The Role of Cooperatives and Farmer-Industry Linkages in the Evolution of Tanga’s Dairy Innovation System
Corresponding Author(s) : Hezron Makundi
Journal of Humanities & Social Science (JHSS),
Vol. 12 No. 2 (2023)
Abstract
This study investigated the development of Tanga’s dairy innovation system and its role
in promoting and maintaining relationships between farmers, the industry, and
cooperative unions; employing a case study approach. The main objective was to assess
the role of cooperatives in forging farmer-industry linkages and in improving dairy
industry innovations. 100 dairy producers in Tanga participated in the survey that led
to the paper. A questionnaire was used to collect data from randomly selected farmers.
Furthermore, 20 key informant interviews were conducted with various participants,
including the Tanga Dairy Cooperative Union livestock extension service providers.
Also, one Focus Group Discussion involving 12 participants from the aforementioned
stakeholders was held. The findings revealed that over the last three decades, Tanga’s
dairy innovation has evolved into a competitive innovation system. It has gone through
four phases: development of the capability of dairy farming (1985–1992), the formation
of the Dairy Cooperative Union (1993), the development of milk-processing capability
(1996–1997–2007), and the phase of improving the innovation capability of the whole
system (2008–present). The formal and informal contractual arrangements of the Tanga
Dairy Cooperative Union were found to be the primary means for sustaining close ties
between dairy farmers and the Tanga Fresh Ltd. These agreements have enhanced
collaboration and mutual learning that have contributed to a significant increase in
farmers’ milk production and Tanga Fresh Ltd’s processing capacity. Based on the
recorded achievements, this paper recommends for the adoption of the identified
innovative contractual model to other cattle-rich zones. However, it is also imperative
to address identified challenges such as fluctuation of trust between the farmers and
the cooperative, and cases of deviation from contractual obligations.
Keywords
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- AECF. 2011. Tanga Fresh, Nairobi, AECF (Africa Enterprise Challenge Fund). Https: //assets.
- publishing.service.gov.uk/media/57a08acbe5274a31e00007a0/Tanga-fresh-AECF-case-
- study. pdf: retrieved on 5th, December 2020.
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- Economic Growth: Policy Implications of a Scoping Study in Tanzania. International Growth
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- for Technology, Innovation and Culture, University of Oslo TEARI Project, Report, (1).
- Hidalgo, A. & Albors, J. 2008. Innovation Management Techniques and Tools: A Review from
- Theory and Practice. R&d Management, 38(2): 113–127.
- Jensen, M. B., Johnson, B., Lorenz, E., Lundvall, B. Å. & Lundvall, B. A. 2007): Forms of
- Knowledge and Modes of Innovation. The Learning Economy and the Economics of Hope, 155.
- Kago, K. M. 2019. Impact of Innovation Platforms and Information Sharing on Nurturing of
- Smaller Innovation Platforms: A Case Study of Tanzania Dairy Development Forum. Doctoral
- dissertation, Egerton University. Kilima, F. T. M. 2021): Integrating Smallholder Dairy Farmers Into Formal Milk Markets in
- Tanzania: Key Lessons and Policy Implications. Tanzania Journal of Agricultural
- Sciences, 20(1): 72–81.
- Kilima F.T.M. & Kurwijila L.R. 2020. Integrating Smallholder Farmers to Commodity Value
- Chains in Sub-Saharan Africa: Challenges, Prospects and Policy Issues. In: Singh B., Safalaoh
- A., Amuri N., Eik L., Sitaula B., Lal R. (eds). Climate Impacts on Agricultural and Natural Resource
- Sustainability in Africa. Springer, Cham. 119–140 pp.
- Kurwijila, L. R. 2010): An Overview of the Dairy Industry in Tanzania; Situation, Challenges and
- Expectations. In Proceedings of the Agricultural Council of Tanzania (ACT) Dairy Stakeholders
- forum held at Mkonge Hotel, Tanga Tanzania, 10th December.
- Leeuwis, C. 2004. With Contributions by A. Van den Ban. Communication for Rural Innovation–
- rethinking agricultural extension.
- Little, P. D. & Watts, M. (Eds.). 1994. Living under Contract: Contract Farming and Agrarian
- Transformation in Sub-Saharan Africa, Univ of Wisconsin Press.
- Lundvall, B.-A. 1992. National Systems of Innovation - Towards a Theory of Innovation and Interactive
- Learning. London, Pinter.
- Lunogelo, H. B., Makene, F. S., Patrick, M. J. A. L. M. & Kihenzile, T. 2021. Innovation and Inclusive
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- Citrus_Working_Paper_December_2021v1.pdf retrieved on 20th, December 2022.
