tzdairy_march2012_notes

= The Smallholder Dairy Value Chain in Tanzania: An opportunity for growth and poverty reduction = = Stakeholder Meeting, Morogoro, 9th March 2012 = = = = = =Notes from the Sessions=


 * Contents:**
 * Site Selection Criteria
 * Mapping Actors and Initiatives
 * Learning from Current Expertise
 * Next Steps
 * Notes from Rapporteurs

=Site Selection Criteria=

media type="custom" key="13047890" align="right"from the quick buzz groups of participants


 * Dairy cattle population
 * Smallholders
 * Market access
 * Services available /inputs structure
 * Feed availability
 * Other economic apparatus
 * Veterinary service available
 * Climatic conditions
 * Land availability
 * Infrastructure / facilities
 * Rural area
 * Not very poor
 * Farmers organisations
 * Presence of key stakeholders for driving change
 * Processors available
 * Existence of projects
 * Human population density
 * Potential for impact
 * Poor milk marketing infrastructure
 * Market pull demand for change
 * Potential for genetic change
 * Not the most organised

=Mapping Actors and Initiatives=

We held a brief round-table conversation with 6 ‘development’ and then 4 ‘research’ participants. Basically asking them about the focus and role of their project/initiative in the Tanzania dairy value chain, and the main challenge/priorities for the future.

We also asked people to complete information n their projects - [|this is captured in an xls file here].

Development actors
- Barack – SCF [Support end market development] - Charles - CEO TDB [Promote, develop, regulate dairy industry] - Julius - Tanga agro-enterprise-input supply - Aichi - EADD - Peter - Arusha dairy processor - Godfrey - RLDC [M4p-market for poor]
 * Who was on the panel?**


 * Roles in the value chain**

TDB - making dairy industry work - regulates industry - smoothing hurdles faced by the industry - dealing with quality issues - biggest challenge – small number of dairy cattle – needs to (arrow up)

SCF - addressing industry challenges - e.g. lack of milk for processing * - increasing production - support from DANIDA - Funds to support SMEs

Arusha Dairy Processor - biggest challenge – lack of milk - seasonality of supply - next Syrs: (arrow up) genetic quality
 * deal with unfair competition [Kenya, …]

Aichi - EADD - Aims to double income from milk for ?? farmers - by using hub business model - needs to adapt model from other countries to TZ - business orientation - multi-stakeholder approach along the whole value chain

Julius – Tanga - dairy platform (to support dairy groups, cooperatives, networks) - S year vision: - strengthen coops - boost production - broaden collection base

Godfrey – M4P – RCDC - challenges – lack of milk for processors - need to boost productivity - make more out of dairy - project ended but many insights from the previous work on dairy

- technologies to deal with productivity constraints. - tell us why we lack good technicians (dairy technologists) - put research into use - researchers need to interact with development - research topics should be agreed with development people (up front) - we take research knowledge to catalyze charge
 * What do development people need from research?**

Research actors

 * Who was on the panel?**

Msangi – dairy coordinator in the Ministry + EAAPP Bwire – Tanga LRC, dairy mandate Germana – SUA, talked about studies on 1. feeds + feeding inc pastures, feeds database 2. genetic characterisation 3. veterinary – mastitis, brucellosis 4. economics marketing, agritasiness, value addition, milk processing 5. climate change impact 6. upscaling/outscaling following vc approach 7. capacity building/training

Ryoba – SUA working on: - upscaling/outscaling under EPIWAV - use of manure from biogas, mastitis in Pemba, Moshi - value addition to mee and milk - HACCP fro meet safety x sausage prod.


