Tanzania dairy sector thrives as players inject over 3tri/-
DODOMA: THE dairy sector has recorded remarkable growth over the past five years, attracting over 3tri/- in private sector investments, which has enhanced the quality and availability of dairy products with extended shelf life.
Currently, Tanzania produces Ultra-High Temperature (UHT) milk, processed using advanced technology acquired by investors, which heats milk at very high temperatures to eliminate bacteria and significantly extend its shelf life.
Speaking exclusively to the `Daily News’ in Dodoma recently, Tanzania Dairy Board (TDB) Registrar, Prof George Msalya, said that in recent years large-scale processors have injected substantial capital, enabling the sector to acquire and deploy high-tech equipment effectively and efficiently to improve the dairy value chain.
He cited key investors whose contributions have significantly boosted the industry, as Asas Limited, with a processing capacity of 100,000 litres per day, Shafa Agro Limited in Iringa (20,000 litres) and Kahama Fresh (20,000 litres). Other notable players include Tanga Fresh, Kilimanjaro Fresh, and Milk Com.
Thanks to new technologies, Prof Msalya noted, Tanzania now produces powdered milk and UHT products that were previously imported from abroad and from neighbouring countries, including Kenya.
“This is really a milestone. The private sector is playing a pivotal role in transforming the dairy sector. This is a big investment,” Prof Msalya emphasised.
Looking ahead, and in line with Tanzania Development Vision 2050 (TDV 2050), Prof Msalya said TDB is finalising its fourth Strategic Plan, which aims to raise national milk production beyond the current level of 4.01 billion litres annually. This initiative is expected to increase the supply of nutritious food and strengthen the country’s workforce.
According to the Board’s Registrar, TDB will play a vital role in the sector by attracting private investment into the dairy value chain.
He said the Board is committed to promoting and developing a competitive, sustainable dairy industry through effective coordination, regulatory oversight and advisory services, contributing to improved livelihoods and the national economy.
The outgoing Third Strategic Plan has already seen annual milk production rise to 4.01 billion litres, with the dairy sector now contributing 2.0 per cent to Tanzania’s GDP.
Prof Msalya noted that over 4 million households are now directly engaged in the dairy value chain.
He expressed optimism that continued investment, and reforms will enable the sector to make even greater contributions to economic growth and poverty reduction over the next 25 years.
“This sector is inclusive; it involves both women and youth. Many people rely on it for their livelihoods. We must continue to promote its growth for the benefit of households and the national economy,” he said.
The TDB Registrar also commended the government for launching the ambitious ten-year ClimateSmart Smallholder Dairy Transformation Project (C-SDTP), worth 174.3 million US dollars (about 461.2bn/-).
The project is designed to mitigate the impact of climate change and enhance productivity across the dairy sector.
Expected to be implemented in 28 districts across Mainland Tanzania and Zanzibar, the project will transform the entire dairy value chain by improving productivity and the livelihoods of smallholder dairy farmers in rural areas.
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The project is jointly funded by the International Fund for Agricultural Development (IFAD), Heifer International, Agence Française de Développement (AFD), OPEC Fund, Green Climate Fund and Tanzania Agricultural Development Bank (TADB).
TDB envisions being an efficient and effective regulatory institution towards sustainable, competitive and self-sufficient dairy industry with a mission to promote and develop a competitive sustainable dairy industry through effective coordination, provision of regulatory and advisory services hence contributing to livelihood and national economy.
