Meat producers welcome govt’s sh352b loan to boost livestock sector
Dr Ruhinda Kagoro, the chief executive officer of UMPCU, told New Vision in an interview on September 4, 2025, that Uganda urgently needs a national traceability system and improved infrastructure to boost productivity and open access to international markets.
Meat producers welcome govt’s sh352b loan to boost livestock sector
By John Odyek
Journalists @New Vision
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The Uganda Meat Producers Cooperative Union (UMPCU) has welcomed the government’s plan to borrow sh352b to boost the livestock sector.
The government has asked Parliament to approve borrowing up to $99.56m (sh352b) from the International Fund for Agricultural Development (IFAD) to finance the proposed Resilient Livestock Value Chain Project (RELIV).
Dr Ruhinda Kagoro, the chief executive officer of UMPCU, told New Vision in an interview on September 4, 2025, that Uganda urgently needs a national traceability system and improved infrastructure to boost productivity and open access to international markets.
Traceability system key to exports
“We need a market system that can trace every animal we sell to guarantee consumer protection and strengthen Uganda’s image as a reliable source of safe animal protein,” Kagoro said.
He noted that the absence of a traceability system has locked Uganda out of premium beef markets.
“A kilogram of high-quality beef could fetch up to sh40,000 if we can prove that it is safe and disease-free. For this to happen, government must invest in feed infrastructure, modern machinery, and improved animal nutrition to raise productivity per unit area,” he explained.
Rising demand and land pressure
Kagoro underscored the livestock sector’s importance to national food security. With Uganda’s population growing rapidly, demand for meat and milk is outpacing supply, while available grazing land continues to shrink.
Dr Ruhinda Kagoro, the chief executive officer of UMPCU.
“There is increasing competition for land due to road construction, agriculture, and industrial development. Yet the land area is fixed while pressure from human settlement expands. Unless we adopt the right policy frameworks and technologies to multiply livestock that grow faster and produce more meat and milk in shorter cycles, Uganda faces a major challenge in meeting future demand,” Kagoro cautioned.
Linking livestock to crop production
He highlighted the vital role of livestock by-products in sustaining agriculture.
“Animal manure is essential for soil fertility and crop production. We must strengthen the crop-livestock interface and adopt technologies that ensure safe use of manure while improving output,” Kagoro said.
Climate sustainability and clean energy
Addressing climate concerns, Kagoro stressed the need for sustainable livestock systems.
“Livestock are often blamed for greenhouse gas emissions, but with proper nutrition and improved breeds, we can reduce emissions significantly. At the same time, we should harness biogas systems to generate clean energy for cooking and lighting, turning waste into opportunity,” he added.
Finance state minister Henry Musasizi tabled the request before Parliament on September 3, 2025.
He explained that the project is designed to strengthen dairy and beef value chains, generate resilient livestock breeds, and improve production, storage, processing and marketing systems. RELIV aligns with the Parish Development Model and the National Development Plan.
Supporting farmers in the cattle corridor
The project will target 51 districts within Uganda’s cattle corridor. Its main objective is to improve the income, nutrition and resilience of smallholder livestock farmers, while reducing poverty and vulnerability to climate shocks.
Cattle are the most important livestock species in Uganda, with an estimated population of 14.5 million (UBOS, 2024). In 2023, milk production was estimated at 5.0 billion litres, while beef output stood at 225,045 metric tonnes (MAAIF, 2023).
Uganda is a net exporter of livestock products and live animals. Exports are dominated by dairy products, valued at $264.5 million, while beef plays a smaller role at $6.2 million.
Experts note significant potential to increase exports, particularly milk within the region and beef to Middle Eastern markets.
Benefits
Musasizi noted that RELIV will invest in breeding, multiplication and certification of improved livestock, animal disease control, agricultural mechanisation and irrigation, farmer education and mobilisation, research and partnerships with large landowners.
The minister recalled that President Yoweri Museveni, through a directive in May 2022, instructed the Ministry of Finance to mobilise resources for livestock development. Cabinet has since approved the Agricultural Value Chain Development Strategy, which identifies key interventions to unlock bottlenecks across Uganda’s agricultural systems.
Agriculture’s central role
Agriculture remains the backbone of Uganda’s economy, employing 70% of the population and contributing 24.7% to GDP in FY2023/24. In absolute terms, its contribution rose from sh35.36 trillion in FY2020/21 to sh50.01 trillion in FY2023/24.
Livestock accounts for 21% of agricultural value added and 4.3% of national GDP, with a cattle population of 14.5 million. Uganda produced 5 billion litres of milk and 225,000 metric tonnes of beef in 2023, exporting mainly dairy products worth $264.5 million.
However, per capita consumption of beef (6kg) and milk (36 litres) remains low compared to regional averages. With Uganda’s population growing rapidly, the Food and Agriculture Organization projects that demand for beef and milk will rise by 320% and 200% respectively, by 2050.
Challenges facing the sector
Despite its potential, the livestock sector faces multiple challenges, including recurrent outbreaks of foot and mouth disease, contagious bovine pleuropneumonia, lumpy skin disease, inappropriate use of antibiotics raising risks of antimicrobial resistance, overgrazing and land degradation in the cattle corridor.
Other challenges include climate change and prolonged droughts leading to water and fodder shortages, weak cold-chain systems and reliance on informal milk markets, which affect quality and food safety. Farmers’ organisations also remain underdeveloped, limiting access to finance, markets and essential services.
Musasizi emphasised that IFAD’s financing will help address these challenges by building on the agency’s experience in supporting smallholder farmers and cooperatives across Africa.
“This project will enhance livestock production, improve resilience and strengthen market access to drive agricultural commercialisation and socio-economic transformation,” he said.
Speaker of Parliament Anita Among, who chaired the House session, urged the Parliamentary Committee on the National Economy to scrutinise the loan urgently, noting that the deadline for signing the agreement with IFAD is September 12, 2025.
RELIV is expected to complement ongoing agricultural investments, foster agro-industrialisation and boost Uganda’s competitiveness in regional and international livestock markets.
The Ministry of Agriculture, Animal Industry and Fisheries will lead the project implementation. A Project Steering Committee will be established, bringing together representatives from key ministries, departments, agencies and the private sector to provide strategic direction and ensure coordination.