Kampala, Uganda – President Yoweri Kaguta Museveni has announced a major breakthrough for Uganda’s dairy sector, confirming the first-ever shipment of 500 tonnes of whole powdered milk to Algeria, in a landmark deal valued at USD 8 million.
The development stems from bilateral trade discussions held in March 2023, when President Museveni visited Algiers and held talks with his Algerian counterpart, President Abdelmadjid Tebboune.
As a result, a powerful signal of Uganda’s growing export capacity and Africa-to-Africa trade cooperation is finally being realized in action.
“During my visit to Algeria in March 2023, I had good discussions with His Excellency President Abdelmadjid Tebboune regarding Algeria’s interest in importing milk from Uganda,” Museveni shared in a statement on X (formerly Twitter).
“I am, therefore, happy to see the first shipment… an initial batch of 500 tonnes valued at $8 million.”
Uganda’s dairy industry, long praised for its potential yet constrained by market access and global visibility, is finally making moves on the continental export scene.
This inaugural shipment of powdered milk positions Uganda not only as an agricultural powerhouse in East Africa but also as a key supplier for North African markets.
According to the Uganda Dairy Development Authority (DDA), Uganda produces over 2.8 billion litres of milk annually, with much of it sourced from rural cattle corridors in Western and Central Uganda.
However, only a fraction is processed and exported, with Kenya and COMESA markets being traditional buyers.
This deal with Algeria opens a high-value market in North Africa, offering better prices and diversification in Uganda’s export portfolio.
“We’ve long known the quality of Ugandan milk is among the best in Africa. Algeria’s demand is proof that our dairy can compete globally,” said Sarah Kagingo, a trade analyst and former Presidential advisor.
This export win did not come by chance. Sources inside State House say the deal was personally pushed by Museveni, who sees agro-industrialization and regional trade as critical pillars for Uganda’s post-oil economic strategy.
The President’s direct involvement, rare in such granular trade matters, reflects a growing trend of head-of-state economic diplomacy. And this time, it worked.
For Uganda’s dairy farmers, especially those organized under cooperatives and private milk processors like Pearl Dairy, Lakeside, and Jesa Farm, the Algeria export agreement is more than numbers, it’s a lifeline.
Industry insiders estimate that if the partnership holds, Algeria could absorb up to 10,000 tonnes annually, transforming incomes for rural farmers and creating hundreds of jobs in processing, packaging, and logistics.
However, this will also require serious investment in cold chains, transport infrastructure, and quality control, something that Museveni has previously pushed through the Ministry of Trade and the Uganda Investment Authority.
The milk shipment comes at a time when intra-African trade is a hot topic, with the African Continental Free Trade Area (AfCFTA) promising to revolutionize how African nations do business with each other. Uganda’s milk-to-Algeria deal is a textbook example of what this future could look like.
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