Uganda has officially begun exporting dairy products to Algeria, marking a significant milestone in its agricultural trade.

President Yoweri Museveni announced the dispatch of the first shipment of whole powdered milk, consisting of an initial batch of 500 tonnes. This follows discussions during his visit to Algeria in March 2023, where he and President Abdelmadjid Tebboune explored Algeria’s interest in importing Ugandan milk.

The shipment is part of a broader trade agreement between the two nations, aiming to export up to 1.4 billion liters of milk over several years, with an estimated value of $500 million. While the agreement covers multiple dairy products, powdered milk takes priority in the initial phase.

Uganda’s Dairy Development Authority (DDA) has played a key role in facilitating the export, ensuring compliance with Algeria’s procurement procedures.

Strengthening Uganda’s Dairy Sector

This initiative is expected to boost Uganda’s dairy industry, which has witnessed considerable growth. Milk production surged by 37%, rising from 2.81 billion liters in 2021 to 3.85 billion liters in 2023.

The value of milk and dairy exports also increased, growing from $102.6 million in 2022 to $264.5 million in 2023.

Although trade barriers in regional markets occasionally pose challenges, Algeria presents a promising avenue for Ugandan dairy producers.

Expanding Export Opportunities

Algeria joins Uganda’s list of key export destinations alongside Kenya, South Sudan, and Rwanda. The country’s substantial demand for dairy products aligns well with Uganda’s growing production capacity, strengthening international trade relations and further expanding Uganda’s dairy footprint.