TADB partnership boosts dairy value chain in Tanzania

Arusha. The Tanzania Agricultural Development Bank (TADB) has enabled Galaxy Food and Beverages Ltd, producers of Kilimanjaro Fresh, to remove production bottlenecks and expand markets for its dairy products — a move that is creating jobs and strengthening the country’s dairy value chain.

Galaxy Production Manager, Augustine Lyana, said that before the partnership with TADB, the factory faced challenges including limited milk processing capacity, dependence on external farmers for raw milk, and restricted distribution outside Arusha.

“These challenges were holding back the company’s growth,” Lyana said.

Through TADB’s support, Galaxy has established a modern farm with 240 dairy cows, added a new production line with state-of-the-art UHT machinery, and expanded distribution of its products from Arusha to Dar es Salaam, Dodoma, and Mwanza, with plans to enter the East African market.

“This partnership has brought significant economic and social transformation,” Lyana added. “We have created over 200 jobs, most of them for women and youth, improved milk quality and safety, and strengthened the dairy value chain.

Tanzania is now better positioned to compete in the regional market at international standards.”

The dairy sector in Tanzania still has great potential. Data from the Ministry of Livestock shows that the country produces about 3 billion liters of milk annually, but only 12 percent is processed industrially.

Experts say the low processing rate has hindered the country’s ability to fully utilize its livestock resources and increase the value of dairy products.

Currently, Galaxy processes fresh milk, fermented milk, yogurt, ghee, and cheese, and aims to use its boosted production capacity to penetrate broader East African markets.

Industry experts say the company’s success demonstrates how strategic investment can transform agribusiness and drive growth in local industries.