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Thoughts on promoting inclusiveness in dairy development
1. Thoughts on Promoting Inclusiveness
in Dairy Development
A. Omore, L. Kurwijila, S. Worsley
Tanzania National Dairy Stakeholders’ Meeting
Dar es Salaam, 22 February 2013
2. Key questions
Given current status and desire to extend the frontiers of
commercial dairy value chains in Tanzania….
• Where are the new frontiers?
• What has so far hindered dairy development in these
areas?
• What are the main technological challenges?
• What are the main organisational challenges?
• What are the policy and institutional barriers, whether
written and un-written (mind-sets)?
• What kinds of partnerships can overcome the challenges?
3. More Milk in Tanzania Project
A recent synthesis identified 4
inter-related key problems
4. Key problems More Milk in Tanzania Project
1. Dominant direct milk sales of small volumes that
preclude economies of scale, resulting in high costs of
production and marketing
Milk marketing outlets (NBS, 2003)
Milk Buyer %
Neighbours 86.1
Local market 5.5
Secondary market 0.5
Processors 1.4
Large scale farms 0.2 3%
Processed milk
Trader at farm 4.5 and dairy products
Other 1.7
Informally
TOTAL 100.0 97%
marketed raw milk
(liitle value
addition)
5. Key problems (cont’d)
2. Credit facilities are lacking. This contributes to low access
to basic inputs and services or working capital to purchase
them
3. Lack of appropriate organizational models for pre-
commercial producers. These are required to facilitate
collective action
4. Seasonality of rainfall and related effects are strong. This is
reflected in producers’ management of their animals’
reproductive cycle and transhumance. It exacerbates
seasonality of feed availability and milk volumes
6. Huge seasonal fluctuation in milk
supply from traditional herd
Milk collection by a small scale processor from traditional herd in
Morogoro, 2009
13000
12500
12000
11500
11000
10500
10000
9500
Volume of milk (litres/month)
9000
8500
8000
7500
7000
6500
6000
5500
5000
4500
4000
3500
3000
2500
2000
1500
1000
500
0
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Month
Average/month Total supply
7. Large yield gaps:
6000
Milk yield per Lactation (Kg)
5000
x3
4000
x3 x3
3000
x3
2000
x2
y2 x2
1000 x1
x1
0
y1 Indigenous Crossbred Exotic Indigenous Crossbreds Synthetics Exotics
Mixed rain fed Mixed rain fed Large-scale
temperate/highlan humid/sub-humid commercial ranches
d
Xi = Yield gaps due to “animal husbandry practices” : 33 - 76 %
Yi = Gap in productivity due to “genotype”: 18 - 74%
Source: Mwacharo et al., 2009
8. Low per capita milk consumption
Per capita milk consumption in EAC countries (Kenya, 2009; Rwanda 2011, Tanzania 2010 amd Uganda
2009)
220
200
180
160
140
120
Per capita
100
WHO recommendation
80
60
40
20
0
Kenya Rwanda Tanzania Uganda
9. Gap between investments in milk
prodn., collection and processing capacity
Gap between investments in milk prodn1. , collection and processing2 (1NBS
, 2003 and 2TDB data 2012)
110000
105000
100000
95000
90000
85000
80000
75000
Volume of milk/day
70000
65000
60000 Marketable surplus milk /d (28% of wet season
55000 NBS-2003)
50000 Processing capacity (2012)
45000
40000
35000 Milk collection capacity (2012)
30000
25000
20000 Milk collected l/day (2012)
15000
10000
5000
0
Region
11. Examples of promotion of industry vs.
inclusiveness
Industry approach Inclusiveness approach
1. Invest where there are 1. Target the poor
likely to be high returns <$2/day
2. Go where there’s 2. Go to marginalised
already some dairy areas
development 3. Meet the small-scale
producers in there
3. Promote capital current markets, that
intensive approaches are often informal
like chilling plants 4. Explore working with
4. Promote modern current assets of the
breeds only poor, including
traditional breeds
12. DDF is in a good position to promote inclusiveness
and complement specific projects
Possible DDF roles
1. Promoting a more inclusive orientation in investments
through strengthening of public-private partnerships
2. Promoting professionalization and best practices
3. Acting as a platform for information and knowledge sharing
including:
• as a national innovation platform to address systemic
bottlenecks and co-create solutions
• facilitating mentoring of milk-shed level dairy
innovation platforms
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