Tanzania launches US$47M dairy initiative to empower farmers

TANZANIA – The Tanzania Agricultural Development Bank (TADB), in collaboration with the Ministry of Livestock and Fisheries, has launched a transformative initiative to boost the country’s dairy production.

The Tanzania Inclusive Processor-Producer Partnership in Dairy Project (TI3P), a four-year program from 2022 to 2026, was unveiled during the 2024 National Milk Week in Mwanza.

TI3P, backed by a US$7 million grant from the Bill and Melinda Gates Foundation and US$40 million from TADB, is set to empower smallholder dairy farmers and enhance milk production through strategic partnerships and innovative practices.

The project’s total investment of US$47 million will be used to provide beneficiaries with bred heifers, improving their dairy production capacity. The TADB funds are non-monetary loans, which beneficiaries repay through milk sales.

The primary goal of TI3P is to increase the availability of fresh milk for processors, who currently receive only 23.5% of the nation’s milk supply.

The project will involve conducting extensive training programs to enhance dairy farmers’ skills and knowledge, ensuring they can effectively manage high-yield dairy breeds.

Meanwhile, about 1,748 bred heifers have already been distributed to beneficiaries, with the project facilitating further distribution to improve milk production.

TI3P is setting up milk collection points within pastoralist communities and near processing plants to streamline the dairy business.

TADB offers a 25% subsidy on each bred heifer to support pastoralists during the initial stages until the calves reach maturity.

The project aims to provide ongoing support through extension services, inputs, and technology transfer to ensure sustained dairy productivity.

The project targets smallholder dairy farmers across Tanzania, with 69,062 farmers already benefiting. The support includes access to inputs, markets, finance for dairy value chain investments, and extension services.

By enhancing milk production, TI3P aims to increase the incomes of smallholder farmers and reduce poverty.

Loan repayment is structured through milk sales, with processors deducting payments from the fresh milk received and submitting the funds to TADB.

This system will ensure a continuous flow of income for farmers while enabling them to repay loans without direct financial strain.

TI3P is expected to significantly improve milk supply to processors and boost the overall productivity and profitability of the dairy sector.

By addressing bottlenecks in the value chain, the project will also facilitate the establishment and expansion of processing plants, improve milk collection efficiency, and ensure high-quality dairy products.

The project also aims to empower women in animal husbandry and promote gender inclusivity in the sector.

The project is a collaborative effort involving Heifer International, Land O’Lakes Venture 37, and Tanager Organizations.

It addresses cross-cutting issues such as gender and nutrition, significantly impacting the dairy sector.

Additionally, 45 Farmer Producer Organizations (FPOs) and 888 Dairy Interest Groups have been formed, collectively gathering over 15,000 liters of milk per day.

TADB is in the final stages of establishing 15 milk collection centers in the Kagera, Mara, Mwanza, and Shinyanga regions.

In collaboration with the private sector, the government is working to create an enabling environment by addressing policy and legal issues hindering the development of the dairy sector.

Subscribe to our food and agriculture industry email newsletters that provide busy executives like you with the latest news insights and trends from Africa and the World. SUBSCRIBE HERE