Uganda has officially dispatched its first shipment of powdered milk to Algeria, marking a significant milestone in the country’s agricultural export history.
President Yoweri Museveni presided over the flagging off of the initial consignment—500 tonnes of whole powdered milk—destined for Algeria. This inaugural shipment follows agreements made during his March 2023 visit to Algeria, where he and President Abdelmadjid Tebboune discussed strengthening trade ties, particularly in the dairy sector.
The export marks the beginning of a broader trade agreement between the two nations, aiming to supply up to 1.4 billion litres of milk over several years, with an estimated total value of $500 million. The agreement encompasses a variety of dairy products, with powdered milk leading the way due to logistical and market demand considerations.
The initiative is expected to further boost Uganda’s rapidly growing dairy industry. According to the Dairy Development Authority (DDA), milk production increased by 37%—from 2.81 billion litres in 2021 to 3.85 billion litres in 2023. Correspondingly, the value of dairy exports surged from $102.6 million in 2022 to $264.5 million in 2023.
Despite occasional trade barriers within the East African region, the Algerian market offers new opportunities for Ugandan producers. The DDA has played a critical role in this deal, ensuring Uganda met Algeria’s procurement standards and regulatory requirements.
Algeria adds to Uganda’s expanding list of export destinations, which already includes Kenya, South Sudan, and Rwanda. The North African country’s strong demand for dairy products aligns with Uganda’s surplus production capacity, making it a strategic partner in diversifying export markets and securing long-term trade stability.
This export is seen not only as a commercial achievement but also as a diplomatic and economic victory, enhancing Uganda’s presence in new regional markets and strengthening bilateral relations.
