Milk prices skyrocket
Jul 10, 2008
LOW production, long dry spells in the cattle corridor and the escalating fuel prices have pushed up the price of milk, an industry official has said.
By Macrines Nyapendi
LOW production, long dry spells in the cattle corridor and the escalating fuel prices have pushed up the price of milk, an industry official has said.
The farmgate price of milk has gone up by sh150 a litre from sh250 to between sh380 and sh400.
“The cost of producing one litre of milk is sh280 from sh160 due to climate variations. The rising fuel prices have hiked transportation from sh30 a litre to sh45. The cost of cooling at collection centres has also risen,†Timothy Agaba, a field officer with the Uganda Crane Creameries Cooperative Union, said.
In Kampala supermarkets, the prices of pasteurised milk went up from sh600 to sh800 for half a litre and from sh1,100 for a litre to sh1,700.
Unprocessed milk costs between sh700 and sh1,000 a litre from sh500 depending on the location.
Uganda’s five milk sheds produce about 1.5 billion litres of milk annually. About 800,000 litres are collected daily by the 98 collection centres of which only 500,000 litres are processed.
There are 11 dairy processing plants with a capacity of 810,000 litres. The processing plants are producing below installed capacity due to unavailability of raw milk. The dairy products include pasteurised and powdered milk, UHT, cheese, yoghurt, butter, cream, ice cream and ghee.
According to Isha Muzira, the Dairy Development Authority (DDA) manager, the per capita consumption of milk is 50 litres per person per year.
“Production normally falls at this time of the year. We expect prices to drop after some time. We (DDA) are undertaking an analysis to assess the situation,†Muzira said.
The informal sector handles over 80% of the milk produced daily, while the remaining 20% is processed.
“Dairy products are basic foods every family must have unlike those days when they were though to be a luxury. The shift has dramatically boosted the demand,†Agaba said.
The demand for milk and dairy products has exceeded production. Urban consumption has gone up by 20% due to continued encouragement by health workers for people to consume dairy products.
LOW production, long dry spells in the cattle corridor and the escalating fuel prices have pushed up the price of milk, an industry official has said.
The farmgate price of milk has gone up by sh150 a litre from sh250 to between sh380 and sh400.
“The cost of producing one litre of milk is sh280 from sh160 due to climate variations. The rising fuel prices have hiked transportation from sh30 a litre to sh45. The cost of cooling at collection centres has also risen,†Timothy Agaba, a field officer with the Uganda Crane Creameries Cooperative Union, said.
In Kampala supermarkets, the prices of pasteurised milk went up from sh600 to sh800 for half a litre and from sh1,100 for a litre to sh1,700.
Unprocessed milk costs between sh700 and sh1,000 a litre from sh500 depending on the location.
Uganda’s five milk sheds produce about 1.5 billion litres of milk annually. About 800,000 litres are collected daily by the 98 collection centres of which only 500,000 litres are processed.
There are 11 dairy processing plants with a capacity of 810,000 litres. The processing plants are producing below installed capacity due to unavailability of raw milk. The dairy products include pasteurised and powdered milk, UHT, cheese, yoghurt, butter, cream, ice cream and ghee.
According to Isha Muzira, the Dairy Development Authority (DDA) manager, the per capita consumption of milk is 50 litres per person per year.
“Production normally falls at this time of the year. We expect prices to drop after some time. We (DDA) are undertaking an analysis to assess the situation,†Muzira said.
The informal sector handles over 80% of the milk produced daily, while the remaining 20% is processed.
“Dairy products are basic foods every family must have unlike those days when they were though to be a luxury. The shift has dramatically boosted the demand,†Agaba said.
The demand for milk and dairy products has exceeded production. Urban consumption has gone up by 20% due to continued encouragement by health workers for people to consume dairy products.