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Dairy Development in Uganda

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Dairy Development in Uganda DAIRY DEVELOPMENT IN UGANDA MinistryThe Republic of Agriculture of Uganda Animal Industry and Fisheries (MAAIF) Food and Agriculture A Review of Uganda’s Dairy Industry Organization of the United Nations Dairy Development Authority (DDA) Author: David Balikowa National Consultant, GOU/FAO Dairy Project, TCP/UGA/3202(D); Senior Business Advisor, TechnoServe/East Africa Dairy Development Project (EADD) March 2011 i TABLE OF CONTENTS LIST OF TABLES .................................................................................................................................. v LIST OF FIGURES ................................................................................................................................ v ACRONYMS AND ABBREVIATIONS .....................................................................................................vi EXECUTIVE SUMMARY ...................................................................................................................... vii CHAPTER 1 ........................................................................................................................................ 1 1. INTRODUCTION ......................................................................................................................... 1 1.1 Geographical Location of Uganda ....................................................................................... 1 1.2 Contribution of Agriculture to the National Economy ......................................................... 1 1.3 Historical Overview of Dairy Development in Uganda ......................................................... 1 1.3.1 Introduction of temperate (Bos taurus) dairy cattle .................................................... 2 1.3.2 Introduction of artificial breeding services .................................................................. 2 1.3.3 Establishment of Dairy Corporation ............................................................................ 3 1.3.4 Rehabilitation of Uganda’s dairy industry ................................................................... 4 1.3.5 Recent developments in Uganda’s dairy industry ........................................................ 5 CHAPTER 2 ........................................................................................................................................ 7 2. INDUSTRY PLAYERS .................................................................................................................... 7 2.1 Dairy Farmers ..................................................................................................................... 7 2.2 Dairy Cooperatives and Associations .................................................................................. 7 2.2.1 Milk producer cooperatives ........................................................................................ 8 2.2.2 Dairy processors’ and traders’ associations ................................................................. 8 2.3 Dairy Sector Non-Government Organizations (NGOs) ....................................................... 10 2.4 Input Manufacturers/Suppliers ........................................................................................ 13 Chapter 3 ........................................................................................................................................ 15 3. POLICY AND REGULATORY ENVIRONMENT .............................................................................. 15 3.1 Dairy Sector Policy and Legal Framework ......................................................................... 15 3.2 The Dairy Master Plan (1993) ........................................................................................... 15 3.3 Dairy Industry Act, 1998 ................................................................................................... 16 3.4 Important Livestock Sub-sector Policies............................................................................ 16 3.4.1 Policy on marketing of livestock and livestock products ............................................ 16 3.4.2 Animal health policies .............................................................................................. 16 3.4.3 Animal Breeding Policy ............................................................................................. 17 3.4.1 The National Animal Feeds Policy ............................................................................. 17 i P a g e | ii 3.5 Broad National Development Policy Framework ............................................................... 17 3.6 Dairy Industry Standards and Regulations ........................................................................ 19 3.6.1 The Dairy (Marketing and Processing of Milk and Milk Products) Regulations, 2003.. 20 3.6.2 Code of hygienic practice for milk and milk products ................................................ 20 3.6.3 Standards for milk and milk products ........................................................................ 20 3.6.4 Other legal instruments governing the sale of milk and milk products ...................... 21 3.7 Operating Licenses and Fees ............................................................................................ 21 CHAPTER 4 ...................................................................................................................................... 23 4. CHARACTERIZATION OF THE MILK PRODUCTION SYSTEM ........................................................ 23 4.1 Cattle Population and distribution .................................................................................... 23 4.1.1 Cattle population ...................................................................................................... 23 4.1.2 Uganda’s milk sheds (dairy regions) .......................................................................... 24 4.1.3 Cattle ownership and distribution............................................................................. 25 4.2 Milk Production Estimates ................................................................................................ 26 4.2.1 Number of milked cows and average milk yield ........................................................ 26 4.2.2 National milk production estimate............................................................................ 27 4.3 Milk production systems .................................................................................................. 30 4.4 Dairy cattle breeding ........................................................................................................ 34 4.5 Genetic diversity of the dairy herd ................................................................................... 35 4.6 Dairy Cattle Feeding ......................................................................................................... 36 4.6.1 Feeding practices...................................................................................................... 36 4.6.2 Feed resources ......................................................................................................... 37 4.6.3 Supplementary feeding ............................................................................................ 37 4.7 Milk Utilization and Losses at the Farm Level.................................................................... 39 4.8 Demand and preferences for milk and dairy products ...................................................... 40 4.8.1 Income distribution .................................................................................................. 41 4.8.2 Frequency of consumption milk and dairy products .................................................. 41 4.8.3 Most frequently consumed dairy products ............................................................... 41 4.8.4 Frequency of consumption of milk and dairy products in the different regions ......... 42 Chapter 5 ........................................................................................................................................ 43 5. ANALYSIS OF THE DAIRY VALUE CHAIN..................................................................................... 43 5.1 Collection, Bulking and Transportation ............................................................................. 43 5.1.1 Milk bulking and transport infrastructure ................................................................. 43 5.1.2 Major milk producing areas ...................................................................................... 43 ii P a g e | iii 5.1.3 Milk producer cooperatives in south western region ................................................ 44 5.1.4 Milk deliveries to processing companies ................................................................... 45 5.1.5 Farm gate price for milk ............................................................................................ 47 5.2 Unprocessed Milk Trade ................................................................................................... 49 5.3 Formal Milk Trade ............................................................................................................ 52 5.3.1 Milk processing capacity ........................................................................................... 52 5.3.2 Major dairy products produced ................................................................................ 54 5.4 Milk Distribution and Retailing ........................................................................................
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