Uganda's powder milk exports to Kenya increase

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Uganda's powder milk exports to Kenya increase
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Kenya is set to increase imports of milk powder from Uganda to address anticipated shortages as the country braces for a drop in milk production during the upcoming dry season.

Authorities in Nairobi have placed orders for more milk powder from Uganda, following reports of an expected decline in milk production during the July-August and December-February periods.

The Kenya Dairy Authority recently opened a window for more milk powder imports from Uganda, signaling a significant shift in the country's approach to meeting its dairy needs.

This change comes as Kenya typically experiences a shortage of liquid milk during the dry season, leading to higher prices and a strain on the local dairy industry.

By increasing the number of import permits, Kenya hopes to ensure a stable supply of milk powder to compensate for the expected production deficit.

The move is a reversal of previous restrictions on milk powder imports from Uganda, which had limited market access for Ugandan dairy producers.

Meanwhile, Kenya's maize imports from Tanzania have seen a substantial decline, dropping from 97% of total maize imports in the 2021/2022 marketing year to 63% in 2022/2023.

This reduction is attributed to non-tariff barriers and the imposition of export restrictions by the Tanzanian government in Dodoma.

A recent report by the US Department of Agriculture indicates that Kenyan traders have been importing maize from various sources, including Tanzania, Zambia, Uganda, and South Africa.

However, the drop in imports from Tanzania has led to logistical challenges for Kenyan traders due to new export procedures.

The increased milk powder imports from Uganda are expected to help alleviate some of the pressure on the local dairy industry during the dry months, while the shift in maize imports could signal a broader diversification of Kenya's agricultural supply chain.

 

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