Institutional and technological innovations to foster agro-industrialization in Uganda: Insights from the dairy value chain

Abstract

According to the Uganda National Development Plan (NDP) III, Uganda will, for the period 2020/21 to 2024/25, focus on promoting agro-industrialization, prioritizing 11 selected commodities, including the dairy value chain. Agro-industrialization is expected to encompass increased agricultural production and productivity; increased agro-processing, value addition, and storage; increased agricultural product competitiveness in domestic, regional and international markets; and increased access to agricultural finance services. 1 Studies elsewhere show that for agro-industry to develop, both institutional innovations that attract investors and technological adoptions that improve efficiency are key. For instance, in Senegal, growth in an integrated vegetable value chain has been associated with development of a modern agro-industry that was built by local and foreign investors responding to opportunities created by demand in EU countries. 2