1) The project aims to build Mozambique's dairy herd and industry over 42 months through increasing incomes of smallholder farmers participating in a sustainable dairy value chain in 6 districts of Manica province. 2) To date, over 500 households have received training in dairy husbandry and animal traction, 151 households have entered the dairy value chain, and 2 cooperatives have been formed to collect and market milk. 3) Milk production has increased monthly, totaling over 140,000 liters and estimated revenues of over 58,000 USD to date, demonstrating progress toward objectives of rebuilding the national herd and increasing smallholder incomes.