• Uganda and Nigeria signed a dairy marketing agreement covering 200,000 tonnes of milk powder valued at about $1 billion.
• West Africa imported dairy products worth an average $934 million per year between 2020 and 2024, according to FAO data.
• Uganda more than doubled milk production over the past decade and increased dairy export revenues eightfold.

Uganda and Nigeria concluded a dairy marketing agreement in mid-December 2025, according to reports from several local and international media outlets. Abuja committed to purchase 200,000 tonnes of milk powder from the East African country, with the transaction valued at an estimated $1 billion.

The agreement represents the second documented case of dairy trade between Uganda and West Africa.

In its dairy industry report published in May 2025, Uganda’s Ministry of Finance stated that the country exported nearly 1.1 billion Ugandan shillings ($305,000) worth of dairy products to Mali during the 2024/2025 marketing year. The ministry identified Mali as the only West African destination listed among Uganda’s clients during that period.

Before the agreement with Nigeria, Kampala also targeted the Senegalese market.

In 2023, Uganda’s Ministry of Agriculture announced plans to negotiate a trade agreement with Dakar. However, authorities have not announced a deal so far, aside from technical cooperation discussed in January 2025 following a meeting in Kampala between Senegalese Agriculture Minister Mabouba Diagne and Uganda’s Minister of State for Animal Industry Bright Rwamirama.

The discussions focused on four strategic cooperation areas. The talks covered dairy production infrastructure development, cooperative system strengthening, technological innovation in dairy farming, and support for livestock farmers to ensure sustainable and competitive production.

While Kampala continues to seek market access for its products, Dakar aims to leverage Ugandan expertise to boost domestic output and reduce reliance on imports, which account for about 50% of Senegal’s national dairy needs.

Opportunities in a Import-Dependent Region

Access to the Nigerian market strengthens Uganda’s footprint in West Africa, complementing its earlier entry into Mali.

FAO data show that West Africa produced an average of 5.01 million tonnes of fresh milk per year between 2020 and 2024. Over the same period, the region imported an average of 1.98 million tonnes per year of dairy products in milk equivalent, including yogurt, butter, cheese, condensed milk, cream, and milk powder.

The FAO ranks West Africa as Africa’s second-largest dairy importing sub-region after North Africa.

FAO estimates place the region’s annual dairy import bill at an average of $934 million between 2020 and 2024.

While Nigeria and Senegal remain Uganda’s priority markets for export diversification, Kampala could also target other large importers in the region, including Mauritania, Ghana, Burkina Faso, and Côte d’Ivoire.

Uganda’s Dairy Exports Gain Momentum

Uganda traditionally directed most of its dairy exports to neighboring East African countries, particularly Kenya. However, authorities now seek to diversify destinations across the continent as domestic production accelerates.

Over the past decade, Uganda more than doubled milk output, significantly expanding volumes available for export.

Ministry of Finance data show that milk production rose from 1.9 million tonnes in 2013 to 3.85 million tonnes in 2023. Output then climbed to a record 5.4 million tonnes in 2024.

Export revenues followed the same trajectory. Dairy export earnings increased eightfold, rising from $28.68 million in 2014 to $264.5 million in 2023. The current production momentum could push revenues to new highs.

Milk powder dominates Uganda’s dairy exports, accounting for 54.2% of total export value. Ultra-High Temperature (UHT) milk follows with a 33.1% share.

This article was initially published in French by Stéphanas Assocle

Adapted in English by Ange Jason Quenum