Developing scalable dairy value chain
approaches for marginalized communities in
Tanzania:
What progress have we made so far?
Maziwa Zaidi Review and Planning & SC Meeting
23-25 Sept 2015 Oceanic Bay Hotel & Resort, Bagamoyo
Amos Omore - ILRI

Criteria for becoming a dairy market hub
Category Criteria a
a): DMH with collective bulking
and marketing: sale of milk by
members of a farmers group
Farmers group
i) is registered at district level
ii) has at least 1 link with a milk trader/
buyer or at least 1 link with an input &
services provider
iii) members are able to access inputs &
services with or without on “check-off”
system
b) DMH without collective bulking
and marketing: Individual
members of a farmers group sell
milk directly to traders or
consumers
aTypes of DMHs are further distinguished by the number of business linkages, whether two legs (usually without a milk
trader) or three legs (usually with a milk trader/processor) as well
MoreMilkiT
A functional hub acts as a platform for testing of various
interventions and delivery of services

Leah Mwilaki’s business represents what we want to multiply
• Leah’s business interlocks input & output transactions where
farmers access the desired inputs or services on credit with their
milk delivery as collateral (check-off)
• She represents a critical linkage in the dairy market hub (DMH)
approach that the MoreMilkiT Project partnership is piloting to grow
dairying in marginalized areas
MoreMilkiT

• Leah buys milk at about TSh 550/litre to supplement
her own production then sells about 100 litres @TSh
1000/litre to outlets in Morogoro town = Margin of
USD 675/month
• Her clients include hotels, restaurants and milk vendors
• Leah often purchases various inputs such as
commercial feeds and drugs from Morogoro to sell to
her clients in the village
• We now have 14 villages linking about 1000 farmers
mostly in Lushoto & Mvomero districts (with & without
check-off).
• How many similar businesses can be nurtured across
the 30 villages to address some of the productivity
constraints that were identified during site-specific
planning?
MoreMilkiT
Leah Mwilaki’s business appears profitable: can we multiply
her?

Key question being answered:
1. Develop scalable value chains business approaches with improved
organization and institutions serving resource-poor male and female
smallholder dairy households
2. Generate and communicate evidence on business and
organizational options for increasing participation of resource-poor
male and female households in dairy value chains
MoreMilkiT – Objectives
How can policy be informed and influenced so
that dairy sector investments are deployed to
better target the poor and marginalized?
To achieve this, we must:
Elaborate Theory of Change

Theory of Change
<-----Communitylevel----><-----Nationallevel----> MoreMilkiT: Objective 3

ToC: Big Long-Term Policy Change by 2018
Private and public investors
replicate our pre-commercial hubs
approach in inclusive ways
• Sustainable dairy market hubs is at the centre of what we want
to achieve as elaborated in Results and MLE Framework
• ToC is helping us define the how, why and so what (causal
pathways) to the goal at community and national levels
What we have to
do now and with
whom
So that --- short-
term changes
(2015-16)
So that ---
medium term
changes (2016-17
Long-term
change (2018)
• Facilitate collaboration among
value chain actors
• Develop best practices with
…
• Collaborate in conducting
inter-disciplinary research
with…
• We engage with policy
makers with….
NGOs, BDS, Farmers,
extension agents, TDB, DDF,
LGAs
MoreMilkiT: Objective 3

Results and MLE Complements the
ToC• Usual monitoring”
– Monitoring of activities and outputs
– For fund accountability purpose (direct
relationship between fund use and
activities)
– An input into the other components
(learning and evaluation)
• Monitoring with strong emphasis on
‘learning’
– Regular and systematic collection and
analysis of evidence on key outcomes and
some impact indicators at various VC levels:
farmers, hubs, VC actors
– Both qualitative and quantitative
– Allow feedback into project and hub
activities based on generated evidence
– An input into the other component
(monitoring and evaluation)
• Less on ‘evaluation’
– Mainly qualitative to understand the ‘why’
(why do things happen this way)
– Use evidence from M&L,
– Done externally for objectivity purpose
Project
intervention
Project
activities &
outputs
Farmer &
community
change in
behaviour
Outcomes
at
household
& group
levels
Analyses &
reflections
MoreMilkiT: Objective 2

MoreMilkiT: Objective 2
Gender equity is central to inclusivity
and attaining outcome of increased
income

Successes and Challenges
MoreMilkiT

Capacity Building around Site Specific Plans
MoreMilkiT: Key Results – Objective 1

Rapid increase in proportion of farmers in groups
MoreMilkiT: Key Results – Objective 2
• Social capital development: Proportion of farmers in
groups increased rapidly from 15% to 47% between Feb
2013 – Sep 2014; now increasing more gradually:
 highest increase is in Mvomero (58%)
 Lowest increase in Kilosa (37%)
 More males (74%) participate that female (40%) cattle
keepers

Yield gaps
MoreMilkiT: Key Results – Objective 2
Changes in productivity require changes in:
a) Genetics: cross breeding can double milk yield but takes >3yrs
b) Animal husbandry practices, especially feeding: Zebu (33%); cross-bred (76%)

