2011
Study By: TNS rms EA P.O. Box 7180 Dar Es Salaam, Tanzania
Tanzania Dairy Survey Report
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Contents INTRODUCTION ......................................................................................................................... 4
1.1 Background ................................................................................................................................. 4
1.2 Research Approach ...................................................................................................................... 5
Consumer Study ..................................................................................................................... 5 Consumer Research Findings ......................................................................................................... 7
General beverage awareness and consumption behaviors: ..................................................................... 7
Beverage selection drivers ...................................................................................................................... 8
General beverages consumption locations: ............................................................................................. 9
General beverages consumption occasions among adults: ...................................................................... 9
General beverages consumption occasions among kids......................................................................... 10
Why beverages are consumed .............................................................................................................. 10
Summary .............................................................................................................................................. 11
Satisfaction .......................................................................................................................... 11
Health .................................................................................................................................. 11 Innovation ............................................................................................................................ 11
Dairy products-Awareness and usage ........................................................................................... 12 Source of awareness ............................................................................................................................. 12
Consumption occasions-adults .............................................................................................................. 13
Consumption occasions-kids ................................................................................................................. 14
Perceived differences- Cheese, Butter, Ghee ......................................................................................... 15
Barriers to using certain milk products .................................................................................................. 15
Perceived benefits of dairy products ..................................................................................................... 16
Alternative dairy products ..................................................................................................................... 17
Milk types- Awareness & Consumption Behavior .................................................................................. 17
Milk consumption criteria ..................................................................................................................... 25
Media consumption .............................................................................................................................. 27
Recommendations ....................................................................................................................... 30 Processor Audit Survey................................................................................................................ 32
Introduction and Methodology ............................................................................................................. 32
Processor Capacity Census .................................................................................................................... 33
Processor and Cooling plant capacities .................................................................................................. 34
Product Mix .......................................................................................................................................... 36
Packaging and labeling .......................................................................................................................... 38
Quality Control Procedures ................................................................................................................... 39
Market Audit Survey ................................................................................................................... 39 Introduction & Methodology ................................................................................................................ 39
Market Overview (Volume and Value) ................................................................................................... 41
Conclusion and Recommendations .............................................................................................. 53 General recommendation to the industry ............................................................................................. 53
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Table of Tables
Table 1 Consumption occasions-adults ........................................................................................ 13
Table 2 Consumption occasions-kids ........................................................................................... 14 Table 3 Perceived differences- Cheese, Butter, Ghee ................................................................... 15
Table 4 Awareness of milk types & brands .................................................................................. 17 Table 5 Different milk types satisfy different needs evident ......................................................... 19
Table 6 Powder vs. Liquid Milk : Needs satisfaction .................................................................... 20 Table 7 Key consumption drivers ................................................................................................. 25 Table 8 Current vs Recommended pricing ................................................................................... 27
Table 9 Media consumption Dar es Salaam ................................................................................. 27 Table 10 Media consumption Arusha ........................................................................................... 28
Table 11 Media consumption Musoma ........................................................................................ 28 Table 12 Media consumption Mwanza ......................................................................................... 29
Table 13 Processor found to be in operation during the fieldwork ................................................ 33 Table 14 Processor and cooling plant claimed capacities in liters per day ..................................... 34
Table 15 Indication of processors' future investment plans ........................................................... 35 Table 16 Processors by scale and type of product ........................................................................ 36
Table 17 Processors by scale and cheese type .............................................................................. 37 Table 18 Product distribution systems .......................................................................................... 37
Table 19 Sample distribution by channel (outlet type) .................................................................. 40 Table 20 Sample distribution by regions ...................................................................................... 40
Table of Figures
Figure 1 Selection of criteria for product mix ............................................................................... 36 Figure 2 Mode of communicating with customers ........................................................................ 38 Figure 3 Packaging and Labeling ................................................................................................. 38
Figure 4 Sales volume in 14 days (000) per outlet type ................................................................ 41 Figure 5 Sales volume in 14 days per region ................................................................................ 41
Figure 6 Sales value based on 14 days per region ......................................................................... 43 Figure 7 Sales value based on 14 days (000 TZ'sh) ...................................................................... 43
Figure 8 Domestic versus imported products ................................................................................ 44 Figure 9 Product distribution bt regions ....................................................................................... 45
Figure 10 Milk product distribution by regions ............................................................................ 46
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INTRODUCTION
1.1 Background
Land O’ Lakes International Development is a division of Land O’ lakes inc. which is a United
States based food and agricultural cooperative offering local cooperatives and agricultural supplies
as well as business services. It implements humanitarian and economic development activities for
donor agencies.
Land O’Lakes wants to facilitate a market driven business systems to generate economic growth,
improve health and nutrition, and alleviate poverty. Land O’Lakes international development has
assisted farmers, food processors, agribusiness, and cooperatives in more than 70 countries since
1981.Our approach links agricultural producers to input suppliers, to processors and to local,
regional or export markets.
Currently Land O’Lakes manages projects in more than 25 countries worldwide and is the recipient
of an award from the United States Department of Agriculture, USDA, to implement a Dairy
Sector Development Program in Tanzania which is a 3 year Tanzania Food for Progress Program
to improve Tanzania’s dairy industry competitiveness and its goal is to increase smallholder
household income from the sale of quality milk.
TNS RMS on behalf ofLand O’Lakes Tanzania implemented a research into the Dairy market to
understand how to improve the efficiency of dairy production, improve milk quality throughout the
dairy value chain, and strengthen milk marketing systems from the retailer to consumer.
The project was carried out in the coastal region of Tanga, Northern Highlands
ofKilimajaro&Arusha and Lake Victoria region in Mara milk shed regions.
Land O’Lakes aim was to use the research findings in developing baseline data and program
indicators that will guide project activities and beneficiary capacity building for the next three
years.
The results from the survey are to enable Land O’lakes to:
Develop milk production and collection systems
Increase market linkages
Improve Supply of Key inputs
Strengthen dairy processing, quality assurance and link processors to new markets
Enhance consumer awareness
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1.2 Research Approach
TNS RMS implemented this research in three stages listed below so as to answer all the objectives of the study; this study was done through consumer research and trade (retail) research
methodologies. The consumer part of the study was conducted through a Qualitative methodology
while the trade component was done through a retail audit methodology.
I. Consumer Study
II. Processor Audit Survey
III. Market audit Survey
Consumer Study
A. Introduction
The consumer study was conducted through qualitative focus group discussions across Dar es
Salaam, Arusha, Musoma&Mwanza regions.
Consumer focus group discussions (FGDs) technique within qualitative research was used to be
gain a better understanding of the consumers. The consumers are preselected from available
demographic groups to constitute a homogeneous group of between 8 to 10 respondents.
The demographic specifications that were used for this study took into account the following;
Age
Gender
Usage of products (brands, types, frequency etc)
Profession
Social class
Location or area of habitation
The selected respondents were invited to a central location, in this case a centrally located venue
for easy access for the respondents.
The pre selection exercise is based on a set down criteria based on consumer usage, perceptions,
opinions, beliefs and attitudes towards dairy products.
The discussions are then held in an interactive manner within the group setting where participants
are free to discuss freely with other group members. The focus group is the unit of analysis for the
qualitative research methodology. The views, opinions and beliefs of the consumer group are taken
as representative of the wider group in society. For instance, the opinions of the youthful women
aged 18 to 24 years old and living in urban centres are taken as representative of all youthful urban
females in Tanzania. However, in the sub analysis, we are able to distinguish between the different
regions in the Tanzanian market.
The FGDs provide a creative, interactive forum which enable participants to explore their actions
and decision making processes, al beit consciously although the in a normal or natural market
setting, there is no rationalization of decisions or decision making processes. To mitigate these
potential areas of bias, we sieve out information taking into account the spontaneous versus the
prompted responses within the FGD. We equally made use of expert qualitative moderators who
study various aspects of human behaviour where they take into account the gestures, body
language and weight of responses attributed to specific questions.
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The FGDs are normally aided by using a 'topic guide’ normally referred to as a discussion guide.
This outlines the basic structure of the interview/group and indicates the general direction in which
the interview/group should be led. However, the discussion guide is only a guide which is able to
be used in a flexible manner during the discussion. The moderator is at liberty to explore the key
issues arising even if they are not in the actual guide.
The discussion guide questions are of open ended nature to allow for more exploration and in-
depth probing/ laddering to uncover underlying beliefs, traditions and perceptions. Laddering
explores the innate consumer needs, motivations and values linked to a product’s functional
performance and benefits, and can be linked to Maslow’s Hierarchy of Needs to provide
supplementary understanding on the strengths, vulnerabilities and symbiosis of brand affinity and
performance.
B. Sample
In total 9 focus group discussions were conducted with the various demographic profiles. We
talked to shoppers, decision makers, consumers and decision influencers for dairy products
purchases. The demographics were as follow:
Arusha Christian
C1C2 25-35 years
Female with children CATEGORY: MILK
Muslim C1C2
25-35 Years Male with children CATEGORY: MILK
Musoma Christian
C1C2 25-35 years
Male with Children CATEGORY: MILK
Muslim C1C2
25-35 years Female with Children
CATEGORY: MILK
Mwanza Muslim
C1C2 25-35 years
Female with Children CATEGORY: MILK
Christian C1C2
25-35 years Female with Children
CATEGORY: MILK Dar es Salaam
Christian AB
25-35 years Female & single
CATEGORY: DAIRY PRODUCTS
Hindu AB
25-35 years Female with Children
CATEGORY: DAIRY PRODUCTS
Muslim C1C2
25-35 years Female & Single CATEGORY:MILK
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C. Consumer Research objectives
The following are the research objectives:
Understand who the dairy products consumer is (Who, what they drink, how, why)
Provide consumer knowledge of dairy products and source of awareness
Provide insight as to dairy consumer product preferences and preference drivers
Give details of consumer understanding of nutritional benefits from dairy products
Provide consumer concerns on hygiene and food quality of dairy products
Give a consumer price sensitivity measure
Identify traditional and religious association to dairy products (negative or positive)
Identify barriers to consumption and unmet needs, thereby;
Identify new product opportunities
Distribution opportunities for dairy products
Consumer Research Findings
General beverage awareness and consumption behaviors: Consumers are aware of quite a number of beverages which include; Water, Carbonated soft drinks
(sodas and cordials), Juices (juice concentrates and fresh juices), Dairy products (tea or coffee,
yoghurt and milk) and food drinks (porridge and soup.) They claim to derive different nutritional
benefits from these drinks:
It is interesting to note that the popularity of Malta Guinness across the board does not necessarily
play within the above categories, as it is considered more of a pastime drink, alongside other
alcoholic beverages. A few mention energy drinks (Red Bull) predominantly as a source of energy.
Soft drinks are perceived as a very broad category whilst dairy products are acceptable as both a
social as well as an individual drink. Soft drinks are considered extensively indulgent drinks which
are consumed both as social and individual drinks whereas juices are regarded as both social and
basic regulation drinks. On the other hand water and dairy products which are considered
egocentric drinks are also seen as basic regulations products. However, consumption of the soft
drink category is being driven by the emergence of new needs i.e. nutrition and energy.
Emerging products with a variety of flavours such as iced tea, fruit drinks for kids and dairy
products are constantly distinguishing themselves and in the process making standard Carbonated
soft drinks appear less exciting.
