Chapter 6 | PROJECTS
milk collection centers and rural roads and boosting access to markets and extension services.
Market Organization and Jobs: At least 126 producer organizations will be organized into productive alliances with off-takers (such as dairy processors), strengthening market linkages. By completion of the project it is expect- ed that 5,900 new jobs will have been created in the dairy value chain (e.g. in milk collection, processing and support services), providing employment opportunities especially for youth and women in rural areas. Enhanced Climate Resilience: At least 60 percent of partici- pating households are expected to adopt climate-smart and environmentally sustainable technologies/practices in dairy farming. This includes improved breeding (for heat-tolerant, higher-yielding cows), better animal health management, water-efficient fodder production and the use of biogas di- gesters for manure management and clean energy. Wide- spread adoption of these practices will improve the climate resilience of dairy farmers and reduce their vulnerability to droughts or diseases. Reduced Emission Intensity: By improving productivity per cow and promoting biogas and solar energy use, C-SDTP is expected to lower the GHG emission intensity of Tanza- nia’s dairy sector. In other words, the amount of GHG emit- ted per liter of milk will decrease. This outcome contributes to Tanzania’s commitments under its NDC by greening the dairy value chain. For example, introducing more efficient dairy breeds that produce higher milk yields can offset some emission growth from increasing herd sizes. The project doc- ument notes that such measures will help align the dairy sec- tor with the country’s goal of a 30-35 percent GHG reduction against business-as-usual by 2030.
The loan is specifically allocated to critical investments such as the construction and rehabilitation of milk collection centers (with solar-powered coolers), improvement of rural feeder roads, expansion of artificial insemination and vac- cination programs for cattle and other climate-smart dairy farming practices. By funding these components, the loan’s purpose is to sup- port Tanzania in achieving a climate-smart dairy transforma- tion — one that increases dairy output and farmer incomes in a sustainable manner, builds resilience to climate shocks and reduces the dairy sector’s carbon footprint. In short, the OPEC Fund financing is intended to catalyze the growth and modernization of the smallholder dairy sub-sector, making it more productive, adaptive to climate change and beneficial to rural communities.
Expected Outcomes
The “Climate Smart Dairy Transformation Project” is antici- pated to deliver numerous socio-economic and environmen- tal benefits. According to the project document, expected outcomes include both tangible infrastructure outputs and broader developmental impacts. Increased Dairy Production and Incomes: The project aims to raise smallholders’ milk production and household incomes by 30 percent for about 90,000 participating households. This will be achieved through productivity gains (better feeding, breeding and animal husbandry) and improved market access for milk. Infrastructure Development: An estimated 400 milk collec- tion and storage facilities (milk collection centers and col- lection points) will be constructed or rehabilitated, greatly expanding the cold-chain and bulking capacity in rural dairy areas. Additionally, around 200 km of feeder roads will be upgraded, connecting remote farming communities to mar- kets and processing centers. These investments will reduce post-harvest losses and transportation bottlenecks in the dairy value chain.
Assessment according to the Joint MDB Methodology for Tracking Climate Finance
The OPEC Fund is financing both mitigation and adaptation activities under the C-SDTP. As a climate-smart agriculture initiative, the project addresses climate change vulnerabili- ties through adaptation and GHG emissions through mitiga- tion as core objectives.
One such mitigation-eligible investment is in biogas digest- ers. The OPEC Fund supports these under C-SDTP, which
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