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Big Investment in the Dairy Sector - SAT Milk Processing Facility

April 11, 2022

Big Investment in the Dairy Sector - SAT Milk Processing Facility

The milk production system in Tanzania is dominated by small-scale pastoralists and farmers.

Pastoralists and farmers have long struggled to find a consistent market for their milk production. Price volatility, insufficient milk production, and a lack of a profitable market have all been big setbacks for these communities. Pastoralists in the Mvomero district are noticing the difference after SAT Holistic Group LTD opened the Milk collection and processing facility in Vianzi village, Mvomero district to ensure reliable market access and milk value addition with the improved social business providing a feedback loop mechanism back to the community to improve production in terms of quality and quantity, sustainable income generation as well as satisfied customers with yummy organic products.


It was a historic moment on March 18th, 2022, when farmers and pastoralists were happy to celebrate the official opening of the new milk collection and processing plant whose construction was supported by the Biovision Foundation - Switzerland. For the pastoralists and farmers, this was a watershed moment since they now have reliable market access for their milk. Dr. Frank Eyhorn, Director of Biovision, Ward Councilor Mr. Hamidu Zuberi, SAT directors and team, farmers, and pastoralists all attended the inaugural ceremony. Vianzi village is in Mvomero District where the milk factory is located near the pastoralist community.


How do pastoralists play a part in this project?


In Tanzania, dairy cooperatives are playing a significant role in the development of the dairy sector. Most of these cooperatives guarantee dairy farmers a profitable price and consumers a reasonable price for milk and milk products. The same is true for Mvomero's milk cooperatives, which play an important role in milk collection and connecting pastoralists to reliable marketing channels here at the milk factory.


"We are in the process of developing contracts with pastoralists through their cooperatives so that they can have access to a reliable market for the milk produced, " SAT Holistic Group Limited CEO Alexander Wostry said during the factory's official launch. The advantages of this factory are numerous. They include, for example, providing jobs for the surrounding community, growing the market for organic milk in the country, and enhancing pastoralists' income by providing them with reliable market access. Another significant and unique benefit of this factory is that pastoralists will be able to be the shareholders of the business through SAT Holistic Group Limited.                                                                                                                                                    

This implies that they will be offered the opportunity to invest in the company by shares. Being a shareholder in a company entitles you to vote on how the company is run, as well as the right to own a particular percentage of the firm and the ability to receive dividends if the company earns a profit.                                                                    

The facility can currently store 2200 liters of milk per day and process 340 liters per day from the pastoralist. Pasteurized milk, yoghurt, and cheese are the three goods now on the market, with two more on the way.


With adequate training from SAT Facilitators, pastoralists will learn about proper milk production, quality checks, and collection, allowing them to produce at a higher quality and quantity. Milk marketing has been more methodical in recent years, and producers' income has improved as a result. Producers get a fair price for their goods, while consumers get quality milk and milk products at a fair price. This will bring stability to the dairy industry, ensuring its long-term prospects.


The construction of the Milk Collection and Processing Facility was kindly supported by the Biovision Foundation Switzerland.

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