DRINK NUTRITIONAL BENEFIT
Water and Carbonated soft drinks
(cordials and sodas)
Sugar, Thirst quenching, Detoxification (Water
specific)
Juices (concentrates and fresh juices) Juice and thirst quenching
Dairy products (Tea/coffee, yoghurt and
milk)
Wholesome and Nutritious
Food drinks (Porridge, soup) Chunky, Thick, Stomach filling
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Water is increasingly becoming an important player as a health product seen as a basic regulation
and an individualistic product with purifying effects. However, mineral water is considered a more
indulgence drink compared to plain/boiled water and also is believed to be a healthier alternative
for carbonated soft drinks.
Milk is still seen as basic regulation drinks due to a lack of value added products in the market
hence no clear products is positioned on these spaces.Whereas milk is seen as a universal product
(‘for everyone’), the packaging distinguishes perceived users. Generally tetra brick packs are seen
as “for the rich” while tetra classic packs and pouches for the ordinary consumers
Value added dairy products are becoming better differentiated in segments and are creating a
competitive set for fresh & milk products. Dairy products such as Yoghurt and Mala are becoming
more indulgent drinks because of the flavor additions which drive consumption. On the other hand
milk products like tea and other hot beverages are seen as social drinks and are considered the
refreshing alternative for soft drinks. Fresh milk is perceived as a more nutritional and healthy
drink and a basic regulation product.
Beverage selection drivers
The product selection process is largely contingent upon the need and the moment of the consumer.
Some needs are considered to be direct drivers in the selection process while others are linked to
moments.
The direct drivers in consumption of beverages are hinged on the different needs of the users.
Carbonated soft drinks are seen as social drinks with value addition and are consumed because of
their refreshing effect. Mineral water and fruit juices are seen as individualistic as well as basic
regulation drinks and are selected for their purifying and health benefits. Nutrition & Health
benefits are the key pushers for dairy products selection to consumers. They believe that dairy
products give them vitamins and minerals that are essential for their health. Milk is perceived as
mainly a morning product and is used mostly as a mixture for other beverages & foods which
include tea, coffee, porridge, cereals and other hot beverages. The usage of Milk in household is by
the whole family but most families with young children will buy much more milk for feeding the
children.
Needs that are direct drivers can be for purifying, refreshment and health purposes whereas needs
that are linked to moments canbe because of indulgence, nutrition and energy. Needs associated
with moments are either in between moments, support atmosphere of some moments or considered
when having meals. This may overlap to a certain extent, but the moments are still regarded as
different since their influence on the decision process is distinguishing.
Owing to their active and independent nature, kids are inclined to consume products that are seen
to posses some value. These drinks are characterised as egocentric but can also be consumed
socially in birthday parties and also in other children’s gatherings. Kids use milk as a way to
refresh themselves, to have fun and as an indulgence in some cases. Some mothers are known to
prevail upon their kids to consume milk because of its nutritional and health benefits.
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Milk is also served to guests at home ostensibly because it is either their preferred drink or because
one simply wants to be a good host. Generally tetra brick packs are seen as “for the rich” while
tetra classic packs and pouches for the ordinary consumers.
Life stage also plays a big role in influencing decision on product choice. The pre-family couple
will tend to experiment on various drinks for health benefits or as an indulgence. On the other hand
a family with kids would be inclined to consume high volumes of products of acceptable standards
e.g. CSDs. Elderly couples living alone lean towards consumption of mature flavoured products
like juices (fruit or fresh) more from routine than anything else.
Moments play a very important role in the selection process as they determine when and which
products are to be consumed. Value added dairy products are consumed as an indulgence or after
sports or on an outdoor activity. Other products with value addition are consumed in social
gatherings like parties which are characterized with happiness and cheerfulness.Some drinks are
consumed at breakfast, lunch or dinner as a matter of discipline and rule.
General beverages consumption locations: Although beverages can be consumed virtually anywhere, they are frequently consumed in the
following places;
In the gyms or outdoors the beverages mostly consumed are water and energy drinks.
When on an outing or social gathering, the preferred beverages include alcohols, energy
drinks, sodas, water and milk based drinks.
In eateries (cafes, restaurants) beverages consumed include Water, sodas, tea and coffee.
In the office beverages consumed include tea and other milk based drinks.
At home beverages consumed include milk or chocolate based drinks, porridge, juices,
water, tea and coffee
In schools milk and chocolate based drinks are commonly used.
Juices and water are drank anywhere any time.
General beverages consumption occasions among adults: Beverages can be consumed at any given time but the following occasions represents when the
consumption of beverages is considered high;
When Travelling, Water, yoghurt, juices and sodas are consumed
When exercising and sporting, Water and energy drinks are drank
When in a social meeting alcohol and coffee are preferred.
On Lunch break as filler, yoghurt is consumed.
When reveling or clubbing sodas and alcohol are the chosen drinks.
In social gatherings alcohol, hot beverages and soda are consumed.
At breakfast tea, coffee, milk and chocolate based drinks and juices are the preferred drinks.
When having meals consumer s drink Juices
After meals (night time or before bed) milk and hot beverages are consumed
Water, tea and juices are consumed at any time of the day
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General beverages consumption occasions among kids Consumption occasions among the kids are represented below;
When having meals or after meals they consume water
Water and juices can be consumed at given anytime
In the afternoon sodas are the preferred drinks
In social gatherings they take tea, sodas, juices and yoghurt
At breakfast they mainly drink tea, milk and chocolate based drinks
After lunch and during holidays kids consume milk and chocolate based drinks
At break time children love yoghurt and juices
In the morning they take porridge and juices
After meals (night time for non bed wetter's) milk, chocolate based drinks and yoghurt are
consumed mostly
In mid-afternoon they prefer tea but consume milk, chocolate based drinks and tea after
school
Why beverages are consumed Beverages are consumed for various reasons by different people. The following depicts why
beverages are consumed;
To derive energy and the drinks consumed include energy drinks, tea, porridge and cocoa
and chocolate based drinks
To get a kick they consume energy drinks and alcohol
To quench thirst, soda, juices and water are the preferred drinks
For warmth, coffee, tea and cocoa and chocolate based drinks are consumed
For stimulation they take coffee
As a nutritional drink the preferred drinks are tea, porridge and cocoa and chocolate based
drinks
For sweetness consumers prefer tea, cocoa and chocolate based drinks and juices
For mildness they consume cocoa and chocolate based drinks
For religious reasons they take cocoa and chocolate based drinks
To aid their digestion, they prefer tea
For an easy and quick to prepare they choose cocoa and chocolate based drinks
For sustenance in absence of lunch they prefer tea, cocoa and chocolate based drinks
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Summary Consumption of beverages is driven principally by the desire for refreshment and nutrition; these
attributes are judged along a continuum of what quality they offer or do not offer. These
considerations seem to occupy the pre-consumption moment which may suggest that intrinsic
product attributes are the first step in the purchase decision-making process. On closer scrutiny of
beverages and their accompaniments, varying attitudinal dispositions towards beverages and
consumer desires from them become evident. This can be used to segment consumers as follows:
Satisfaction Driven Health Driven Innovation Driven
Low SEC Higher SEC
Satisfaction
The low end consumers’ priority is the sustenance the products offer and the key consideration is
mainly for physical satisfaction. This implies that the drinks need to be chunky or thick to complete
the filling effect. These products are considered around the clock drinks meaning they can be
consumed in any of the following occasions:
Products consumed early in the morning are primarily hot beverages or porridge
In mid-morning hot beverages and bread becomes the preferential drinks
In the evening or at bedtimeconsumers take hot beverages or soup
Health
This category of consumers (middle class) is pushed more by the health benefits (balanced meal)
offered by the products. They seem to adopt the attitude that traditional home cooking is best and
balanced diet is good which imply that these drinks contain various healthy ingredients. The
opportunity here is that these drinks comprising of different food groups are seen as around the
clock drinks i.e. and can be consumed:
Early morning consumers drink tea with bread and butter or eggs
In mid-morning they consume whole fruits or Fresh (real) fruit juice
Tea or chocolate base drinks with biscuits or mandazis consumed in the afternoon
In the evening or bedtime they take water, Juice or milk
Innovation
The higher end consumers are driven essentially by innovation which is seen as a modern way of
living. As much as they embrace new ideas and move with the changing times they are usually
busy and short of time and constantly on the move hence the need for convenience. The
implication here is that the novel packaging for these products should reflect status, modernity and
convenience. They are seen as around the clock drinks and can be consumed:
At Breakfast, the preferred drinks are cereal plus strong coffee or tea
In mid-morning they consume tea or coffee and snack
In the afternoon they like consuming fruit salad or juice or yoghurt
Evening/ Bedtime – Take away with soft drink, hot drink after
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Drinks that ‘overlap’ with foods (dairy / grain based) are taken as a snack to bridge a gap between
meals and give energy until the next meal. They are also considered as a combination with bread or
porridge to make a cheap or convenient meal.
Refreshment is top of mind when consumers talk about drinks, but thicker drinks are used as an
‘in-between’ to get to the next meal e.g. milk, yoghurt. Fruit based drinks are used as a source of
healthy nutrition e.g. freshly squeezed juice.
Drinks are sometimes seen to provide more ‘efficient’ sources of nutrition. One glass of orange
juice for example contains more juice (& therefore nutrition), is more convenient and seen as a
modern format and easier to absorb than an orange.
Since refreshment is a key consideration, the format of the drink (whether hot or cold) is
determined mainly by the existing weather condition at the time. Morning drinks are usually hot to
fight the morning cold, afternoon drinks are mainly cold to cool the body, etc. Among the kids,
taste concerns largely drive their preference of beverages as they tend to gravitate to tastier and
sweeter drinks. Adults on the other hand are the nutrition watch- dogs who ensure that while
refreshment is addressed, so is the nutritional element.
Dairy products-Awareness and usage Consumer are aware of various dairy products which include butter, Cakes, Chocolates, Ghee,
Milk, Biscuits, Cream, Cheese, Mayonnaise, Yoghurt and Ice cream. It is understood that other
products such as cakes, biscuits and chocolate would constitute elements of milk or dairy products
in their preparation or manufacture. Evidently, there are misconceptions around dairy products
such as use of milk in the manufacture of mayonnaise.
Source of awareness Consumers get information about dairy products from different sources which are enumerated
below;
Television (e.g. Cow bell)
Retail outlets- Supermarkets and shops
Promotional activities
Posters
Word of mouth (shopkeepers, friends; doctor’s recommendations- infant powder milk)
Tradition or heritage (particularly for fresh milk products)
“…. I came to know about S26 when I gave birth to my last born through caesarian. The
drugs they gave me dried up my milk and so I couldn’t breast feed and the doctor
recommended I try S26”Female with children, 25-35yrs, Muslim, Musoma
“… Mostly Cow bell is advertised on TV …. I’ve seen it in between some kids program…”
Female with children, 25-35yrs, Christian, Arusha
“…We have been using fresh milk from the cow and ‘mtindi’ since childhood …..”
Male with children, 25- 35yrs, Muslim, Arusha
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Consumption occasions-adults
Table 1 Consumption occasions-adults
PRODUCT WHERE WHEN WHY WITH WHOM
Home Morning (mainly)
Evening
Healthy
Gives energy
Boosts immunity
Family
Cheese
Home
Office
Morning (mainly)
Afternoon
Evening
Acts as an
appetizer
Healthy
Gives energy
Family
Home
Morning
Afternoon
Evening
Gives energy
Calcium
Boosts immunity
Family
Home
Office
Morning (mainly)
Afternoon
Evening
Palatable
Filling
Nutritious
Family
Friends/ colleagues
Ice cream
Outdoors
Home
Afternoon
(mainly)
Evening
Palatable
Filling
Family
Friends/ colleagues
Of the 5 key dairy products predominantly mentioned (Cheese, butter, ghee, yoghurt and ice
cream), only yoghurt and ice- cream are consumed as they are. Interestingly, both ice cream and
yoghurt are predominantly consumed outdoors. Both would be used occasionally to top up salads.
