Abstract:
The dairy sector is a significant economic sector globally, with leading countries
achieving high productivity through advanced practices. However, Tanzania's dairy
industry, especially in Arusha City, faces challenges of inefficiency, underutilized
processing capacities which limits economic and social benefits. This study explored
factors influencing the efficiency of the dairy supply chain in selected micro-processing
centres in Arusha City, focusing on input factors, operational practices, and external
influences.
A mixed-methods approach combining quantitative and qualitative methods was adopted
to provide a comprehensive analysis. Data were gathered through structured interviews
and questionnaires, supported by a research design that integrated descriptive and
exploratory elements. Thematic and statistical analyses were used to identify critical
inefficiencies in the supply chain.
Key findings revealed that input factors such as the availability of raw milk, technological
adoption, and workforce training were essential to improving efficiency. Operational
practices like quality management, waste reduction, and supply chain integration
significantly enhanced productivity. External barriers, including infrastructure limitations,
regulatory hurdles, and restricted market access, were major constraints to achieving
optimal performance.
The study concluded that targeted interventions such as improving infrastructure,
investing in modern technologies, streamlining regulatory frameworks, and promoting
market access could enhance supply chain efficiency and sustainability.
Recommendations emphasized collaboration among stakeholders and adopting climate
smart practices to address production variability. Future research was suggested to
examine the impacts of digital technology, climate change, and consumer preferences on
the sector’s performance to ensure its long-term sustainability.
The key words: Dairy supply chain, Efficiency, Micro processing centres
