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EAFF supports the Nronga and Tanga dairy cooperatives in Tanzania in the development of their profiles and the identification of value chain priorities

The Nronga Dairy Cooperative is a women only entity with registration of over 400 members. The cooperative provides the essential services of collection and bulking of milk, and introduced value added milk products like yoghurt cultures milk, butter and others that they sell alongside the fresh milk. The cooperative demonstrated a weakness in its management capacity that could easily be attributed to the undesirable growth trends that it has experienced since its registration in the mid-nineties.

The Tanga Dairy Cooperative Union (TDCU)  is a union whose members constitute other smaller cooperatives within a catchment of 120km from Tanga centre (radius). They have over 4000 farmers delivering milk to them on a daily basis. TDCU delivers milk to Tanga fresh which is a processor with whom they have an agreement. That leaves the union to only deal with upstream productivity issues and to provide farmers with key inputs as they do not need to engage in processing and marketing of the final product. However, TDCU does not feature very prominently in the provision of such services as would be expected. 

Both organisations are member of the Tanzania Federation of Cooperatives (TFC), member of the Eastern Africa Farmers Federation (EAFF).

In order to identify the most appropriate interventions that would make farmers’ organizations more competitive, EAFF commissioned Perfometer Agribusiness to assess their clients who had been selected for support under the economic pillar of the SFOAP. 

As an output, the profiles of the organisations were developed including the identification of value chain priorities, in a report. The analysis highlighted that the cooperatives selected require multiple interventions for them to take off and maintain a progressive trend. This support needs to be offered in phases so that each subsequent outcome supports the next intervention. For Nronga women cooperative, the management capacity issue is quite deep rooted to the extent that a short term coaching would not achieve the required results. At the same time, recommending the development of a strategic plan to a management team that would face constraints during implementation may also be counterproductive. For TDCU, there is a potential to grow even faster because of the processor factor that serves as a guaranteed market, this is because the work of new market development and product based competitiveness is left to the processor and the farmers are mainly required to produce the right volumes and quality of milk.

Due to the fact that farmers at TDCU are mainly tasked to improve production, and that the Nronga cooperative experienced the most gaps on productivity and management aspects, the report recommended interventions under two main objectives, namely: to improve productivity and to improve operational efficiency. The activities and the sub-activities for each of the objective are detailed in the report.

To learn more, please download the report below.

 

Document type: Policies & Strategies
Thematic Areas: Knowledge Management, Markets and Value chains
Region: East Africa
Year of Publication: 2014