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Demonstrating how agricultural research contributes to development outcomes is difficult but necessary given competing demands for scarce resources. This article summarises an adaptation of...

The study evaluates the impact of risk on enterprises of male, female and young farmers operating in the formal and informal smallholder dairy value chains in Tanzania. It also examines the effect of uncertainty on the decision to invest in milk production in the two value chains. Results indicate that youths in the informal dairy value chain face the greatest level of risk followed by men in the formal value chain, and then men in the informal value chain. Women in both value chains and youths in the formal value chain face relatively low risk. Overall, milk production in the informal value chain is found to be substantially riskier than production in the formal chain. Optimal investment triggers are found to be much larger than the conventional triggers and are sensitive to volatility of returns. The results’ managerial and policy implications for inclusive dairy industry development in Tanzania are highlighted.

Increasingly, value chain approaches are integrated with multi-stakeholder processes to facilitate inclusive innovation and value chain upgrading of smallholders. This pathway to smallholder integration into agri-food markets has received limited analysis. This article analyses this integration through a case study of an ongoing smallholder dairy development programme in Tanzania. Value chain upgrading and innovation systems perspectives were combined in an analytical framework to interpret the findings, which show that multi-stakeholder processes enhance horizontal and vertical coordination but limit process and product upgrading. The main conclusion is that, although such processes may catalyze smallholder market inclusion, their effects are largely bounded by existing value chain structures (e.g. production system, fragmented markets), timeframe and how prevailing institutional constraints are addressed, which may constrain the intentions of such collaboration action. This calls attention to the starting points of value chain interventions and the socio-political dynamics that are part of multi-stakeholder processes.