President Yoweri Museveni announced the dispatch of the first shipment of whole powdered milk, comprising an initial batch of 500 tonnes. 

This development follows discussions during his March 2023 visit to Algeria, where he and President Abdelmadjid Tebboune explored Algeria's interest in importing milk from Uganda.

The shipment is part of a broader agreement between the two countries, aiming to export up to 1.4 billion litres of milk over several years, valued at approximately $500 million. 

The deal encompasses various dairy products, with powdered milk initially taking precedence. 

Uganda's Dairy Development Authority (DDA) has been instrumental in facilitating this export, ensuring compliance with Algeria's procurement procedures

This export initiative is hoped to bolster Uganda's dairy industry, which has seen substantial growth in recent years. 

Milk production increased by 37% from 2.81 billion litres in 2021 to 3.85 billion litres in 2023. 

The value of milk and related products exported also rose from $102.6 million in 2022 to $264.5 million in 2023. 

Despite challenges such as occasional trade barriers in regional markets, Algeria presents a promising opportunity for Ugandan dairy producers.

Algeria represents a strategic addition to Uganda's export destinations, which include Kenya, South Sudan, and Rwanda. 

The Algerian market is particularly attractive due to its substantial demand for dairy products, which aligns with Uganda's production capacity.