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close this bookStrategies for market orientation of small scale milk producers and their organisations. Proceedings of a worshop held at Mogororo Hotel, Mogororo, Tanzania, 20-24 March 1995. (1995)
close this folderSession 5: Comparative evaluation of dairy marketing systems.
close this folderCompetitive performance of formal and informal milk marketing channels in Northern Tanzania: The case of Hai district
View the document(introduction...)
View the documentIntroduction
View the documentFormal and informal marketing channels in the marketing system for milk in Hai district
View the documentMethodology
View the documentResults and discussion
View the documentProducer prices
View the documentTimeliness in effecting payments to producers
View the documentConsumer prices
View the documentMarketing costs and margins
View the documentConclusions
View the documentReferences

Conclusions

The presence of a large number of small milk traders who purchase milk from producers and sell milk to ultimate consumers indicates competitiveness at both the producer and retail end of the milk marketing system in Hai District and nearby urban centres. Apart from competition among themselves, small milk traders compete with TDL and dairy cooperatives, and the nearly identical consumer prices charged by small milk traders and dairy cooperatives in each season in 1990 (Table 4) further suggests competitiveness in the milk marketing system in Hai District and nearby urban areas.

TDL apparently was a higher cost marketer than small milk traders and the two dairy cooperatives studied largely owing to diseconomies of scale. TDL's high marketing costs per litre of milk marketed were associated with under - utilization of its processing facilities. Whilst most of these facilities are geared to the production of pasteurized milk to reduce the danger of disease spread, consumers are traditionally boiling milk before using it. Production of high value products such as butter and ghee is only undertaken when milk surplus to pasteurized requirements exists, which, according to TDL reports, is not common.

The implication is that investments in expensive processing facilities for pasteurization are unnecessary since it can be achieved at a lower cost by boiling. Widespread boiling of milk by consumers can further be encouraged through an education programme.