However, this is not commonplace and is observed mostly in Asian households.
Butter is used essentially as an application (e.g. on bread) or ingredient in the preparation of other
foods (e.g. porridge, spaghetti or pasta). As with butter, cheese is used to augment other foods like
sandwiches, burgers, pizza, chapati and in some cases, salads. Cheese is seen as an expensive
product by most across the board and is therefore used sparingly.
Ghee is predominantly used as cooking oil that can be used in the preparation of most meals that
require frying. It is also applied on roasted or cooked bananas or used in the preparation of other
meals such as porridge, spaghetti
Kids consume different dairy products for various reasons depending on the occasions;
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Consumption occasions-kids
Table 2 Consumption occasions-kids
Occasion Dairy product Reason
Morning
Milk Wholesome to start the day and provide warmth.
To be accompanied by BUTTER (on bread)
Afternoon/
Lunch
Yoghurt Portability of (manufactured) yoghurt and its
nutritious and filling nature makes it ideal for
kids
Evening
Cheese
Enriches nutritional benefits in food and
increases palatability
Evening
Milk Wholesome
Special
occasions
Ice cream
Yoghurt
Considered fun products/ sweet
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Perceived differences- Cheese, Butter, Ghee Although these products appear to have the same inherent characteristics, consumers are able to
decipher some recognizable differences Table 3 Perceived differences- Cheese, Butter, Ghee
Cheese Butter Ghee
Density
Cholesterol
levels
Taste Less milky- Salty; sour
More milky Difficult to tell as it is mixed in food
Fortification Fortified Fortified NOT fortified
Brands used Tanga Fresh (Asians) Craft (Asians)
Kerigold (Asians) KCC (Asians) Anchor (Asians) Azam (Asians) Zanzibar (Asians) Unknown-
identified by colour
of pack (Xtians) Blue and cream pack Pinkish pack
KCC Anchor Super Ghee Luna ghee (Asians) Sukuma Land (Asians) Dairy Whole Butter (Asians) Aseel
Barriers to using certain milk products Generally, dairy products with high cholesterol levels are avoided across the board. Other factors
that would inhibit use or consumption of a particular product include:
Reactions to product use such as allergies and disease e.g. Diarrhoea
Availability of products
Pricing which should be affordable
Packaging or hygiene concerns
Nonetheless, no dairy product is singled out as one that would not be given to children as all are
perceived to offer health/ nutrition benefits which make them all permissible. However, it is
essential to mothers that the children’s consumption is monitored particularly with regard to dairy
products that are high in fat content e.g. ghee.
Irrespective of age, over- indulgence/ use of any dairy product is perceived to have negative
results- fattening. In addition, as consumption occasions are also influenced by climatic conditions,
some dairy products, ice cream in particular, is not given to kids during the cold season.
‘’..They are all useful and good for children….maybe it is just to reduce their
amount of consumption. But for something like ice cream, we will not give our kids
during the cold season as they may catch disease..’’Female & single, 25-35yrs,
Christian, Dar
‘’..We don’t stop our children from eating any of these when they want…. They
are all healthy. I however limit the use of ghee in food due to its high fat content.. .’’Female with children, 25-35yrs, Hindu, Dar
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Perceived benefits of dairy products
Butter, Ghee and Cheese are consumed because of some perceived benefits which largely cut
across the three products. These benefits include:
Strengthening of bones due to calcium content.
Replenishing of lost energy and particularly good for nursing mothers
Boosting of immunity because of vitamins D & A
Making the skin supple or smooth
Increasing brain- power which is seen to make kids more intelligent
Enhancing growth in children
Strengthening of bones due to Calcium content
Replenishing lost energy and particularly good for nursing mothers
Boosting immunity because of vitamins D & A
Making the skin supple or smooth
An appetizer or Ideal for pizza preparation due to its viscosity
Strengthening bones due to Calcium content
Replenishing lost energy and particularly good for nursing mothers
Boosting immunity because of has vitamins D & A
Making the skin supple/ smooth
Given that there are essentially no distinct attributes across the 3 dairy products, it is likely that
their usage would predominantly be driven by functional drivers such as cost or affordability
&palatability.
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Alternative dairy products With the exception of ghee, both (molten) Cheese and Butter can be used interchangeably as
spreads e.g. on bread. Ghee only occupies the ‘aid in food preparation’ space and may therefore not
be a direct substitute to either Butter or Cheese.
In the absence of their regular brand, brand switching within the SAME category is also preferred.
In the absence of an alternative within the brand category, most claim they would switch across
formats e.g. powder to liquid milk and vice versa. Naturally, brand switching within the same
category would be more prevalent.
Milk types- Awareness & Consumption Behavior
i. Awareness of milk types & brands
Spontaneous awareness of milk can be compartmentalized in to two groups i.e. Liquid and powder
milk. Liquid milk can be further divided into three categories which encompass liquid processed
milk, liquid long life milk and fermented milk.
Table 4 Awareness of milk types & brands
LIQUID MILK POWDER MILK
Liquid Processed milk
Dairy Milk
Oga Fresh
Tanga Fresh
Tuzo
Mara Fresh Milk
Super Milk (Dar ASIANS)
Azam
Liquid long life
UHT
Liquid Fermented milk (Mala)
Mara Milk
Liquid unprocessed milk
Fresh from cow
Goat milk
Powder
- NIDO
Cow bell
Unbranded
Baby formula
Lactogen
S26
Fermented milk
Yoghurt- Interestingly,
many consider yoghurt to
be a type of milk
Evidently, most consumers are unable to distinguish between the different milk types. Very few
make reference to long life milk while none make reference to whole vs. low fat liquid milk or full
cream vs. skimmed milk within the powder category. The key identifiable differentiators observed
are based on FORMAT and PROCESSING of milk. Further, awareness of added value milk
products is nil.
ii. Milk consumption occasions
Consumption of milk is very high at breakfast in the morning but reduces as the day progresses. In
mid-morning, milk consumption is considered moderately high but comparatively low at lunch.
Inmid afternoon milk consumption is high and drops to comparatively low at dinner or evening
time but climbs to moderately high at night before bed time. Milk is also consumed on special
occasions like picnics and outings but the consumption is rather low
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‘’..All in my family drink milk in the morning evening and around 11 o’clock after work or
school ...’’Female with children, 25-35yrs, Muslim, Mwanza
The most frequent occasion for both adults and children is at breakfast in the morning.
Children frequently take milk as a mid-morning snack and as a mid-afternoon snack especially
after school. In the evening the consumption frequency lessens slightly for both children and adults
compared to breakfast and reduces further on special occasions (picnic and outings)
Consumption occasions do NOT vary by the type or format of milk. Accordingly, milk or milk
based beverages are generally considered an ‘anytime’ drink. This however largely depends on
affordability of the milk and disposable income.
iii. Milk consumption occasions-why
Milk is consumed by all members of the family due to its perceived health and therapeutic benefit.
Expectedly it is largely consumed by children, followed by mothers who consume large quantities
of pure milk as well as milk based beverages. Fathers consume milk mainly as mixers or to take
advantage of the health benefits. However, the following reasons represents when milk is
consumed by different members in a household;
Milk is consumed at breakfast by both adults and children
Children take milk when having a morning snack.
At lunch, milk is consumed by both mothers and Children
When having an afternoon snack children drink milk
Adults and Children take milk at dinner or evening
At night and before bed adults and Children drink milk
It is also an interesting consumption on special occasions (picnic, outings) taken by mother
and most children
‘’..Milk has no regular time table, I use it anytime I want..’’
Female with children25-35yrs, Arusha
‘’..Milk is usually used in the morning because when you are making breakfast, you
have to use milk and also when making the baby’s meals which is done in the morning.
When you want to take tea, you have to use milk..’’Male with children, 25- 35yrs,
Christian, Musoma
‘’..We take milk mostly in the mornings and in the evenings. In the morning, I give it to
my child for breakfast before she goes to school but the younger one doesn’t like plain
milk so I mix it in her porridge. We also take a glass after dinner before going to bed
...’’
Female with children, 25-35yrs, Christian, Mwanza
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iv. Different milk types satisfy different needs evident
Table 5 Different milk types satisfy different needs evident
Powder milk Liquid Milk Infant Milk Powder Yoghurt/ Fermented
Replenishing (esp.
when breaking the
fast)
Replenishing (esp.
when breaking the
fast)
Sweetness
Sweetness
Sweetness
Sweetness
Relaxes Relaxes
Relaxes
Warming (mixed
with hot water)
Warming (when hot)
Warming (mixed
with hot water)
Filling
Filling
Filling
Accompanying food
Accompanying food
Accompanying food
Refreshing
Refreshing (when
cold)
Refreshing
Medicinal / Healing
(ulcers, coughs)
Medicinal / Healing
(ulcers, coughs)
Makes body fit
Makes body fit
Body cleaning /
removes toxins/
removes dust
Body cleaning /
removes toxins/
removes dust
Powder milk is considered sweeter than fresh milk whilst the latter is seen as a more filling and
refreshing product than any other type of milk.
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v. Powder vs. Liquid Milk: Needs satisfaction
Powder milk and liquid milk are seen to satisfy different needs but some needs are met better by
different milk types. Table 6 Powder vs. Liquid Milk : Needs satisfaction
Powder Milk
Liquid Milk Needs fulfilled comparatively better by milk type
(powder vs. liquid)
Physical
development /
growth /
strengthens bones
Physical
development /
growth/strengthens
bones
Liquid milk, having originated from an animal is
perceived to have an edge in possessing physical
development / growth benefits such as
strengthening of bones. It is perceived as more
natural and therefore more nutritious
Image/ Prestige
Milk powder is considered prestigious (NIDO).
Pricing and packaging may contribute to these
sentiments
Satisfying a taste
experience
Satisfying a taste
experience
Milk powder is perceived to be more palatable.
‘Cow milk’ in particular has a distinct taste which
is unique
Satisfying a mouth
feel experience
(when not mixed
with water!)
Liquid milk is thicker and creamier (contains
more fat) / creamier than powder milk
Easy to prepare /
easy to mix &
dissolve
(convenience!)
Time consuming
(long boiling when
unprocessed
Economical/ value
for money
Direct comparison on quantities used reveals that
one uses less powder per serving as compared to
liquid milk
Sweetness
Sweetness
Powder milk is perceived to have enhanced
sweetness over liquid milk
Filling
Filling
Liquid milk, is natural; it is considered to be
thicker than powder milk hence more filling
Refreshing (when
cold)
Refreshing (when
cold)
Milk powder does not play in the cold beverage
consumption space
vi. Barriers to using certain milk types
This can be grouped among the different milk categories:
a. Among liquid processed & powder milk users;
Fresh unprocessed milk
It gives (children) diarrhoea / tummy problems
It has too many worms
It goes off (bad) very fast
It requires high levels of hygiene / too risky
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Producers / sellers dilute it by adding water to it
It is tampered with/ Diluted by sellers
It is not readily available
It is too time consuming to boil it up (in the morning)
b. Among liquid milk users;
Milk powder
It is considered too expensive
It has bad publicity historical - concerns over quality of powder milk in tin cans.
