Milk-dispensing ‘ATMs’ hit the ground running in Kilimanjaro

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The initiative follows a partnership between local players in the dairy industry and an array of development partners to boost consumption of processed milk.

Moshi. The scene is Kiusa market in Moshi municipality, a suburb characterised by shopping bazaars.
The event was the official launching of a milk dispensing machine: a ‘Milk ATM,’ so to speak. This is a technology new to Tanzania.
It did not take long to find those who had assembled for the occasion at one corner of the street in a celebratory mood. One of them was Emmanuel Mchome, a ‘boda boda’ rider who could not hide his feelings.
“The milk tastes good. This service should be extended for 24 hours,” he said as he gulped down fresh milk drawn from the ‘ATM.’
Mr Mchome was among scores of Moshi residents who converged to witness the inauguration of yet another ATM in town - not for depositing or withdrawing money - but for dispensing milk.
It was not by coincidence that the event was attended by Dr Sophia Mlote, who is the acting Registrar of the Tanzania Dairy Board: clearly, the right official for the occasion.
She, too - like Mr Mchome and scores of other people who helped themselves to milk from the dispensing machine - was full of joy.
“This is a market-based solution to promote milk consumption. It is upon the private sector to pick up the innovation,” she said.
On the same day, a second milk ATM was inaugurated at Boma Ng’ombe, headquarters of the Hai District some 30 kilometres away.
The initiative follows a partnership between local players in the dairy industry and an array of development partners to boost consumption of processed milk.
This has to be done by increasing availability, accessibility and affordability through an effective dairy platform and milk dispensing technology.
Tom Ole Sikar, the dairy project manager with the SNV Netherlands Development Organization, was there to tell the story.
According to him, the initiative is led by SNV through its ‘Transforming Agricultural Markets’ (TAM) project funded by DfID/UK-AID.
Through the project, a multi-stakeholder platform of dairy sector players was formed to spearhead the efforts.
“The milk ATM technology aims at reaching ‘bottom of the pyramid’ consumers by increasing availability, accessibility and affordability of processed milk,” he said.
The innovation is part of a wider DAIRYPROFIT project implemented by Match Makers Associates (MMA), an Arusha-based consultancy think tank.
The project, according to him, is funded by the European Union (EU) through the Technical Centre for Agricultural and Rural Cooperation (CTA).
Two units of the milk ATM machines were each valued at Sh16.5 million. A third one will be installed in Arusha City soon, he revealed.
“It’s hoped that this innovation will be adopted by the private sector in other parts of the country - but all depending on the market response, of course,“ he told The Citizen.
Ole Sikar admits that milk consumption in the country remains low despite Tanzania being among the African countries leading in livestock populations.
Increased consumption through several interventions currently under way would also be a boon for the dairy farmers, he explained.
“Increased consumption means dairy farmers would be guaranteed a reliable market for their products - and, hence, increased incomes,” he added.
The value chain is long in that processed milk will be supplied by dairy processors through returnable tamper-proof milk tanks, sealed to ensure milk safety.
Buyers need only to come with clean containers for the quantity of milk required from the machine.
Prices starts from as a low as Sh50, a sum that excited Mchome, the Moshi ‘boda boda’ rider, as he served himself with copious supplies of fresh milk at the first facility.
According to Ole Sikar, processed milk in Kilimanjaro will be procured from Nronga and Kalali Dairy Cooperatives - and from Kilimanjaro Fresh Ltd in Arusha.
Other processors are expected to join in supplying milk through the innovative milk dispensing machines, he said.
“The (milk ATM) technology has been tested. But, of course, it has to be regulated for hygienic purposes,” he stated, noting that the technology was already in use in Kenya.
Launching of the facility in Moshi municipality was graced by the Kilimanjaro regional commissioner, Ms Anna Mghwira, while Dr Mlote opened a similar facility at Bomang’ombe.
The two districts of Hai and Siha on the western slopes of Mt Kilimanjaro produce a total of 250,000 litres of raw milk a day, of which only about four per cent are processed.