The increasing e ffective demand for livestock products such as milk, meat and eggs in Uganda drives farmers to supplement their livestock with concentrates to improve on their productivity . In Uganda about 33% of the dairy farmers use compounded dairy c oncentrate feed whi le a sizeable percentage of households nearly 56% use feed ingredients such as maize bran and rice bran as straights (EADD, 2010) . The annual production of compounded feeds by the commercial feed millers is estimated at about 75,000 t ons with small scale m ixers producing 40,000 ton (Graffham et al. 2003). In some areas farmers often supplement with compounded feeds aimed at maintain ing the animals ’ condition and sustaining production during the dry season (Lukuyu et al. 2009). However , Uganda is faced with serious problems related to availability of well formulat ed and balanced rations for adequate dairy cattle feeding. Despite an abundance of cereal grains and their by products such as maize and maize bran , sorghum, millet , rice bran and root crops (e.g. ca ssava) as energy concentrates as well as protein concentrates such as soybean, sunflower cakes, cottonseed cakes, peas and groundnuts , farmers have continued to lament about the high prices of commercial feeds and poor quality feeds (Nakiganda et al. 200 5). Over the past few years large and medium scale livestock feed producers have been reducing but with an increasing number of small scale ‘backyard’ feed mixers (Graffham et al., 2003). The apparent ‘liberalization’ of the feed market has allowed many s mall processors to penetrate the market supplying the concentrate cattle feeds to farmers. The emergence and growth of small scale feed producers in the chain have induced changes in feed value chains providing small producers with opportunities but on the other hand introducing new challenges into the concentrate feeds value chain. These changes and emerging challenges need to be thoroughly understood if appropriate action in improving concentrate feed production, delivery and use by smallholder consumers in Uganda is to be taken