Nido in particular
It is considered to make children retch (throw up)
c. Among powder milk users;
Fermented milk
It is not readily available
It requires long boiling to kill the germs
Fermentation is not ideal for kids’ digestive systems
Fresh processed milk
It produces an unpleasant smell from pack
It contains chemicals
It is too diluted
vii. Preferred milk type
While many consumers have their misgivings towards fresh unprocessed milk, it still remains the
most preferred milk type which has the following benefits;
Affordability- It is considered comparatively cheaper than processed milk types
Nutrition orhealth drink – It is seen as the most nutritious, particularly for growing children.
Availability - It is comparatively readily available , particularly in peri- urban areas
Natural- It is ‘unadulterated’ as it contains no preservatives or other chemicals unlike
processed milk types
Interestingly, key demerits surrounding unprocessed milk are centered around its handling rather
than its intrinsic attributes. These are;
Hygiene degradation by handlers along the value chain
Dilution using water by unscrupulous dealers (hawkers or traders)
viii. Awareness of vitamins & minerals in milk and impact of fortification onmilk
Vitamins and minerals are perceived to be the key benefits derived from milk consumption.
Among the functions they play is boosting immunity of the body, aiding in food digestion and
improving vision. Minerals are known to strengthen the bones. The Vitamins found in milk include
A,B,C and D whilst some of the minerals found in milk are calcium, iron and potassium.
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ix. Understanding of fortification/ food enrichment
Consumers have varying understanding of fortification or food enrichment which is represented as
follows;
Positive associations around fortification
Negative associations around fortification
x. Positive associations around fortification
Fortification is regarded as processing for preservation or making the product last longer and is
done in pasteurised milk, powder milk and yoghurt. It is also perceived to be a balanced addition of
selected constituents e.g. vitamins and minerals in a product to enhance the nutritional value.
Having a variety of flavours is perceived by a few as part of product fortification
xi. Negative associations around fortification
Fortification is considered by some as an addition of (harmful) chemicals in products and by others
as un-proportional addition of elements leading to disease or allergies. A few people perceive it to
be a change in taste.
There are evidently mixed reactions (almost a 50:50 split across the board) to whether fortification
is good or not. Among those positively aligned to fortification, understand that fortification would
not only increase preservation of products but would also supplement any deficiencies consumers
may have of these elements. Nonetheless, caution is given that this is so long as the product
constituents being added do not exceed the normal quantities required by the human body, thus the
need for a balance.
Fears are rife that processors or manufacturers may be unable to ascertain the right proportions of
supplementary elements, the risk of which is that increased intake of the nutrients, beyond the
required proportions, will be harmful to the body. Boosted levels are perceived to give rise to
diseases such as Cancer, Diabetes, Diarrhoea; allergic reactions; rise in cholesterol levels and
change in taste
Accordingly, while believability of fortified milk is not in question, there are mixed reactions to
whether fortification actually improves milk or not. Among those opposed to fortification,
sentiments are rife that it may not necessarily improve milk if the additional components could lead
to allergies or complications due to a concentration of that particularelement. Nonetheless, the
perceived element of preservation/ longer shelf life of a fortified product is well received.
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Among those pro- fortifications, see it as an improvement to the product. Indeed, most claim that
they are currently using fortified dairy products.
xii. Impact of fortification on milk:
Across the board there is a feeling that fortification would positively affect taste/ flavour:
“..It might prove too strong for some people and might harm them, giving rise to diseases
like Cancer or even develop allergies. I also think these additives will make your
cholesterol level rise; so I better keep on using what I normally use..”Female& single,
25-35yrs, Christian, Dar
“..For all I know, it could be just a marketing device. When I eat rice, I know I'm getting
my share of carbohydrates and maybe the only thing that I'm not doing is getting the
recommended daily potion. So I don’t like that idea of fortifying foods with
anything..”Female with children, 25-35yrs, Muslim, Mwanza
“..Women today suffer from diseases like cervix cancer, stomach cancer, breast cancer
and I believe all these come from the foods that we consume….the problem is that these
vitamins are not natural. Once something like milk gets to the processing plant, all the
vitamins and minerals get lost in the process and that is what they try to replace using
chemicals..”Female with children, 25-35yrs, Muslim, Musoma
“..A fortified product means it has added value…so while it may cost more, it is better for
the body in the long run..”Female with children, 25-35yrs, Hindu, Dar
“..In our homes may be we eat food which lack some nutrient and when we buy products
which has been added with nutrients and minerals we compensate the deficiency..”Male
with children, 25-35yrs, Muslim, Arusha
“..When you say it is fortified, it means that as that product went through the
manufacturing process, some of the nutrients got lost or were removed and that is why
you need to add it in again. So it is a good thing..”Male with children, 25-35yrs,
Christian, Musoma
“..Fortification helps! There’s a fortified milk known as “Ensure” from the Arab
countries it’s sold at about Tshs. 60,000/= per tin of 500gms. My grandfather was very
sick and we were advised to buy it for him- after consuming this milk, he immediately got
relief .I think a lot of vitamins and minerals are added in it..”Female& single, 25-35yrs,
Christian, Dar
“..Fortification will make the dairy product more delicious and good smell as well as
looking more attractive..”Female& single, 25-35yrs, Christian, Dar
“..The flavour might change to good or bad depending on the quantity added..”Female&
single, 25-35yrs, Christian, Dar
“..The flavour will definitely be affected..”Female with children, 25-35yrs, Hindu, Dar
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xiii. Fortification as an influence on purchase decision
Fortification may have a negative impact on purchase decision among the younger female
demographic, citing cost as an impediment to purchase (despite the added value)
In contrast, the older demographic are more value- driven and would willingly purchase a fortified
product over a similar one that has not been fortified, irrespective of the premium on the former
xiv. Hygiene- Concerns about food quality and food safety
Three key elements come to the fore when exploring food quality and safety:
Observance of packaged products- Generally, packaged products connote high levels of
hygiene in their handling
Close scrutiny of expiration of product- products with no expiration date are avoided as
much as possible
TBS stamp of approval- this authenticates the product’s quality and safety
Unique to the Asian community, products containing gelatine and/ or lecithin are avoided as
conscious consumption of these go against their religious beliefs
Nonetheless, there is no other record of other religious influences inhibiting the consumption/
usage of any dairy products. Bad publicity of powdered milk, specifically Nido is recounted by
some, citing the influx of counterfeits as the core reason to its negative perception.
“..Sometimes price will limit people despite the fortification and enrichment of the
product…. only what people know is a dairy product with the belief that the product has
been made with milk…. The rest may be a hard sell..”Female& single, 25-35yrs,
Christian, Dar
“..If the product is not packed nicely and covered properly, that to me means it is not
hygienic and will make me not buy it at all..”Female& single, 25-35yrs, Christian, Dar
“..I always check for the TBS stamp if it is not there I won’t buy..”Female with children,
25-35yrs, Asian, Dar
“..Fresh milk straight from the cow needs a high level of hygiene so you don’t just buy
from anywhere or anyone..”Female& single, 25-35yrs, Christian, Dar
“..There is gelatine and lecithin in some ghee which some of us don’t take due to religious
reasons..”Female with children, 25-35yrs, Asian, Dar
“..Nido had the problems in the past 2 yrs by the presence of fakes in the market which
affected people’s health. Most users stop using it; it was a very bad perception for
Nido..’’Female & single, 25-35yrs, Christian, Dar
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Milk consumption criteria
i. Key consumption drivers
It is evident from the table below that intrinsic attribute i.e. Taste &Smell are the focal
consumption drivers. Others include Pricing, Availability, and Packaging. It is interesting to
observe the low importance attached to branding
1. Taste & Smell: Given the sensitive nature of the product and the potential impact on
peoples’ lives health), consumers look at the Taste and the smell as being key in the product
category. In normal circumstances, milk is not expected to have any strong smell or off
putting taste in its natural form.
2. Pricing is key in a market that consumers have limited resources to allocate for dietary
needs of the household. In a country where subsistence agriculture is the mainstay of most
households, it is important to underling the critical role pricing plays in the choice of
products, and milk is one of these. In most urban Tanzania, bulk milk still thrives because
of the affordability issue by many consumers.
3. Availability: This is also a critical consideration factor in choice of products in the milk
category. These are mostly considered as fast perishable goods that must be consumed
within a few hours of purchase. Distribution therefore forms a key part in marketing the
category in order to erase the held perceptions about milk being fast perishable (although
this may already be in the process of being addressed through cooling refrigeration)
4. Packaging: For most consumers in Tanzania, packaging is important as a choice factor for
the milk product category. It is especially noticeable in regions along the coast (Dar
essalaam) that packaging is key as it is perceived as a solution to conserving the products.
There is high likelihood of milk products getting spoilt if at all they are not well packaged.
For instance, there is high regard for UHT milk packaging as it tends to last longer in
hotter environments like in Dar. In the absence of wide spread use of the ‘expensively’
perceived UHT type product packaging, consumers go for the reusable plastic packs, since
they are able to use the packs for several purchases later, hence cutting costs. Table 7 Key consumption drivers
DAR, Females
singles, Xtians
DAR, Females
with children,
Asians
DAR, Females
singles, Xtians
AR, Females with
children, Xtians
AR, Males with
children,
Muslims
1. Quality (Taste/
Smell)
1. Pack size
SKUs
1. Quality (Taste/
Smell)
1. Quality (Taste/
Smell)
1. Quality (Taste/
Smell)
2. Nutritional
value
2. Pricing
2. Expiry date
2. Packaging
2. Nutritional
value
3. Packaging
3. Nutritional
value
3.
Communication
3. Pricing
3. Packaging
4. Availability 4. Availability 4. Availability 4. Availability
4. Availability
5. Pricing
5. Pack format
SKUs
5. Pricing
5.
Communication
5. Pricing
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MUS, Males with
children, Xtians
MUS, Females with
children, Muslim
MZ, Females with
children, Muslim
MZ, Females with
children, Xtians
1. Quality (Taste/
Smell)
1. Quality (Taste/
Smell)
1. Quality (Taste/
Smell)
1. Quality (Taste/
Smell)
2. Pricing 2. Pricing 2. Pricing 2. Packaging
3. Availability 3. Pack size SKU 3. Expiry date 3. Pricing
4. Nutritional value 4. Availability 4. Availability 4. Expiry date
5. Packaging 5. Packaging 5. Packaging 5. Availability
ii. Key Consumption barriers
High cholesterol levels
The smell of ghee in particular is singled out by a few as unpleasant
A few respondents are unable to consume cheese or butter due to the high cholesterol content which leads to allergic reactions
Powdered milk in particular is deemed as comparatively more expensive than liquid milk
iii. Alternative milk products
Across the board, consumption of fresh fruit juice is commonplace, with most households
squeezing fresh fruit for their children to extract natural juice which is considered essential for
vitamins. The higher SEC will also purchase packed fresh fruit juices. In the total absence of milk,
then black tea/ coffee/ chocolate beverages & porridge would take the fore.
Porridge is viewed as a substitute for a meal because of its filling ability. It also provides energy
and can be an alternative food for babies.
iv. Milk pricing
Current vs. Recommended pricing
A cross section of pricing for various milk and dairy products across the regions confirms that
pricing of powdered milk and dairy products such as Cheese/Ghee/Butter are deemed too
expensive. Liquid (processed and unprocessed) milk are seen as affordable and therefore fairly
priced.
