While many of the constraints to development of the Tanzanian dairy sector can be tackled locally, low world market prices can largely be explained by EU subsidies, and the existence of cheap powdered milk remains an unfair competition which has effectively blocked the expansion of the dairy sector. This is according to a study by the Centre for International Development Issues that examines how Europe's common agriculture policy (CAP) is operated and influences the livelihoods of dairy farmers in Tanzania and Jamaica in order to demonstrate how European policy can hamper the development of farmers in developing countries.