TANZANIA – Tanzanian government has revealed that concerted efforts are being carried out to completely revamp Njombe Milk Factory Company to meet the country’s increasing needs for dairy and its products.
Tanzanian Deputy Minister for Investment, Industries, and Trade, Mr. Exaud Kigahe said the government has initialized preparations to give Njombe Milk factory company Limited a new and improved form, structure, or appearance among others for smooth take-off when the operation starts.
“The government will soon take action to revamp the company and I must assure you (Member of Parliament) that Njombe milk diary will soon start operations,” he said as a clarification in response to the question asked by Njombe Urban MP Deodatus Mwanyika (CCM) on what plans the government has to revamp the factory.
Kigahe pointed out that the revamping processes are being carried out through Njombe Regional authorities to engage shareholders.
This follows a previous report from the country’s Minister for Fisheries and Livestock, Mr. Abdallah Ulega, that Tanzania has been experiencing a large gap in the milk sector despite the increasing population of milk-producing livestock.
He noted that Tanzania requires 9 billion more liters of milk to reach self-sufficiency despite the country’s dairy sector showing signs of production growth.
“Milk production could significantly improve if Tanzania shifted focus to improved breeds; currently there are slightly more than 1.26 million crossbreeds that contribute only 30 percent of the milk output,” Ulega noted.
In 2020, the Njombe Milk factory secured a US$0.3m loan facility from the state-owned development finance institution, Tanzania Agricultural Development Bank (TADB) to launch an additional rescue package for the company.
According to TADB’s Acting Director of Credit and Business, Wende Mengele, the Njombe Milk Factory project was on a growth trajectory and aimed at paying dividends to its shareholders.
Ms. Mengele urged the management of the factory to work diligently to develop and roll out new products, which will easily be sold to the growing market.
The bank supported in facilitating payments to farmers, rehabilitating the factory’s infrastructure, and managerial assistance.
TABD support to the factory ensured the factory reaches its full capacity utilization of 20,000 liters per day from the current 3,000 liters.
The main shareholders of Njombe Milk Factory are Njombe Livestock Farmers Organisation (NJOLIFA) which owns 20% shares, Njombe Local Government Authority with a 19% stake and Roman Catholic Njombe 9.7%.
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