Efforts to improve the dairy industry in TanzaniaA. P. Njombe, Y. N. Msanga, N.R. Mbwambo and A. TembaMinistry of Livestock Development and Fisheries The Smallholder Dairy Value Chain in Tanzania Stakeholder Meeting, Morogoro, Tanzania, 9 March 2012
Outline• Introduction• Past Experience in Cattle Improvement• Efforts in Developing the Industry• Status in the Dairy Industry – Milk production (challenges and solutions) – Milk collection, Processing and Marketing• Opportunities- Large number of cattle and ample land- Potential for domestic and export market- Milk Processing- Dairy Stakeholders Organisation• Conclusion
Introduction• Livestock are productive assets as livestock and livestock products contribute to food and income security of the rural poor• Livestock resources for Tanzania include 21.3 million cattle, 15.2 million goats and 6.4 million sheep. Other major livestock species kept in the country include 1.6 million pigs and 43 million chickens• More than 90% of the livestock population in the country is of indigenous types, kept in the traditional sector, known for their ability to survive and produce even under harsh environment with poor feed resources.
Introduction• The Sector grows 3.4% and contributes 3.8% to the GDP; of this; • 40% comes from beef, • 30% from Dairy, • 30% from other stock.• Livestock is among the major agricultural sub- sectors in Tanzania;• 4.9 million agricultural households;• 36% livestock households; and• 35% are engaged in both crop and livestock production
Introduction• The dairy industry is among the important components of the livestock sector; - source of animal protein, - Income; and - employment.• The sector has a great potential for improving the living standards of the people and contributing towards reduction of poverty.
Past Experience in Cattle Improvement• Selection within local breed• Characterization of the indigenous cattle that was done since 1926 clearly described indigenous cattle strains/breeds. Current work is on documentation of their performance parameters both on farm and under station. Through the work it was realized that there was genetic variation among the local cattle which can be exploited beneficially.• Major constraint to selection within the indigenous stock is lack of a comprehensive recording system
Development of a composite breed the Mpwapwa• Early introductions of Bos Taurus cattle breeds for milk production failed and crossbreeding also failed .• Efforts were made to introduce Indo-Asian breeds (Red Sindhi and Sahiwal) in the crosses produced earlier.• After selection and controlled breeding a composite dual purpose cattle breed was developed and declared in 1958. The estimated genetic composition of the breed is 10% European, 62% Indian breeds and the rest East African Zebu..• The milk production of this breed ranges from 1500 – 2000 litres per lactation.
Introduction of Bos Taurus breeds• Direct importation of Bos taurus dairy breeds.• Crossbreeding of Zebu cattle with Bos Taurus.• Bull Centres.• Crossbreeding by Use of AI.• Livestock Multiplication Units (LMUs).• Multiplication within smallholder farms
Current Development of the Dairy Industry• The Dairy subsector is still young but developing;• Aim is to modernize and commercialize the dairy industry to make it competitive;• Production of milk is mainly from indigenous cattle, small proportion from improved dairy cattle (crossbred of Friesian, Jersey, Ayrshire breeds with the TSHZ)• Production is mostly for the domestic market.
Milk Production• Dairy Cattle; – Population – 680,000 dairy cattle, – Breed - mainly crossbreds, – Current milk production - 1.65 billion Litres/annum• Major production systems; – Traditional system (indigenous cattle, concentrated in the lake, Northern and Central zones). – Commercial (dairy cattle) - improved cattle mainly crossbreds in use; further subdivided into systems integrated with crops, urban/peri-urban and a few specialized medium and large-scale.
Structure of the Dairy Industry• smallholder dairy farms are relatively small in size having 1–5 cows per household under Zero grazing;• specialized Medium Scale dairy farming system, milk production is the main economic activity of the farm, comprises of 10-50 cows;• Large Scale dairy farms are farms with 50 or more dairy cows. A number of such farms exist with a total of about 32,100 dairy cattle.
