The Structure and Competitiveness of Uganda’s Dairy Exports

Abstract

The study was prompted by the significant importance of the Dairy sector and Dairy exports to Uganda’s economy, thus creating the need to establish the extent to which Uganda’s Dairy’s export earnings were sustainable. Specifically we sought to establish whether Uganda’s Dairy exports were growing (or declining) in promising (or stagnating) export markets. The results indicate that Uganda’s dairy exports are concentrated on one product (i.e. milk and cream) and heavily concentrated in one export market (Kenya).  The results also indicate that the bulk of Uganda’s milk and cream exports are growing in promising markets. Thus, the Kenyan market that imports 80% of Uganda’s milk and cream is growing at a rate of 43 % per annum, and Uganda’s market share in the Kenyan market is growing impressively at 17 % per annum. However, Uganda’s market share is also growing in stagnating markets (DRC and Sudan). But such growth is pretty insignificant since the declining and stagnating markets only account for a minor proportion of Uganda’s milk and cream exports (3.7%).

Keywords: Uganda, Dairy Exports, Competitiveness, International Business and Trade