NMB Bank has set aside 500bn/- for loaning milk processing ventures in a bid to boost number of processing plants and consumption per capita.
The lenders, one of the largest in the country, also want to create ready market for cattle keepers and lift their well-being.
NMB Research Officer, Mboka Mwanitu said the move centered on assisting milk processing industry in the country and some 39bn/- have been dished out so far.
“There are several institutions focusing on milk production and entrepreneurs, who have borrowed some 30bn/- to develop the sector and raise milk production in the country,” she added.
Ms Mwanitu further said that the loans are geared towards improving quality breeds of the cattle population, to ensure reliable and centralized centres to collect milk.
Also the loans issued to enable keepers to acquire modern milk related equipment for storage, milking as well as feeders and vaccination and treatment of the herders’ livestock.
Tanzania Dairy Board (TDB) statistics showed that on average a Tanzanian consumes 49 litres of milk which is well below the standardized health requirement of 200 litres per year.
TDB Chairperson, Lucas Malunde, said the country still need more milk processing units in a bid to increase quality and quantity.
Once consumption and factories demand raise, it will ensure business to the herders and see the importance of keeping livestock. NMB revealed the amount set aside to lend during the 10th Milk Challenges Week meeting held in Arusha.
The Ministry of Livestock Permanent Secretary (PS), Prof Elisante Ole Gabriel, was the chief guest of the event.
The PS called for financial institutions in the country to support potential investors showing interest to invest in milk production an area which has not fully looked onto by lenders.
The meeting was attended by different stakeholders in milk processing and production hailing from different regions and outside the country.
Stakeholders discussed on how to improve quality milk, how to address challenges related to modern breeds species and sustenance in the industry.