•
Securing more income for marginalized communities
in Tanzania through dairy market hubs
Case Study for Value Chain Learning Workshop
Embassy of Ireland, Dar es Salaam, 14th Sept 2015
Amos Omore - ILRI
(with SUA, Heifer, Faida Mali and Tanzania Dairy Board)

Improving access to inputs and services through check-off:
Introducing Leah Mwilaki’s business
•
Check-off defn: interlocking of input & output transactions where
cattle farmers access the desired inputs or services on credit with
their milk delivery as collateral
MoreMilkiT

•
Currently, Leah buys milk at about TSh 550/litre to
supplement her own production then sells about 100
@lts TSh 1000 /l litre to outlets in Morogoro town
•
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
•
Leah’s business is now reflected in 14 villages linking
about 1000 farmers mostly in Lushoto & Mvomero
districts (with & without check-off )
•
These business linkages are beginning to address some
of the constraints to improving productivity that were
identified during site-specific planning with farmer
groups across the 30 pilot villages across Morogoro
MoreMilkiT
Improving access to inputs and services through check-off:
Introducing Leah Mwilaki’s business

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

Aims and Other Strategies
MoreMilkiT

Addressing these developmental challenges
MoreMilkiT

Fostering better linkages at both community
and national levels
Site specific plans
for dairy
development
reflected in district-
level plans
MoreMilkiT

Project Focus
•
Strong focus on:

pro-poor marginalised pre-commercial
men and women

generating evidence for influencing
policy for a pro-poor transformation of
smallholder dairy VCs

Goal and Outcome
(derived from Irish Aid Country Strategy Paper for Tanzania and
ASDS)
Goal:
•
Inclusive growth and reduced poverty
and vulnerability among dairy-dependent
livelihoods in relevant rural areas in
Tanzania
Outcome:
•
Rural poor are more income secure
through enhanced access to demand-led
dairy market business services and viable
MoreMilkiT – Objectives

Contributing Objectives
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
3. Inform policy on appropriate role for pro-poor smallholder-based informal
sector value chains in dairy sector development
MoreMilkiT – Objectives
Key question being answered:
How can policy be informed and influenced so that
dairy sector investments are deployed to better
target the poor and marginalized?

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

•
ToC: Big Long-Term Policy Change by
2018Private 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

Click icon to add picture
Monitoring Learning &
Evaluation (MLE)
Framework
•
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)
Project interveProject activities & outputsFarmer & community change in behaviourOutcomes at household & group levelsAnalyses & reflections
MoreMilkiT: Objective
2

MoreMilkiT: Objective
2

MoreMilkiT Project Piloting Sites (Villages)
Site selection criteria
Overlay of maps on cattle density; poverty level; population density; access to market; production potential;
Deficit areas with potential for increasing supply through feed interventions; Potential partners/stakeholders.
Key: R-to-R = Rural production to rural consumption (pre-commercial); R-to-U = Rural production to urban
consumption (more commercial).

Addressing these inter-related problems
1. Dominant direct sales of small volumes by
smallholder producers that preclude economies of
scale
2. Credit facilities for basic inputs and services or
working capital are lacking. This discourages
investment to improve productivity
3. Lack of appropriate organizational models for pre-
commercial producers
4. Seasonality of rainfall and related effects are
strong (feeding, transhumance)

Successes and Challenges
MoreMilkiT

Hubs revolving around milk traders will
feature in 28 of the 30 villages
Hub category Morogoro Tanga Total
a Chilling plant 0 2 2
a + b Chilling plant and milk traders 8 5 13
b Milk traders 6 9 15
Total 14 16 30
MoreMilkiT: Key Results – Objective 1

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

Current status of new business linkages establishmentStage 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 nut
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,*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

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

Current production levels and ‘frontiers’
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%)

Patterns of production, prices, revenues same as baseline
MoreMilkiT: Key Results – Objective 2
0
2
4
6
8
10
12
0
2
4
6
8
10
12
Milkquantity
Milkprices
•
Effects of interventions on milk
production and sales still
inconclusive due to seasonality
effects. We’ll be more confident
reporting these changes after the
next monitoring survey
0
2
4
6
8
10
12
0
2
4
6
8
10
12
Freshmilkrevenues
Freshmilkquantitiessold
0
2
4
6
8
10
12
0
2
4
6
8
10
12
Freshmilkrevenues