 * Research points**

EAAPP 5 main livestock research priorities: 1. breeding, 2. disease control, 3 feeds and feeding, 4 product handling and value addition, 5. social economics

- issues: - shortage of staff in dairy technologists, socio-economics, infrastructure, financial - shortage of feed germplasm/seeds - most important: - feeds and feeding - when/where to supplement profitably? - more skilled manpower for milk processing

- use the technologies we put in place - maintenance of platforms, how sustainable, research needs to be ‘in’ - coordination – improve this – through common agenda
 * Expectation from development agents**

Questions from the Audience
- is breeding viable - How many dairy animals are there vis a vis livestock; and are the figures correct? - trade? - how to ensure synergy - relevance of research? - to provide skilled technical expertise (usually has to come from outside) - milk processing capacity under utilisation - needs of associated industries? e.g. equipment / extension

Responses

- capturing milk from extensive systems - focus on infrastructure to resolve this - imported milk mostly from Europe (TDB), SA, Kenya and Zimbabwe - disaggregate source of milk production: zebu vs improved - focus on low dairy cattle numbers - value chain focus is an opportunity to improve coordination - TDB will organise congress (end of May) offers opportunity to discuss coordination further - for data on dairy; we need to count dairy cattle…

=Learning From Current Expertise=

4 groups

**1. RESEARCH ACTORS**
What research challenges are you hearing from the development actors & private sector? Which Site(s) for rural production – rural consumption Which Site(s) for rural production – urban consumption Are there any Quick wins and major hurdles in stimulating production and market growth?

• Seasonality of milk production and processing • Seasonality of feed production • Some milk collection is not collected • Lack of coordination between stakeholders (not involved in project design and implementation) • Low population improved breed dairy breeds • Low milk product city of existing herds • Milk quality problems/ milk handling etc. – adulteration, antibiotic, etc. • Lack of enough trained dairy technology technicians in the industry
 * What research challenges are you hearing from development actors and private sectors?**

Feed • Feed conservation (hay with improved grasses and silage) • Feed trading – surplus/deficit areas • Buying in concentrates • Pasture improvement especially with high quality leguminous species
 * Research Opportunities**

Breeds • Strengthening AI programs

• Rural – Rural o Morogoro region: (Mvumero district, Turiani division) – high proportion of crossbreds o Tanga region: Loshoto District (Low land to highland) o Mara region (Lake zone): Tarime district o Southern highlands region: Rungwe district • Rural – Urban o Coastal region: Kibaha district for Dar es Salaam o Mara region (Lake zone): Musoma town o Southern highlands region: Tukuyu – Mbeya
 * Site selection**

• Milk collection and (distribution) marketing (all sites) • Training to change mind set (farmer keeping dairy cattle as hobby)– importance of proper dairy production [feeding etc], commercial orientation) • Mbeya - Tukuyu district– plenty of milk and no milk collection and selling (value addition?) • Feed conservation technologies for all areas • Deal with high calf mortality in southern highlands (40%)
 * Quick wins**

2. DEVELOPMENT ACTORS
What are the most promising dairy development successes and reasons? Failures and missed opportunities? Is Research working on the right problems? Which Site(s) for rural production – rural consumption Which Site(s) for rural production – urban consumption Are there any Quick wins and major hurdles in stimulating production and market growth?

1. Organized producer groups e.g. Tanga & Zanzibar 2. Harmonized rules and regulations of the dairy industry (why: Actors understanding and readiness) 3. Waiver of taxes on dairy equipment (reason) Competition – Actors efforts + Government readiness 4. Improvement in dairy breeds (Tanga & Zanzibar) 5. Readiness of private sector to venture/engage in dairy
 * A. SUCCESSES AND REASONS**

1. Inability of farmers to take in opportunity resulting from liberation 2. There is increased urban demand in milk that is not met by producers and processors. 3. There is no National dairy development strategy
 * B. FAILURES & MISSED OPPORTUNITIES**

1. Poor co-ordination between researchers and users ( Research finding dissemination)
 * C. Research working on the right problem?**

Ref Urban- Dar, Arusha, Mwanza, Zanzibar Rural-Kongwa, Mvomero, Serengeti, Pemba, Njombe, Mpwapwa
 * D. Which site(s) for Rural Production to Rural Consumption?**

Answer: Consider/Refer above
 * E. Sites Rural Production-Urban consumption**

1. Training to farmers & offer embedded services 2. Working through groups, Association and Co-operations 3. Introduction of milk kiosks and formalizing them.
 * F. Quick Wins**

3. DEVELOPMENT ACTORS
What are the most promising dairy development successes and reasons? Failures and missed opportunities? Is Research working on the right problems? Which Site(s) for rural production – rural consumption Which Site(s) for rural production – urban consumption Are there any Quick wins and major hurdles in stimulating production and market growth?

