Market Assessment

Uganda Dairy Sector Analysis, SNV, 2008

    The report provides a detailed overview of the Uganda's dairy sector, and assesses the importance of the sector for poverty reduction. The study starts by outlining recent trends in the dairy sector, including liberalisation, the decline and re-emergence of co-operative societies, and the shift from subsistence towards commercial production. It then gives an overview of the market for business development services within the dairy sector. A summary of the main interventions by donors and non-governmental organisations active in the dairy sector follows. After that, the report explores opportunities for investment and growth in the dairy sector. This section includes a SWOT analysis of the dairy sector. Next is a section on dairy sector policies and regulations. Finally, the report lists recommended interventions to promote growth and investment in Uganda's dairy industry.

    Summary of results
    The market analysis identifies numerous constraints to growth in Uganda's dairy sector. These are some of the key constraints:

    • Bottlenecks around transport and processing, particularly in the Western Region
    • Quality standards along the dairy chain are inconsistent
    • Inputs and services delivered to farmers are inconsistent
    • Milk marketing, including milk collection centres, remain largely informal
    • Public-private dialogue is weak within the sector, and sector-wide issues are not addressed
    • Little information is shared amongst actors in the value chain

    The report's major recommendations include:

    • Support to streamline the procurement and marketing of milk
    • Enhance stakeholder participation in the formulation and implementation of policies, standards and regulations
    • Improve smallholders' access to inputs
    • Artificial insemination and local breeding strategies must take account of climate and disease risk
    • Increase standards of hygiene in informal milk marketing channels
    • Develop national policies that stimulate demand for milk, such as school milk programmes
    • Address the unmet demand for certain milk products (e.g. milk ice and ice confection)