Control of milk revenues by gender
MoreMilkiT: Key Results – Objective 2
•
Women control revenues
from morning milk across
board especially in Kilosa
•
Evening milk rarely sold
0 2 4 6 8 10 12
Proportion of households
0
2
4
6
8
10
12
Reenuesfromsaleofmilk
•
Pattern of revenue control
by milk market outlet will be
interesting to monitor: Joint
or men appear to dominate
overall in this survey
•
Earlier surveys has shown
women dominate in shorter
chains

Mode of engagement and payment
MoreMilkiT: Key Results – Objective 2
Mode of
engagement
N
Mode of payment
%
Cash Credit Check-off No payment
Group 53 32 7 8 6 6
Individual 804 682 50 4 68 94
Total 857 714 57 12 74 100
% 83 7 1 9
•
Cash services
dominate
•
Only 7% on
credit – We’ll
monitor this
closely how it
changes
District N
% hh that
needed
credit
% hh that needed
credit
Lushoto 154
35 26
Mvomero 98
46 27
Handeni 105
28 10
Kilosa 104
23 8
•
Need for credit
is strongest in
Mvomero
•
Overall, 30% of
those needing
credit obtained
it
Demand for and access to credit

•
DDF Launched in Feb 2013
•
DDF seeks to co-create solutions around
systemic bottlenecks:
– Vision: “a more inclusive and sustainable dairy value
chain”.
•
Five meetings held to date
•
Nurturing of local area platforms:

Morogoro regional dairy platform formed (seeking
to replicate successes in Tanga)

8 village – level platforms: mixed results; advised to
aggregate at district-level
•
Policy dialogue for a pro-poor transformation
of the dairy VC being catalyzed through the
DDF
MoreMilkiT: Key Results – Objective 3

Grow the dairy herd address feeds scarcity
Space for nurturing multi-stakeholder
processes to address challenges on how to:
Regional Platform Regional Platform
District
Platfor
m
FARMER ASSOCIATIONS AT VILLAGE
DAIRY DEVELOPMENT FORUM
District
Platfor
m
District
Platfor
m
District
Platfor
m
Working groups Working groups
Structure and foreseen growth of the DDF
MoreMilkiT: Key Results – Objective 3

MoreMilkiT: Key Results – Objective 3
Task-forces created by DDF

TDB acts as Secretariat, given is statutory role of
coordinating dairy stakeholders
Dairy Development Forum
Secretariat: Tanzania Dairy Board
Stakeholder organisations
Academic &
res institutions
Dairy development
organisations
Membership
organisations
Govt Private
sector
Advisory Committee
Civil
society
MoreMilkiT: Key Results – Objective 3

•
Policy conclusions so far
•
To transform Tanzania’s dairy industry to secure more income for
marginalized communities, it is necessary to involve a range of
stakeholders, including those at various steps in the value chain.
•
MSIPs are an effective way to bring together these stakeholders to solve
common problems.
•
These processes enable producers, local institutions, the public sector,
private businesses, research and financial institutions to join forces to
drive forward dairy development.
•
MSIPs can be organised at various levels. In villages, they build on
farmers’ groups, cooperatives and dairy market hubs. They link market
actors, connecting producers with intermediary and final customers.
•
At district and regional levels, MSIPs integrate research, innovation and
extension interventions alongside business actions. They can contribute
strongly to formulating and implementing district dairy development
plans.
•
At the national level, the DDF has a strategic role leading to coherent
policies and convergence of initiatives.
•
A hierarchy of platforms at different levels can improve policymaking and

•
Community level challenges
•
Adapting DMHs in extensive areas is riskier than
classical approaches but more inclusive. This is
manifesting itself already but we’re facing the
challenge
•
“We are waiting for the project”. Farmers expect
more than training and facilitation likely due to past
practices of asset transfers or subsidies
•
How to achieve impact on productivity on improved
husbandry practices alone without genetic change
•
Site-specific plans generated very relevant
objectives to base our facilitation but also more
demands. Coupled with a large number of dispersed

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

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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.
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