The latest entrant into Uganda’s dairy sector is The Midland Group of companies’ new agro-industry arm, with a $15m (EUR11m) investment into producing milk and a range its products, which is trading under Pearl Diary brand. Construction of a processing plant in Mbarara is already under way and is scheduled to be completed in the first quarter of 2012.

Milk powder will be the intial end product, from 500,000 litres of milk per day. The company then plans to move into liquid milk, ghee, butter, cheese and butter oil, among other products. An estimated 250 jobs are expected to be created at the site. Uganda currently produces an estimated 1.5 billion litres of milk per year, and 90% is marketed as unprocessed. The country has a low per capita milk consumption estimated at 50 litres per person per year against 200 litres recommended by the World Food Programme.