Uganda is stepping up efforts to position its dairy products in West Africa after signing a major marketing agreement with Nigeria, as rising domestic milk output pushes authorities to seek new export destinations beyond East Africa.
Uganda and Nigeria concluded a dairy marketing deal in mid-December 2025 under which Abuja committed to purchase 200,000 tonnes of milk powder from the East African country, according to local and international media reports. The transaction is valued at an estimated US$1 billion, marking Uganda’s largest documented dairy agreement with a West African partner.
The deal represents only the second confirmed case of dairy trade between Uganda and West Africa, but officials see it as a breakthrough in accessing a highly import-dependent regional market.
Previously, Mali was the only West African country listed among Uganda’s dairy export destinations. In its dairy industry report published in May 2025, Uganda’s Ministry of Finance said exports to Mali were worth nearly 1.1 billion Ugandan shillings, or about US$305,000, during the 2024/2025 marketing year.
Before reaching the agreement with Nigeria, Uganda had also set its sights on Senegal. In 2023, the Ministry of Agriculture announced plans to negotiate a trade deal with Dakar, though no commercial agreement has been finalised so far.
Discussions continued in January 2025 during a meeting in Kampala between Senegal’s Agriculture Minister Mabouba Diagne and Uganda’s Minister of State for Animal Industry Bright Rwamirama. The talks focused on cooperation in dairy production infrastructure, strengthening cooperative systems, technological innovation in dairy farming and support for livestock farmers to improve productivity and competitiveness.
While Uganda seeks market access for its expanding dairy output, Senegal is looking to tap Ugandan expertise to boost domestic production and reduce dependence on imports, which account for around half of Senegal’s national dairy consumption.
Analysts say access to Nigeria’s vast market significantly strengthens Uganda’s footprint in West Africa, complementing its earlier entry into Mali and opening the door to further expansion in the sub-region.
According to data from the UN Food and Agriculture Organization (FAO), 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 of dairy products annually in milk equivalent, including milk powder, cheese, butter, yogurt and cream.
The FAO ranks West Africa as Africa’s second-largest dairy-importing sub-region after North Africa, with an average annual import bill of about US$934 million between 2020 and 2024.
Beyond Nigeria and Senegal, Uganda could target other large dairy importers in the region, including Mauritania, Ghana, Burkina Faso and Côte d’Ivoire, as it seeks to diversify export destinations.
Uganda has traditionally exported most of its dairy products to neighbouring East African countries, particularly Kenya. However, sustained growth in domestic production has prompted authorities to look further afield.
Over the past decade, Uganda has more than doubled milk output. Ministry of Finance data show production rose from 1.9 million tonnes in 2013 to 3.85 million tonnes in 2023, before climbing to a record 5.4 million tonnes in 2024.
Export revenues have followed a similar trend. Earnings from dairy exports increased eightfold, rising from $28.7 million in 2014 to US$264.5 million in 2023, and could climb further if current production momentum is sustained.
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Milk powder dominates Uganda’s dairy exports, accounting for just over 54 percent of total export value, followed by ultra-high temperature (UHT) milk, which represents about 33 percent.
Officials say expanding access to import-heavy markets such as West Africa will be key to sustaining growth in the sector and supporting incomes for Uganda’s dairy farmers.
