The Tanzania Agricultural Development Bank has facilitated the disbursement of more than US$16.1 million (TZS 42 billion) to farmers, processors, input suppliers and other stakeholders as part of efforts to strengthen Tanzania’s dairy industry.

According to the bank, the funding was channelled through its Tanzania Inclusive Processor-Producer Partnership (TI3P) in the Dairy Project, which has reached 92,831 beneficiaries since its launch in March 2022. Women account for approximately 30% of the project’s beneficiaries.

The initiative aims to improve productivity, expand processing capacity and strengthen market access across the dairy value chain while promoting inclusion, nutrition and sustainable sector growth.

One of the programme’s major achievements has been the establishment of 23 milk collection centres across the country, helping improve milk aggregation, reduce post-harvest losses and strengthen linkages between farmers and processors.

The project has also supported policy reforms and efforts to address regulatory challenges that have constrained growth in the dairy sector.

To boost processing capacity, the programme financed the establishment of new dairy processing facilities and supported the expansion and modernization of 17 existing processing plants through investments valued at approximately US$8.66 million (TZS 22.8 billion).

Industry stakeholders view increased processing capacity as essential for reducing milk losses, expanding value addition and creating more reliable markets for dairy producers.

On the production side, the project funded the acquisition of 3,330 improved dairy heifers worth more than US$4.18 million (TZS 11 billion). The investment is expected to increase milk yields, improve herd genetics and enhance productivity among smallholder dairy farmers.

The programme has also focused on strengthening farmer organizations and cooperative structures. A total of 45 farmer-producer organizations and dairy interest groups have been established or strengthened under the initiative.

Collectively, these groups now handle more than 25,600 litres of milk daily, improving farmers’ access to markets while strengthening their bargaining power and income opportunities.

Women’s participation has been a key component of the project. Through matching grants valued at approximately US$532,000 (TZS 1.4 billion), TADB has supported 1,216 smallholder dairy farmers, including 397 women, helping them access financing for improved dairy cattle and farm expansion.

In addition, five women-owned dairy processing enterprises received milk pasteurisation equipment worth approximately US$28,500 (TZS 75 million), while further grants have been provided to women-led businesses operating within the dairy sector.

The dairy industry remains one of Tanzania’s most important agricultural subsectors, supporting millions of households through livestock production, milk processing, transportation and trade.

Agricultural experts note that continued investment in financing, improved genetics, extension services, processing infrastructure and market development will be critical to increasing domestic milk production, reducing reliance on imported dairy products and enhancing the sector’s contribution to economic growth.

The initiative aligns with Tanzania’s broader agricultural transformation agenda, which seeks to increase productivity, improve food security, strengthen rural incomes and expand value-added agricultural industries.