Global Courant 2023-05-07 18:51:51
Kenya’s Permanent Secretary for Agriculture and Livestock, Harry Kimtai, recently announced the suspension of the ban on the import of milk powder from Uganda.
“Please note that imports of products under the East African Community (EAC) Protocol refer to goods imported from outside the East African Community, while goods traded within the EAC are referred to as transfers”, Kimtai said in his suspension notice.
However, Ugandan dairy industry players continue to struggle with non-issuance of export licenses and sometimes delays in their issuance by the Kenya Dairy Board.
Sources indicate that some processors are not getting the permits at all, which calls into question the criteria Kenya Dairy Board uses to grant the permits.
According to Musafari Hamidu, a truck driver for one of Uganda’s leading dairy companies, each milk processor would initially be issued permits for 5 trucks a day through the Kenyan border, although at present only a few trucks can clear customs for an entire week.
“As a truck driver, I’m inactive because I usually spend almost a week waiting for permits to be approved before the dairy products can be loaded onto my truck from the factories,” says Musafari.
Kenya has been the main buyer of Ugandan milk products, although trade relations have been inconsistent due to various barriers, leading Uganda to look for new markets for its milk and milk products.
According to Uganda’s Dairy Development Authority, the country has created new markets for its milk, including the Democratic Republic of the Congo, South Sudan, Zambia and Algeria. Others are United Arab Emirates, Syria, Japan, Oman, USA, Nepal and Bangladesh.
Currently, DDA reports more than 880 accredited dairies. These include Pearl Dairies, Brookside Limited/Fresh Dairy, Jesa Farm Dairy, Amos Dairies Uganda Limited, Paramount Dairies Limited, GBK Dairy Products Limited and Lakeside Dairy Limited.
Kenya Dairy Board issued a statement dated March 6, 2023 stating that the government of Kenya has halted imports of milk powders to protect the industry from overproduction and low producer prices. Consequently, the Kenya Dairy Board said it would monitor production and demand for milk and dairy products in the country and advise the government accordingly.
This announcement directly reinstated Kenya’s 2021 import ban on Ugandan dairy products, which went against Kenyan President Ruto’s directive to lift a ban on Ugandan agricultural products such as milk, eggs and chicken. It followed a meeting between President Yoweri Museveni of Uganda and Kenyan Trade Minister Kuria Moses in Kampala in late January 2023.
According to the Dairy Development Authority (DDA), milk production is estimated to have increased from 2.08 billion liters in 2015 to 2.64 billion liters in 2020.
By the end of 2021, milk production is estimated to be 2.81 billion litres, short of the target of 3.0 billion litres.
Dairy exports in the country hit a record high of UGX 358.6 billion in the past four years and nearly doubled compared to last fiscal year 2019/20, with dairy equipment worth UGX 18.9 billion imported into the country to support growing trade to support. This implies that milk production in Uganda is increasing with massive investment by dairy producers and farmers.
