The Dairy Industry Act, 2004 forms a two tier mode of organisation of the dairy industry as shown below:

A. THE ANNUAL COUNCIL – the decision making body which is comprised of;

1. A chairperson appointed by the Minister responsible for livestock
2. One member representing recognised stakeholder organisations in every district of mainland Tanzania
3. One member representing registered national milk producers’ organisations
4. One member representing registered national milk processors’ organisations
5. One member representing registered national milk consumers’ organisations
6. one member from the Ministry responsible for livestock development
7. one member from the national institution responsible for food quality control
8. one member from the public university of agriculture
9. one member from the ministry responsible for local government
10. one member form the ministry responsible for cooperatives and
11. two members from NGOs active in dairy industry development

The annual council meets once a year and is mandated to deliberate on and decide on matters pertaining to development of the dairy industry as a whole and advise the board and the minister for livestock on the same. It also proposes the members of the dairy board who represent stakeholders for appointment by the minister. It also approves annual budgets and annual accounts of the board. Members of the annual council work for a term of 3 years and can be re elected.

B.THE TANZANIA DAIRY BOARD – The executive and secretariat of the Annual council and consists of:

1. the chairperson appointed by the minister responsible for livestock
2. three members representing milk producers
3. one member representing milk processors
4. one member representing milk traders
5. one member representing dairy input suppliers
6. one member representing milk consumers
7. one member representing the Attorney General
8. one member representing the Ministry responsible for livestock development
9. one member from the public institution responsible for food quality control
10. one member from a public university of agriculture
11. one member from the Ministry responsible for local government

Members from (1) to (6) above are appointed by the minister responsible for livestock development upon recommendation from the Annual Council. The board being an executive arm of the Annual Council works by implementing decisions of the annual council and reports annually to the Annual Council. The tenure of office for board members is 3 years and can be re appointed.

The board appoints the Registrar who is also the Chief Executive Officer of the board and other employees, controls the dairy development fund, prepares annual reports and budgets for approval of the annual council. So in actual sense it is the Board that carries out dairy development, promotion and regulation of the dairy industry but under supervision of the Annual Council.