Improving Smallholder Livelihoods Through Local Value Chain Development: A Case Study of Goat Milk Yogurt in Tanzania

Abstract

Smallholder farmers have difficulties entering established value chains with value-added prod-ucts. In this paper, we look at smallholders’ capability to establish and sustainably manage a competitive and economically viable local dairy value chain cooperative in Tanzania. The analysis uses a value chain approach as a framework to identify the possibilities for upgrading and the determinants of competitiveness in value chains in which smallholder farmers can participate. Results highlight the benefits Twawose par-ticipants receive, but caution that a multitude of constraints could impede scaling-up in the future.