While the challenges posed by the COVID-19 pandemic have largely receded in 2023 in line with restrictions having eased in 2022, the dairy industry is now facing new challenges. Drought and inflation have emerged as significant challenges, influencing milk production and prices across the country.
Milk prices in Uganda have surged dramatically in 2023 due to an extended period of drought and global inflation levels. As a consequence, there has been a notable decrease in volume sales as consumers opt to shift towards informal markets, where they can purchase milk at a more affordable price.
Local consumers typically consume three main meals a day, with these consisting of breakfast, lunch and supper. Lunch is often the main meal of the day in Uganda.
Consumer diets in Uganda vary by income group and reflect a person’s ability to afford food. Some 35% of the population lived below the international poverty line of USD3.
he distribution of dairy products and alternatives is already fairly well established, particularly in urban areas. Urban road infrastructure continues to see heavy investment, with new roads being constructed and old roads repaired.
Over the forecast period, the anticipated high birth rate is set to drive the expansion of baby food, particularly dried baby food, benefiting from robust local manufacturing.
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Dairy Products and Alternatives
This report originates from Passport, our Dairy Products and Alternatives research and analysis database.
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