Milk prices rise 50% in Uganda because of drought
The price of a litre of milk in cities in drought-hit Uganda has risen to UGX3,000 ($0.83) from UGX2,000 ($0.56) last November, alongside a 25% reduction in supply. Underdeveloped farming practices and animal husbandry are adding to farmers' woes, in regions where little or no rain has fallen for months. The country has a total annual milk production capacity of 2.2 billion litres, with leading company Jesa Farm Dairy having capacity for 80,000 litres and Premier Dairies 15,000 to 20,000 litres.

Uganda operates on an open grazing system, which is vulnerable to weather shocks.

The ongoing drought in many parts of Uganda has caused a drop of more than 25% in milk supplies and rising farmgate prices. Processors have been forced to limit the range of products and to mark up prices.

Daily supplies are running out in both big and small outlets.

In most urban centres, a litre of processed and pasteurised milk has increased in price from Shs2,000 (52c) last November to Shs3,000 (78c) now.

Milk production of 2.2bn litres

Jesa Farm Dairy and Premier Dairies dominate the fresh milk retail market.

Jesa has installed capacity for 80,000 litres, while Premier has capacity for between 15,000 and 20,000 litres.

Total milk production in Uganda is around 2.2bn litres.

The country operates on an open grazing system, which is vulnerable to weather shocks.

Read more

EU milk collection to increase in 2017