- Muchie, M., Gammeltoft, P., and Lundvall, B.-A?. (eds.). 2003. Putting Africa First: The Making of
- African Innovation Systems. Aalborg, Denmark: Aalborg University Press.
- Nell, A. J., Schiere, H. & Bol, S. 2014. Quick Scan Dairy Sector Tanzania. Dutch Ministry of
- Economic Affairs.
- NIRAS. 2010. Rural Livelihood Development Company: Survey on Dairy Products Market in Tanzania.
- Dar es Salaam.
- Nyaki. 2014. Institutions and Efficiency of Milk Value Chains in Bagamoyo District. MA
- Dissertation.
- Njombe, A. P., Msanga, Y., Mbwambo, N. & Makembe, N. 2011. The Tanzania Dairy Industry,
- Status and Prospects. The Tanzania Ministry of Livestock and Fisheries Development. a
- paper was presented during the 7th African Dairy Conference and Exhibition held at
- Movenpick Palm Hotel, Dar es Salaam. 25–27th pp22.
- Szogs, A. 2010. Technology Transfer and Technological Capability Building in Informal Firms in
- Tanzania. Center for Innovation, Research and Competence in the Learning Economy
- (CIRCLE): Department of Design Sciences, Lund University.
- Sumberg, J. 1997. Policy, Milk and the Dar es Salaam Peri-urban Zone: A New Future for an old
- Development Theme? Land Use Policy, 14(4): 277–293.
- Swai, E. S. & Karimuribo, E. D. 2011. Smallholder Dairy Farming in Tanzania: Current Profiles
- and Prospects for Development. Outlook on AGRICULTURE, 40(1): 21–27.
- Tanga Dairy Cooperative Union (TDCU). 2020. Interview Conducted on 10th December, 2020. TDCU & Tanga Fresh Ltd. 202). Interview Conducted on 15th January, 2021.
- TDCU. 2019. Ownership of Tanga Dairy Cooperative Union, Annual Report.
- Van der Lee, J., Bebe, B. O. & Oosting, S. 2016. Sustainable Intensification Pathways for Dairy
- Farming in Kenya: A case study for PROIntensAfrica WP2, Deliverable 2.3 (No. 997). Wageningen
- Livestock Research.
- Winch, G. M. & Courtney, R. 2007. The Organization of Innovation Brokers: An International
- Review. Technology Analysis & Strategic Management, 19(6): 747–763.
- Wangwe, S. M., Diyamett, B. D. & Komba, A. 2003. Trends in R&D Activities in Tanzania:
- Funding Sources, Institutional Arrangements and Relevance. Research on Knowledge Systems
- (RoKS): IDRC.
- World Bank. 2006. Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of
- Research Systems. World Bank. Washington, DC.
- World Bank. 2017. Tech Start-up Ecosystem in Dar es Salaam: Findings and Recommendations.
- World Bank.
References
AECF. 2011. Tanga Fresh, Nairobi, AECF (Africa Enterprise Challenge Fund). Https: //assets.
publishing.service.gov.uk/media/57a08acbe5274a31e00007a0/Tanga-fresh-AECF-case-
study. pdf: retrieved on 5th, December 2020.
Baregu, S. 2017. Effects of Milk Imports on Competitiveness of Domestically Processed Milk
in Tanzania. https://www.canr.msu.edu/news/3rd-annual-agricultural-policy-conference-
march- 1-3-dar-es-salaam. retrieved on 15th, December 2021
Coulson, A. & Diyamett, B. 2012. Improving the Contribution of Agricultural Research to
Economic Growth: Policy Implications of a Scoping Study in Tanzania. International Growth
Centre (IGC): Working Paper.
Da Silva, C. A. & Ranking, M. 2013. Contract Farming for Inclusive Market Access. Food and
Agriculture Organization of the United Nations (FAO).
Fagerberg, J. 2004. What Do we Know about Innovation? Lessons from the TEARI Project. Centre
for Technology, Innovation and Culture, University of Oslo TEARI Project, Report, (1).
Hidalgo, A. & Albors, J. 2008. Innovation Management Techniques and Tools: A Review from
Theory and Practice. R&d Management, 38(2): 113–127.
Jensen, M. B., Johnson, B., Lorenz, E., Lundvall, B. Å. & Lundvall, B. A. 2007): Forms of
Knowledge and Modes of Innovation. The Learning Economy and the Economics of Hope, 155.
