Factors Affecting the Efficiency of Dairy Supply Chain in Tanzania.

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