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Tanzania has significant dairy livestock resources, which have the potential to transform the lives and incomes of smallholder farmers along the value chain.However, the milk production of local cattle is typically low (1-3 litres/animal) and the country’s dairy industry is small. The majority of milk is consumed at a local level without reaching the commercial market: just 2-5% of milk produced comes from large-scale dairy farms. Tanzania’s dairy sector has the potential to significantly improve food security and nutrition in the country.