The Dairy sector in Uganda has responded positively to agricultural sector liberalisation policies that took effect in the 1990s. Total national milk production has grown from 460 million litres in 1990 to 1.6 billion litres in 2011, with per capita milk consumption growing from 16 litres in 1986to 58 litres by 2010. A variety of dairy products that were previously imported are now being produced locally in the country. Driven largely by dairy, the livestock sector has maintained positive growth rates averaging 3 percent per annum compared to the declining (and often negative) growth rates registered in the food and cash crop sub sectors. Milk production increased primarily from growth in cattle population, and secondarily from adoption of higher milk yielding cattle. While milk production remains concentrated in the Western milk shed, there is evidence of dairy activities spreading to other non-traditional milk producing regions of the country especially in the Central and Eastern regions of Uganda. Development of the value chain in the dairy sector has led to employment creation and income generation not only for about 700,000 dairy farming households, but also for farm input dealers, dairy equipment dealers, dairy ingredients dealers, raw milk traders, milk transporters, mini-dairies, large scale milk processors, and distributors...