“..My brother does not like ghee completely just because of its smell .He always
complaints that it has a bad smell but the rest of us are comfortable with it..”Female&
single, 25-35yrs, Christian,
Dar
“..My mother can’t use butter or cheese because she is allergic to it..”Female& single,
25-35yrs, Christian, Dar
“..If I get money I’d like to use Nido” Female with children..’’25-35yrs, Christian,
Arusha
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Table 8 Current vs Recommended pricing
REGION
DAIRY
PRODUCT
Current pricing
(TSHS.)
Remarks
Recommended
Pricing (TSHS.)
DAR Ghee (1/2kg) 12,000 Too expensive 6000
Cheese (25grms) 2,500- 3,500 Too expensive 125-175
Butter (500grms) 6,500 Too expensive 2500
ARUSHA UHT milk (1/2lt) 600- 700 Fair/ acceptable 500-600
Nido (450grms) 3,500 Too expensive 2500
Cow
Bell(500grms)
3000 Too expensive 2000
Tanga Fresh
(1/2lt
700 Fair/ acceptable 600
MUSOMA Packed milk (Not
specified
350 Expensive 150-200
Yoghurt (Not
specified)
1200 Too expensive
500-600
MWANZA Unprocessed
MILK (1lt)
800 Fair/ acceptable 600-700
Fermented
(Mala) Milk
(1/2lt)
800 Fair/ acceptable
600-700
Media consumption
i. Dar es Salaam Table 9 Media consumption Dar es Salaam
TV
(Everyday- Home
RADIO
(Everyday- Home/
Office)
NEWSPAPERS
(Less often)
MEMORABLE
BILLBOARDS
ITV (Common) Clouds FM (Common Nipashe (Common) Airtel
(Jangwani;Uvungo)
TBC (Common) TBC (Common) Mwananchi
(Common)
TCC (Uvungo)
Channel 10 (Common Radio 1 (Common) The Guardian
(Common)
Vodacom (Moroko)
Capital Capital FM (Common) Alasiri Tigo (Mwenge)
Clouds TV Magic FM Majira Dairy Milk Bamaga)
Star TV Radio Tumaini Udaku (Thu) CCM (Mikocheni)
ATN Kifimbo FM Kiu (Thu) Colgate (Kariakoo)
Al Jazeera Nipashe Coca Cola
IBN Mwangaza Emirates (CBD)
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Radio has a unique accessibility advantage thanks to the advent of the mobile phone- today, almost
all mobile phones have built- in radios. As such, access is unlimited, relative to other electronic
media forms
ii. Arusha
Table 10 Media consumption Arusha
TV
(Everyday- Home
RADIO
(Everyday- Home/
Office)
NEWSPAPERS
(Less often)
MEMORABLE
BILLBOARDS
ITV (Common) Clouds FM (Common Nipashe (Common) Vodacom (CBD)
TBC (Common) Radio 1 (Common) Mwananchi
(Common)
Tigo (CBD)
Channel 10 (Common Capital FM Majira Airtel (CBD)
E.A TV E.A Radio Ijumaa Coca Cola (CBD)
Clouds TV Triple A Alasiri
Star TV Radio Free Africa
(RFA)
Mwanahalisi
ATN Safina FM Mwanaspoti (Males)
Al Jazeera Nipashe LeteRaha (Females)
There is a proliferation of Billboards by mobile phone service providers as evidenced by their high
visibility.
iii. Musoma
Table 11 Media consumption Musoma
TV
(Everyday- Home)
RADIO
(Everyday- Home/
Office)
NEWSPAPERS
(Less often)
MEMORABLE
BILLBOARDS
TBC (Common) Clouds FM (Common Nipashe (Common) AIDS Awareness
(CBD)
ITV TBC (Common) Mwananchi
(Common)
Tigo (CBD)
Star TV Victoria FM
(Common)
Uwazi (Common) Zantel (CBD)
Radio 1 Mwanaspoti (Males) HakiyaElimu
(Nyasho))
Radio Free Africa
(RFA)
Ijumaa Salama condoms
(Nyasho)
Udaku (Thu)
Mwanahalisi
Daily News
There is clearly very low visibility of Dairy products in above the line media- specifically on
outdoor material
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iv. Mwanza
Table 12 Media consumption Mwanza
TV
(Everyday- Home
RADIO
(Everyday- Home/
Office)
NEWSPAPERS
(Less often)
MEMORABLE
BILLBOARDS
TBC (Common) TBC (Common) N/A Vodacom (CBD)
Star TV (Common) Clouds FM (Common) Zantel (Nyerere Rd))
ITV Radio 1 (Common) Serengeti Beer
(Musoma Rd)
Channel 10
Radio Free Africa
(RFA)
Safari beer (Kenyatta
Rd/ Airport Rd
BBC Coca Cola
(Shinyanga)
Cow Bell (Nata)
General Tires (Ronald
Ngala)
There is clearly very low visibility of Dairy products in above the line media- specifically on
outdoor material
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Recommendations
Results from this study indicate a consideration path which begins at the perceptual level (the
refreshment and nutritional properties of beverages.)
Since these two qualities impact directly on human wellbeing, consumption of dairy products or
beverages cuts across age, gender, income, and geographic demarcations. However, attitudinal
disposition towards the role and effect of beverage (upon consumption) influences the choice of
what to take. This explains the decision between cold or hot, light or heavy, natural or processed,
traditional or new, local or foreign brand.
These consumer dispositions may, to some extent, be indicators of socio-economic status with
those with higher incomes being partial to healthy and ‘innovative’ drinks and those with less
income being more inclined to beverages which satisfy hunger and ‘process’ other foods.
It would, therefore, be expected that products and brands which fulfil these expectations would
appeal to these different segments.
However, the nutritional benefit of a beverage seems to have a greater impact on preference and
recommendation to the extent that consumers are prepared to trade off beverage type, brand, pack
size, and place of purchase.
Thus, even if the purchase decision-making process may begin at the intrinsic product attribute
level, extrinsic properties provide opportunities to influence consumption. It follows, therefore, that
milk based drinks would have to establish their nutritional credentials before leveraging price,
place, and promotion.
The innovation platform appears to be the opportunity area for new product development i.e.
Novelty in product attributes e.g. around packaging to reflect status, modernity and convenience.
Innovations could also be in pack sizes & shapes, flavour, taste, and new uses e.g. pre-mixed cold
drinks for the Innovation Driven.
Across the ‘Satisfaction- driven’ to the ‘Innovation- driven’ continuum, the need for products that
provide health (including growth of kids) and nutrition is central. Health benefits that are already
associated with food & nutrition (e.g. physiological) are most credible. Accordingly, new product
opportunities may need to give impetus to 3 key pillars
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i. Strength for the moment This would involve products which will not leave the consumer not feeling weak meaning having the strength to work or the sustenance which will require filling foods.
ii. Strength for the future
Consumers are invariably looking for products that have the ability to boost the bodily immune
system or equip the body with the ammunition to help fight diseases and at the same time
maintaining the strength.
iii. Strength of mind
Consumers are seeking products that are seen to inject confidence, mental resolution and courage
as well as the ability to perform optimally.
Other benefits that provoke interest, though with narrower or polarizing appeal include:
Boosting the immune system is universally considered essential albeit being an extremely
contentious issue.
Reduction of cholesterol, regarded as an issue for people who know they have a cholesterol
problem.
Looking good or bulking up your body is seen as an outward show of health especially on
skin, eyes, body and shape.
Coping with stress, concentration or sleep are potentially interesting benefits, but takes
nutrition into ‘drug’ or medication territory. However, this needs to be more closely linked
to a ‘nutrition’ story to be considered healthy.
Finally, other consumer pointers which could add to the appeal or success of a new product within
the dairy food or beverage product category include:
Quality – This is largely reflected in products and packaging and is increasingly important to
consumers (hygiene, status, value.)
Nutrition Knowledge – It is deemed important for product / manufacturer to play a role in
education & make product benefits easy to understand; make use of multiple communication
channels.
Point of sale – The products should be made available at all times and in the chiller section to
emphasize freshness.
Branding – The credibility of the brand as a nutritious product is key (e.g. Brookside in Kenya,
Tanga Fresh in Tanzania are trusted brands which cue nutrition.)
Credibility – Nutrition is a hard benefit to prove & claims need to be built over time.
Relevance – Tapping into the emotional, experiential & social context will drive consumer
adoption & loyalty.
Source – Where it comes from and what it is made of needs to be clearly identifiable.
Every day – Offering a ‘daily dose’ of nutrition to drive frequency.
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Processor Audit Survey
Introduction and Methodology The processor audit survey sought to identify large, medium and small processors in the project
region and quantify their installed processing capacity. The audit was carried out in two phases;
Phase one was a census enumerating all Dairy processors in Tanzania and collecting there contact
information (name of processor, year established, region and contact information), a total of 28
processors were interviewed.
In the second phase, we targeted processors in the Northern Regions of Tanzania (Tanga,
Kilimanjaro, Arusha, Mara), where we administered a detailed questionnaire interviews, to
understand other aspects like installed processor capacity, product lines and the market for their
products. We clustered processors based on capacity as follows:
Large processors with batch pasteurization equipment and limited cold storage
Small scale processors with batch pasteurization equipment and limited cold storage
Cottage industry processor.
The objectives in the processor audit were
To identify large, medium and small scale processors and quantify processing capacity for
processors in the project region (Tanga, Kilimanjaro, Arusha and Mara).
To establish the levels of utilized capacity at different times of the year and if there is an
opportunity to increase processing capacity.
Identify where processors source raw milk whether from producer cooperatives or
commercial farms.
To determine the products produced, packaging used (and source) and if their labels are
professionally designed or done in-house by the processor.
Determine if respective processors have a laboratory and their claimed quality testing
capacity.
Identify processor’s primary and secondary markets and if they distribute themselves or use
distribution agents. Understand their route to markets.
Give processors’ operational background and understand if this is their primary business
focus or a secondary investment.
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Processor Capacity Census
A total of 28 processors were found to be active with most of the processors being located in the
Northern regions of the country that is Tanga, Mara, Arusha and Kilimanjaro where there is a deep
attachment to livestock.
The following is a table of processors that were found to be in operation during the fieldwork;
Table 13 Processor found to be in operation during the fieldwork
NAME OF PROCESSOR REGION
YEAR
ESTABLISHED
INTERNATIONAL DAIRY PRODUCTS ARUSHA 1,994
MOUNTAIN GREEN LTD ARUSHA 1,998
ARUSHA DAIRY CO. LTD ARUSHA 2,005
AGAPE WOMEN DAIRY CO-OPERATIVE SOCIETY ARUSHA 1,996
KIJIMO WOMEN DAIRY CO-OPERATIVE SOCIETY ARUSHA 1,999
NYALABE DAIRY CO-OPERATIVE SOCIETY ARUSHA 2,011
LITI TENGERU ARUSHA 1,977
PROFATE INVESTMENT LIMITED DAR ES SALAAM 2,007
NEW NORTHERN CREAMERIES LTD ARUSHA 1,985
CEFA NJOMBE MILK FACTORY IRINGA 1,999
KALALI WOMEN DAIRY CO-OPERATIVE SOCIETY LTD KILIMANJARO 1,999
KILIMANJARO CREAMERIES LTD KILIMANJARO 2,008
NRONGA WOMEN DAIRY CO-OPERATIVE SOCIETY KILIMANJARO 1,996
WEST KILIMANJARO DAIRY LTD KILIMANJARO 2,001
FUKENI DAIRY KILIMANJARO 2,003
MUSOMA DAIRY LTD MARA 1,976
MARA MILK MARA 2,008
VICTORIA MARA 2,009
NYUKI DAIRY MARA 2,008
BARAKI SISTERS FARM MARA 1,975
MBEYA MILK MBEYA 2,000
MATI-UYOLE MBEYA 1,965
TAN DAIRIES DAR ES SALAAM 9,999
IRENTE FARM TANGA 1,971
TANGA FRESH LTD TANGA 1,997
AMMY BROTHERS TANGA 2,001
SHAMBANI GRADUATES ENTERPRISES MOROGORO 2,006
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Processor and Cooling plant capacities Large processors (process over 10,000 liters per day) account for a mere 18% of the market and
control about 80% of production output during peak season. Midsized processors (process between
5,000 – 10,000 liters per day) account for 11% of the market and control 17% of production
capacity output during peak season. Small processors (process < 5000 liters per day) making up
71% of the market account for a mere 3% of production output during peak season.
