Establishment of a Dairy Demonstration Farm to Solve Long Outstanding Social, Economic and Nutritional Problems in Tanzania

Through a Dairy Demo Farm PIL is creating a replicable initiative to solve outstanding Tanzania social, economic and nutritional problems

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I confirm that I am fully aware of the eligibility criteria, and based on its description, I am eligible to apply to the CSV Prize 2017.

  • Yes, I'm eligible

Preferred language

  • English

Organization name

Profate Investments Ltd

Year founded


Initiative stage

  • Start-Up (a pilot that has just started operating)

Annual budget in 2017 (USD)

  • $100k - $250k

Number of beneficiaries impacted so far

  • 250 - 500

Organization type

  • For-profit

Secondary Focus Area

  • Rural development
  • Nutrition

Headquarters location: Country

  • Tanzania

Headquarters location: City

Dar es salaam

Location(s) of impact

Tanzania: Dar es salaam Region, Coast Region In Dar es salaam Region it impacts 3 Districts out of 5, and Coast Region 3 Districts out of 4.


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Problem: What problem is this initiative trying to address?

Agriculture and livestock supports livelihoods of over 80% of Tanzanian population. Due to rampant drought and growing grazing cattle population grazing areas are more scarce, herders becoming more nomadic, grazing on farmers lands and crops; spreading conflicts between farmers and pastoralists, bringing unrest, impacting negatively on environment, increasing poverty, food insecurity, stunting, malnutrition and Women and Youth unemployment. Milk consumption and yield per cow is very low with sharp seasonal variations,

Solution Summary: What is the proposed solution? What do you see as its most promising aspects for creating shared value?

Profate Investments Ltd (PIL) has developed a value chain based inclusive Dairy Model with Dairy Demonstration Farm as hub to enhance productivity, quality and commercializing dairy through training and practical physical field participation of Small Holders Dairy Farmers (SHDF) on pasture production, animal husbandry, hygiene in milk and dairy economics. It also involves linkage to inputs and service suppliers, assured market through Milk Collection Centres established as part of the model’s mobilization of dairy farmers into Dairy groups and Cooperative Societies and PIL partnerships. It enables settlement of nomadic pastoralists, addressing farmers-pastoralists conflicts. The Public-Private-Partnership harnesses the power of private enterprise to tackle social challenges with business innovative solutions with positive impacts on rural development, social transformation, environment, women empowerment, food security, malnutrition, employment, market and poverty alleviation.

Impact: What is the impact of the work to date? Specify both the social and the environmental impact of your work

Out of PIL’s Model and PPP arrangements we have succeeded mobilizing formation of four Dairy groups and cooperatives in 4 districts of Ilala, Mkuranga, Kisarawe and Kibaha each at different stage of registration. Through training and guidance two are fully registered, one now establishing a Milk Collection Centre. One Maasai nomadic pastoralist groups has decided to settle, and their Mkuranga LGA has allocated them land (800 hectares) for pasture farming, etc. PIL model establishes that with ongoing initiative to develop pasture through their cooperative society and stop nomadic culture, they will adapt the cultural change and address the respective social unrest problem, environmental protection, other social-economic benefits of cooperative and stopping nomadic cattle herding, address seasonality in milk production, commercialize dairy and other multiplier impacts. Some SHDFs from a Cooperative-IDACOS increased milk production tenfold in two years after assurance of market by PIL.

Financial sustainability plan: How is this initiative financially supported? How will you ensure its financial sustainability long-term?

The PIL initiative is currently self financed, only that part of the training has been through grant through our partnership with American Cooperative Societies International -CSI. A tripartite partnership initiative between PIL, two LGAs through MOUs, and CSI has so far sustained the initiative. The estimated percentages of annual budget is Individual donations and gifts (0%), grants (5%), corporate contributions (2%), earned income (90%) and others (3%). PIL being a partner in government agro-program SAGCOT, the long term financial sustainability will be ensured through the PIL Model initiative encompassing the Tanzania Agriculture Bank and SAGCOT. The 'Creating Shared Value Price' injection will be seed money to the initiative but sustainability ensured by earned income and bank loans

Unique value proposition: What makes your initiative innovative? How does your project differ from other organizations working in the same field?

The uniqueness of the initiative comes from the model's inclusiveness and value chain approach, bringing together the Public (LGAs and SHDFs) and Private sector through Public-Private-Partnership starting with two District LGAs, tapping the potentials in the SAGCOT to support the Demo and replicate in program area then nationwide. As the SHDFs requirements are met, the environmental, economic, nutritional and social challenges are automatically addressed along the model implementation.

Founding story: Share a story about the "Aha!" moment that sparked the beginning of this initiative.

PIL got into dairy from one cow meant to meet the family milk requirements. As milk production grew and cows reproduced, the family could not consume the lot, thus having to sell excess to neighbours and friends. The volumes continued increasing outweighing the friends and neighbours requirements ending up with after harvest losses which called for in-the-kitchen value addition. The value addition made a business sense, forcing it out of the kitchen to a small processing room, calling for more market. Due to growth of market demand PIL raw milk production could not sustain the market, encouraging and calling for milk collection from other farmers. Because quality of milk starts from the farm, and successful approach is caring about all stakeholders needs, PIL decided to develop the value chain and inclusive business model carrying a win-win concept with it among all stakeholders.

Where did you hear about the Nestlé Creating Shared Value Prize?

  • Upon recommendation from others

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Join the conversation:

Photo of Avnish Kumar

Kindly share me information how establise a Dairy Demostration farm .


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