Three Ugandan dairy companies have secured a landmark export deal to supply processed milk to Algeria, marking a significant boost for the country’s dairy industry and positioning Uganda as a key player in Africa’s milk export market.
The deal, which was finalized earlier this week, follows months of bilateral trade negotiations between Ugandan and Algerian authorities aimed at enhancing agricultural trade between the two nations. The three firms — Pearl Dairy Farms Limited, Amos Dairies, and Lakeside Dairies — are set to begin exports in June, with an initial combined shipment of over 500,000 litres of long-life milk.
According to the Ministry of Agriculture, Animal Industry and Fisheries, the agreement is expected to generate over $20 million in revenue annually and create more than 1,000 direct and indirect jobs across the dairy value chain.
“This is a huge milestone for our dairy sector,” said Minister Frank Tumwebaze. “It reflects the growing demand for Ugandan milk in international markets and reaffirms the quality standards our processors have achieved.”
Uganda, one of Africa’s top milk producers, has been working to expand its market base beyond the East African region, with Algeria offering a new and lucrative market in North Africa.
Pearl Dairy CEO, Amit Sagar, welcomed the deal, noting it would not only increase revenue but also stabilize prices for local dairy farmers. “This gives our farmers a bigger market and ensures a steady demand for their produce,” he said.
The Uganda Export Promotion Board hailed the agreement as a key step toward diversifying the country’s export portfolio, which has traditionally relied heavily on coffee, tea, and fish.
The first consignment is expected to be flagged off by President Yoweri Museveni in a ceremony set for mid-June.