Tanzania's Dairy Sector: Veterinary Health Challenges and Market Opportunities

Have you ever wondered why a country with over 39 million cattle still imports millions of litres of milk every year?

It is a question that has puzzled economists, policymakers, and industry observers for decades. Tanzania has one of the largest livestock populations in Africa. Yet, despite this abundance, the country imports an estimated 11.6 million litres of milk annually, at a cost of more than US$8.88 million. The dairy sector, which supports over 1.3 million households, remains a story of untapped potential. The gap between what the country has and what it produces is vast and it is largely a story of animal health.

But here is the good news: that gap is also a massive opportunity. For veterinary pharmaceutical manufacturers, feed additive producers, and animal health companies, Tanzania's dairy sector represents one of the most promising frontiers in East Africa.

Let us explore what is holding the sector back and the commercial opportunity waiting to be captured.

The Dairy Sector: Bigger Than You Think

Let us start with the numbers. Tanzania has more than 39 million cattle, but about 90 percent are indigenous breeds with low milk yields. Milk production has grown significantly from 3 billion litres in 2019/20 to 4.2 billion litres in 2025/26. Demand is growing at 5-7 percent yearly due to urbanisation and rising incomes. Yet annual per capita milk consumption sits at just 70.5 litres, far below the 200 litres recommended by the Food and Agriculture Organization.

That is a lot of unmet demand. And it is growing.

The dairy sector supports 1.3 million households, and more than 160 cooperatives and farmer organisations have been strengthened to improve collective marketing and access to services. 

Investments in infrastructure are expanding: 41 milk collection centres with a combined capacity of 108,000 litres per day have been established, and the number of milk processing plants has grown to 187. A 10-year project worth US$200.72 million is being implemented to transform the sector, including the procurement of 17,200 improved dairy cattle and the construction of 150 new milk collection centres.

The opportunity is clear. But so is the challenge.

The Veterinary Health Challenge: What Is Holding the Sector Back?

The single biggest barrier to dairy productivity in Tanzania is animal health. The livestock sector's contribution to GDP stands at just 6.2 percent, and one key reason is the presence of various livestock diseases that negatively affect productivity by causing animal deaths and limiting access to international markets.

Disease burdens have been significant. Tick-borne and parasitic diseases caused livestock deaths in 72 percent of cases in 2021 a figure that has been reduced to 45 percent in 2025 through government interventions. But the challenge is far from solved. Only 9 percent of livestock keepers access extension services, and just 17 percent obtain livestock-related guidance. This means the vast majority of farmers are operating without professional veterinary support.

Vaccination coverage has historically been sporadic, carried out by local government authorities, large farms, or individual livestock keepers without national coordination. To eliminate disease outbreaks, it is scientifically recommended to vaccinate at least 70 percent of livestock for five consecutive years. That is a lot of vaccines. And a lot of opportunity.

Mastitis: The Hidden Drain on Dairy Productivity

If there is one disease that epitomises the challenge and the opportunity it is mastitis.

Bovine mastitis is among the major diseases of economic importance in the dairy industry worldwide. In Tanzania, the prevalence is staggering. A study in Dodoma found that about 59.8 percent of cows had mastitis, with the subclinical type dominating. This means farmers often do not even know their cows are infected until milk yields drop and quality declines.

Think about that for a moment. Almost 60 percent of cows in one of Tanzania's key dairy regions are affected by a disease that reduces milk production, increases treatment costs, and results in lower milk quality and most farmers do not even realise it.

The study identified key factors associated with mastitis prevalence: cleanliness (hand and udder washing before milking), farmers' awareness of mastitis, the cow's parity and lactation stage, and herd size. Alarmingly, 38.6 percent of farmers were unaware of mastitis. This is not just a health issue it is an education gap. It is a market gap. It is an opportunity for veterinary pharmaceutical companies to provide not just products, but also training and awareness programmes.

Subclinical mastitis has been described as a disease given low priority in Tanzania, despite its significant economic impact. This is precisely the kind of overlooked problem that represents a major market opportunity for manufacturers willing to invest in education, diagnostics, and treatment products.

The Government's Response: A $216 Million Vaccination Campaign

The Tanzanian government is not ignoring these challenges. In 2025, it launched a nationwide livestock vaccination and identification campaign targeting more than 76 million animals, including cattle, goats, sheep, and indigenous chickens. The five-year national vaccination plan (2025–2029) has a total budget of 216 billion Tanzanian shillings (approximately US$83.38 million).

In the first phase, the plan is to vaccinate 19,097,223 cattle against Contagious Bovine Pleuropneumonia (CBPP), 17 million goats and sheep against Peste des Petits Ruminants (PPR), and 40 million indigenous chickens against Newcastle Disease, Fowl Pox, and Avian Influenza.

The Tanzania Veterinary Laboratory Agency has already achieved remarkable success, manufacturing 63,641,885 doses of vaccines against seven priority livestock diseases during the 2025/2026 fiscal year. That is over 63 million doses in a single year.

These efforts are not just about animal welfare. They are about opening up access to regional and international markets. The government's goal is to meet international standards required by organisations such as the World Organisation for Animal Health (WOAH) and the World Trade Organization (WTO), thereby opening up lucrative markets in Asia and Europe.

The Market Opportunity: What This Means for Manufacturers

Now, this is where the story gets interesting for you.

The government's vaccination campaign represents a massive, sustained demand for animal health products. But beyond the public sector, there is a growing commercial market. The Africa Animal Health Market is projected to grow from USD 1.2 billion in 2025 to USD 2.35 billion by 2031, registering a compound annual growth rate of 11.3 percent.

Tanzania's dairy sector is a key part of this growth story. As the sector modernises, farmers are moving from subsistence to commercial production. They need better animal health products, better diagnostics, and better advice. They need antibiotics, antiparasitics, vaccines, disinfectants, and feed additives. They need mastitis treatment and prevention products. They need reproductive health products.

The government has identified the need for expanded veterinary services and policies promoting integrated farming. Over 1,200 community-based extension service providers have been trained to improve livestock advisory and animal health services for rural dairy farmers. These providers represent a distribution channel for manufacturers.

There are also opportunities in dairy herd management technologies, with the market focusing on improving milk production, animal health, and overall farm efficiency. The adoption of artificial insemination technology, which is being promoted as a strategy for national dairy cattle improvement programs, creates demand for reproductive health products.

The Path Forward: Why Partner With Simba Ustawi?

Tanzania's dairy sector is at an inflection point. The demand is there. The government is investing. The market is growing. But the gap between potential and performance remains wide.

Closing that gap requires more than just products. It requires local knowledge, regulatory navigation, and distribution capability. It requires a partner who understands the terrain.

This is where Simba Ustawi comes in. As a strategic execution and partnership firm headquartered in Dar es Salaam, we are deeply embedded in Tanzania's agricultural and veterinary landscape. We have a proven track record of navigating regulatory pathways and building distribution networks with 36 products already in the pipeline for BelAgroGen. We are not consultants. We are operators.

The opportunity is clear. The demand is real. The path to commercial success requires a partner who understands the terrain.

If you are a veterinary pharmaceutical manufacturer looking to enter or expand in Tanzania's dairy sector, we should talk.

Ready to Capture the Opportunity?

We help veterinary pharmaceutical and agri‑input manufacturers register, distribute, and scale across Tanzania and the East African Community. With exclusive distribution rights for BelAgroGen and a proven track record, we are the partner who can make it happen.

Let us start a conversation about how we can work together.

👉Partner With Us →