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Agri-Business 

Tuesday, April 22, 2014 

Rains cause Uganda milk prices to fall

MILKING: The coming of seasonal rains has meant more pasture for the cows and better milk quality than before


KAMPALA, Uganda – Sameer Agriculture and Livestock Ltd (SALL), the makers of Fresh Dairy milk products in Uganda recently announced a price reduction on their pasteurized milk.

Sudhir Mathulla, the SALL Business Head said, the lack of pasture and water for the animals had led to low production but consumer demand had remained constant throughout the dry season.  

At the height of the dry spell, the price of pasteurized packaged milk went up from about Ush2,000 (nearly 80 US cents) to between Ush2, 200 and Ush2, 500 ($1) per litre, depending on the location.

Now vegetation and water resources are beginning to recover in the central and southern parts of Uganda’s cattle corridor after rains started earlier this month.

This has also encouraged land preparation, planting, and weeding. 

Mathulla said since the rains are back and milk production has increased, the company has reduced the price of its pasteurized milk by Ush200. However, he said the rate the company pays to farmers on the purchase of raw milk remains unchanged with no reductions.

Dairy farming is concentrated in 42 districts found in the cattle corridor that stretches from south-western Uganda through the central region to the north-eastern part of the country. 

Meanwhile, a sample survey in some of Kampala’s markets shows that the prices of vegetables have started reducing especially for cabbage and other leafy vegetables.

In Kibuye Market near Kampala, the price of cabbage for instance has reduced from about Ush2,000 to Ush1,500. This is as a result of the increased supply.

However, the price of tomatoes and onions is still on the high side given that supply is still unpredictable. 

According to Famine Early Warning Systems Network (FEWS NET), Staple food prices were generally stable between January and February, except for beans. Despite the longer than usual dry season from December to early March, millet, sorghum, and cassava chip prices have remained stable with minimal fluctuation since December. 


By Emma Onyango, Tuesday, April 22nd, 2014