Presented by Amos Omore and Brigitte Maass at the Smallholder Dairy Value Chain in Tanzania Stakeholder Meeting, Morogoro, Tanzania, 9 March 2012

1. Motivation behind renewed
interest in Tanzania dairy
Amos Omore and Brigitte Maass
The Smallholder Dairy Value Chain in Tanzania Stakeholder Meeting , Morogoro, Tanzania, 9
March 2012
In partnership with

2. More milk, meat, and fish
by and for the poor
CGIAR Research Programme (CRP) 3.7 for Livestock and Fish (LaF)
Overview of context of recent CGIAR
change

3. Goal
More milk, meat and fish by and for the poor
To sustainably increase the productivity of
small-scale livestock and fish systems to
increase the availability and affordability of
animal-source foods for poor consumers and,
in doing so, reduce poverty through greater
participation by the poor along the whole value
chains for animal-source foods.

4. Approach: Solution-driven R4D to achieve impact
Addressing the whole value chain
R4D integrated to transform selected value chains
In targeted commodities and countries.
Consumers
Major intervention with development partners
Value chain development team + research partners
Strategic LaF Cross-cutting Platforms
• Technology Generation
• Market Innovation
• Targeting & Impact
INTERVENTIONS TO GLOBAL RESEARCH
SCALE OUT REGIONALLY PUBLIC GOODS

5. Working toward interventions
for impact at scale
LaF: Prepare intervention Performance Target:
double production in
x poor households Scaling out
Development Partners
$90m
Knowledge Partners $10m
LaF: Strategic Research $10m
Time 10 years

6. Delivering Livestock + Fish Programme
Structure: Three integrated Components
3 Targeting: Foresight, prioritization, gender, impact
2 Value chain development
1 Technology
development:
− Genetics Consumers
− Feeds
− Health Commodity X in Country Y
Cross-cutting: M&E, communications, capacity building

7. 9 Target Value Chains
SHEEP & GOATS
AQUACULTURE
PIGS
DAIRY

8. LaF Catalyst Role
NARS Private
Sector
ARIs Ministry
NGOs
Investors Investors
LaF
CG partners
Research Development

9. Links to other CGIAR Programs (CRPs)

10. Initial Projects:
1. More milk in Tanzania (Irish Aid)
2. MilkIT (IFAD)

11. 1. More milk in Tanzania (Irish Aid)
To be implemented by ILRI and SUA

12. More milk in Tanzania Project
More milk by and for the poor: Adapting dairy market hubs
for pro-poor smallholder value chains in Tanzania
• Inception year for research (USD 450,000 for 2012)
• Dairy VC R&D engagement for 4 yrs thereafter
• Strong focus on pro-poor marginalised pre-commercial
men and women
• Aim is to provide proof-of-concept that such
marginalised groups can also be targeted successfully
• Project to generate evidence for influencing policy
• Detailed objectives in brochure
(http://mahider.ilri.org/handle/10568/16567)

13. More Milk in Tanzania Project
Objectives
(derived from Irish Aid Country Strategy Paper for Tanzania)
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 organisational options,
and low-income consumers have better access to
affordable milk.

14. More Milk in Tanzania Project
Contributing Objectives over 5 yrs
1. Inform policy on appropriate role for pro-poor
smallholder-based informal sector value chains in
dairy sector development
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. Develop scalable value chains approaches with
improved organization and institutions serving
resource-poor male and female smallholder dairy
households

15. More Milk in Tanzania Project
Contributing Objectives during 2012
Inception Phase
1. Assess the current status of the Tanzanian dairy sector
and identify appropriate entry points and partners for
promoting a more pro-poor development orientation
2. Develop a strategy for strengthening the policy
environment to better support pro-poor dairy
development, capitalizing on ongoing engagement with
key policy actors and previous successes elsewhere in
East Africa
3. Identify sites appropriate for piloting pro-poor dairy
development interventions that have been successful
elsewhere, and assess how those interventions need to
be adapted to the Tanzanian context.

16. More Milk in Tanzania Project
Addressing 4 inter-related problems
that face resource-poor milk producers
1. Dominant direct milk
sales by producers create Milk marketing outlets (Kurwijila, 2010)
diseconomies of scale
2. High risks associated with %
unorganised milk sales Milk Buyer
that discourage Neighbours 86.1
investment to improve Local market 5.5
productivity Secondary market 0.5
3. Complex cooperative Processors 1.4
models and technology- Large scale farms 0.2
driven solutions have
Trader at farm 4.5
largely failed
Other 1.7
4. Suitable organisational
models have been lacking TOTAL 100.0

17. More Milk in Tanzania Project
Addressing 4 inter-related problems
that face resource-poor milk producers
1. Dominant direct milk
sales by producers create Milk processing in Tanzania has been declining since 1990
diseconomies of scale
2. High risks associated with
unorganised milk sales
that discourage
investment to improve
productivity
3. Complex cooperative
models and technology-
driven solutions have
largely failed
4. Suitable organisational
models have been lacking

18. More Milk in Tanzania Project
Example of issues to be studied:
Farmer groups are struggling in most places except in Tanga
Performance of milk collection at Nnronga w omen dairy co-operative Society, Hai
Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007)
750000
700000
650000
600000
Volume of Milk (Litres)
550000
500000
450000
400000 Nnronga
350000 CHAWAMU-Muheza
300000
250000
200000
150000
100000
50000
0
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
Year

19. More Milk in Tanzania Project
Which Hub Model might be appropriate?
Diversified Profit-Max Model for CPs
Collection
Chilling Plant
Some EADD - -
Center Processing Plant
Hub Models - -
Sales to Processor
Sales to
- -
individuals and
vendors
Diversified profit max through:
higher prices for milk sold locally
lower costs (transport, chilling) overall for milk handled

20. 2. MilkIT Project: (IFAD)

21. MilkIT Project:
Enhancing Dairy-based Livelihoods in India and the United Republic
of Tanzania through Feed Innovation and Value Chain Development
Approaches
Purpose: contribute to improved dairy-derived
livelihoods in India and Tanzania via
intensification of smallholder production
focusing on enhancement of feeds and feeding,
using innovation and value chain approaches

22. MilkIT – Objectives
• Institutional strengthening: To strengthen use of value
chain and innovation approaches among dairy stakeholders
to improve feeding strategies for dairy cows.
• Productivity enhancement: To develop options for
improved feeding strategies leading to yield enhancement
with potential income benefits.
• Knowledge sharing: To strengthen knowledge sharing
mechanisms on feed development strategies at local,
regional and international levels.

23. 1. Institutional strengthening
• 1a. Mechanisms for enhancing innovation
capacity through local stakeholder platforms
to address dairy value chain constraints.
• 1b. Approaches for involving local
stakeholders in analysis of feed-related
aspects of the dairy value chain.
• 1c. Identification of intervention strategies
emerging from dairy value chain analysis.

24. 2. Productivity enhancement
• 2a. Strategies for implementing local feed-related
innovations emerging from stakeholder platforms
with the potential to enhance dairy incomes.
• 2b. Methods for enhancing diffusion of local feed-
related innovations among dairy smallholders with
the potential for income benefits through
productivity increases.
• 2c. Strategic lesson learning on appropriate dairy
feeding strategies and technologies.

25. 3. Knowledge sharing
• 3a. Mechanisms for sharing knowledge at
local and regional levels.
• 3b. Mechanisms for sharing knowledge across
project countries and among global R4D
projects.