’s agricultural GDP, continues to face challenges like seasonal supply fluctuations and dependence on Kenya for exports