Successes:
 * Tanzania Dairy Board-first all inclusive stakeholder grip
 * Tanga Dairy group National Livestock policy

Failures:
 * Closure of processing companies
 * Making use of the old dairy plants

Research:
 * Donor driven, may not be in the right direction
 * Lack of coordination

Sites: Quick Wins:
 * Rural: Rural – Tukuyu or Mbozi or Rungwe
 * Rural: Urban –Arumeru/Arusha
 * Rural: Urban- Musoma / Mwanza
 * Rural: Urban – Tanga
 * Rural: Rural – Nmonga/Kalali
 * Rural: Urban- Kiswrawe, Vigwaza, Kibaha, Chalinze, Lugooba
 * Stimulate organisational capacity and formation of associations.
 * Creating fair playing ground (home produce & imports)
 * Improve service delivery (Veterinary services)

Hurdles:
 * Feed availability and quality
 * Change of attitude and culture of milk consumers – wrong attitude towards processed milk
 * Unavailability of dairy animals

4. LINKAGES AND COORDINATION
How best to ensure coordination and linkages within the 2 projects (MilkIT; More Milk in TZ) How do we properly link and coordinate with other dairy research and development initiatives in the country?

Members of the group noted the following:
 * System is in place but is not functioning optimally due to problem of mandate: while there is a dairy coordinator in the Ministry of Livestock and Fisheries Development (MLDF), and Tanzania Livestock Research Institute (TALIRI) based in Mpwapwa, their coordination role does not embrace non-ministry projects; and, the Tanzania Dairy Board (TDB) operates under a statutory mandate that has formal structures that may not be amenable to what is required
 * The example of TEAGASC  in Ireland was cited as probably suitable
 * What is needed is an arrangement or a forum that is informal, with TDB paying a communication role
 * The name Dairy Development Forum (DDF) was proposed
 * Membership should comprise all active members in dairy research and development including TDB, NGOs, processors, producers, associations, researchers, universities, vocational training centres
 * Meetings to be held twice per year and could piggy-back on other events like the “Maziwa Week” held annually in June
 * TDB should include the cost of participation of key MLDF officials in it’s a budget. Funds could initially be mobilised from projects like MilkIT and More MilkiT, among others
 * Individual projects or appropriate clusters of projects (e.g., those led by CGIAR) should have their own steering committees and contribute to the DDF through those committees
 * Next Steps: Define ToRs for the DDF and call a first meeting

5. REFLECTIONS FROM AMOS OMORE
• Start with boosting production • Focus on intensive systems with dairy cattle – so ruling out extensive systems with zebu cattle • There is very high calf mortality in Njombe of up to 40% • Land shortage in highland areas is a major constraint to feeding; therefore address feed marketing
 * Research:**

• Underlying assumption is that we need to focus on areas with some dairy cattle already and boost those numbers • Need artificial insemination for extensive areas • There is a dairy development policy but not strategy for its implementation
 * Dairy Development: Group a)**

This group was blind to underlying cattle breed, whether improved or dairy
 * Dairy Development: Group b)**

General comment on site selection: need to be clear whether we are focussing on cattle or cattle keepers.

