In a rapidly evolving dairy sector, solving age-old challenges sometimes requires a radically new approach. This is precisely what Tetra Pak and DeLaval had in mind when working together with Jambo Foods to develop a Dairy Hub in the Tanzanian region of Shinyanga. Learn how an innovative mobile solution for the collection, aggregation, cooling and testing of raw milk enabled a more stable supply of dairy, while simultaneously improving the lives of smallholder farmers.1
THE CHALLENGE
Big potential, small supply
Today, Tanzania is a country with a fast-growing consumer base, thanks to significant population increase2 as well as a rising GDP.3 These and other factors are laying the groundwork for strong potential in the nation’s dairy sector, which has been bolstered by an uptick in milk consumption in recent years. However, fundamental challenges in the market have limited the ability for Tanzanian dairy processors to expand production and take advantage of future growth possibilities.
The primary difficulty is supply. Many dairy processors in Tanzania are unable to secure reliable delivery of high-quality raw milk from the nation’s agricultural sector. This is rooted in infrastructural challenges facing smallholder farmers, many of whom must travel unfeasibly long distances to processors’ milk collection points and therefore turn to informal sales channels. Such constraints have been especially noticeable in Shinyanga, a region that, despite heavy livestock production and strategic proximity to major population centres, has suffered from weak collection of milk as well as a lack of linkages to formal market structures.
Plug-and-play innovation takes a proven model even further
Jambo Food Products, one of Tanzania’s largest processors of branded foods and beverages, is a producer that has experienced the challenges in Shinyanga first-hand. To address their supply bottleneck, they decided to initiate a Dairy Hub project, in collaboration with Tetra Pak Food for Development, Tetra Pak East Africa and DeLaval.
The proven Dairy Hub model supports improved expertise across the dairy value chain. Tetra Pak Food for Development provides technical assistance, creating structured cooperation with smallholder farmers, and local processors to raise production and quality standards as well as collection efficiency. By taking such a value-chain approach, not only does Jambo secure a more consistent supply of higher quality milk; they also support the region’s smallholder farmers, who benefit from stronger integration into the formal market.
An innovative aspect of this particular Dairy Hub was the development of five mobile centres to bring milk collection closer to the smallholder farmers of the Shinyanga region. What began as repurposed shipping containers were transformed into modular, plug-and-play hubs for receiving, chilling, testing and digitally tracing raw milk. Solar power supports both energy efficiency and independence, enabling rapid deployment in underserved and often remote rural areas, while further addressing environmental impact and operating costs.
Tangible benefits for all involved
Tetra Pak Food for Development teamed up with the United Nations Industrial Development Organization (UNIDO) to strategically map locations for the collection centres, including a comprehensive assessment of the milk value chain across Shinyanga and neighbouring regions. The results have been undeniable. The containerised hubs have made collection more convenient for the farmers, strengthening the delivery and aggregation of their raw milk. The ability to immediately cool and test the milk has reduced spoilage and improved food safety – even in places where formal public utility infrastructure is lacking. For Jambo, this has meant a more reliable supply of milk, and milk with more reliably high quality.
For the more than 1,000 smallholder farmers involved in the Dairy Hub, the benefits have been equally tangible. They now have greater access to formal sales channels and market structures, enabling the development of more transparent, quality-based payment systems for their product. Improved collection, aggregation and testing also translates to reduced loss of raw milk. The combined result is more predictable, more stable and, ultimately, higher incomes.
“The Dairy Hub initiative with Jambo demonstrates the strength of close collaboration between Tetra Pak and our customers,” explains Jonathan Kinisu, Managing Director for Tetra Pak East Africa. “Together, we are creating new possibilities for more efficient, reliable milk sourcing that supports business growth while also reinforcing quality and sustainability standards across the value chain.”
A scalable model for Tanzania – and beyond
In addition to raising living standards for Tanzania’s smallholder dairy farmers, the Dairy Hub contributes to stronger farming practices in the region by providing access to expert services, best practices for raising quality standards and a more structured collection system. The mobile collection centre innovation that came out of this project shows how the long-established Dairy Hub model can further grow and develop to meet new challenges. This combination of strong partnerships, advanced energy-efficient technology, and a farmer-centric approach provides a scalable path forward for the future of inclusive dairy development.
1. Unless otherwise noted, all information in this article is based on the experience and expertise of Tetra Pak Food for Development professionals who have been involved in the development and deployment of the Dairy Hub model in Tanzania, as well as those who have worked extensively with Jambo Group and the dairy industry broadly in the region. To learn more about the information featured here, please feel free to contact us.
2. Over 67 million people today, up from just 35 million two decades ago. See: United Nations Department of Economic and Social Affairs, Population Division (2024). 2024 Revision of World Population Prospects. https://population.un.org/wpp/
3. International Monetary Fund (2025). World Economic Outlook Database. WEO Data: April 2025 Edition. https://www.imf.org/en/publications/weo/weo-database/2025/april