Tanga — Operations of milk processor Tanga Fresh are being constrained by inadequate supply from dairy farmers, whose yields have been hampered by persistent spells of droughts, a senior official of the company has said.

Deputy manager Michael Karata told Prime Minister Mizengo Pinda when he toured the company yesterday that they are now operating below capacity and considering shedding jobs.

According to him, the unreliable supply of milk has greatly contributed to increasing costs of production and the overall performance of the business.

He said the company, which has equipment is currently processing 30,000 litres of milk in a day instead of the installed capacity of 50,000 litres.

Tanga Fresh, which is partly owned by Tanga Dairy Cooperative Union (TDCU), Dutch investors and its employees, has a workforce of 78 people.

By the end of last month, the company had bought seven million litres of milk from farmers and paid taxes amounting to Sh7 million.

Mr Karata appealed for government intervention to help preserve jobs and enable the company to continue buying milk at reasonable prices.

He said it could help it secure soft loans for operating capital from financial institutions, which currently charge high interest rates on loans.

"Without getting a helping hand from our government, there is no other alternative, but to lower the purchasing price of milk from the dairy farmers," he said.

Apart from Tanga, the company also supplies milk to Dar es Salaam, Arusha, Morogoro and Dodoma regions as well as Zanzibar.

Premier Pinda, who was here to grace marking of the HIV/Aids Day, which was officially marked in Tanga, promised to do all he can to help the company address the operational difficulties.

He also visited TDCU headquarters, a 450 hectares dairy farm at Maranzara in Pongwe and Amboni village where he inspected a milk collecting centre.