The Dairy Development Authority (DDA) has encouraged local milk processors to invest in casein acid milk processing and powdered milk production. These value addition investments, according to DDA officials, can elevate the value of raw milk by offering longevity and fetching higher prices in international markets.
DDA’s executive director, Samson Mpiira Akankiza, emphasized that producing both casein and powdered milk can be economically advantageous. Speaking at the National Diary Platform (NDP) executive meeting in Kampala, Akankiza pointed out that the processing cost of pasteurized milk yields an export factory price of shillings 2,200 per liter, leaving processors with a profit margin of shillings 248.
To prevent processors from operating at a loss, Akankiza stressed the importance of encouraging investments in the more durable processing of casein milk products and powdered milk. He highlighted that casein and powdered milk have a longer shelf life compared to pasteurized and Ultra High Temperature (UHT) milk, which take one to three months to produce.
In 2021, Uganda was the largest exporter of casein globally, generating $5.75 million in exports. The United States and Ethiopia were the primary destinations, with exports expected to increase by 3.3% in the next three years.
While Uganda relies heavily on Kenya as its main dairy market, there are concerns about the risks associated with over-reliance on a single market. The chairperson of the National Dairy Stakeholders Platform (NDSP), Solomon Osewe Oketcho, emphasized the need to diversify export markets to ensure sustained growth and resilience.
DDA Executive Director Akankiza revealed plans to explore the Algerian market for milk products in January. He also mentioned ongoing negotiations with Senegal, Indonesia, and Serbia. Akankiza believes that exporting casein and powdered milk could significantly benefit farmers at the farm gate.
In addressing concerns raised by farmers, Akankiza explained that raising the prices of farm-gate milk for small and medium farmers is essential to prevent processors from operating at a loss. The move towards investing in casein and powdered milk production is seen as a solution to increase farm-gate prices for livestock farmers and eliminate exploitative practices.
