New AgResults Prize Competition to Advance Climate-Smart Dairy Development Launches in Tanzania

On September 9, stakeholders from across Tanzania’s dairy sector gathered in Dodoma to officially launch the AgResults Tanzania Climate-Smart Dairy Prize Competition. The event brought together representatives from the Government of Tanzania, development partners, private sector businesses, dairy industry organizations, and farmer producer groups to mark the beginning of a new initiative aimed at increasing dairy productivity and resilience through market-based solutions.

The Tanzania Climate-Smart Dairy Prize Competition (2026 – 2028) is a two-year, US$2.8 million Pay-for-Results competition that encourages private sector actors to expand the availability and adoption of animal health, nutrition, breeding, and fodder solutions for smallholder dairy farmers. By rewarding businesses for delivering productivity-enhancing dairy inputs and services in the Mbeya, Iringa, Njombe, and Morogoro regions, the competition aims to increase milk production, improve farmer incomes, strengthen resilience, and support the long-term growth of Tanzania’s dairy sector. Heifer International serves as the Project Manager.

The competition works in collaboration with the Climate-Smart Dairy Transformation Project, a 10-year, US$231 million investment by the Government of Tanzania and the International Fund for Agricultural Development (IFAD) to transform the country’s dairy value chain.

The AgResults competition seeks to address longstanding barriers that limit dairy productivity and market participation in Tanzania. Many smallholder dairy farmers face challenges accessing veterinary services, breeding services, quality fodder, and extension support. Seasonal feed shortages and low uptake of productivity-enhancing inputs further constrain milk production, while limited participation in formal markets restricts opportunities for investment and sector growth.

Through the competition, private sector input suppliers and fodder producers will compete for prizes based on verified delivery of eligible products and services to smallholder farmers. Competitors can earn prizes for verified sales of parasite control, vaccines, or artificial insemination services – along with required advisory services – or for verified sales of improved fodder packages. Quarterly prize payments are designed to encourage businesses to reinvest in growth and expand their reach over time. Speaking during the launch event, Hon. Ng’wasi Damas Kamani (MP), Deputy Minister for Livestock and Fisheries, emphasized the importance of strengthening Tanzania’s dairy sector and the role that innovation, partnership, and private sector engagement can play in improving productivity and supporting national development goals.

“Success should not be measured by the prize money awarded, but by the change created at farm and market levels, when smallholder farmers, especially women and young people, gain access to quality services; when women- and youth-led enterprises innovate and grow; and when Tanzania builds a more productive, competitive, inclusive and climate-resilient dairy sector,” said Hon. Ng’wasi Damas Kamani.

Luke Simmons, who serves as Assistant Director in the Climate Resilient Agriculture and Food Security Section at the Department of Foreign Affairs and Trade (DFAT) in Australia, represented the AgResults donors. In his video remarks, Mr. Simmons highlighted the value of results-based incentives to encourage sustainable business models that continue serving farmers long after the competition concludes.

“We are encouraged by the strong partnership behind this initiative,” said Mr. Simmons. “Lasting impact depends on collaboration among government institutions, private sector actors, development partners, implementing organizations, and dairy farmers themselves.”

Markus Mueller, speaking on behalf of the AgResults Secretariat, noted that the Tanzania competition is the newest addition to the AgResults portfolio and builds on more than a decade of experience using Pay-for-Results approaches to address agricultural development challenges. “Across the AgResults portfolio, we have seen that when businesses are rewarded for results rather than activities alone, they often find new and creative ways to reach farmers, overcome market barriers, and build lasting commercial relationships,” said Mr. Mueller. “We are excited to see the ideas and partnerships that emerge through this competition in Tanzania.”

Representatives from Heifer International also welcomed participants and outlined the competition’s implementation approach, emphasizing the opportunity to strengthen connections between dairy businesses and smallholder farmers while contributing to broader sector transformation goals.

“Through performance-based incentives, the AgResults Tanzania Climate-Smart Dairy Prize Competition will catalyze private sector innovation and expand smallholder farmers’ access to quality services,” said Mark Tsoxo, Tanzania Country Director at Heifer International. “By working together, we can build a productive, inclusive and climate-resilient dairy sector in which women and young people can thrive.”

Over the next two years, the Tanzania Climate-Smart Dairy Prize Competition is expected to reach approximately 28,000 smallholder dairy farmers, generate significant gains in dairy productivity, and support the production of an additional 7,500 metric tons of fodder. By encouraging private sector investment in dairy health, breeding, nutrition, and advisory services, the competition aims to create stronger market linkages and more resilient dairy production systems that benefit farmers, businesses, and consumers alike.

The launch event marked the beginning of competitor recruitment and implementation activities, which will continue over the coming months as businesses begin delivering climate-smart dairy solutions to farmers across the target regions. Through its focus on verified results, innovation, and partnership, the competition seeks to demonstrate how results-based incentives can strengthen agricultural markets and contribute to long-term development outcomes.

For more information, visit the AgResults Tanzania Climate-Smart Dairy Prize Competition project page. Please note that additional project resources and updates will be added as implementation progresses.

The project is part of AgResults, a US$152 million collaborative initiative between the governments of Australia, Canada, the United Kingdom, and the United States, the Gates Foundation, and the World Bank Group that uses Pay-for-Results prize competitions to incentivize the private sector to overcome market barriers and create lasting change. Through AgResults’ results-based approach, these competitions reward participants for achieving independently verified outcomes that improve the lives and livelihoods of smallholder farmers.