Current status of business linkages establishment
Stage Status District Villages with contracts
established+
Prospective villages
yet to be linked
4
(Most
advanced:
Three legs with
check-off)
Registered groups with linkage contracts
involving:
 at least one link with a milk
trader/buyer;
 at least one link with an input &
services provider and
 check-off system
Lushoto Mwangoi, Viti, Wena
Handeni
Mvomero Manyinga
Kilosa
3
(Three legs)
Registered groups with linkage contracts
involving:
 at least one link with a milk
trader/buyer and
 at least one link with an input &
services provider
Lushoto Lwendai, Kwemashai, Ubiri,
Mbuzii, Ngulwi
Handeni Masatu
Mvomero* Mangae, mela
Kilosa* Mfilisi, Kabaoni
2
(Two legs)
Registered groups with linkage contracts
involving:
• at least one link with a milk trader/buyer
only
Lushoto All in 3 and 4 above
Handeni Kwabaya, Kibaya,
Mvomero* Mangae Wami Dakawa
Kilosa* Madoto Mbwade
2
(Two legs)
Registered groups with linkage contracts
involving:
 at least one link with an input &
services provider only
Lushoto All in 3 and 4 above
Handeni Kweditilibe, Kwediyamba,
Kibaya,
Kwabaya
Mvomero* Wami Dakawa,
Kilosa* Sindeni
1
(Least
advanced:
Registered but
no linkage)
Registered groups where linkages have not
yet evolved (have few or non-existent
businesses to link?)
Lushoto All in 3 and 4 above N/A
Handeni Msomera, Konje,
Mvomero (Wami Sokoine) Kambala,
Wami Luhindo?
Kilosa* Twatwatwa, Mabwegere,
Kwambe,
*Some villages in these districts are exploring linkages with ASAS Dairies; similar existing linkages with Tanga Fresh mainly in Lushoto
MoreMilkiT: Key Results – Objective 1

W/Luhindo
konje
msomera
kibaya
kwabaya
sindeni
twatwatwa
mabwegere
madoto
kwambe
kambala
W/sokoine
W/dakawa
mbwade
kwediyamba
Mela
Mangae
kweditilibe
Imfilisi
U/kibaoni
masatu
0
0.5
1
1.5
2
2.5
Score Level of Group Advancement-
Extensive
0
0.5
1
1.5
2
2.5
3
Score
Level of Group Advancement-
Intensive
Current status of group development – From this workshop

Pending: Strenthening DMH functionality and assessing
progress operations
MoreMilkiT: Key Results – Objective 1
What criteria should we use to determine
what work well where and how?
For example:
• Collective bulking and marketing (for some)
• Further group development
• Strengthening business linkages with inputs
& service providers and output markets?
Incorporate criteria into a DMH assessment tool
Data generated using the tool to complement bi-annual
monitoring at household level

Challenges to overcome
• “We are waiting for the project”. Farmers expect
more than training and facilitation
• Creating DMHs around small-scale traders like Leah
in extensive marginal areas. If Leah is already doing
it then it can be done!
• Achieving some impact on productivity based on
improved husbandry practices alone (without
genetic change)
• Managing what to focus on in the site-specific
plans: some suggestions from MTR
• Results in the next 12 months!

MoreMilkiT: Key Results – Objective 3
Opportunities for influencing investments in pre-
commercial hubs approach
• AMDT
• Tanzania Livestock
Modernization Initiative
• Livestock Master Plan
• IFAD
• World Bank L-MIRA project

2012 2013 2014 2015
J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S
MOU1 MOU2
Inception: stakeholder engagement,
tools development, VC assessments and
baseline
Partner engagements
(Heifer, FM, TDB) and
farmer mobilization
Site
specific
planning
(SSPs)
Developing Dairy Market Hubs
(capacity building around SSPs;
facilitating business linkages)
1st monitoring
survey
2nd monitoring
survey
Communityengagements
Generating evidence: value chain dev, feeds, AH, gender….
Nationalengagements
SC / review
& planning
meeting
SC / review
& planning
meeting
SC / review
& planning
meeting
SC / review
& planning
meeting
TOC baseline
DDF DDF DDF DDF DDF
SNAPSHOT: Key Milestones in Project Implementation
Dev of
Theory of
change
Gender
CapDev
assessment
NOW
Dev of long-
term impact
pathways
2017

Key messages from MTR
• Accelerate what were doing
– Work in fewer sites
– Have ILRI more involved in ensuring momentum
while generating more learning
– Prioritize what to focus on in remaining time
• Start to consolidate lessons early
• Improve communications and dialogue for policy
Objectives of the 23-25 Sept 2015 workshop
should help us embark on addressing these

CGIAR is a global partnership that unites organizations engaged in research for a food secure future. The CGIAR
Research Program on Livestock and Fish aims to increase the productivity of small-scale livestock and fish systems
in sustainable ways, making meat, milk and fish more available and affordable across the developing world.
CGIAR Research Program on Livestock and Fish
livestockfish.cgiar.org
In support of:

Review and Planning Workshop Objectives
Maziwa Zaidi Review and Planning
23-25 Sept 2015 Oceanic Bay Hotel & Resort, Bagamoyo
Amos Omore - ILRI

Workshop Objectives
Review progress of interventions in pilot sites and
plan ahead. Specifically, develop criteria and use that
to determine:
a) established dairy market hubs in the 30 villages
that are currently working well, where and
how/why (interim result);
b) villages among the 30 where we can make the
hubs operational in the next 6-12 months; and,
c) villages where the hubs are unlikely to work in
the near future.