Uganda: Milk Shortage Leaves Ankole Dairy Factories Operating Below Capacity

1 November 2026

Dairy processors in the Ankole sub-region are struggling with a severe shortage of raw milk, leaving major processing plants operating significantly below their installed capacity.

Despite Mbarara's long-standing reputation as the "city of milk and honey", local dairy factories are unable to secure sufficient supplies to sustain optimal operations.

During an inspection tour of dairy processing facilities in Mbarara and Kiruhura districts on Friday and Saturday, the Minister of Trade, Industry and Cooperatives, Sanjay Tana, revealed that although dairy plants in the region have a combined installed processing capacity of 2.5 million litres per day, they currently receive only about one million litres daily during the wet season.

The situation worsens significantly during dry spells, when milk supplies drop to approximately 600,000 litres per day and can fall to as low as 200,000 litres during severe droughts, leaving a substantial portion of the processing infrastructure idle.

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"The huge gap between installed capacity and actual milk delivery severely undermines our industrial processing operations. This supply deficit is largely rooted in traditional livestock management practices and the slow adoption of modern farming technologies," Tana said.

He added that farmers needed to urgently improve pasture management, water access and livestock feeding strategies to sustain milk production throughout the year.

To address the supply deficit, the Ministry of Trade, Industry and Cooperatives has announced targeted interventions to support both smallholder and commercial dairy farmers.

The proposed interventions include distributing improved pasture seeds, promoting solar-powered water pumping systems, encouraging silage production and providing training in modern livestock management practices.

"We are planning to strengthen irrigation capacity for our farmers so that they can ably feed their livestock throughout the year. The Ministry of Agriculture has already embarked on this journey," Tana said.

Industry leaders have welcomed the proposed government interventions, emphasising that a consistent supply of raw milk is essential for the survival of dairy processing industries and the growth of the national economy.

"A consistent and reliable supply of high-quality raw milk is absolutely key to maximising factory utilisation and sustaining our sector's contribution to Uganda's economy," said Shyam Kotecha, Executive Director of Pearl Dairy Farms Limited (LATO).

He added that achieving this would require giving farmers access to reliable water sources, improved pastures, modern technology and strong support services.

With the proposed interventions, stakeholders are hopeful that modernising dairy farming practices will help bridge the milk supply gap, improve factory utilisation and strengthen Uganda's dairy industry.

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