Overall there is huge gap between the installed capacity and the utilized capacity across most of the
processors with an exception of Tanga Fresh Ltd whose installed capacity is 50,000 liters per day
and fully utilizes whole of it. Those that have high installed capacity but the utilization was very
low include; Agape Women Dairy Co-Operative Society utilizes only 4% of its processing capacity
and Kijimo Women Dairy Co-Operative Society utilizing a mere 1% of its processing capacity
(cite table No2.2). Most of the processors cited power failure and lack of enough milk from
farmers as the two main reasons why there is underutilization of their maximum processing
capacity. Bearing that milk processing is the core business for most processors; these represent a
unique challenge as they don’t have any other side business.
Table 14 Processor and cooling plant claimed capacities in liters per day
NAME OF PROCESSOR REGION
InstalledCapacityin liters/ day
Utilized Capacity in litres/day
Cooling Capacity in litres /day
Collection Capacitylitres/day
INTERNATIONAL DAIRY PRODUCTS ARUSHA 10,000 700 1500 1500
MOUNTAIN GREEN LTD ARUSHA 1500 350 350 350
ARUSHA DAIRY CO. LTD ARUSHA 15,000 6,000 15,000 6,000 AGAPE WOMEN DAIRY CO-
OPERATIVE SOCIETY ARUSHA 200 200 100 200 KIJIMO WOMEN DAIRY CO-OPERATIVE SOCIETY ARUSHA 1300 1300 500 500 NYALABE DAIRY CO-OPERATIVE
SOCIETY ARUSHA 3000 3000 2000 1,500
LITI TENGERU ARUSHA 500 500 300 300
PROFATE INVESTMENT LIMITED DAR ES
SALAAM 1000 300 600 400 NEW NORTHERN CREAMERIES LTD ARUSHA 70000 3000 3000 3000
NJOMBE MILK FACTORY IRINGA 2,000 200 200 200 KALALI WOMEN DAIRY CO-
OPERATIVE SOCIETY LTD KILIMANJARO 1,000 350 350 350
KILIMANJARO CREAMERIES LTD KILIMANJARO 1,000 750 1,000 500 NRONGA WOMEN DAIRY CO-
OPERATIVE SOCIETY KILIMANJARO 1500 600 600 600
WEST KILIMANJARO DAIRY LTD KILIMANJARO 700 400 400 400
FUKENI DAIRY KILIMANJARO 1000 1000 1000 1000
MUSOMA DAIRY LTD MARA 40000 7000 40000 10,000
MARA MILK MARA 15000 6000 15000 6,000
VICTORIA DAIRY MILK MARA 4000 500 4000 800
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NAME OF PROCESSOR REGION
InstalledCapacityin liters/ day
Utilized Capacity in litres/day
Cooling Capacity in litres /day
Collection Capacitylitres/day
NYUKI DAIRY MARA 1,300 1,300 500 500
BARAKI SISTERS FARM MARA 3,000 3,000 2,000 1,500
MBEYA MILK MBEYA 500 500 300 300
MATI-UYOLE MBEYA 2,500 400 2,500 400
TAN DAIRIES DAR ES SALAAM 1,000 300 600 400
IRENTE FARM TANGA 60 60 60 60
TANGA FRESH LTD TANGA 50,000 50,000 30,000 50,000
AMMY BROTHERS TANGA 200 150 200 150 SHAMBANI GRADUATES
ENTERPRISES MOROGORO 4,500 1,500 4,500 3,000
Large processors were found to have higher collection and storage capacities and account for 65%
of total storage capacity. There are smaller storage capacities as compared to plant processing
capacity mainly because collection and storage of milk is a continuous process. Based on the gap
between installed capacity and utilized capacity, it is an indicator of existing potential to increase
milk production.
Out of the 28 processors that were found to be in operational, 24 (84%) had less than 5 Milk
Collection Centers, for the large processors about 40% had less than 5 collection centers with about
65% the medium scale and all small scale processors falling into the category with less than 5
collection centers.
Different processors are examining varied strategies to mitigate fluctuations in milk supply, in the
next 2-5 years. This is either Processing plant, cooling plant, Research and Development (R&D),
and Added value products. Noted was the fact that 22 out of 28processors would invest in
Processing and cooling plants. Processors have plans to invest as indicated on the table below.
Table 15 Indication of processors' future investment plans
Number of processors
(Base 28) Average planned
capacity growth Processing Plant 22 38% Cooling plant 22 29% Added Value products 18 19% R&D 16 16% Export 11 6%
Ideally there is a big opportunity for the growth of milk processing and cooling as majority of
processors felt that they need to increase their revenues. About 19% of processors also included
values add products as a future investment venture.
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Product Mix An overall examination of total production 86% of the processors report to have sold all of their
volume of production which is an indicator of an existing huge market demand but which is not
being met by the current supply of processed milk and milk products. Most processors preferred a
product mix of cultured milk and fresh pasteurized milk with 93% and 75% frequency mentions
respectively.
Table 16 Processors by scale and type of product
Processor Type
% Large Medium Small
Base Total 28 5 3 20
Fresh Pasteurized milk (HSTS) 75% 40% 100% 80%
UHT 4% 20% 0% 0%
Yoghurt 64% 100% 67% 55%
Cream 25% 40% 0% 25%
Butter (tonnes) 50% 60% 67% 45%
Ghee (tonnes) 54% 100% 100% 35%
Cheese 50% 40% 67% 50%
Cultured Milk 93% 100% 100% 90%
Amongst the processors that had cultured milk as one of their product mix 71% mentioned it as the
biggest seller in terms of revenue and volumes. However there was 4% frequency mention of UHT
as part of the preferred product mix, with main reason being high production cost.
In terms of choosing product mix, there were many reasons fronted, however customer needs
topped with 71%, closely followed by products that have several uses (e.g. fresh milk which can be
taken raw, used with tea and /or mixed with other food/drinks).
Figure 1 Selection of criteria for product mix
Base 28 processors
0% 20% 40% 60% 80%
Perishability of the goods
Easy distribution
Fast Moving goods
What is loved by the people
Can be used in many ways
Customer needs
How did you select your product mix?
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The study found out that large-scale processors have a greater diversity of products followed by midsized processors. For instance 20% of large processors have UHT in their product mix whereas this is nonexistent in medium and small scale processors. It is interesting to note that 50% of processors had cheese in their product mix, and this tends to be skewed to small scale processors. Ten (10) out of 14 of the processors manufacture mozzarella and Gouda cheeses.
Table 17 Processors by scale and cheese type
Processor Type
Base Total Large Medium Small
Base Total 14 2 2 10
Cheddar 5 1 1 3
Gouda 9 1 2 6
Mozzarella 10 2 1 7
Camembert 1 0 0 1
Cream Cheese 3 1 0 2
Cociotta 1 0 0 1
Table 18 Product distribution systems
Processor Type
Means of distribution Base Total Large Medium Small
Base Total 28 5 3 20
Refrigerated trucks 32% 100% 100% 5%
Pick Ups 61% 40% 33% 70%
Structured (i.e. agent, sub agent) 11% 20% 33% 5%
Bicycle 11% 0% 33% 10%
Bus 11% 20% 0% 10%
Motorbike 14% 0% 33% 15%
Retailers visiting the processors 4% 0% 0% 5%
The large and medium processors are using refrigerated trucks to deliver milk products
whilemajority of small scale processors using pickups vans for distribution which are not
refrigerated. Most of the processors directly deliver their products to the customers to increase the
extent market penetration of the products to the regions.
There was also high claim for the use of merchandising materials to gain visibility at retail level
Some of the other marketing activities mentioned included:
Directly distributing to the outlets
Encouraging the small outlets to promote the products
Participating in agricultural shows
Using point of sale materials on the outlets
Advertising the product through the radio
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Figure 2 Mode of communicating with customers
Base 28 processors
Mobile phone was noted as the most commonly used form of marketing communication at 50%
followed by word of mouth 43% and radio 18% .Traditional forms of advertising i.e. print-media,
television, e- marketing and billboards are not largely used by processors because of their high costs.
For instance currently only 11% use print media (newspapers/magazines).
Packaging and labeling A fair number of processors that participated in this market survey, 50% had never evolved their
packaging because they felt it was still relevant and acceptable in the market, having been
developed within a time frame of 2 to 5 years. It was apparent that the processors do not develop
their labels and packaging but outsource the services, 79% of the processors had their labels and
packaging done by an independent supplier while the remaining 21% had their packaging done in-
house. It was also apparent that some of the processors (50%) have not changed the packaging and
nor stock keeping units.
Figure 3 Packaging and Labeling
7% 7% 7% 11%
18%
43% 50%
0%
10%
20%
30%
40%
50%
60%
Bill
bo
ard
s
e-m
arke
tin
g
Tele
visi
on
Pri
nt
med
ia(n
ewsp
aper
s/m
agaz
in
es)
Rad
io
Wo
rd o
f m
ou
th
Mo
bile
ph
on
e
0%
10%
20%
30%
40%
50%
60%
Never Every year Every 2 years Every 5 years
Changepackaging
Change SKU
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Base 28 processors
Quality Control Procedures Most of the processors surveyed conform to some of the basic milk quality standards. Basic quality
tests were conducted at intake/collection of milk and during processing. In most of the collection
points, basic hygienic and quality tests are conducted. Common platform tests conducted in most
of the collection centers include;
1. Organoleptic tests
2. Clot on boiling
3. Alcohol test
4. Lactometer test (density)
In some cases the all the four basic tests are not observed at once but organoleptic and alcohol test
appeared to be the most practiced tests.
With basic quality tests for the raw milk at the factory gates, some advanced quality checks are
also observed for the delivered milk as well as for the products. Some of the common advanced
quality tests include fat test, acidity and other microbial tests depending on the type of the product
and available lab facility.
Some of the processors, especially large and medium ones conduct quality checks testing routinely
on the finished product or periodically along the process of manufacturing the product. Ideally
quite number of processors has laboratories in the processing plants with technicians who are
endowed with some basic knowledge on quality checks.
