Start a Business in Dairy Processing: Milk, Ice-Cream, Yoghut, etc.

Start a business in dairy processing in Uganda and produce and sell packaged milk, yogourt, butter, cheese,etc.

Uganda’s dairy sector has registered commendable growth averaging 8-10% since 1991. But the country has more milk than processors can handle, presenting huge potential for investment in the sector.

It is estimated that 70% (i.e. 1.05 billion litres) of milk produced in Uganda is marketed commercially and the other 30% is consumed on the farm. Two marketing channels for milk exist – formal and informal. 80-90% of the marketed milk is sold through the informal marketing channel as raw milk. There are over 200 milk coolers with a total capacity of about 550,000 litres. Most of these are found in the South-West region of Uganda. Chilled milk is delivered to processing plants in insulated milk tankers. 10% of the processed milk is exported to the regional markets such as Kenya, Tanzania, the Democratic Republic of Congo, Burundi, Southern Sudan, Mauritius and Rwanda. Some dairy products are also exported to the Middle East.

Uganda presents investment opportunities for the establishment dairy plants to process pasteurised and UHT milk as well as yoghurt, ice-cream, butter and cheese.


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