A priority in developing African dairy industries is to build marketin
g systems which provide incentives for local farmers and supply consum
ers with the produce they demand, Studies were carried out in Kilimanj
aro Region, northern Tanzania to investigate the regional demand for d
airy produce and the marketing system, Demand proved to be buoyant, wi
th an average LME consumption of 142 kg/person/year and an income elas
ticity of demand of 0.9 in the urban areas, and 45 kg/person/year and
1.1 for the rural areas, The main products taken were fresh and sour m
ilk, More than half the milk was consumed in the rural areas, Demand w
as forecast to grow from 1990 to 2000 at 5%/year, The marketing system
consisted of competing multiple channels involving a parastatal, coop
eratives and private traders, There was ample evidence that the system
was efficient, with producers obtaining as much as 78% of the final m
ilk price, The main policy concern was the adequate upkeep of rural fe
eder roads during the rains, Public intervention in marketing was not
necessary for successful development of a regional dairy industry in t
his case. Copyright (C) 1996 Elsevier Science Ltd.