Assessment of the Efficiency of the Dairy Supply Chain in Micro-Processing Centers in Arusha City, Tanzania

Abstract

The dairy sector is globally significant, yet inefficiencies
and underutilized capacities challenge Tanzania’s
industry, particularly in Arusha City. This study
investigated factors influencing dairy supply chain
efficiency in micro-processing centres. Using a mixed
methods approach with purposive and random
sampling, data were collected through structured
interviews and questionnaires from 105 respondents,
analysed using thematic analysis, descriptive statistics
and multiple regression analysis. Results highlight that
raw milk availability, technological adoption, and
technical expertise are critical for efficiency, while
operational practices like skilled personnel, value
added activities inventory and quality management can
affect efficiency in operations, rate of defects and
wastage. External challenges, including infrastructure
limitations, regulatory barriers, and restricted market
access, hinder optimal performance. The study
recommends targeted interventions such as
infrastructure improvement, technology investment,
regulatory streamlining, and enhanced market access,
emphasizing stakeholder collaboration and smart
climate practices for sustainability.