Along with internal quality control system, externally there are a number of regulators overseeing
the quality issues in food industry that are largely aimed at ensuring quality and safety of the
consumer. The regulators, among others include Tanzania Bureau of Standards (TBS) and
Tanzania Food, Drug Authority (TFDA) which authorizes quality compliance in terms of premises,
equipment/machinery, personnel and products.
i. Product Research & Development
All the large processors (> 10000liters per day) and medium processors (5,000-10,000 liters per
day) claimed to undertake consumer market research before introducing their product mix, whereas
only 55% of the small scale processors (< 5000 liters per day) have ever undertaken market
research. Those who have never carried out any research (32%) site financial constraints as the
major reason. It’s noted that even amongst the 68% of processors that undertook market research
(79%) had the research done in-house as a means to mitigate on research costs. For those few who
outsource research firms for their research work cited expertise as the main driver for outsourcing.
Market Audit Survey
Introduction & Methodology The market audit was carried out in the month of March/April-2011, in Tanga, Kilimanjaro,
Manyara, Arusha and (DSM) Mara regions and a total of 1000 retail interviews were carried out
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across the different channel outlet types. The interviews were pen and paper and took an average of
45 minutes for outlets handling the products and 10 minutes for the non-handlers.
Sampling was done randomly to have a total national representation during analysis. The channel
outlets visited were Supermarkets, Convenient stores, Kiosks, Dukas, Hotel Restaurants and
Cafeteria (HoReCa) and Fast food sampled as below:
Table 19 Sample distribution by channel (outlet type)
Channel Outlet Type Sample
Supermarket 18
Mini Supermarket 31
Petrol Convenient Store 29
Large Duka 80
Small Duka 381
Horeca 119
Fast Food 80
Kiosk 262
Total 1000
The regions visited during the survey were Tanga, Arusha, Mara, Manyara and Dar es Salaam with
Dar having the highest number of outlets visited due to its high population density and also its
contribution to the FMCG (Fast moving consumer goods) sector, including Dairy products.
Table 20 Sample distribution by regions
The overall objective of the market audit survey included:
Get accurate sampling of product availability by type and size
Product diversity
Out of Stock problems
Cold chain availability
Identify product gaps and potential opportunities to increase distribution and product diversity
In the market audit, the interviewers visited the outlets to record available stock of the dairy
products at the time of visit, pricing per unit, stock keeping unit together with brand name and
main distributor. Estimation of sales was done by asking the respondent (Shop owner/Shop
assistant/ Shop manager) of how much he had sold in the last 30 days, in a fortnight and one past
week. Observational data like POS (point of sale observation) and availability of cooling facility
(Presence of refrigeration) in the outlets was also collected. This was done in relation to the
existing brands in the outlet.
Region Sample Dar es Salaam 737 Arusha 98 Tanga 74 Mara 49 Manyara 42 Total 1000
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Market Overview (Volume and Value)
i. Volume
Pasteurized fresh milk command the largest market (44%), closely followed by UHT fresh (21%) a
fortnight and the most important channel types that contributed to that were small Dukas (a non-permanent structure normally built on a non-trade dedicated area) and kiosks which in these
context refers to a non-permanent structure normally built on a non-trade dedicated area. Cheese and butter were mostly being sold in mini markets and convenient store with a very small percentage of the volume in small dukas and this could be due to the low cooling presence. Figure 4 Sales volume in 14 days (000) per outlet type
At a regional level it is evident that Arusha/ Kilimanjaro and Dar es Salaam commanded the
highest sales in a fortnight across all the milk products. 93% of pasteurized milk was sold in Dar es
Salaam and Tanga and 50% of yoghurt being sold in Tanga. Most of the milk by products (butter
and cheese) was being sold in Arusha/ Kilimanjaro and Dar es Salaam
Figure 5 Sales volume in 14 days per region
Total
OutletsFast Food HORECA Kiosk
Large
Dukas
Mini-Super-
market
Petrol
Station
Small
Dukas
Super-
market
Butter 2.44 - - - - 0.24 0.67 0.41 1.13
Cheese 0.52 - - - - 0.39 0.09 - 0.03
Cream & Ghee 4.47 - 0.20 - 3.69 0.05 0.53 - -
Cultured Milk 171.04 1.96 15.43 18.87 18.08 2.79 7.77 105.32 0.82
Ice Cream 20.35 8.30 1.18 0.49 0.32 0.54 4.78 4.04 0.69
Pasteurised Fresh 410.04 23.14 21.71 65.73 29.95 3.07 7.06 258.56 0.82
UHT Flavoured 36.32 0.52 0.90 2.11 2.08 1.33 2.94 26.13 0.31
UHT Fresh 202.01 4.69 10.34 30.73 21.84 7.54 7.61 116.86 2.41
Yoghurt 95.70 3.81 14.72 13.99 14.26 1.60 2.39 44.73 0.21
Sales - 14 Days (000s)
Kgs
Litres
Total OutletsArusha/
KilimanjaroDar es Salaam Manyara Mara Tanga
Butter 2,438.25 233.33 2,202.91 - 2.00 -
Cheese 515.35 392.00 121.35 - 2.00 -
Cream & Ghee 4,469.25 3,690.00 778.75 - 0.50 -
Cultured Milk 171,043.90 49,249.03 75,469.09 6,376.26 36,650.22 3,299.26
Ice Cream 20,347.20 4,152.42 15,916.09 - - 278.69
Pasteurised Fresh 410,039.31 2,044.95 247,451.71 7,844.34 16,809.38 135,888.90
UHT Flavoured 36,316.66 10,278.01 23,771.99 - 1,681.21 585.45
UHT Fresh 202,009.99 47,785.06 140,713.81 84.14 12,189.72 1,237.34
Yoghurt 95,702.37 2,699.44 11,304.85 - 33,800.49 47,897.61
Sales - 14 Days
Kgs
Litres
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ii. Value
In the total regions audited, the milk and added value products constitute of Tshs2.41 Billion every fortnight, which a larger contribution coming from pasteurized fresh milk and UHT Freshat 31%, followed by cultured milk (16%) .Butter and cheese had the lowest value shareand this could be due to the fact that very few processors have the capability of producing it. Figure 2.5: Sales Value Shares based on 14 days sales
1%1%
16%
7%
31%5%
30%
8%Butter-Kilogram
Cream & Ghee-Litre
Cultured Milk-Litre
Ice Cream-Litre
Pasteurised Fresh-Litre
UHT Flavoured-Litre
UHT Fresh-Litre
Yoghurt-Litre
Cultured milk, Pasteurized milk and UHT fresh which are the biggest revenue earners for most
processors are being sold in Arusha/ Kilimanjaro and Dar es Salaam
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Figure 6 Sales value based on 14 days per region
Small Duka is the most important channel moving 56.69% of the total products in a fortnight and
this could be attributed to the availability of the channel in most of the regions and servicing a big
percentage of the population who are the bottom of the pyramid and have no access to
supermarkets and convenient stores.
Figure 7 Sales value based on 14 days (000 TZ'sh)
Total OutletsArusha/
KilimanjaroDar es Salaam Manyara Mara Tanga
Total Total Products 2,406,826 523,678 1,380,663 34,115 175,078 293,291
Butter 29,350 5,040 24,280 - 30 -
Cheese 6,328 4,153 2,164 - 11 -
Cream & Ghee 22,085 18,450 3,633 - 3 -
Cultured Milk 395,872 169,041 161,639 12,803 47,145 5,244
Ice Cream 172,613 51,315 119,179 - - 2,118
Pasteurised Fresh 737,785 6,320 486,459 20,975 20,171 203,860
UHT Flavoured 114,012 31,360 76,466 - 4,915 1,271
UHT Fresh 733,232 226,856 470,519 337 32,809 2,712
Yoghurt 195,549 11,143 36,324 - 69,995 78,087
Sales Value (000's TZS)
Kgs
Litres
Total
OutletsFast Food HORECA Kiosk
Large
Dukas
Mini-Super-
market
Petrol
Station
Small
Dukas
Super-
market
Total Total Products 2,406,826 132,361 152,523 296,035 226,215 65,161 132,903 1,364,486 37,141
Butter 29,350 - - - - 5,070 10,064 731 13,485
Cheese 6,328 - - - - 4,164 1,560 - 603
Cream & Ghee 22,085 - 357 - 18,450 242 3,036 - -
Cultured Milk 395,872 4,164 34,075 34,724 38,557 5,840 17,939 258,337 2,238
Ice Cream 172,613 64,872 8,611 4,263 1,692 5,772 36,808 41,829 8,766
Pasteurised Fresh 737,785 35,577 37,817 122,593 58,154 9,202 15,910 456,190 2,342
UHT Flavoured 114,012 745 4,790 6,185 6,947 4,451 10,024 79,867 1,003
UHT Fresh 733,232 20,415 36,832 103,049 72,442 23,501 26,496 442,533 7,964
Sales Value (000's TZS)
Litres
Kgs
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iii. Domestic versus imported products
56.14% of the total dairy products found in the sample were being produced locally. UHT fresh
white which moves a lot of volume and comes second with a significant 30.46% value share after
pasteurized fresh milk, 98.98% of it is imported.
In the 1000 interviewed outlets there was no cream and ghee that was being produced locally and
only a mere 0.10% of butter being manufactured locally this could be attributed to the high cost of
production of the products with the facility being very expensive and also the power fluctuation
problem that is being experienced in the country. Most of the cream & ghee and butter that were
being imported were brought in from Kenya with New Kenya Cooperative creameries bringing in
87% of the total fortnight volume followed by Dairy Land limited at 7.5%.
Figure 8 Domestic versus imported products
All Domestic Imported Domestic Imported
Total Total Products 2,406,826 1,351,125 1,055,701 56.14% 43.86%
Butter 29,350 30 29,320 0.10% 99.90%
Cheese 6,328 3,733 2,595 59.00% 41.00%
Cream & Ghee 22,085 - 22,085 0.00% 100.00%
Cultured Milk 395,872 336,870 59,002 85.10% 14.90%
Ice Cream 172,613 117,910 54,703 68.31% 31.69%
Pasteurised Fresh 737,785 657,680 80,106 89.14% 10.86%
UHT Flavoured 114,012 1,168 112,844 1.02% 98.98%
UHT Fresh 733,232 59,034 674,198 8.05% 91.95%
Yoghurt 195,549 174,699 20,849 89.34% 10.66%
Kgs
Litres
Sales Value (000's TZS) Sales Value %
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iv. Product Contribution by region
Dar es Salaam, Manyara and Tanga are the regions that are moving a lot of Pasteurized fresh which
has the highest volume and value share in the market. UHT fresh has the highest percentage in
Arusha/ Kilimanjaro and Dar es Salaam and this could be attributed to the fact that quite a large
percentage of the product is being imported and hence the distribution channels are not effective to
reach the far end of Tanzania like Manyara and Tanga. Most of the milk by products (Yoghurt,
Cheese, ghee and butter) have very low presence in all the regions
Figure 9 Product distribution bt regions
Looking at the distribution by products we notice that most of the milk by products is being sold in
Arusha/ Kilimanjaro and Dar es Salaam with an exemption of yoghurt which has a high percentage
in Mara and Tanga. This distribution is mainly influenced by the presence of a processor or offices
in the area as notable is the presence of Brookside in Arusha/ Kilimanjaro and Dar es Salaam
region and that is where we find quite a considerable amount of the dairy by products moving.
Yoghurt which 89.34% of it is being processed locally is having a presence in Mara and Tanga.
