Uganda continues to pursue milk market in Algeria, confirms DDA

UGANDA – The Dairy Development Authority (DDA) has announced that Uganda has successfully secured a commercial bid to export approximately one billion liters of powdered milk valued at US$500 million (equivalent to Shs1.8 trillion) to Algeria.

The shipment of milk is scheduled to be sent to Algeria in February next year. This marks Uganda’s second attempt to enter the North African milk market following an unsuccessful effort last year.

Dr. Samson Akankiza Mpiira, the Executive Director of DDA, revealed during the celebrations marking the 70th anniversary of Algeria’s liberation in Kampala that Uganda has received a commercial bid allowing the country to export powdered milk from four processing companies. T

he bid follows a bilateral arrangement with the Dairy Authority in Algeria, granting Uganda a quota for milk exports to Algeria. Dr. Mpiira emphasized that Uganda aims to conclude the necessary documentation by mid-December 2024.

The move to tap into the Algerian market comes as Uganda diversifies its milk export destinations due to challenges faced in Kenya, a country that traditionally consumes over 40% of Uganda’s milk products.

Last year, discussions were held regarding an Uganda-Algeria milk deal, with the Algerian ambassador confirming that the quality of Uganda’s milk had been tested and approved.

The proposed deal includes exporting milk products worth US$500 million, providing support for the growing milk production sector in Uganda.

The dairy sector in Uganda has experienced significant growth, with milk production rising by 37% from 2.81 billion liters in June 2021 to 3.85 billion liters in 2023.

Notably, the value of milk and related products has also seen an increase from US$102.6 million in June 2022 to US$264.5 million in June 2023.

Despite challenges such as occasional blockades in Kenya, which remains a key export destination for Uganda’s milk products, the sector continues to be a vital contributor to Uganda’s economy.

Last year’s plan to kick-start exports to Algeria involved a consignment of 120,000 metric tonnes coordinated by Amos, Brookside, and Pearl dairies.

The Algerian government expressed their intent to support Uganda’s economy through imported powdered milk.

Additionally, bilateral agreements signed between Uganda and Algeria in various sectors, including agriculture, energy, and trade, aim to address new and emerging challenges faced by both countries in a globalized world.

In light of these developments, Minister Kahinda Otafiire, representing the Ugandan government during President Museveni’s visit to Algeria in March 2023, highlighted the importance of cooperation between the two nations in addressing shared challenges.

He emphasized the need to work towards shared prosperity, resilience, and stability, echoing the spirit of unity and progress that guided their forefathers.

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