Dairy products demand and marketing in Kilimanjaro Region, Tanzania

Abstract

A priority in developing African dairy industries is to build marketing systems which provide incentives for local farmers and supply consumers with the produce they demand. Studies were carried out in Kilimanjaro Region, northern Tanzania to investigate the regional demand for dairy produce and the marketing system. Demand proved to be buoyant, with an average LME consumption of 142 kg/person/year and an income elasticity of demand of 0.9 in the urban areas, and 45 kg/person/year and 1.1 for the rural areas. The main products taken were fresh and sour milk. More than half the milk was consumed in the rural areas. Demand was forecast to grow from 1990 to 2000 at 5%/year. The marketing system consisted of competing multiple channels involving a parastatal, cooperatives and private traders. There was ample evidence that the system was efficient, with producers obtaining as much as 78% of the final milk price. The main policy concern was the adequate upkeep of rural feeder roads during the rains. Public intervention in marketing was not necessary for successful development of a regional dairy industry in this case.