Implementation progress: Establishment and operation of dairy market hubs Presentation outline  Introduction  Achievements  Challenges  Lessons learnt  Next steps MAZIWA ZAIDI More Milk in Tanzania (MoreMilkiT) Project

Objective: Develop scalable value chains approaches with improve organizations and institutions serving smallholder male and female households. Output: Vibrant, well organized and sustainable DMHs delivering demand– led inputs and services developed.

Group development: Project Introduction to district Team Management in all four project district areas. Group mobilization to cattle keepers farmers were done to all 30 project villages identified. 30 groups of cattle keepers has formed, elected leadership, developed their group constitution. ACHIEVEMENTS

Ac hievements Cont… Group development: 20 groups registered 3 as Cooperatives and 17 as Community Based Organization, 10 groups are in the process of registration. Group members were supported with 880 pcs. of training manuals of Livestock dairy management from Heifer.

Achievements Cont… Training Needs Assessment: Training Needs Assessment done to 14 sampled groups. TNA done in 14 (47%) out of 30 villages. 554 (Fe -229 – 41.3%) and 325 men (58.7%) interviewed. Capacity needs identified. Challenges and opportunities identified.

Challenges Cattle keepers Kambala in Mvomero district was not revisited due to the prevailing land conflict between pastoralists and farmers. Higher expectation of farmers on the project with regards to receiving direct tangible benefits like heifers, bulls, milk collection tanks and new milk traders.

Challenges Cont… Cattle keepers: Some of smallholder farmers who were interested to join the groups but limited because they lacked cattle/ animals of their own. Low training capacity on group Leadership, Management and Development in most of the groups visited.

Challenges Cont… Cattle keepers: Poor involvement of women in group meetings and leadership positions. Some groups in Kilosa and Mvomero districts facing challenge in the process of group registration. Inadequate knowledge and mindset change.

Challenges Cont…  Cattle keepers from TNA No structured Business Linkages so far. Poor Quality and high cost of the Artificial Insemination services. Seasonal milk production due to unfavorable weather condition. Poor organizational, leadership and markets linkages. Poor milk quality control and hygiene.

Challenges Cont…  Cattle keepers from TNA Inadequate bulking of milk due to higher prices offered outside. Unequal distribution of income from economic resources. Low capital invested in milk subsector. Inbreeding of cattle. Inadequate information on existing financial opportunities.

Challenges Cont…  Input suppliers from TNA Inadequate skills and experiences in inputs handling, technical advise, storage facilities and drugs application. 12 out of 14 not legally registered. Poor road network from the milk producers to the consumers (town) mainly in the rainy season. Presence of substandard dairy inputs.

Challenges Cont…  Input suppliers from TNA: Unreliable electrical power supply which leads to almost impossible to stock specific drugs e.g. vaccines. High costs of inputs e.g. vaccines and drugs (e.g. Butalex) which is hardly affordable by most cattle keepers. Inadequate investment capital.

Challenges Cont…  Milk Vendors from TNA: Inadequate business skills in the milk subsector. Unattractive milk price during wet season, stiff competition during dry season. Late or sometimes default payment to vendors. Unreliable milk transport and storage facilities due to low capital investment.

Challenges Cont…  Milk Vendors from TNA: Poor road networks and unreliable transport. Inadequate business skills in price setting and negotiation. Use of un-standardized weights and measures in the business.

Challenges Cont…  LGAs extension field staff from TNA: Inadequate skills in dairy sub sector. Inadequate transport facilities for effective service provision. Inability to tap into milk revenues opportunity as sources of LGAs income.

Challenges Cont…  Financial institutions from TNA: Inadequate information of cattle keepers’ financial needs. Low trust and confidence on credit worthiness to cattle keepers. No specific banks for small scale Agri-producers.

Lessons learnt Group Development: Beneficiaries are ready and show willingness of coming together to solve their prevailing development challenges. Involvement of respective district Community Development Departments in the project has made them work closer with groups which in long run will ensure group sustainability.

Lessons learnt Cont… Group Development: Beneficiaries are quite anxious to solve their challenges in their localities, all what they need is to get timely intervention from the project planned activities.

Lessons learnt Cont… Training Needs Assessment: More information for implementing partners is required for optimum services provision. Unresolved land disputes between farmers and livestock keepers might pose threat to project implementation in some locations. Cattle keepers showed indication of owning the improved dairy cattle. There is high potential for B2B to work in the project area.

Next steps Heifer: Follow up to groups which are not yet registered and advice on the best measure to move forward. Group development trainings will be conducted to specific group based on the identified training needs.

