Milk’s nutritional properties are highly culturally crucial in many Tanzanian communities. It is often used as a symbol of purity, fertility, and abundance in traditional dishes and ceremonies. Tanzania’s domestic demand for 9 billion litres of milk annually exceeds production by about 3.4 billion litres. Hence, there is a significant gap that needs to be filled. This allows investors to take advantage of the growing dairy business and meet demand while earning substantial returns. This blog will discuss a short overview of Tanzania’s milk industry. Let’s begin!

In Tanzania, many domestic animals produce milk, significantly contributing to the economy.

Cattle: Cattle are the primary source or contributors to Tanzania’s milk production. In 2023, the annual production of milk was approximately 3.4 billion litres. Goats are a secondary source and significantly contribute to milk production. Especially in areas unsuitable for cattle farming. 

Goats: Goats are a secondary source of milk. They significantly contribute to milk production, especially in areas unsuitable for cattle farming. Goats produce plenty of milk, but their numbers are reported less often than cattle. 

Sheep: Compared to cattle and goats, sheep produce less milk. Generally, people use sheep’s relatively low yield to process particular products, such as cheese. Compared to cattle and goats, sheep produce less milk. People usually use the low milk yield of sheep to make specific products like cheese.

Buffalo: Buffalo milk production is minimal, but it is a potential resource for its high-fat content and nutritional benefits. Very little information is available about the buffalo milk produced annually in Tanzania. Although camel milk is nutritious in small amounts, its ideal setting is in arid regions. Camels produce less milk than other species.

Fresh milk enriches it with nutrients like calcium, proteins, vitamins, and minerals. Yoghurt and kefir are more digestible and have probiotic value. Their milk yields a variety of cheeses, such as goat’s feta, sheep’s Roquefort, buffalo’s mozzarella, and camel cheese.  All these items provide nutritional benefits. Such as 

1. Cooking and baking utilize butter and ghee, providing substantial fats and vitamins. Desserts and culinary applications use cream and ice cream for their rich texture and flavor. 
2. Milk has many nutrients that are highly significant in developing healthy bones, muscles, and overall health. Because of vitamin D and calcium, milk supports bone and teeth formation and prevents osteoporosis. 
3. Milk contains potassium, which lowers blood pressure. It decreases the probability of heart disease and stroke. 
4. Milk contains high-quality protein. It is essential for muscle building, repair, maintenance, and immune system activity. Studies show that milk helps with weight management by suppressing appetite and building muscle. 

Many smallholder farmers work in this industry, but have recently faced production problems. 

1. In the cattle segment, farmers observed low productivity. The indigenous breeds, such as the Tanzania Shorthorn Zebu, are less productive than the improved breeds. An adequate feed supply is unavailable to the cattle throughout the year. This is especially true during the dry season, which results in decreased milk production. The lack of appropriate milking facilities and cooling systems makes milk collection inefficient. Investors can participate in this sector to assist with advanced technologies. 

2. Additionally, inadequate transport systems further disrupt distribution mechanisms. Limited access to veterinary services and disease management harms herd health and productivity. Like cattle, goats face various challenges with feed availability and quality. These issues ultimately affect their milk yield performance.  Investors can support with transport system as well.

3. Sheep produce less milk than cattle and goats. Because of their low yield, sheep are typically used to create specific products like cheese. Sheep can be prone to diseases that threaten milk production and quality. Dairy farming with buffalo is less widespread. So, the support infrastructure for buffalo milk production is limited. Establishing a buffalo farm requires significant housing, feeding, and healthcare investments. Inadequate breeding programs hinder the enhancement of milk production characteristics. Most have very little access to formal markets for goat milk. As a result, they depend on informal markets. Investors can look into this, too.

4. The dairy farming industry in Tanzania needs to apply more exceptional management to dromedary cattle. The health and hygiene of the camels during milking are essential. However, maintaining them is challenging due to traditional practices. Camel milk has a place in niche markets. However, better market development and consumer awareness are required.

5. Aside from that, there are some general challenges. For example, an increase in temperature and a change in rainfall have a negative impact on forage and animal health. The high costs of inputs, from feeds and veterinary services to infrastructure, limit smallholder farmers’ investments. This affects their ability to improve milk production through knowledge and training. Farmers receive inadequate extension services for the most effective dairy farming techniques. 

All these problems lead to low production.  As a result, they need more supply to meet demand. They have to import many dairy products rather than export them. They import dairy products, including skimmed, condensed, evaporated, dried, and butter. They also import fresh whole milk to supplement local production. In the past years, the total amount of imported dairy products has been 116,650 metric tons, valued at approximately USD 154,3721 in Tanzania. Overall, there are many opportunities for investors to join the industry and help grow the market. 

 Several successful organizations have emerged by addressing farmers’ issues and inspiring success stories. A Tanzanian woman struggles to secure a livable income from her smallholder farm in the country’s southwest region. With only three cows and four children, she serves as the sole provider for her family. Her life was miserable, but she can now support her family after proper training. Their cows produced meager milk, barely enough to feed their four children. Heifer International: The Tanzania Milk Processing Project contributed to creating numerous real-life stories.

Since 1974, Heifer Tanzania has assisted. Heifer Tanzania has established milk collection centers to connect farmers with formal markets, reducing waste and boosting incomes. Heifer Tanzania trains people in effective animal husbandry practices and fodder farming. They also provide training in farm management to increase milk productivity. Milk processing plants and other infrastructural investments have supported dairy farmers. Now, over 1,398,000 rural farming families are involved in dairy farming. The interventions have driven the country’s dairy sector, especially in enhancing milk productivity and market access.

These qualitative and quantitative approaches both encourage investors to step forward and take initiative. Investors’ primary motivation is to seize opportunities when there is a significant demand. Additionally, these successful organizations serve as inspiration for aspiring entrepreneurs. 

Furthermore, this industry involves about 1.7 million households and mainly focuses on cattle farming. Six thousand farmers have doubled their revenue and milk output due to projects in the Tanga region alone. Not only this, but it indirectly benefits 25,000 people. Therefore, now is the ideal moment for those seeking the right opportunity at the right time.

The Tanzanian dairy industry offers significant investment opportunities due to the difference between milk production and demand. With a demand of some 2.4 billion litres and a supply of only 1.6 billion litres of production, strategic investments in this industry can narrow this gap and yield significant returns in that expanding sector. Organizations and research are underway to address the challenges and meet the demand. 

Projects like Heifer International’s Tanzania Milk Processing Project demonstrate success by investing in the right areas. This would prove that success is achievable by scaling up investments in the right places. Therefore, this is a perfect time for investors to take advantage of this emerging industry to meet Tanzania’s growing demand for dairy products.