Ugandan Dairies Set to Supply Milk to Algeria: A New Export Triumph

In 2023, President Yoweri Museveni embarked on an official trip to Algeria. The primary objective of his visit was to find a new outlet for milk exports following Kenya’s refusal due to concerns about impacting their domestic market.

Following an extended period of discussions, agreements, auctions, and verifications, he initiated a shipment to Algiers on Thursday.

“I encountered Cherif Qualid, who serves as the Algerian ambassador to Uganda. It pleases me to learn that Algeria has expressed interest in purchasing milk valued at $500 million from our country,” stated President Museveni during the launch of the initial consignment of full-cream powdered milk in Entebbe.

During my trip to Algeria in March 2023, I engaged in productive talks with President Abdelmadjid Tebboune about Algeria’s desire to import milk from Uganda. It gives me great pleasure to witness the departure of the initial consignment of full-cream powdered milk.

Algeria is set to receive 2,100 tons of powdered milk, a product it typically sources from Europe.

The contract to provide milk to the North African nation over the next three years was secured by three top Ugandan processing companies: Pearl Dairy Farms, Brookside Uganda, and Amos Dairies Uganda.

The ceremony held at State House, Entebbe, on Thursday concluded a waiting period of 26 months for Ugandan powdered milk to be introduced into Algeria. This North African nation saw its milk market grow to $1 billion last year, up from $800 million in 2023.

Brookside Uganda is exporting four shipments of powdered milk worth $8.2 million via the Mombasa port. “I’m pleased to announce that we have finalized the export agreement, and this morning’s initial consignment of 2,100 metric tons will depart from the Mombasa port destined for Algiers,” stated Brookside finance director Kennedy Gatheru.

The 2,100 metric tons of powder is equal to approximately 17.9 million liters.

The introduction of the new market significantly benefits dairy farmers since Uganda generates excess milk beyond what is locally consumed or sold within the region. For example, during the initial three months of 2024, the country yielded 5.3 billion liters of milk; however, only 800 million was utilized domestically, resulting in an oversupply exceeding four billion liters.

“It marks the start of greater possibilities,” Gatheru stated.

Algerian officials dispatched multiple inspectors to verify that Uganda’s dairy goods comply with their quality requirements. However, during his visit to Kampala earlier this year, Algeria’s Minister of Agriculture and Rural Development, Youcef Cherfa, pressed Ugandan dairy producers to speed up the procedure.

Kenya has suggested eliminating excise duties on various food items such as milk starting from the fiscal year 2025/26, which offers some optimism for Ugandan dairy processors despite their reservations. According to Agha Ssekalala JR, the chairman of the Uganda Manufacturers Association, it is premature to rejoice over this proposal.