Kago, K. M. 2019. Impact of Innovation Platforms and Information Sharing on Nurturing of
Smaller Innovation Platforms: A Case Study of Tanzania Dairy Development Forum. Doctoral
dissertation, Egerton University. Kilima, F. T. M. 2021): Integrating Smallholder Dairy Farmers Into Formal Milk Markets in
Tanzania: Key Lessons and Policy Implications. Tanzania Journal of Agricultural
Sciences, 20(1): 72–81.
Kilima F.T.M. & Kurwijila L.R. 2020. Integrating Smallholder Farmers to Commodity Value
Chains in Sub-Saharan Africa: Challenges, Prospects and Policy Issues. In: Singh B., Safalaoh
A., Amuri N., Eik L., Sitaula B., Lal R. (eds). Climate Impacts on Agricultural and Natural Resource
Sustainability in Africa. Springer, Cham. 119–140 pp.
Kurwijila, L. R. 2010): An Overview of the Dairy Industry in Tanzania; Situation, Challenges and
Expectations. In Proceedings of the Agricultural Council of Tanzania (ACT) Dairy Stakeholders
forum held at Mkonge Hotel, Tanga Tanzania, 10th December.
Leeuwis, C. 2004. With Contributions by A. Van den Ban. Communication for Rural Innovation–
rethinking agricultural extension.
Little, P. D. & Watts, M. (Eds.). 1994. Living under Contract: Contract Farming and Agrarian
Transformation in Sub-Saharan Africa, Univ of Wisconsin Press.
Lundvall, B.-A. 1992. National Systems of Innovation - Towards a Theory of Innovation and Interactive
Learning. London, Pinter.
Lunogelo, H. B., Makene, F. S., Patrick, M. J. A. L. M. & Kihenzile, T. 2021. Innovation and Inclusive
Industrialisation in Agro-processing. https://iiap.info/wp-content/uploads/2022/03/IIAP _Tanzania_
Citrus_Working_Paper_December_2021v1.pdf retrieved on 20th, December 2022.
Muchie, M., Gammeltoft, P., and Lundvall, B.-A?. (eds.). 2003. Putting Africa First: The Making of
African Innovation Systems. Aalborg, Denmark: Aalborg University Press.
Nell, A. J., Schiere, H. & Bol, S. 2014. Quick Scan Dairy Sector Tanzania. Dutch Ministry of
Economic Affairs.
NIRAS. 2010. Rural Livelihood Development Company: Survey on Dairy Products Market in Tanzania.
Dar es Salaam.
Nyaki. 2014. Institutions and Efficiency of Milk Value Chains in Bagamoyo District. MA
Dissertation.
Njombe, A. P., Msanga, Y., Mbwambo, N. & Makembe, N. 2011. The Tanzania Dairy Industry,
Status and Prospects. The Tanzania Ministry of Livestock and Fisheries Development. a
paper was presented during the 7th African Dairy Conference and Exhibition held at
Movenpick Palm Hotel, Dar es Salaam. 25–27th pp22.
Szogs, A. 2010. Technology Transfer and Technological Capability Building in Informal Firms in
Tanzania. Center for Innovation, Research and Competence in the Learning Economy
(CIRCLE): Department of Design Sciences, Lund University.
Sumberg, J. 1997. Policy, Milk and the Dar es Salaam Peri-urban Zone: A New Future for an old
Development Theme? Land Use Policy, 14(4): 277–293.
Swai, E. S. & Karimuribo, E. D. 2011. Smallholder Dairy Farming in Tanzania: Current Profiles
and Prospects for Development. Outlook on AGRICULTURE, 40(1): 21–27.
Tanga Dairy Cooperative Union (TDCU). 2020. Interview Conducted on 10th December, 2020. TDCU & Tanga Fresh Ltd. 202). Interview Conducted on 15th January, 2021.
TDCU. 2019. Ownership of Tanga Dairy Cooperative Union, Annual Report.
Van der Lee, J., Bebe, B. O. & Oosting, S. 2016. Sustainable Intensification Pathways for Dairy
Farming in Kenya: A case study for PROIntensAfrica WP2, Deliverable 2.3 (No. 997). Wageningen
Livestock Research.
Winch, G. M. & Courtney, R. 2007. The Organization of Innovation Brokers: An International
Review. Technology Analysis & Strategic Management, 19(6): 747–763.
Wangwe, S. M., Diyamett, B. D. & Komba, A. 2003. Trends in R&D Activities in Tanzania:
Funding Sources, Institutional Arrangements and Relevance. Research on Knowledge Systems
(RoKS): IDRC.
World Bank. 2006. Enhancing Agricultural Innovation: How to Go Beyond the Strengthening of
Research Systems. World Bank. Washington, DC.
World Bank. 2017. Tech Start-up Ecosystem in Dar es Salaam: Findings and Recommendations.
World Bank.