ImpactAlpha, September 14 – Tanga Fresh’s growth over nearly 25 years has made it the largest dairy processing company in Tanzania. The company, which processes 80,000 liters of milk per day, raised equity financing from Dutch investment firm DOB Equity to meet rising demand from East African consumers. Farmer support from development nonprofit Solidaridad Network will improve the quality and yield of Tanga’s milk supply, which is sourced from 6,000 smallholder farmers.
Less than 10% of milk produced in Tanzania is processed, “leaving a lot of room for growth in the market,” said DOB Equity’s Toine Huijbers. DOB, a family-based impact firm, is re-upping in Tanga to help the company expand long-life milk production, which East African consumers are increasingly buying over fresh milk.
Tanga, in partnership with Solidaridad and commercial dairy cow breeder Mruazi Farm, is piloting a network of hubs to collect and cool milk from farmers. Solidaridad’s Frederik Claasen told ImpactAlpha that the partnership will boost dairy supply chain efficiency, lower product loss, and align long-term impact and profits.
Nonprofits like Solidaridad, which work to develop sustainable supply chains, expand the pipeline of deals for investors by building capacity and resilience in fragmented and under-developed markets. Says Claasen, “We believe our work in strengthening the supply chain complements DOB’s investment for the benefit of the market and Tanzanian people.”