The Government, in partnership with the International Fund for Agricultural Development (IFAD), has launched a major initiative to transform Tanzania’s dairy industry by raising milk production, improving livestock breeds and strengthening farmers’ skills.
Implemented through the Ministry of Livestock and Fisheries, the Dairy Industry Transformation and Climate Change Project is targeting farmers in 12 regions, with a focus on improving productivity while helping the sector adapt to climate change.
The project is also expected to address a key weakness in Tanzania’s dairy value chain—shortages of quality raw milk for processing industries.
Speaking on August 12, 2026, during a visit to farmer groups expected to benefit from the project in Mbeya District, the Ministry’s Director of Production and Market Development, Steven Michael, said improving productivity was critical to unlocking the potential of the livestock sector.
“We have to increase productivity while taking the environment into consideration. We also need to ensure that livestock production contributes to the country’s long-term economic ambitions,” Mr Michael said.
The project is being implemented in the Southern Highlands, Northern and Lake zones, where livestock farmers will receive support aimed at improving animal breeds, access to water and pasture, disease control and market-oriented production.
Mr Michael said the Government was particularly concerned about the mismatch between the country’s milk production capacity and the processing capacity already available.
“We have processing plants with significant capacity, but they face shortages of raw materials. We expect this project to provide a major solution by giving farmers access to improved breeds and training,” he said.
He said increasing the supply of locally produced quality milk would enable processing plants to operate more efficiently, create opportunities for value addition and reduce the need to import dairy products.
The project comes at a time when Tanzania’s dairy sector is struggling to meet growing domestic demand.
Mr Michael said Tanzania produced about 4 billion litres of milk during the 2025/26 financial year, but only about five percent was processed.
He said national demand was estimated at about 13 billion litres, highlighting the significant gap between production and consumption.
The figures point to both a challenge and an opportunity for livestock farmers, processors and investors, particularly if productivity can be raised through better breeds, improved animal husbandry and stronger market linkages.
The National Coordinator of the Dairy Industry Transformation and Climate Change Project, Lazaro Kapera, said the initiative was being implemented in 12 regions with the aim of improving milk production and increasing farmers’ incomes.
He said the project would work across the dairy value chain to ensure farmers were better positioned to respond to market demand.
In Mbeya, project coordinator Samora Mshang’a urged livestock keepers to take advantage of the support being provided, particularly training and improved production practices.
He said increased productivity would not only improve household incomes but also contribute to a more reliable supply of milk for processors.
Mbeya District Council Executive Director Erica Yegela said the council had also been supporting residents, particularly women, through its 10 percent allocation of own-source revenue for community empowerment programmes.
She said more than TSh2 billion had so far been provided to women, adding that the council welcomed the dairy project because it could create additional economic opportunities for livestock farmers and other residents.
For farmers such as Ihombe Village resident Yohana Syeu, access to better livestock breeds remains a pressing need.
He said many farmers were keeping cattle with low milk-producing capacity, a situation that had contributed to low production.
The dairy project therefore offers an opportunity to address one of the sector’s longstanding problems: moving farmers from low-productivity traditional livestock keeping towards commercially viable dairy farming.
If successfully implemented, the initiative could help bridge the gap between milk production and demand, provide processors with reliable local raw materials and strengthen Tanzania’s efforts to reduce dependence on imported dairy products.
