motivation behind renewed interest in tanzania dairy

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

More milk, meat, and fishby and for the poor

Overview of context of recent CGIAR change

CGIAR Research Programme (CRP) 3.7 for Livestock and Fish (LaF)

GoalMore 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.

Strategic LaF Cross-cutting Platforms• Technology Generation• Market Innovation• Targeting & Impact

Inputs & Services Production Processing Marketing Consumers

R4D integrated to transform selected value chains In targeted commodities and countries.

Value chain development team + research partners

GLOBAL RESEARCH PUBLIC GOODS

INTERVENTIONS TO SCALE OUT REGIONALLY

Addressing the whole value chain

Major intervention with development partners

Approach: Solution-driven R4D to achieve impact

LaF:

Pre

pare

inte

rven

tion

Development Partners$90m

Performance Target:double production in x poor households Scaling out

Knowledge Partners $10m

Time 10 years

LaF: Strategic Research $10m

Working toward interventionsfor impact at scale

1 Technology development:

− Genetics− Feeds− Health

Inputs & Services Production Processing Marketing Consumers

Commodity X in Country Y

2 Value chain development

3 Targeting: Foresight, prioritization, gender, impact

Cross-cutting: M&E, communications, capacity building

Delivering Livestock + Fish Programme

Structure: Three integrated Components

9 Target Value Chains

PIGS

AQUACULTURE

SHEEP & GOATS

DAIRY

LaF Catalyst Role

Research

Investors

NARS

ARIs

LaFCG partners

Ministry

Investors

Development

NGOs

Private Sector

Links to other CGIAR Programs (CRPs)

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

1. More milk in Tanzania (Irish Aid)

To be implemented by ILRI and SUA

More milk in Tanzania ProjectMore 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)

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.

More Milk in Tanzania Project

Contributing Objectives over 5 yrs1. 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


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.


Addressing 4 inter-related problems that face resource-poor milk producers

1. Dominant direct milk sales by producers create 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

Milk marketing outlets (Kurwijila, 2010)

Milk Buyer%

Neighbours 86.1

Local market 5.5

Secondary market 0.5

Processors 1.4

Large scale farms 0.2

Trader at farm 4.5

Other 1.7

TOTAL 100.0


Addressing 4 inter-related problems that face resource-poor milk producers

1. Dominant direct milk sales by producers create 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


Milk processing in Tanzania has been declining since 1990

Example of issues to be studied:Farmer groups are struggling in most places except in Tanga

Performance of milk collection at Nnronga women dairy co-operative Society, Hai

Kilimanjaro and CHAWAMU-Muheza Tanga (1994-2007)

050000

100000150000200000250000300000350000400000450000500000550000600000650000700000750000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

Year

Volu

me

of M

ilk (L

itres

)

Nnronga

CHAWAMU-Muheza


Which Hub Model might be appropriate?

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- -

Chilling Plant Processing PlantCollection

Center

Sales to individuals andvendors

Sales to Processor

Diversified profit max through:higher prices for milk sold locallylower costs (transport, chilling) overall for milk handled

- -

Diversified Profit-Max Model for CPs

Some EADD Hub Models


2. MilkIT Project: (IFAD)

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

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.

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.

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.

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.