Challenge 1: Increase the number of dairy cattleAddressed by: – Improving AI services through better supply and distribution – Encouraging on farm breeding like the Iringa model – Increase number of heifers produced in farms
Challenge 2: Seasonal supply of feedAddressed by: – Improvements in feeding management by establishing pastures, – Providing concentrates and fodder preservation – Encouraging farmers to invest in large scale dairy farms
Milk Collection• Practiced in areas with surplus milk above the local market requirement which are connected to the markets mainly found near peri and urban areas.• Existing collection centers are operated through farmer’s groups, processors, some traders who collect and sell to processors or consumers.• Seasonal availability of milk discourage establishment of collection centers and processing plants.• Milk collection for processing will only be feasible if there is surplus production and a well established collection system which entails bulking and transportation.
Milk Collection• Dairy producer organisations make collection and marketing of milk easier.• A few dairy producer cooperatives exist in Tanzania, mainly found in Tanga (where 13 societies with 3,004 members exist).• Establishment of a well coordinated milk collection network an entry point towards successful milk processing and marketing
Milk Processing• Products processed from these plants include pasteurised milk, fermented milk, cheese, yoghurt, ghee and butter.• Among the efforts to create a conducive environment for development of the dairy industry, the government has exempted import duties for milk packaging materials, some equipment used in the collection, transportation and processing of milk and milk products.• Also, LGA’s are sensitizing the stakeholders to form groups, associations and cooperative societies in order to enhance milk collection, handling and processing.
Milk Marketing and Consumption• Generally 10% of raw milk produced reaches both formal and informal markets, of this only 2% is formally traded.• Commercial sector in which about 30% of milk is produced, the milk market share is apportioned as: - neighbours (86.1%), - local market (5.3%), - traders at farm (4.6%) and - processing factories (1.4%).
Milk Marketing and Consumption• Milk is mainly marketed in urban and peri urban areas where consumption is relatively higher.• A study conducted by Austro Project Association, indicate that 79.2% of milk customers purchase raw milk and 40% of consumers prefer fermented milk. Only a small (3.3%) proportion of consumers buy pasteurised milk.• About 41 m. ltrs. of milk is annually processed in the country into pasteurised milk, UHT, cultured, ghee, butter, cheese and cream and sold in the domestic market.
Milk Marketing and ConsumptionInitiatives to expand and develop a sustainable domestic milk market include; – Milk Consumption Promotion Campaigns – Milk Promotion Week conducted during May/June since 1998. – School Milk Feeding Programmes currently implemented in 91 Schools in 4 Districts. – Increase in milk consumption levels will have a catalytic effect in increasing demand thereby expanding the domestic milk market with influence in improving processing and milk production.
Opportunities and ProspectsLarge cattle herd, grazing land and pasture resources – A great opportunity for increasing milk production from indigenous cattle; – Need for increase in number of dairy cattle from the current 680,000 to about 3 million; – Availability of AI services could enable this target to be achievable; – Need for establishment of medium to large scale dairy farms to increase quantities of milk produced in one locality thus realizing economies of scale, minimizing seasonal variations, reducing milk collection and transportation related problems
Opportunities and ProspectsPotential domestic and export markets – Existence of potential domestic and regional markets - over 42.8 million people in Tanzania; – A growing economy and an emerging middle class with relatively high disposable income; – Potentials not fully utilised, challenge is to expand the internal market for milk and milk products and penetrate regional markets. – Deployment of quality assurance systems along the value chain and harmonisation of standards are important. – Other strategies include conducting of generic milk promotion campaigns (Milk Promotion Week, School Milk Feeding Programmes).
Opportunities and ProspectsMilk Processing – Production of UHT and other milk products can cut down importation bills on such milk products; – Increase milk processing capacity from the current 30% to at least 75% in order to increase profitability of the milk processing plants.
Opportunities and ProspectsDairy Stakeholder Organisations; – Strengthen TDB to organise and promote development of dairy stakeholder’s organisations among other activities. – Strengthen stakeholder’s organisations through registration; formalisation, provision of information, capacity building – training, skills enhancement. – Empower stakeholder organisations to access production, marketing and financial services among others.
ConclusionsMilk production is still low due to the small number of dairy animals, systems of production and the low demand of milk and milk products. These can be overcome by; – Upgrading of indigenous stock. – Developing large scale farms and having an effective extension system. – Creating effective demand for milk consumption and promoting investment in processing. – Creating conducive environment to guarantee investors of their investments and regulate the industry.