Tanzania launches prize competition to advance climate-smart dairy development

TANZANIA – The Government of Tanzania, with Heifer International Tanzania and other stakeholders, has launched the US$2.8 million AgResults Climate-Smart Dairy Prize Competition 2026 to 2028, a results-based scheme that pays livestock service providers for verified outcomes rather than for activity alone.

The AgResults competition seeks to address longstanding barriers that limit dairy productivity and market participation in Tanzania. Many smallholder dairy farmers face challenges accessing veterinary services, breeding services, quality fodder, and extension support.

The competition encourages private sector actors to expand the availability and adoption of animal health, nutrition, breeding, and fodder solutions for smallholder dairy farmers.

By rewarding businesses for delivering productivity-enhancing dairy inputs and services in the Mbeya, Iringa, Njombe, and Morogoro regions, the competition aims to increase milk production, improve farmer incomes, strengthen resilience, and support the long-term growth of Tanzania’s dairy sector.

 Seasonal feed shortages and low uptake of productivity-enhancing inputs further constrain milk production, while limited participation in formal markets restricts opportunities for investment and sector growth.

Through the competition, private sector input suppliers and fodder producers will compete for prizes based on verified delivery of eligible products and services to smallholder farmers.

Competitors can earn prizes for verified sales of parasite control, vaccines, or artificial insemination services – along with required advisory services – or for verified sales of improved fodder packages. Quarterly prize payments are designed to encourage businesses to reinvest in growth and expand their reach over time.

Over the next two years, the Tanzania Climate-Smart Dairy Prize Competition is expected to reach approximately 28,000 smallholder dairy farmers, generate significant gains in dairy productivity, and support the production of an additional 7,500 metric tons of fodder.

By encouraging private sector investment in dairy health, breeding, nutrition, and advisory services, the competition aims to create stronger market linkages and more resilient dairy production systems that benefit farmers, businesses, and consumers alike.

The project is part of AgResults, a US$152 million collaborative initiative between the governments of Australia, Canada, the United Kingdom, and the United States, the Gates Foundation, and the World Bank Group that uses Pay-for-Results prize competitions to incentivize the private sector to overcome market barriers and create lasting change.

Through AgResults’ results-based approach, these competitions reward participants for achieving independently verified outcomes that improve the lives and livelihoods of smallholder farmers.

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