EADD II Tanzania
Dairy Consumer Market Survey
Key Findings
andDevelopment
Recommendations
East African Dairy
Project - Uganda
The 6th National Dairy Development Forum
29th May 2016
Executive Summary
Interviews conducted to gather insights on strategy design, possible
solutions and challenges
Stakeholders
Tanzanian Dairy Board
GAIN
TAMPA
World Bank
TAMPRODA
SUA
Ministry of Livestock & Fisheries
Tanzanian Investment Center
Tanzanian Food & Nutrition Center
Khangarue Media
Tanzanian Food and Drugs Authority
Arusha Dairy
Tanzanian Bureau of Standards
Mountain Green Dairy
Tanga Fresh
Kilimanjaro Creameries Ltd
Note: Interviews conducted over a period of 5 weeks
Executive Summary:
Challenges and Proposed Recommendations
Executive Summary
Challenges facing the Dairy industry
Producers
Processors
Inadequate extension
services and pricing
structures
Lack of quality milk
supply
High Operation Costs
Distance and location
of MCCs from farms
and producers
Seasonality
Under utilization of
capacity
Misaligned govt policies
Lack of packaging and
product diversification
Lack of skills and
training
Consumers
Government
Low awareness of
health/nutritional and
quality of milk
Overregulation and
misalignment of policies
Low availability and
accessibility to locally
processed milk
Tastes/preferences of
consumers between raw
milk and processed milk
Duplication of roles and
responsibilities
Inadequate
infrastructure
Lack of Public/Private
collaboration
Executive Summary
Overview: Findings & Recommendations
Findings
1
2
3
4
Increase consumer
awareness
Improve quantity and
quality
Address
overregulation and
government policies
Feasibility
Long Term
Industry
Impact
High
•
Roll out a National Dairy Industry Campaign
Continue efforts around school milk feeding programs
Continue aggregation efforts around dairy marketing events and
forums
Dairy product diversification
•
•
•
Formalize the informal market
Capacity building and quality training
Messaging and education of quality of milk
High
•
•
•
Calculate the demand for locally produced milk (raw & processed)
Address multiplicity of regulations and re-align policies and
Address the issue of imports for milk and dairy products
Low
Medium
Medium
Low
High
High
Low
Medium
•
Improve supply chain
Short – Medium
Term
Recommendations
•
•
•
Medium – Long
Term
Short
Term
•
•
Increase uptake of breeding services, vet services, vet drugs and
AI services
Investment into milk packaging solutions
Organize farmer groups and run MCCs with provision of ext
services
Medium
High
Medium
Tanzania Market Strategy: Objectives,
Vision, Design and Approach
Objective, Market Strategy Design, Vision & Approach
Four priorities outlined by dairy stakeholders as factors to
address demand constraints in Tz
To increase consumption of locally marketed milk & dairy
product consumption across Tanzania
……….From 47 L to 100L by 2025…..
Aspiration
It is possible ……Key priorities areas highlighted are….
1.
Change consumer behavior towards local milk/dairy product
consumption
2.
Improve quality and quantity of locally marketed milk &
dairy products
3.
Improve existing government policies and regulations
4.
Increase Consumer Awareness
Proposed Recommendations
1
2
Long Term
Dairy Product
Diversification
Medium Term
Short Term
National Dairy
Campaign
School Milk
Feeding
Programs
Processor driven
Aggregation
efforts around
dairy forums and
marketing
Investments in UHT,
cheese processing and
flavored yogurts
Continue efforts around
Milk Week and Dairy
Development Forum
Public-Private
partnership
Increase in awareness and perceptions around health, nutrition and quality
benefits of milk/dairy products
* The four-pronged strategy would be supplemented by additional programs as detailed in the next three slides
3
4
Improve Quality and Quantity of Milk
Proposed Recommendations
Collaborate
with the
Informal
Market
1
2
3
4
•Collaborate with informal traders and organize them into formal groups
•Develop a ‘Milk Market’ where traders, consumers and QC inspectors can
engage
•Encourage overall good quality milk consumption through dairy market
campaign and offering quality training certification to informal traders
Capacity
Building & info
on QC
• Perform QC checks at milk markets as well as PO and Farmer
level
• Provide training to traders. Also discuss further payment
schemes between producers and processors based on high
quality of milk supplied
Education and
Marketing
* The three-pronged strategy would be supplemented by additional programs as detailed in the next slides
• Awareness campaigns around
quality of milk
• Information about AI and extension
services
• New product launches
Address overregulation and
government policies
Proposed Recommendations
•
•
Overregulation costs
businesses TZS12 million
2 years of waiting to
start a business
1
Address
multiplicity of
regulations and
re-align policies
Map out true
demand of local
milk
2
3
4
Annual demand for
local milk is unknown
Address the
impact of
imports to the
dairy industry
Livestock contributes 7% to GDP with Dairy industry as one of the sectors
with the highest potential for commercialization and poverty reduction
* The four-pronged strategy would be supplemented by additional programs as detailed in the next slides
Source: World Bank Group L-MIRA project findings, 2015
Improve the milk supply chain
Proposed Recommendations
1
2
3
4
Rationale
Investment into packaging
Provision of extension services
Increase uptake of breeding and vet
services, drugs and AI services
Improve Infrastructure
• Currently processors are importing packaging
increasing the cost of production
•
•
•
•
Poor management practices at the MCCs
Seasonality affects production of milk
Shortage of equipment for testing and cooling
Lack of dairy experts
• Ministry of Livestock & Fisheries piloting AI in
LGA
• Poor roads
• High electricity costs
Source: World Bank Group L-MIRA project findings, 2015
Proposed Implementation Plan immediate
Objective, Market Strategy Design, Vision & Approach
Key Stakeholders- Wrap up Meeting
1. Agreed on a milk consumption vision: from 47L par capita to 100 by 2025.
2. To declare lack of milk consumption culture as a national
disaster. Agreed to
take this message to the president and make it national.
• Get buy-in from the PS before the end of the milk week
• Sell the idea and endorsement to/from the annual council. ACC, Mark and TDB
chair to take it up by end June.
• Make sure there are facts: TDB/EADD to lead, TDB chair to provide malnutrition
data
3. School milk program –agreed it’s a critical part of influencing future demand
• TDB to own it and bring it out as part of a key strategy in driving future
consumption during the Annual Council Meeting
Objective, Market Strategy Design, Vision & Approach
Wrap up
1. Formalize the informal
• TDB to continue training and certification
• TDB to work with EADD to support transformative process
2. Milk quality
• EADD ready to work with TDB on replicating/developing a training model
• Implement a TOT model to increase reach
• EADD to continue providing capacity building to milk inspectors in the southern
highlands in collaboration with TDB
• Action: TDB/EADD
3. Agreed on the need for TDB and EADD to sign an MOU
• Mark and Nelson to do that before end of milk week
4. Include feeds and extension under supply chain improvement
Objective, Market Strategy Design, Vision & Approach
Wrap up
1. TBD has agreed to lead implementation of the strategy with the support of
stakeholders
• EADD to officially handover the strategy document to TDB during the national
council meeting.
• Strategy to become part of Dairy Master Plan and TDB strategic plan
2. Milk quality: Mazzi cans as part of recommended milk handling equipment's:
• TDB to follow up with KDB and fast track adoption to reduce costs to farmers
• EADD willing to promote the use and access to mazzi cans to farmers in the
southern highlands.
3. Hold more milk weeks to ensure reinforcement of messaging: EADD willing to support
localized campaigns
4. Consumer awareness: EADD ready to support consumer awareness through messaging
and communication