Thoughts on Promoting Inclusiveness in Dairy Development
A. Omore, L. Kurwijila, S. Worsley
Tanzania National Dairy Stakeholders’ MeetingDar es Salaam, 22 February 2013
Given current status and desire to extend the frontiers of commercial dairy value chains in Tanzania….
• Where are the new frontiers?
• What has so far hindered dairy development in these areas?• What are the main technological challenges?• What are the main organisational challenges? • What are the policy and institutional barriers, whether
written and un-written (mind-sets)?• What kinds of partnerships can overcome the challenges?
Key questions
A recent synthesis identified 4 inter-related key problems
More Milk in Tanzania Project
1. Dominant direct milk sales of small volumes that preclude economies of scale, resulting in high costs of production and marketing Milk marketing outlets (NBS, 2003)
Milk Buyer %Neighbours 86.1Local market 5.5Secondary market 0.5Processors 1.4Large scale farms 0.2Trader at farm 4.5Other 1.7TOTAL 100.0
More Milk in Tanzania ProjectKey problems
3%
97%
Processed milk and dairy productsInformally marketed raw milk (liitle value addition)
2. Credit facilities are lacking. This contributes to low access to basic inputs and services or working capital to purchase them
3. Lack of appropriate organizational models for pre-commercial producers. These are required to facilitate collective action
4. Seasonality of rainfall and related effects are strong. This is reflected in producers’ management of their animals’ reproductive cycle and transhumance. It exacerbates seasonality of feed availability and milk volumes
Key problems (cont’d)
Huge seasonal fluctuation in milk supply from traditional herd
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
11000
12000
Milk collection by a small scale processor from traditional herd in Morogoro, 2009
Average/month Total supplyMonthV
olu
me
of
mil
k (l
itre
s/m
on
th)
0
1000
2000
3000
4000
5000
6000
Milk
yie
ld p
er L
acta
tion
(Kg)
Indigenous Crossbred Exotic
Mixed rain fed temperate/ highlan
d
Mixed rain fed humid/ sub-humid
Indigenous Crossbreds Synthetics Exotics
Large-scale commercial ranches
x1
x2
x3
x1
x2
x3 x3
y2
y1
x3
Xi = Yield gaps due to “animal husbandry practices” : 33 - 76 %Yi = Gap in productivity due to “genotype”: 18 - 74%
Source: Mwacharo et al., 2009
Large yield gaps:
Low per capita milk consumption
Kenya Rwanda Tanzania Uganda0
20
40
60
80
100
120
140
160
180
200
220
Per capita milk consumption in EAC countries (Kenya, 2009; Rwanda 2011, Tanzania 2010 amd Uganda 2009)
Per capita WHO recommendation
Gap between investments in milk prodn., collection and processing capacity
Arush
a
Kiliman
jaro
Mara
Kagera
Mwanza
Tanga
Morogo
ro
Dar es
Salaa
mIrin
ga
Mbeya
05000
100001500020000250003000035000400004500050000550006000065000700007500080000850009000095000
100000105000110000
Gap between investments in milk prodn1. , collection and processing2 (1NBS , 2003 and 2TDB data 2012)
Marketable surplus milk /d (28% of wet season prodn -NBS-2003)Processing capacity (2012)Milk collection capacity (2012)Milk collected l/day (2012)
Region
Volu
me
of m
ilk/d
ay
Underutilisation of current milk collection capacity
Region No. Of milk collection units
(coolers)
Milk collected (l/d)
Utilised capacity
(l/d)
% MCC capacity utilisation
Arusha 17 2,600 3,280 (-)
Kilimanjaro 9 10,400 3,580 34
Mara 57 92,000 12,500 14
Kagera 3 (-) 150 (-)
Mwanza 1 1,500 (-) (-)
Tanga 42 95,900 40,734 42
Morogoro 9 19,300 6,266 32
Coast 8 5950 2998 50
Iringa 12 (-) 3,255 (-)
Mbeya 26 17,238 19,874 115
184 (55) 243,478 94,137 38.7
source :TDB data 2012; ( - )=+ incomplete data
Industry approach1. Invest where there are
likely to be high returns2. Go where there’s
already some dairy development
3. Promote capital intensive approaches like chilling plants
4. Promote modern breeds only
Examples of promotion of industry vs. inclusiveness
Inclusiveness approach1. Target the poor <$2/day2. Go to marginalised areas3. Meet the small-scale
producers in there current markets, that are often informal
4. Explore working with current assets of the poor, including traditional breeds
Possible DDF roles
1. Promoting a more inclusive orientation in investments through strengthening of public-private partnerships
2. Promoting professionalization and best practices
3. Acting as a platform for information and knowledge sharing including:
• as a national innovation platform to address systemic bottlenecks and co-create solutions
• facilitating mentoring of milk-shed level dairy innovation platforms
DDF is in a good position to promote inclusiveness and complement specific projects
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