Briefing Paper

Investing in High-end Dairy Products is Critical for Fostering Uganda’s Agro-industrialisation Agenda

Dairy products are the third-largest agricultural exports for Uganda after coffee and fish. Over time, dairy exports of milk and milk products have grown to over USD 73 million in 2018 from USD 0.31 in 2006. This has been attributed to increased compliance with both regional and international markets requirements. However, Uganda continues to export low-value products primarily. The export of high-end dairy products such as Whey, Casein, Butter and Oils, cheese and curd has been limited, implying high reliance on the export of low value-added products that fetch low prices at international markets. To boost export earnings and transform the sector as Uganda moves towards agro-industrialisation in earnest, we recommend investing in high-end products that command competitive prices in the regional and global markets.