The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis

This policy note summarizes results of a study on the impact of COVID-19 on dairy value chains in Uganda. We use a stack survey consisting of 1616 dairy farmers, 695 small-scale milk traders, and 93 milk collection centers (MCCs) that were surveyed in-person in late 2018 as the basis for follow-up t...

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Main Authors: Nabwire, Leocardia, Van Campenhout, Bjorn
Format: Brief
Language:Inglés
Published: International Food Policy Research Institute 2022
Subjects:
Online Access:https://hdl.handle.net/10568/141002
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author Nabwire, Leocardia
Van Campenhout, Bjorn
author_browse Nabwire, Leocardia
Van Campenhout, Bjorn
author_facet Nabwire, Leocardia
Van Campenhout, Bjorn
author_sort Nabwire, Leocardia
collection Repository of Agricultural Research Outputs (CGSpace)
description This policy note summarizes results of a study on the impact of COVID-19 on dairy value chains in Uganda. We use a stack survey consisting of 1616 dairy farmers, 695 small-scale milk traders, and 93 milk collection centers (MCCs) that were surveyed in-person in late 2018 as the basis for follow-up telephone interviews in 2020 and 2021. We find that the COVID-19 crisis mainly affected the dairy value chain through a reduction in demand as international trade reduced and households reduced consumption of more expensive foods due to income losses. As a result, prices drastically reduced at multiple stages of the value chain, and the number of actors affected by the price decrease worsened as the pandemic persisted. In general, we see that while dairy business closures during COVID-19 are limited, the joint reduction in demand and price leads to widespread reductions in scale of operation, dairy revenues and household income, although these somewhat recover over time, especially among MCCs. In the long-run, policy efforts to increase and stabilize local and export demand for dairy products seems most promising. For example, the government may institute policies that promote consumption of dairy products in schools and homes through information campaigns or temporary dairy vouchers. Government should also make it a priority to keep international trade flowing.
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spelling CGSpace1410022025-11-06T07:39:26Z The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis Nabwire, Leocardia Van Campenhout, Bjorn value chains processes foods traders agricultural value chains policies covid-19 farmers social protection institutions household income markets revenue food security international trade dairy industry This policy note summarizes results of a study on the impact of COVID-19 on dairy value chains in Uganda. We use a stack survey consisting of 1616 dairy farmers, 695 small-scale milk traders, and 93 milk collection centers (MCCs) that were surveyed in-person in late 2018 as the basis for follow-up telephone interviews in 2020 and 2021. We find that the COVID-19 crisis mainly affected the dairy value chain through a reduction in demand as international trade reduced and households reduced consumption of more expensive foods due to income losses. As a result, prices drastically reduced at multiple stages of the value chain, and the number of actors affected by the price decrease worsened as the pandemic persisted. In general, we see that while dairy business closures during COVID-19 are limited, the joint reduction in demand and price leads to widespread reductions in scale of operation, dairy revenues and household income, although these somewhat recover over time, especially among MCCs. In the long-run, policy efforts to increase and stabilize local and export demand for dairy products seems most promising. For example, the government may institute policies that promote consumption of dairy products in schools and homes through information campaigns or temporary dairy vouchers. Government should also make it a priority to keep international trade flowing. 2022-09-30 2024-04-12T13:37:03Z 2024-04-12T13:37:03Z Brief https://hdl.handle.net/10568/141002 en https://hdl.handle.net/10568/141086 Open Access application/pdf International Food Policy Research Institute Nabwire, Leocardia; and Van Campenhout, Bjorn. 2022. The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis. Working Paper February 2022. Washhington, DC: International Food Policy Research Institute (IFPRI). https://doi.org/10.2499/p15738coll2.136397.
spellingShingle value chains
processes
foods
traders
agricultural value chains
policies
covid-19
farmers
social protection
institutions
household income
markets
revenue
food security
international trade
dairy industry
Nabwire, Leocardia
Van Campenhout, Bjorn
The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title_full The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title_fullStr The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title_full_unstemmed The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title_short The risk of demand shocks in dairy value chains in Uganda: Policy lessons from the COVID-19 crisis
title_sort risk of demand shocks in dairy value chains in uganda policy lessons from the covid 19 crisis
topic value chains
processes
foods
traders
agricultural value chains
policies
covid-19
farmers
social protection
institutions
household income
markets
revenue
food security
international trade
dairy industry
url https://hdl.handle.net/10568/141002
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