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Manufacture of Dairy Products in East Africa According to the East and Southern Africa Dairy Association (ESADA), 12 billion litres of milk are produced in East Africa annually, accounting for 27.5% of the continent’s 2017 output. Factors including security of supply of high-quality milk and rising input costs continue to affect the performance of East African manufacturers of dairy products. East Africa’s increased imports of dairy products from Europe are posing a threat to dairy farmers and processors in the region. Many dairy processors also find it difficult to reach consumers, since informal channels typically account for around 80% of the dairy market. Opportunities for Growth The the region is home to a number of fast-growing economies such as Ethiopia, Kenya, Rwanda and Tanzania, but also to politically unstable countries such as Burundi, Somalia, and South Sudan. The regional economy grew 5.9% in 2017 but economic growth is generally not being accompanied by a decrease in unemployment or poverty. But the dairy sector is a fast-growing sector, which has been responsible for substantial economic returns and employment opportunities, and demand is growing as a result of an expanding urban middle class that enjoys dairy products. Simple improvements in efficiency and cold chain development could lead to significant increases in milk production. Report Coverage This report covers the manufacture of dairy products in East Africa, including comprehensive country-specific information on dairy production and consumption and major players in the sector. It includes reports on 30 companies involved in processing and distributing milk including the region’s largest dairy processor Brookside Dairy, which has a market share of 40% in Kenya and the largest distribution and retail network in Uganda. The report profiles companies such as Inyange Industries, which accounts for 60% of Rwanda’s processed milk and Somalia’s Dayibat, the only yoghurt producer operating in the Somaliland state.
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