The Minister for Livestock and Fisheries, Bashiru Ally Kakurwa, has launched 23 milk collection centres built through financing from the Tanzania Agricultural Development Bank (TADB) under the Tanzania Inclusive Processor–Producer Partnership Project (TI3P), a move aimed at strengthening the country’s dairy value chain and improving incomes for livestock keepers.
The national launch took place at the Nshamba Milk Collection Centre in Muleba District, Kagera Region, where the minister said the investment marks an important step in modernising Tanzania’s dairy industry.
He said the TI3P initiative is transforming the sector by improving milk production, quality and market access for small, medium and large-scale livestock keepers.
“These milk collection centres are not just buildings. They are strategic infrastructure that supports farmers, strengthens the dairy value chain and creates opportunities for economic growth in rural areas,” he said.
The TI3P project is funded by the Bill & Melinda Gates Foundation and implemented by TADB in partnership with Heifer International Tanzania and Land O’Lakes Venture37.
The initiative aims to link milk producers with processors while promoting inclusive and sustainable growth in the dairy sector.
According to TADB Managing Director Frank Nyabundege, the project has already achieved significant milestones across the dairy value chain.
He said more than TZS 41 billion has been disbursed as loans to support various actors in the dairy industry, helping expand production and processing capacity.
The project has facilitated the purchase of 3,254 improved dairy cows valued at about TZS 10.8 billion to boost milk production among farmers.
In addition, TADB has financed 15 dairy processing factories with investments amounting to TZS 22 billion, increasing the country’s capacity to process milk and reduce post-harvest losses.
Nyabundege said the programme has directly reached 92,831 livestock keepers through financial services, training and extension support.
A total of TZS 1.448 billion in matching grants has also been provided to dairy farmers and processors to support investments across the value chain.
Through the initiative, 45 Farmer Producer Organisations have been established and strengthened, collectively collecting an average of 19,047 litres of milk per day.
The 23 milk collection centres built and upgraded under the project are located across the Lake Zone, Southern Highlands and Zanzibar.
Together they have the capacity to collect about 45,500 litres of milk per day and serve 4,016 livestock keepers in eight regions and 18 districts.
The centres were constructed at a cost of more than TZS 1.157 billion.
During his visit to Kagera, the minister also toured the Maruku Cooperative Society in Bukoba where he witnessed the implementation of the “Borrow a Cow, Pay with Milk” programme.
The initiative is designed to enable youth and women to engage in modern dairy farming by providing improved dairy cows through affordable loan arrangements.
The cooperative has 118 members, of whom 26 percent are women. Through the programme, 24 members have already received 24 in-calf dairy cows.
Members have also benefited from a TZS 18 million grant aimed at reducing loan repayment costs, the renovation of a milk collection centre valued at TZS 10.4 million and a 2,000-litre milk cooling tank.
Farmers in the cooperative have received improved fodder seeds known as Juncao and technical training on modern dairy farming provided by Heifer International.
Since August 2023, the cooperative has also been connected to a reliable milk market through Kahama Fresh Limited.
At the Nshamba Milk Collection Centre, which has 541 members including 83 women, TADB supported the establishment of a facility capable of collecting 2,000 litres of milk per day and provided a standby generator to ensure smooth operations.
A total of 143 members are also expected to benefit from the “Borrow a Cow, Pay with Milk” programme through the distribution of 45 in-calf dairy cows.
Meanwhile, in the UWAWAMA cooperative in Kayanga, Karagwe District, 76 members have benefited from the programme by receiving 110 in-calf dairy cows and a TZS 85 million grant to ease loan repayments.
TADB has also partnered with Kahama Fresh Limited since October 2021 to strengthen milk processing capacity.
The collaboration supported the construction of a modern dairy processing plant equipped with machinery capable of processing up to 20,000 litres of milk per day, as well as specialised vehicles used for collecting and distributing milk from farmers.
In 2024, the bank facilitated the importation of improved dairy cows from Kenya and Uganda under the same programme, enabling smallholder farmers to access quality livestock under favourable financing arrangements.
The government under President Samia Suluhu Hassan continues to promote investment in the livestock sector with the aim of increasing value addition, creating employment and improving incomes for rural communities.
Nyabundege said continued collaboration between government institutions, financial organisations, development partners and the private sector will be key in expanding the impact of the TI3P initiative.
He said the programme demonstrates how coordinated investment across the dairy value chain can help unlock the sector’s potential and contribute to the country’s broader economic development agenda.