DDA Partners with FAO to Enhance Dairy Sector, Expand Milk Exports

The Food and Agriculture Organization of the United Nations (FAO) has announced a new partnership with the Dairy Development Authority (DDA) to strengthen the export capacity of Ugandan milk and dairy products, as part of the country’s ongoing commitment to bolster the dairy sector. This collaboration unveiled on World Milk Day, aims to assess potential new markets and boost the country’s competitiveness in the global dairy industry.

Aligned with Uganda’s Dairy Policy Action Plan, which sets objectives for consolidating and expanding the dairy sector, the DDA aims to increase the demand for Ugandan milk both domestically and internationally.

To achieve this, a comprehensive export competitiveness study will be conducted. Led by the FAO Monitoring and Analyzing Food and Agricultural Policies (MAFAP) program, FAO AgrInvest, and the International Growth Centre (IGC) in Uganda, in collaboration with the DDA, this study will analyze recent trade flows, identify dairy products and by-products with export potential, and evaluate Uganda’s comparative advantage compared to its competitors.

“The announcement of FAO’s support for Uganda’s milk exports on World Milk Day is an important step in boosting dairy exports. Understanding the competitiveness of Ugandan milk in international markets is the first stage toward transformation in production and nutrition. Through the Dairy Policy Action Plan and its accompanying measures and investments, the dairy sector is poised for positive change, ensuring better production and nutrition for all,” said Marco V. Sánchez, Deputy Director of Agrifood Economics at FAO.

The Dairy Policy Action Plan, implemented last year, outlines various measures to increase consumption, incentivize production, improve quality, and tap into export potential. These measures include infrastructure enhancements, waste reduction along the supply chain, improvement of operations at milk collection centers and processing facilities nationwide, enhancement of milk quality and shelf-life, and adherence to food safety standards for exports. Increasing milk demand will also stimulate investment throughout the dairy value chain, resulting in higher productivity, year-round supplies, and improved quality.

Samson Akankiza, the Acting Executive Director at the Dairy Development Authority, expressed the significance of milk in Uganda, both economically and for proper childhood growth and health. The DDA places a strong emphasis on boosting domestic milk consumption through the School Milk Program while expanding export markets to increase foreign exchange earnings for farmers.

Akankiza noted the timely nature of the dairy export competitiveness study, which aligns with their pursuit of additional export markets. He expressed gratitude for the collaboration with FAO in ensuring the growth of Uganda’s dairy sector.

These efforts to strengthen the dairy sector come as Uganda experiences a surge in raw milk production, increasing from 1.9 billion litres in 2014 to 3.2 billion litres in 2022. However, while exports have shown recent growth, they remain heavily reliant on demand from key East African markets, primarily neighbouring Kenya.

Furthermore, the DDA estimates that domestic milk consumption per household stands at just over half a litre (550 millilitres) per day. This falls significantly short, with a 68% deficit, of the dietary intake recommended by FAO and WHO. On average, Ugandans consume their recommended milk intake for only about two out of seven days a week.

FAO Representative in Uganda, Antonio Querido, expressed pride in the collaboration with the Dairy Development Authority and the joint efforts to enhance Ugandan milk exports, contributing to the ongoing strengthening of Uganda’s dairy sector.

As World Milk Day is celebrated, FAO reaffirms its commitment to supporting Uganda in improving the livelihoods of dairy farmers and traders while promoting the export of high-quality Ugandan milk and dairy products. Querido pledged continued FAO support to the DDA, building on past successes and contributing to the development of the country’s dairy sector.