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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

Results and discussion

The results of the study are presented and discussed in this section according to the performance indicators presented in the framework for analysis. The description of the individual indicators is followed by an overall rating of the market intermediaries on the basis of these indicators.

Market share

Table 1 presents the estimated quantities of Hai milk that passed through the different market outlets in 1990. The volume of milk marketed through dairy cooperatives and small milk traders also represents the volume of milk distributed by each of these market intermediaries to retail markets and/or directly to consumers. For the TDL milk processing plant in Arusha, the fresh milk collected from Hai District represents only a fraction of its total output of dairy products. The other fraction is produced using fresh milk from other areas and skimmed milk powder and butter oil.

Table 1: Type of Information gathered From Secondary and Primary Sources

Secondary:

Information Gathered

Tanzania Dairies Limited (TDL)

Quantity of fresh milk from local sources, quantity of skimmed milk powder and butter oil, types of dairy products, total production, capital, processing and marketing costs, total sales and milk prices

Dairy Cooperatives

Volume of milk collected and marketed, marketing and other costs, milk prices.

Primary Dairy producers

Cattle numbers and performance, milk produced, consumed at home and marketed, points of sales, prices received.

Small milk traders

Marketing activities, dairy products traded; equipment, means of transport, capital and marketing costs, marketed output and milk prices.

TDL staff

Activities, problems and prospects of TDL

Leaders and members of Dairy cooperatives

Cooperative activities, benefits to members and problems faced.

Table 2: Hai District: Estimated volume of Milk by Market Outlet in 1990 (Thousand litres)

Market outlet

Volume of Milk

Tanzania Dairies

1,971

Dairy Cooperatives

470

Small Milk Traders

6,583

Direct Sales to Consumers

999

Total

10,123

Source: Survey Data 1990.

The informal market share which refers to the volume of milk marketed by Hai District producers through channels i to v is important, accounting for about 81% of the milk marketed in 1990. Of the informal market share, small milk trades handled the largest volume marketed in Hai District in 1990 (Table 2), implying that small milk traders were more effective in marketing milk from smallholder dairy producers in Hai District.