Cover Image
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


Despite constraints on production, efforts to promote smallholder dairying in Northern Tanzania have had a positive impact especially in highland areas where tsetse flies are absent, heat stress is low, and ample rainfall give the potential for abundant fodder production. One such area is the highlands of Hai District in Tanzania where dairying has been expanding and intensifying over the last ten years or so, resulting in milk production above the amount that can be consumed locally in dairy producing villages.

According to Mdoe (1993), 87 percent of 120 dairy producing households interviewed in Hai District in 1990 reported milk surpluses above household requirements. The opportunity of selling the surplus milk directly to consumers in the dairy producing villages has been declining over time due to increase in the number of households keeping dairy cattle. Only 11 percent of the households interviewed District in 1990 were able to sell their milk directly to ultimate consumers (Mdoe 1993). Most of these households disposed off their milk through market intermediaries for sale to distant markets outside the dairy producing villages.

The main intermediaries in the milk marketing system in Northern Tanzania are Tanzania Dairies Limited (TDL), dairy cooperative and small milk traders. Since milk is one of the most perishable products, an efficient milk marketing system is necessary to dispose off the surplus milk to distant markets. This paper compares the performance of the various milk marketing channels in Hai District using survey and secondary data collected in 1990.