"Ugandan Minister Urges Dairy Sector to Find New Markets Amid Kenya-Uganda Trade Disputes"
Ugandan Minister of East Africa Affairs, Rebecca Kadaga, is encouraging players in the Ugandan dairy sector to explore alternative markets for their dairy products while trade disputes between Kenya and Uganda are being resolved. In a speech during the National Resistance Movement (NRM) manifesto week, Kadaga expressed her expectations for feedback from Kenya regarding the rescindment of the milk ban.
The ongoing trade disputes between the two countries have posed frequent challenges for Uganda, prompting Kadaga to propose that the dairy sector seek new markets to enhance milk and milk product exports. She highlighted the untapped potential of the African continent as a market for Uganda, pointing out that West African countries currently import milk from Europe. Additionally, Kadaga revealed her proposal to the Ministry of Works (Uganda) to initiate cargo flights to South Africa.
The Ugandan dairy market in Kenya has faced limitations due to the trade situation between the two countries. In March, Kenya imposed a ban on powdered milk from Uganda to protect its local producers, but later reversed the decision. However, the Kenya Dairy Board temporarily suspended the issuance of dairy product import permits from Uganda until further notice.
Moreover, Uganda's Dairy Development Authority confirmed that Kenyan authorities have reduced the number of export permits for powdered milk from Uganda by approximately 20%. Despite this, other dairy products still have market access in Kenya, providing opportunities for Ugandan milk players.
In the past, Uganda has sought alternative markets in Northern Africa due to ongoing trade conflicts with its East African neighbors. The move aims to offer Ugandan farmers and milk processors an additional market, providing them with more stability and opportunities for growth.
