Assessment of the Efficiency of the Dairy Supply Chain in Micro-Processing Centers in Arusha City, Tanzania

The dairy sector is globally significant, yet inefficiencies and underutilized capacities challenge Tanzania’s industry, particularly in Arusha City. This study investigated factors influencing dairy supply chain efficiency in micro-processing centres. Using a mixed methods approach with purposive and random sampling, data were collected through structured interviews and questionnaires from 105 respondents, analysed using thematic analysis, descriptive statistics and multiple regression analysis. Results highlight that raw milk availability, technological adoption, and technical expertise are critical for efficiency, while operational practices like skilled personnel, value added activities inventory and quality management can affect efficiency in operations, rate of defects and wastage. External challenges, including infrastructure limitations, regulatory barriers, and restricted market access, hinder optimal performance. The study recommends targeted interventions such as infrastructure improvement, technology investment, regulatory streamlining, and enhanced market access, emphasizing stakeholder collaboration and smart climate practices for sustainability.