Abstract:
Tanga city is the most unlikely location to have the most evolved urban milk value chain in Tanzania, being the most North-easterly coastal metropolis in the country, especially when contrasted with an urban milk value chain in cooler environments like Iringa Municipality in the Southern highlands. This is a paradox that has attracted many interests to unravel including this study. Presence of persevering and unrelenting champions has been the
cornerstone for achieving this high level of organization on the value chain. The spontaneous upgrading has seen development of a cooperative model that integrates milk production, processing and marketing into a one whole competitive and efficient value chain. These are the qualities that elude the milk value chain in Iringa Municipality.
The market concentration figures on Tanga may not be interpreted at face value given the cooperative procurement model which is coordinated under a quasi-vertical integration governance arrangement. Sustainability prospects of both value chains are however challenged by town/city and urban agriculture development policies/regulations that
are moving in different directions. Multi-stakeholder initiatives are necessary to address outstanding challenges threatening the industry in Tanga for the sake of city revenue, livelihoods of communities and country development at large.
