Uganda's Dairy Sector
Uganda is East Africa's second-largest milk producer after Kenya, with an estimated 3.2 billion litres produced annually. The dairy sector supports approximately 5 million rural households and is growing rapidly — driven by increasing domestic consumption and expanding export markets.
Dairy Cattle Breeds — Choosing the Right Cow
| Breed | Daily Yield | Purchase Price | Best For |
|---|---|---|---|
| Friesian (exotic) | 20 — 35 litres/day | UGX 4M — 8M | Commercial zero-grazing units |
| Friesian x Ankole (F1 cross) | 8 — 15 litres/day | UGX 2M — 4M | Semi-commercial farming |
| Ankole longhorn | 2 — 4 litres/day | UGX 800K — 2M | Traditional farming |
Milk Prices Uganda 2026
- Raw milk farm gate: UGX 800 — 1,400 per litre — varies by location and season
- Kampala suburb farm gate: UGX 1,200 — 1,600 per litre
- Milk processor buying price: UGX 900 — 1,200 per litre for certified farms
- Pasteurised milk retail: UGX 2,500 — 4,000 per litre
Dairy Value Addition — Higher Margins
- Pasteurised milk: 2 to 3 times raw milk price. Pasteuriser investment: UGX 5M to 30M.
- Yoghurt production: 4 to 6 times raw milk value. Low equipment cost to start.
- Ghee (clarified butter): Strong demand. Traditional Ankole ghee commands premium prices.
- Cheese: Growing premium market in Kampala and export.
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