Tanzania dairy project outlines TZS110bn first-year budget

AgricultureClimate

Friday 6th November 2026

A cyclist carrying a blue cooler travels beside traffic on a Tanzanian road; the photographer identifies the journey as taking milk to market, 10 April 2020. — File photograph: Taking milk to market in Tanzania, 10 April 2020; this does not depict the current project. Photo: RahimMngwaya / Wikimedia Commons, CC BY-SA 4.0. Resized; no other edits.

By inAfrika Newsroom

Tanzania’s dairy transformation project has a first-year budget of about TZS110bn, its coordinator told MPs at a 5 November briefing in Dodoma, according to the Ministry of Livestock and Fisheries.

Coordinator Lazaro Kapella said planned spending included $19m for production, $17.5m for milk processing and consumption, and $5.3m for management and coordination. The figures describe budget allocations rather than reported disbursements.

The project covers Arusha, Iringa, Mbeya, Njombe, Tanga, Morogoro, Pwani and Kilimanjaro. It aims to make dairy farming more commercially oriented while improving milk safety.

MPs raised the distribution of benefits across project areas. Deputy minister Ng’wasi Kamani said the ministry would review the design in response to their comments.

The ministry said milk collection centres and modern distribution equipment were intended to help shift more sales into formal markets.

The programme predates this week’s briefing. At a 23 September meeting with financial institutions, officials described a ten-year programme covering productivity, value addition and access to finance.

The International Fund for Agricultural Development’s project record lists $59.48m in IFAD financing and a $32.5m financing gap. Its stated objectives include more resilient production, safer food and lower climate impacts across the dairy chain.

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