0.2% 0.4% 0.0% 0.0% 0.0% 0.3% 0.0% 0.0% 0.0% 0.0%
40.9%
14.6%
44.6% 36.2%
1.7%
3.4%
3.1%
0.0%
0.0%
0.1%
1.7% 47.8%
54.8%
16.6% 71.8%
8.5%
4.6%
0.0%
1.7%
0.3% 39.6%
27.2%
0.6%
12.1%
0.7%
2.2% 2.2% 0.0%
33.4% 25.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Aru
sha/
Kilim
anja
ro
Dar
es
Sala
am
Man
yara
Mar
a
Tan
ga
Yoghurt-Litre
UHT Fresh-Litre
UHT Flavoured-Litre
Pasteurised Fresh-LitreIce Cream-Litre
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Figure 10 Milk product distribution by regions
0.2%
0.3%
40.9%
3.4%
1.7%
8.5% 39.6%
2.2%
0.4%
0.0%
14.6%
3.1%
47.8%
4.6% 27.2%
2.2%
0.0% 0.0%
44.6%
0.0%
54.8%
0.0% 0.6%
0.0%
0.0% 0.0%
36.2%
0.0%
16.6%
1.7% 12.1%
33.4%
0.0% 0.0% 1.7% 0.1%
71.8%
0.3% 0.7%
25.3%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Bu
tter
-Kilo
gram
Ch
eese
-Kilo
gram
Cu
ltu
red
Milk
-Lit
re
Ice
Cre
am-L
itre
Pas
teu
rise
d F
resh
-Lit
re
UH
T Fl
avo
ure
d-L
itre
UH
T Fr
esh
-Lit
re
Yogh
urt
-Lit
re
Tanga
Mara
Manyara
Dar es Salaam
Arusha/Kilimanjaro
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v. Manufacturers
The market audit revealed a lot of players in the milk market with different product mix. Butter and
Cream & Ghee which was mainly being imported had New Kenya Cooperative Creameries as it
main supplier with 42.3% and 87% respectively of the butter in the market being manufactured by
them.
Tanga Fresh was the main supplier of Pasteurized and cultured milk in the market which is in the case were the main dairy products with the highest volume and value in the market
Total Butter 2438 100.0
Irish Dairy Ltd 343 14.1
Musoma Dairy Company Ltd 463 19.0
New Kenya Cooperative Creameries 1032 42.3
New Zealand Butter 599 24.6
Butter Manufacturers: 14 Day Sales Sales %
Total Cream & Ghee 4469 100.0
Brookside Dairy Limited 246 5.5
Dairy Land Limited 334 7.5
New Kenya Cooperative Creameries 3889 87.0
Cream & Ghee Manufacturers: 14 Day Sales Sales %
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Kenyan Brookside Dairy Limited is the main supplier of UHT fresh which is the second largest
earner in terms of value and volume amongst the different dairy products.
Total Pasteurised Fresh 410039 100.0
Assas Dairy Ltd Tanzania 33514 8.2
Babati Dairy Limited 3639 0.9
Brookside Dairy Limited 19071 4.7
Dairy Becce Limited 3374 0.8
Gulfana Safa Dairy Limited 7799 1.9
Kilimanjaro Co-Operative Creamaries Ltd 277 0.1
Kraft Food Ltd 126 0.0
Mara Dairy Milk Limited 2251 0.5
Musoma Dairy Company Ltd 7965 1.9
New Kenya Cooperative Creameries 191 0.0
Nyuki Dairy Ltd 5751 1.4
Runa Company Ltd 625 0.2
Soy Limited 252 0.1
Tan Dairies Limited 4516 1.1
Tanga Fresh Limited 309843 75.6
Victoria Dairy Ltd 10637 2.6
Woodlands Dairy Ltd 210 0.1
Pasteurised Fresh Manufacturers: 14 Day Sales Sales %
Total Cultured Milk-Litre 171044 100.0
Assas Dairy Ltd Tanzania 4461 2.6
Babati Dairy Limited 4707 2.8
Brookside Dairy Limited 13494 7.9
Dairy Company Limited 1168 0.7
Kilimanjaro Co-Operative Creamaries Ltd 187 0.1
Lima Numbe Group 4246 2.5
Musoma Dairy Company Ltd 30644 17.9
Nronga Women Dairy Co-Operative Society 187 0.1
Nyuki Dairy Ltd 22653 13.2
Sado Farm Ltd 15892 9.3
Sameer Agriculture And Livestock 553 0.3
Tan Dairies Limited 4583 2.7
Tanga Fresh Limited 64480 37.7
Victoria Dairy Ltd 3789 2.2
Cultured Milk Manufacturers: 14 Day Sales Sales %
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UHT Fresh Manufacturers: 14 Days SalesSales %
Total UHT Fresh 212,447.71 100.00
Al Sakir Food-UHT Fresh 1,202 0.60
Brookside Dairy Limited-UHT Fresh 150,895 75.24
Clover S.A-UHT Fresh 347 0.17
Dairy Company Limited-UHT Fresh 12,133 6.05
Mara Dairy Milk Limited-UHT Fresh 1,238 0.62
Musoma Dairy Company Ltd-UHT Fresh 16,812 8.38
New Kenya Cooperative Creameries-UHT Fresh 5,833 2.91
Nile Ltd-UHT Fresh 105 0.05
Portions Diary Ltd-UHT Fresh 183 0.09
Runa Company Ltd-UHT Fresh 56 0.03
Soy Limited-UHT Fresh 185 0.09
UNBS Ltd-UHT Fresh 630 0.31
Woodlands Dairy Ltd-UHT Fresh 10,561 5.27
vi. Cooler presence
There was 44% cooler presence in all the outlets that were visited during the survey with Supermarket and Petrol station having 83% and 73% respectively cooler presence. Regionally Manyara had the lowest cooler presence at 26% compared to Tanga region which had a 99% cooler presence in all the outlets that were visited. Coolers: outlet weighted (%) per region
It was also evident that the coolers play a role in the sales of the dairy products as 82% of the sales
made were made from the outlets that had a cooler presence hence the need to increase cooler
presence in most of the outlets. Most of the Pasteurized fresh and UHT fresh milk found in the
market were not being chilled and may be this could be due to the fact that they fast moving and
the stock always get finished.
Coolers: outlet weighted (%) per product
All RegionsArusha/
KilimanjaroDar es Salaam Manyara Mara Tanga
Total Outlets 44 49 38 26 52 99
Fast Food 33 0 30 0 0 82
HORECA 41 55 35 25 13 94
Kiosk 32 12 30 0 50 100
Large Dukas 55 60 46 50 83 100
Mini-
Supermarket83 100 78 50 100 100
Petrol Station 73 33 89 0 0 0
Small Dukas 47 50 41 24 58 100
Supermarket 83 50 93 100 0 0
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Sales - 14 Days (000s)
Cooler Presence Outlet Wtd
Cooler Presence Volume Wtd
Total Products 960 44% 82% Cultured Milk-Litre 171 15% 38%
Pasteurized Fresh milk-Litre 22 2% 7% UHT Flavoured-Litre 407 25% 55%
UHT Fresh (White)-Litre 25 3% 8% Yoghurt-Litre 221 18% 27% Yoghurt-Litre 90 6% 27%
vii. Purchase frequency
Most of the outlets visited had very high stocking frequency of the various dairy products with an
exemption of cheese and butter which have a purchase frequency of once a month. Cream & Ghee
was being purchased once a week and this shows that these products are not being bought by the
consumers may beit’s because of the prices or the lack of refrigeration by the outlet owners or the
consumers. Most of the milk products were being delivered to the outlet owners with an exemption
of cheese and butter where the outlet owners travel to the manufacturer or the wholesaler in order
to purchase and stock the product. The low distribution levels for the products could also amount to
the low volume and value being sold through the different outlets.
2.0
11.5
1.6
17.6
28.6
12.5
33.3
5.9
6.6
32.4
33.3
32.7
25.0
34.6
23.5
18.0
26.5
100.0
30.6
25.0
12.8
35.3
42.6
14.7
66.7
100.0
6.1
37.5
7.7
35.3
31.1
8.8
Butter
Cheese
Cream & Ghee
Cultured Milk
Ice Cream
Pasteurised Fresh
UHT Flavoured
UHT Fresh
Yoghurt
Purchase > once a day Purchase once a day Purchase twice a week Purchase once a week Purchase once a month
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viii. Customer Satisfaction Interviews
The Retailers were asked to rate suppliers based on certain attributes, 43% of the retailers
rated the services from the suppliers as Very good and overall satisfaction as very good.
Quite a number (49%) felt that the products from their suppliers are experiencing strong
demand from the customers but rated the trade terms as fair. Others attributes rated lowly as
“Fair” include having friendly, courteous and professional delivery people which scored
31% and producing accurate invoicing 28%.
ix. Point of Sale Observation
Most of the outlets did not have point of sale observations for the different dairy products with an
exemption of Pasteurized milk. There was 11.7% increase Pasteurized fresh milk sales in outlets
that have a Pasteurized milk poster. This indicates a need to increase consumer awareness of the
different dairy products in the market and the variety being offered to increase sales.
Point of Sale Observations
Outlets that sell Pasteurised Milk
with Pasteurised Milk Poster
Outlets that sell Pasteurised Milk
without Pasteurised Milk Poster
Total Posters Outlet
Wtd100 NA
Sales - 14 Days 231962 178078
Sample Outlets 218 187
Sales per outlet 1064 952
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x. Distribution
Distribution levels for Pasteurized fresh milk, cultured milk and UHT fresh is very high with the
product being placed in the channels that are moving volumes of the product. Despite the good
distribution levels of the three main dairy products, distribution of UHT fresh is very poor in Tanga
and Manyara regions. Distribution of pasteurized milk in Arusha/ Kilimanjaro is very low hence
translating to very low sales for the product in that region.
Volume weighted distribution
All RegionsArusha/
KilimanjaroDar es Salaam Manyara Mara Tanga
Butter 3 2 5 NA NA NA
Cheese 1 2 2 NA NA NA
Cream & Ghee 1 4 2 NA NA NA
Cultured Milk 43 77 43 75 72 3
Ice Cream 7 12 10 NA NA NA
Pasteurised
Fresh69 2 79 93 42 99
UHT Flavoured 15 29 19 NA 8 2
UHT Fresh 53 79 67 2 49 4
Yoghurt 32 5 16 NA 64 78
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Conclusion and Recommendations Imported products command 44% of sales in Tanzania. These imported products are mainly UHT,
Ghee, Butter and Cream. There is a need to:
Build local brands to increase sales
Use consumer communication to drive locally manufactured product sales and reduce
preference for imported products
Increase butter and cheese marketing due to low purchase and usage frequency. To be able to
achieve this we will require;
Dairies to improve cold chain availability by;
Availing branded fridges in high volume accounts
Branded fridges and freezers should be installed with contractual agreement that only
your brands are in the fridge
Ensuring that only your products are in your branded fridges and freezers
Ice cream freezers in high volume accounts
Ice cream push carts to drive cold chain into middle class neighborhoods
o Affordable brands in this currently niche category
Dairies can improve customer service to high volume accounts by providing trade marketing
support and this could be inform;
Provide point of sales materials to provide consumer communication or education and drive
sales
Efficient supply chain to ensure delivery on time and avoid out of stocks
Stock removal of expired products or leakers
Expand your shelf space and cold box presence
General recommendation to the industry
Land O’ lakes will make this information available to individual companies and others
interested in promoting milk consumption
Adapt the market audit methodology to identify
o Distribution opportunity
o Customer satisfaction opportunities
Analyze importation in your respective countries vs domestic
Map cooling facilities at retail outlets
Review if stock is being rotated in retail outlets and if expiration dates are good
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