NIGERIA - In a move aimed at enhancing economic cooperation, Nigeria is set to start importing milk and coffee from Uganda, following discussions between former Nigerian President Olusegun Obasanjo and Ugandan President Yoweri Museveni. 

This development marks a new chapter in trade relations between the two nations, with Uganda’s agricultural exports poised for expansion into the West African market.

During a recent visit, President Museveni hosted Obasanjo at Pearl Dairy Farms Limited in Mbarara City, where they explored Uganda’s potential for large-scale milk production. The visit also included a meeting with farmers from Kiruhura and Kazo districts, known for their contributions to the country's dairy sector.

Obasanjo expressed his interest in Uganda's agricultural capabilities, particularly the country's annual milk production, which stands at 5.7 billion liters. He affirmed Nigeria's eagerness to purchase processed milk and coffee from Uganda. 

“I am here to see how Nigeria can buy Ugandan milk, expand processed milk production, and coffee,” Obasanjo said, noting that many African countries, including Nigeria, still import milk from Europe despite Uganda's ability to meet these demands. 

“It's only recently that I learned Uganda is the leading milk exporter in Africa,” he added.

According to data from Statista, the revenue in Nigeria’s milk market is projected to reach US$5.90 billion in 2024, with an anticipated annual growth rate of 10.23% from 2024 to 2029. This expected growth is driven by an increasing population, rising incomes, and a growing middle class with shifting dietary preferences toward more dairy consumption.

In terms of volume, the market is set to reach 2.99 billion kilograms by 2029. A volume growth of 4.2% is expected in 2025, reflecting the rising demand for milk and dairy products across the country. However, domestic production remains insufficient, with the majority of Nigeria’s milk supply coming from imports to bridge the gap.

Nigeria’s dairy production is predominantly based on small-scale, traditional farming systems, which rely heavily on local breeds with low milk yields. 

Despite government initiatives aimed at boosting local production, including partnerships with private sector companies and programs to improve cattle breeds, Nigeria continues to face challenges in scaling up its dairy industry to meet its consumption needs. 

This reliance on imports makes Nigeria an attractive market for countries like Uganda, which is well-positioned to export its surplus milk to West Africa.

Uganda’s dairy sector sees growth

Uganda has emerged as a key player in Africa’s dairy industry, with its milk export value rising to US$264.5 million, according to the country’s Minister of State for Animal Industry, Bright Rwamirama. 

He highlighted the growing importance of the sector to Uganda's economy and reassured farmers that the government is actively working to address challenges such as tick infestations, which have impacted milk production. 

A vaccine to combat ticks is in its final stages of development, signaling hope for improved livestock health.

President Museveni, during Obasanjo’s visit, emphasized the need for Ugandan farmers to adopt modern farming practices to increase profitability. He encouraged a transition from traditional free-range grazing to zero-grazing methods and silage planting, which would allow farmers to optimize land use and increase milk yields. 

Museveni also urged families to register their farms as businesses to streamline production and avoid land fragmentation, reminding them that Uganda is producing for the broader African market.

Growing demand for Ugandan products

Nigeria’s interest in Ugandan milk and coffee aligns with efforts to reduce its dependence on imports from Europe, especially in sectors where African nations can trade with each other. 

The West African country, with its large population, represents a significant market for Ugandan products, offering an opportunity for Uganda’s farmers to expand their reach.

Uganda’s dairy and coffee industries have both shown resilience and growth potential in recent years. The country is the leading milk exporter in Africa, while its coffee remains one of its top agricultural exports. 

The growing trade with Nigeria is expected to further boost Uganda’s export economy and support its farmers as they tap into new markets across the continent.