Next steps Cont…  Faida Mali Present and validate TNA findings and develop capacity building (CB) plan. Develop appropriate business models. Development of bankable business plans for BDS providers. Facilitate negotiation between different actors through business-to-business (B2B) to reinforce training on dairy as a business. Make follow-up visits to concretize deals and organize service delivery systems. Participate in monitoring, learning and evaluation (MLE) and project review meetings.

Next steps Cont…  Other emerging needs from Faida Mali:  Market and market information needs Training on cost benefit analysis to various interest groups. Training on contracting arrangements between buyers and groups/cooperatives (B2B). Conduct Participatory Market Research. Train value chain players on market information, market intelligence and establish linkage to market information.

Next steps Cont… Faida Mali:  Access to finance Sensitize and mobilize individual internal resources as sources of capital. Continue mentoring and coaching of B2B.  Technical needs;  Groups/cooperatives. Train groups/cooperatives on milk value addition technology to address excess milk during wet season.

Next steps Cont… Train groups on pasture development and fodder storage. Mainstream gender, youth and environment issues in the project.

Next steps Cont…  Vendors Train milk vendors on entrepreneurship skills. Training to prepare bankable business plan and link them to financial institutions. Training on milk hygiene and handling.

Next steps Cont…  LGAs extension Conduct various refresher courses to LGA extension staff in the project locations. To curb improper milk measurement, rigging and sub-standard farm inputs in the market.

Next steps Cont…  Input suppliers Train input suppliers on the importance of business registration and facilitate registration. Train to recognize substandard and genuine quality inputs. Facilitate formation of input suppliers consortium. Organize at the market place event to include all interest groups. Train them on customer care and other business development services. Train on how to prepare bankable business plan and link to financial institutions.

Improving quality assurance services and communication in Mvomero, Kilosa, Lushoto and Handeni

 To establish and improve a quality assurance system through training and certification of informal milk traders involving Business Development Services provider (BDS)  Increase communication among dairy stakeholders The purpose of the project

Achievements 1.Awareness creation and mobilization key dairy stakeholders Further identification of potential milk traders, service providers Identification of eight milk collection hubs Lushoto Township, Bumbuli, Mlalo in Lushoto; Handeni town ship in Handeni, Dumila and Dakawa in Mvomero and Kimamba and Kilosa township in Kilosa.

Potential Milk traders identified ] Summary of potential milk traders in the project areas in eight milk collection hubs ( Mvomero, Handeni and Lushoto) DistrictCollection centres/Hubs No. Milk Trader 1. Lushoto Handeni Mvomero

Potential Service providers District Name of Service Providers Nature of operation Location Mvomero 6 Retail Shop Turiani Handeni 4 Retail shop Handeni Lushoto 4 Retail Lushoto, Soni, Mombo 14

Achievements Cont… Guidelines for quality assurance improved  Inspection manual for Dairy Farm.  Inspection Manual for Milk Cooling, Collection and Bulk Transport.  Inspection Manual for Milk Kiosk, Bars and Cottage mini dairies.  Code of Hygiene Practice for Milk Retailing and Kiosk.

Achievements Cont…. Increase communication among dairy stakeholders Facilitated Dairy Genetic working group – To identify systemic bottlenecks in dairy genetics. – Clarify actors expectations. – What needs to be done to make the system work. – Business models.

Achievements Cont… Facilitated third Dairy Development Forum(DDF)  Filling gaps in dairy technology and agribusiness skills  Strategies for expanding the national dairy herd  Business solutions for year round availability of quality feeds. Formed task force to work on the emerged issues around dairy genetics, feeds and technology.

Task force 1.Heifer/bull/semen production 2.AI field delivery 3.Recording registration system 4. Farmer organizations 5. Policy and Régulations 6.Platform Development and leadership Achievements Cont…

Challenges Synchronization of partners activities delayed project implementation. Emerging issues from the Dairy Development Forum (DDF) required additional funding. Some of farmers expectations (such as heifers, milk collection equipment, cans, fodder seeds, etc) not to be addressed by the project.

Way Forward To continue working on development of guidelines to address milk quality (Code of hygiene in milk production, bulking and transportation, dairy processing). Induction and accreditation of service providers on milk quality issues (business orientation would obtained from FAIDAMALI). Forum.

Way Forward Cont…. Design training to Milk traders as per Training Needs Assessment (TNA) findings. Training and certification of milk traders (formed groups, formed Hubs). Continue facilitating Task Force formed in Dairy Development Forum (DDF)

END THANK YOU VERY MUCH! ASANTENI SANA!