Uganda’s dairy industry is producing more milk and earning more from exports, but limited adoption of agricultural technologies and persistent weaknesses in productivity and market access continue to constrain the sector’s potential.
The challenge is now at the centre of a new partnership between the National Agricultural Research Organisation (NARO) and Trade for Jobs Uganda, which aims to connect agricultural research with farmers, processors and other businesses that can turn innovations into commercial opportunities.
The two organisations signed a Memorandum of Understanding on November 2, 2026, at NARO’s National Livestock Resources Research Institute in Nakyesasa, Wakiso District.
The agreement provides for joint efforts to develop, transfer and commercialise dairy-related technologies, while expanding market opportunities and employment.
Figures from the Ministry of Agriculture, Animal Industry and Fisheries show that national milk production increased from 2.7 billion litres in 2020 to 5.4 billion litres in 2024.
The value of milk and milk product exports also rose from 264.5 million US dollars in 2023 to 285.4 million dollars in 2024.
However, growth in production has not automatically translated into higher productivity at farm level or resolved the difficulties facing producers and businesses along the value chain.
A 2024 analysis by the Food and Agriculture Organisation (FAO) identified seasonal fluctuations in milk supply, animal disease outbreaks, limited diversification of export markets and Uganda’s heavy reliance on Kenya for dairy exports among the challenges affecting the industry.
The FAO analysis also called for measures to strengthen the competitiveness and resilience of Uganda’s dairy exports.
NARO Director General Dr Yona Baguma said the new partnership is intended to address the gap between developing agricultural technologies and ensuring that farmers and businesses actually use them.
“Uganda has invested significantly in agricultural research and technology development. The opportunity now is to ensure that technologies generated through research reach farmers, businesses and other actors who can use them to improve productivity and incomes,” Baguma said.
He said NARO had developed several technologies with the potential to improve the dairy and livestock subsectors, including an anti-tick vaccine that he said had already been rolled out.
Baguma said the vaccine could also create employment opportunities across the livestock value chain.
Under the agreement, the two organisations will work with dairy processors, cooperatives, milk collection centres and agro-dealers to promote the adoption and commercialisation of technologies.
They will also design and test business models through which private-sector actors can support farmers to access and use innovations. The partnership further provides for stronger data and knowledge systems, stakeholder engagement and joint learning.
NARO will identify technologies with potential for wider adoption, provide technical expertise and coordinate commercialisation strategies.
Trade for Jobs Uganda will provide technical assistance in designing, testing and scaling interventions that support technology transfer through public and commercial channels.
The partnership is significant because Uganda’s dairy sector still faces a gap between its growing production capacity and the ability of farmers and businesses to benefit from improved technologies and markets.
A 2024 study by the International Livestock Research Institute (ILRI), titled Dairy Value Chain in Uganda: Situation Analysis and Prospects, found that the industry had grown substantially over two decades, transforming Uganda from a net importer into a net exporter of milk and dairy products. However, it also noted that domestic milk consumption remained low, at about 60 litres per person annually, against the World Health Organisation’s recommended 180 litres.
The study points to the need for continued investment in the dairy value chain, including production, processing and market development.
Baguma said the partnership would help NARO move beyond generating technologies to ensuring they produce practical economic benefits.
“We must now move from being catalytic to being truly impactful. Uganda’s dairy subsector is transforming rapidly and presents tremendous opportunities for individuals and enterprises to secure sustainable livelihoods,” he said.
Fernando Martinez Cure, Chief Technical Advisor at Trade for Jobs Uganda, said the partnership combines NARO’s research capacity with the project’s experience in decent work, market systems and inclusive economic growth.“Together, we can help ensure that innovations do not remain in laboratories and research stations, but are translated into productive enterprises, stronger markets and better livelihoods,” Cure said.
Trade for Jobs Uganda identified dairy and tourism as two sectors with potential to expand trade and improve employment outcomes. Its interventions seek to address market constraints and create more and better jobs, particularly for women, young people and people living in poverty.
The organisations say the agreement will be reviewed periodically to assess progress, address implementation challenges and identify areas for further collaboration.
However, the statement announcing the partnership does not specify the number of farmers or enterprises expected to benefit, the amount of funding committed, or the timelines for scaling up the technologies.
The impact of the agreement will therefore depend on how quickly the partners translate the commitments into accessible technologies, viable commercial arrangements and measurable benefits for farmers and businesses-URN. Give us feedback on this story through our email: kamwokyatimes@gmail.com
