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Abstract

This study investigated the development of Tanga’s dairy innovation system and its role in promoting and maintaining relationships between farmers, the industry, and cooperative unions; employing a case study approach. The main objective was to assess the role of cooperatives in forging farmer-industry linkages and in improving dairy industry innovations. 100 dairy producers in Tanga participated in the survey that led to the paper. A questionnaire was used to collect data from randomly selected farmers. Furthermore, 20 key informant interviews were conducted with various participants, including the Tanga Dairy Cooperative Union livestock extension service providers. Also, one Focus Group Discussion involving 12 participants from the aforementioned stakeholders was held. The findings revealed that over the last three decades, Tanga’s dairy innovation has evolved into a competitive innovation system. It has gone through four phases: development of the capability of dairy farming (1985–1992), the formation of the Dairy Cooperative Union (1993), the development of milk-processing capability (1996–1997–2007), and the phase of improving the innovation capability of the whole system (2008–present). The formal and informal contractual arrangements of the Tanga Dairy Cooperative Union were found to be the primary means for sustaining close ties between dairy farmers and the Tanga Fresh Ltd. These agreements have enhanced collaboration and mutual learning that have contributed to a significant increase in farmers’ milk production and Tanga Fresh Ltd’s processing capacity. Based on the recorded achievements, this paper recommends for the adoption of the identified innovative contractual model to other cattle-rich zones. However, it is also imperative to address identified challenges such as fluctuation of trust between the farmers and the cooperative, and cases of deviation from contractual obligations

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