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Abstract

Smallholder farmers have difficulties entering established value chains with value-added prod-ucts. In this paper, we look at smallholders’ capability to establish and sustainably manage a competitive and economically viable local dairy value chain cooperative in Tanzania. The analysis uses a value chain approach as a framework to identify the possibilities for upgrading and the determinants of competitiveness in value chains in which smallholder farmers can participate. Results highlight the benefits Twawose par-ticipants receive, but caution that a multitude of constraints could impede scaling-up in the future.

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