A. Production of marketable milk
B. Producer organisations:
C. Marketing systems
It was pointed out that the provision of heifers should be made on commercial basis/terms. It order for this to happen it was emphasised that credit for small holders is a must. Present experiences with 'heifer in trust' are good but improvement need to be made on monitoring and management of this rural saving and credit scheme.
While it was realised that the active participation of members of milk producer organisation should be encouraged it was imperative to involve farmers right from the planning stages. It was further pointed out that many cooperatives fail because of lack of active participation and therefore it is felt that the most well known and active members in the group should be involved to call the meetings and encourage the other activities of the cooperative.
It was pointed out that experience in many developing countries has shown that credit for improvement of production facilities is preferably offered through the buyer/processor of the milk. By deducting repayments from dues for milk supplies such loans can easily be recaptured.
It was agreed that by marketing options we mean to identify all possible consumer markets beginning with those closest to the production zone, and gradually develop the marketing system improving its efficiency and effectiveness and that there is a critical mass of commercially oriented farmers necessary for investors in infrastructure to be interested. We need to be aware of the cutoff point where it becomes evident that the level of milk production is starting to exceed local consumption and start planning for milk marketing options.
It was further pointed out in as far as milk production is concerned the sky should be the limit as long as milk production is price competitive and markets for surplus milk exist.
In view of the impending restructuring of the dairy industry in Tanzania is concerned from parastatal sector to private sector ownership a caution was given on the need to avoid capital destruction of existing infrastructure in dairy processing.
Concern was raised on the effect of imposition of regulations and minimum equipment requirements on milk quantities above 100 litres per day and their effect of fragmenting the distribution so that bulks less than 100 litres per day are accumulated because of the cost of processing equipment etc. The effect will be to discourage producer groups collecting milk and will discourage or impose a disadvantage.
It was further pointed out that irrespective of the quantities involved village level processing methods should serve commercial purposes and be self sustaining without donor support.
