Tanzania Agricultural Development Bank disburses US$16.1M to support dairy value chain

TANZANIA – The Tanzania Agricultural Development Bank (TADB) has facilitated the disbursement of over US$16.1 million (TZS 42 billion) to processors, farmers, input suppliers, and other dairy value chain actors to support the dairy sector.

According to a statement shared by the bank, its Tanzania Inclusive Processor-Producer Partnership (TI3P) in the Dairy Project has benefited 92,831 stakeholders since its launch in March 2022. Women account for 30 per cent of all beneficiaries.

The project has facilitated the establishment of 23 milk collection centres across the country, as well as addressing policy and regulatory bottlenecks affecting growth in the dairy sector.

At the same time, it integrates cross-cutting priorities such as gender equality and nutrition to ensure sustainable sector development.

The project has supported the establishment of new dairy processing facilities, alongside the expansion and modernisation of 17 existing plants through investments valued at US$8.66 million (TZS 22.8 billion).

Industry stakeholders say improving processing capacity is critical for reducing post-harvest losses. It is also vital for increasing value addition and creating reliable markets for milk producers.

The programme has financed the acquisition of 3,330 improved dairy heifers worth more than US$4.18 million (TZS 11 billion). This move is expected to increase milk yields and improve herd productivity among smallholder farmers.

In addition to financing, the project has invested in strengthening farmer organisations and milk collection systems. A total of 45 Farmer-Producer Organisations (FPOs) and dairy interest groups have been established or strengthened under the initiative.

These groups collectively collect more than 25,664 litres of milk daily. This improves market access while enhancing farmers’ bargaining power and income opportunities.

The initiative has placed a strong emphasis on inclusion, particularly for women who remain underrepresented in commercial dairy production and processing.

Through matching grants worth US$532,000 (TZS 1.4 billion), TADB has supported 1,216 smallholder farmers, including 397 women.

This funding helps them overcome barriers to accessing loans for improved dairy cattle and farm expansion.

Five women-owned dairy processing enterprises have received milk pasteurisation equipment valued at US$28,500 (TZS 75 million). Additional grants have also been extended to women-led businesses and processors to promote gender equality within the sector.

The dairy sector is considered one of Tanzania’s key agricultural subsectors, supporting millions of households through livestock keeping, processing, transportation, and trade.

Experts argue that increased investment in financing, improved breeds, extension services, and value addition will be crucial.

These interventions will reduce dependence on imported dairy products and enhance the sector’s contribution to economic growth.

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