Africa’s Dairy Industry Booms with Steady Growth and Rising Investment in 2025

Leading producers like Egypt, Kenya, and South Africa drive milk output growth amid efforts to boost local production, modernize supply chains, and reduce import reliance across the continent.

Africa’s dairy industry is undergoing significant transformation, fueled by growing demand, investments, and modernization efforts. As of 2025, the continent’s milk production is expanding steadily, establishing it as a rising player in global dairy markets.

Leading the continent, Egypt and Kenya each produce about 5.7 billion kilograms of milk annually. Egypt combines large-scale commercial farms with many smallholder producers, benefiting from government programs focused on modern dairy infrastructure and improved cattle genetics. Kenya’s dairy sector is a showcase of cooperative movements and private sector growth, with producers like Brookside Dairy Limited and Githunguri Dairy Farmers’ Cooperative Society pushing innovation in farming and processing. Kenya’s model has helped empower thousands of small-scale farmers, particularly women, while increasing milk quality and supply chain efficiency.

South Africa produces around 3.8 billion kilograms annually and increasingly focuses on milk powder production, responding to rising demand for infant formulas and value-added dairy products across Sub-Saharan Africa. Major companies like Lactalis South Africa and DairyBelle are central players. Ethiopia also makes strides, producing approximately 4.3 billion kilograms of milk through expanding livestock populations and breeding improvements, supported by infrastructure investments, though challenges like limited veterinary access persist.

Other countries showing notable growth include Tanzania and Uganda. Tanzania produced about 3.3 billion kilograms in 2025, boosted by government policies promoting climate-resilient dairy practices, while Uganda’s dairy sector also expands rapidly with increasing private investments and cooperative-led farmer networks such as Pearl Dairy. Despite this progress, Nigeria, with Africa’s largest cattle population, produces about 700,000 tonnes annually, falling short of demand and relying heavily on imports, highlighting barriers such as feed shortages and infrastructure gaps.

Across Africa, cattle provide 79% of milk production, but milk from goats, sheep, camels, and buffalo also contributes importantly, especially in pastoral regions. Fresh whole milk dominates production, accounting for nearly 80%, followed by yoghurt and skim milk. Imports supplement local production to meet growing consumption, although export figures are slowly rising, with South Africa and Uganda among leading exporters.

Despite vibrant growth, the sector faces challenges, including high feed and transport costs, insufficient cold chain infrastructure, erratic power supply, climatic threats, and rural poverty. Governments and development agencies are focusing on policies and programs to enhance agricultural finance access, mechanization, animal health services, and sustainable farming practices to ensure resilience.

Looking ahead, Africa’s dairy market is forecasted to grow annually by nearly 10%, reaching significant market value by 2030. The sector is crucial not only for food security and nutrition but also as a key source of income, particularly empowering smallholder farmers and women. Efforts to improve milk quality, processing technology, and supply chains are positioning African dairy companies to compete more effectively on regional and global stages, signaling a promising future for the continent’s milk industry.​

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