Tanzania unveils US$200M roadmap to reduce imports & modernize dairy sector

TANZANIA – The Tanzania Dairy Board (TDB) has unveiled a strategy to boost domestic milk production and improve quality, aiming to reduce reliance on imports.

The strategy focuses on increasing production, strengthening collection and processing systems, and providing education to stakeholders across the value chain, from farmers to consumers.

A 10-year project (2025–2035) worth US$200.72 million (Sh520 billion) is being implemented to transform the dairy sector while addressing the impacts of climate change.

The project includes the procurement of 17,200 improved dairy cattle, construction of 150 new milk collection centres, and investment in water infrastructure and pasture production.

Through the initiative, farmers are expected to benefit from affordable credit, modern training and access to quality inputs, measures aimed at boosting both output and quality.

Tanzania has more than 39 million cattle, but about 90 per cent are indigenous breeds with low milk yields. To support livestock health, the government has allocated US$83.38 million (Sh216 billion) for a five-year national vaccination campaign (2025–2030), aimed at reducing disease and increasing productivity.

Additionally, the government has invested in dairy infrastructure, encouraging the establishment of 188 milk processing plants and increasing the number of milk collection centres from 200 to 269 over the past six years.

In a further push to attract investment, various taxes—including import duty and Value Added Tax (VAT) on milk collection and processing equipment—have been scrapped to lower costs for stakeholders.

Speaking in an interview after a dairy industry training for inspectors held in Morogoro, TDB Registrar Prof George Msalya said the government was determined to ensure that milk produced locally meets safety and quality standards for human consumption.

He noted that poor milk quality has been driven by practices such as adulteration, the use of unsafe containers, and the absence of formalised collection and processing systems.

“Our goal is to ensure that locally produced milk meets required standards, restore consumer confidence, and ultimately reduce dependence on imported products,” he said.

Milk production has already risen from 3.9 billion litres in 2025 to 4.01 billion litres in 2026, with the government continuing to promote improved livestock keeping and the adoption of modern technologies.

Additionally, the government, through the Tanzania Agricultural Development Bank, has set aside more than US$11.58 million (Sh30 billion) to support farmers and investors in expanding dairy operations.

The school milk programme is being scaled up to reach 5,000 schools by 2030, with the dual objective of improving student nutrition and expanding the domestic market for milk.

The reforms signal a major shift in the dairy industry, aimed at ensuring Tanzanians have access to safe, high-quality and nutritious milk, while increasing the sector’s contribution to economic growth.

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