=Next Steps=

Includes:


 * Dairy Development Forum TOR
 * TOR and composition of join steering committee for the 2 projects
 * Possible contribution to late May TDB dairy conference
 * MilkIT inception meeting end of April
 * Documentation of meeting and communication to participants

=Notes from Rapporteurs=


 * Feeding and Husbandry -Alan**

The key issue that came up a number of times was about the seasonality of feed supply which then fed through to seasonality in milk supply. There was some useful discussion about dealing with the seasonality issue through feed conservation (hay, silage) and through moving feed around from areas of surplus to areas of deficit. This would involve stimulating private sector forage/feed traders. Another issue which was mentioned several times was the lack of a forage seed supply system. The need for “agro-dealers” to get involved in supply of seeds and supplementary feeds (and other inputs) also came up several times in discussion. I think these were the main feed issues.


 * Animal health - Ben**

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 * Breeding - Brigitte**

Breeding was not very prominent in discussions, although several people highlighted the low proportion of improved dairy animals (N=680,000) that produce about 30% of the country’s milk versus the overall large number of cattle producing 70%. There was some discussion whether the impact could be larger when dealing with this large number of low-producing zebu cattle or with the small number of dairy cattle but of substantially higher milk yield. The other issue was that there is some geographic concentration of dairy cattle in the northern and the southern highlands as well as Dar es Salaam. Artificial Insemination (AI) needs to be strengthened to continue improving performance of dairy, but this service does not seem to be available everywhere. The Mpwampwa breed is a composite breed out of local and indo-Pakistani zebu cattle that has been developed as a dual purpose (meat & milk) animal, giving 1500-2000 liters per lactation; however, it does not appear to be widely used. ([])

text
 * Policy - Ayele**


 * Agribusiness – Acho**

The collective vision of stakeholders in the Tanzania dairy industry appears to be to boost dairy production and collection especially from rural areas, and support fledgling private sector-led dairy processing initiatives to attain profitability and national and international market competitiveness. This vision defines the major challenges of increasing the numbers of dairy cattle in the country, addressing seasonal variation that is reflected as too much and too little local supply of fresh milk in the wet and dry seasons in milk producing areas – a problem closely linked to feed availability, improving market access, as well as promoting a culture of milk (and milk products) consumption. There are indications that these challenges are understood by the public sector, private investors and related NGOs not only in terms of the tensions between demand and supply but also in the context of institutional and organizational hurdles (e.g. strengthening smallholder groups, development of dairy platforms, facilitating the emergence of conducive business environment) that must be overcome to stimulate and sustain the growth of a dairy industry that will be increasing reliant on local supply of fresh milk to produce milk and milk products that are competitive in national and international markets.

Views expressed during the meeting suggests that from a public sector perspective, the Government of Tanzania intervenes through the Tanzania Dairy Board (TDB) to develop, promote and regulate the dairy industry and its approach has been two pronged; boosting production and encouraging processing. On the production side, it is based on genetic improvement through increasingly decentralising artificial insemination services to rural areas to increase the numbers of dairy cattle held by small farmers. On the processing side, the Government of Tanzania has taken such fiscal measures as granting tax exempt for the importation of milk collection, processing and packaging materials including milk vans. The establishment of milk collection centres is also actively encouraged alongside improving quality standards for smallholder milk. In spite of these, most processors – representing private sector participation in the industry – are still frustrated by low volumes and quality of fresh milk from smallholder producers especially during the dry season. The situation during the surplus production season is equally problematic for processors as they currently produce mostly short shelf-life products and therefore remain incapable of taking advantage of the surplus to smoothen their own supply. In addition, processing factories suffer from the lack a pool of technicians with appropriate training in dairy processing to draw from; a situation which is exacerbated by the absence of investment in manufacturing dairy hardware.

Researchers and development partners agreed that the above situations point to the fact that despite the collective efforts of the public and private sectors and international NGOs, serious weaknesses including lack of chain coordination do exist in the Tanzania dairy value chain. For the agribusiness aspects of the dairy value chain, a quick win intervention would be facilitating milk collection from rural areas coupled with training in product handling and value addition. As part of a longer term strategy, researchers and development agencies must coordinate their activities especially for industry priority setting and uptake of research findings.