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Dairy value chain/ Tanzania - Dairy hubs help ensure smallholder farmers participation in the value chain

17 March 2015

Small-scale dairy farmers in Tanzania are straining to keep up with a fast-pace dairy industry to avoid being marginalized by changes in competition patterns, consumer preferences and markets requirements. The Tanzanian government in partnership with private investors in the dairy sector have launched a dairy development programme, aiming to implement dairy market hubs in the country to increase milk production to meet an increasing demand. The program will launch dairy hubs in 4 districts to improve informal markets, boost the quantity and safety of dairy for consumers. The dairy hubs will also help resolve problems of access to markets, address storage and transport challenges while increasing access to credit for producers. On the other hand, traders are motivated by incentives such as sales volume, payment guarantee and business networks .


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