1. East African Dairy Development Project - Uganda EADD II Tanzania Dairy Consumer Market Survey Key Findings and Recommendations The 6 th National Dairy Development Forum 29 th May 2016

2. Interviews conducted to gather insights on strategy design, possible solutions and challenges Stakeholders Tanzanian Dairy BoardGAIN TAMPAWorld Bank TAMPRODASUA Ministry of Livestock & FisheriesTanzanian Investment Center Tanzanian Food & Nutrition CenterKhangarue Media Tanzanian Food and Drugs AuthorityArusha Dairy Tanzanian Bureau of StandardsMountain Green Dairy Tanga FreshKilimanjaro Creameries Ltd Executive Summary Note: Interviews conducted over a period of 5 weeks

3. Executive Summary: Challenges and Proposed Recommendations

4. Challenges facing the Dairy industry Producers Inadequate extension services and pricing structures High Operation Costs Distance and location of MCCs from farms and producers Seasonality Processors Lack of quality milk supply Under utilization of capacity Misaligned govt policies Lack of packaging and product diversification Lack of skills and training Consumers Low awareness of health/nutritional and quality of milk Low availability and accessibility to locally processed milk Tastes/preferences of consumers between raw milk and processed milk Government Overregulation and misalignment of policies Duplication of roles and responsibilities Inadequate infrastructure Lack of Public/Private collaboration Executive Summary

6. Overview: Findings & Recommendations FindingsRecommendationsFeasibilityIndustry Impact Increase consumer awareness Roll out a National Dairy Industry Campaign Continue efforts around school milk feeding programs Continue aggregation efforts around dairy marketing events and forums Dairy product diversification High Medium Low Improve quantity and quality Formalize the informal market Capacity building and quality training Messaging and education of quality of milk High Address overregulation and government policies Calculate the demand for locally produced milk (raw & processed) Address multiplicity of regulations and re-align policies and Address the issue of imports for milk and dairy products Low Medium Improve supply chain Increase uptake of breeding services, vet services, vet drugs and AI services Investment into milk packaging solutions Organize farmer groups and run MCCs with provision of ext services Medium High Medium Short Term Short – Medium Term Medium – Long Term Long Term Executive Summary 1 2 3 4

7. Tanzania Market Strategy: Objectives, Vision, Design and Approach

8. Four priorities outlined by dairy stakeholders as factors to address demand constraints in Tz Aspiration To increase consumption of locally marketed milk & dairy product consumption across Tanzania ……….From 47 L to 100L by 2025….. It is possible ……Key priorities areas highlighted are…. Objective, Market Strategy Design, Vision & Approach Change consumer behavior towards local milk/dairy product consumption 1. Improve quality and quantity of locally marketed milk & dairy products 2. Improve existing government policies and regulations 3. 4.

9. Increase Consumer Awareness

10. Increase in awareness and perceptions around health, nutrition and quality benefits of milk/dairy products National Dairy Campaign School Milk Feeding Programs Aggregation efforts around dairy forums and marketing Dairy Product Diversification Short Term Medium Term Long Term * The four-pronged strategy would be supplemented by additional programs as detailed in the next three slides Public-Private partnership Processor driven Continue efforts around Milk Week and Dairy Development Forum Investments in UHT, cheese processing and flavored yogurts Proposed Recommendations 1234

11. Improve Quality and Quantity of Milk

12. * The three-pronged strategy would be supplemented by additional programs as detailed in the next slides Collaborate with the Informal Market Collaborate with informal traders and organize them into formal groups Develop a ‘Milk Market’ where traders, consumers and QC inspectors can engage Encourage overall good quality milk consumption through dairy market campaign and offering quality training certification to informal traders Capacity Building & info on QC Perform QC checks at milk markets as well as PO and Farmer level Provide training to traders. Also discuss further payment schemes between producers and processors based on high quality of milk supplied Education and Marketing Awareness campaigns around quality of milk Information about AI and extension services New product launches 1234 Proposed Recommendations

13. Address overregulation and government policies

14. * The four-pronged strategy would be supplemented by additional programs as detailed in the next slides 1234 Source: World Bank Group L-MIRA project findings, 2015 Livestock contributes 7% to GDP with Dairy industry as one of the sectors with the highest potential for commercialization and poverty reduction Address the impact of imports to the dairy industry Address multiplicity of regulations and re-align policies Map out true demand of local milk Overregulation costs businesses TZS12 million 2 years of waiting to start a business Annual demand for local milk is unknown Proposed Recommendations

15. Improve the milk supply chain

16. 1234 Source: World Bank Group L-MIRA project findings, 2015 Investment into packaging Provision of extension services Increase uptake of breeding and vet services, drugs and AI services Improve Infrastructure Currently processors are importing packaging increasing the cost of production Poor management practices at the MCCs Seasonality affects production of milk Shortage of equipment for testing and cooling Lack of dairy experts Ministry of Livestock & Fisheries piloting AI in LGA Poor roads High electricity costs Rationale Proposed Recommendations

17. Proposed Implementation Plan - immediate

18. Key Stakeholders- Wrap up Meeting 1.Agreed on a milk consumption vision: from 47L par capita to 100 by 2025. national disaster 2.To declare lack of milk consumption culture as a national disaster. Agreed to take this message to the president and make it national. Get buy-in from the PS before the end of the milk week Sell the idea and endorsement to/from the annual council. ACC, Mark and TDB chair to take it up by end June. Make sure there are facts: TDB/EADD to lead, TDB chair to provide malnutrition data 3.School milk program –agreed it’s a critical part of influencing future demand TDB to own it and bring it out as part of a key strategy in driving future consumption during the Annual Council Meeting Objective, Market Strategy Design, Vision & Approach

19. Wrap up 1.Formalize the informal TDB to continue training and certification TDB to work with EADD to support transformative process 2.Milk quality EADD ready to work with TDB on replicating/developing a training model Implement a TOT model to increase reach EADD to continue providing capacity building to milk inspectors in the southern highlands in collaboration with TDB Action: TDB/EADD 3.Agreed on the need for TDB and EADD to sign an MOU Mark and Nelson to do that before end of milk week 4. Include feeds and extension under supply chain improvement Objective, Market Strategy Design, Vision & Approach

20. Wrap up 1.TBD has agreed to lead implementation of the strategy with the support of stakeholders EADD to officially handover the strategy document to TDB during the national council meeting. Strategy to become part of Dairy Master Plan and TDB strategic plan 2.Milk quality: Mazzi cans as part of recommended milk handling equipment's: TDB to follow up with KDB and fast track adoption to reduce costs to farmers EADD willing to promote the use and access to mazzi cans to farmers in the southern highlands. 3.Hold more milk weeks to ensure reinforcement of messaging: EADD willing to support localized campaigns 4.Consumer awareness: EADD ready to support consumer awareness through messaging and communication Objective, Market Strategy Design, Vision & Approach