Business 1 November 2026 Nile Post

Ankole Dairy Factories Stuggle with Severe Raw Milk Shortage

Major dairy processing plants in the Ankole sub-region are operating significantly below capacity due to a severe shortage of raw milk caused by traditional farming methods. Source: https://nilepost.co.ug/news/383269/milk-shortage-leaves-ankole-dairy-factories-operating-below-capacity

Dairy processors across the Ankole sub-region are facing a severe shortage of raw milk, leaving major processing plants operating well below their installed capacities. Despite Mbarara’s renowned reputation as a major hub for milk production, local factories are struggling to secure enough daily supplies to keep their operations optimal.

Following an inspection tour of processing facilities in Mbarara and Kiruhura districts, Trade, Industry and Cooperatives Minister Sanjay Tana highlighted the massive discrepancy. While regional dairy plants boast a combined installed capacity of 2.5 million litres per day, they currently receive only about one million litres daily during the wet season.

During dry spells, the situation becomes even more critical. Milk supplies plummet to around 600,000 litres daily and can drop as low as 200,000 litres during severe droughts, rendering much of the expensive processing infrastructure completely idle.

Minister Tana attributed the supply deficit to traditional livestock management practices and a slow adoption of modern farming technologies. He emphasized that farmers must urgently upgrade their pasture management, water access, and feeding strategies to guarantee year-round production.

To combat the deficit, the government has announced targeted support for smallholder and commercial dairy farmers. Proposed interventions include the distribution of improved pasture seeds, the promotion of solar-powered water pumps, encouragement of silage production, and training in modern livestock techniques.

Industry leaders have welcomed these initiatives. Shyam Kotecha, Executive Director of Pearl Dairy Farms Limited (LATO), noted that a steady supply of high-quality raw milk is vital for maximising factory utilisation and supporting the national economy.

Stakeholders remain hopeful that modernizing the dairy sector will successfully bridge the supply gap and strengthen Uganda’s position in the dairy industry. Read the full story on Nile Post.