future of dairing in zimbabwe
DESCRIPTION
Given the socio-economic and agrarian challenges facing Zimbabwe today, does dairying have a future? If yes, what kind of farmer has the greatest contribution to that future. The author tries to give his opinion on the above.TRANSCRIPT
Gororo Eddington
In light of the intricate socio-political and economic challenges and land tenure issues facing the
country, is there a future for sustainable dairy farming in
Zimbabwe?
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1. Dairy industry overview 2. Opportunities3. Challenges4. The future
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Year Milk (‘000 mt) # of Cows Farmers
1980 156 106,000 -
1990 262 122,000 521
1995 200 101,000 376
2000 177 42,000 314
2005 100 - 279
2010 47 - 236
2011 51 23,000 233
2012 52 23,0005
1. Large scale ▪ Yields > 4000 kg/lactation
▪ 97-98 % of milk on the formal market
▪ Some vertical integration
2. Small-scale▪ Yields: < 2,500litres/lactation
▪ Contributes only 2-3 % of marketed milk production
▪ Organized in dairy associations
3. Informal sector ▪ not regarded as part of the industry
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USAID – Zimbabwe Agricultural Competitive Program (Zim-ACP)
European Union (EU) – e.g. Stabex 98
Heifer International (HI) – capitalisation
Land O’lakes
TechnoServe – Business Development Services
SNV
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Milk processing companies
Kefalos, Nestle, DZL
Loans for purchase of heifers
Milking plant and maintenance services
DairyMac/De Laval
Stakold Refrigeration and Dairy (Pvt) Ltd
Dairy Solutions (Pvt) Ltd
Inputs – feed, fertilizers, seed, breeding supplies, drugs
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34 registered processors Capacity = 400 million litres per annum.
Major processors: Dairibord Zimbabwe Ltd Dendairy Nestle Zimbabwe Kershelmar Kefalos Alpha-Omega Dairies, Dorkin Dairies Clavelshay Dairy
Forward and backward integration
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Processing levels (2012)
Processed 52,000 tons
National demand 180,000 tons p.a.
Gap filled by imports, mostly from South Africa
Marketing through:
Supermarkets and small shops
Schools, hospitals, etc.
roadside vendors
farm gate
Direct sales to neighbours
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Liquid milks UHT – e.g. Steri, Longlife
Pasturised – e.g., Chimombe
Flavoured milk
Fermented milks – Inkomasi, Lacto, Hodzeko, Maas
Yoghurts
Cheeses Powder Full cream, skim milk powder, substitute creamers
Other products dairy flavoured drinks
dairy-fruit juices
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Packaging
Plastic bottles
plastic satchets
PVC cups
cartons
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Input supply
Shortage of key raw materials
Stockfeed pricing and availability
GMO policy
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Support services
Shortage of key skills especially nutrition
and machinery science
Research and extension services: mobility,
qualified and experienced personnel.
Legal framework is entry barrier for farmers
and processors
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Production
Viability
Availability and costs of long term finance
Distance to processing plants
Infrastructure
Cost and access to good quality dairy genetics by small scale farmers
Land tenure
Shortage of land
Recurrent droughts/irrigation water shortage
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Collection and distribution
Distance to processing plants
Infrastructure: poor road networks and cold
chain
Smaller milk volumes
Famers are scattered
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Processing
Low volumes (capacity utilization)
Shortage of key skills
▪ dairy science and technology
▪ pasture research, agronomy and development
▪ breeding science
Capitalization
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Retailing, marketing and consumption
Competition from imports of cheap milk and milk
products
Cheaper milk substitutes and coffee creamers
A poor milk consumption culture by the general
populace
Low incomes
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Dairy development in the country
Policies and regulations – dairy act, regulations,
land tenure
These policies are too stringent for new entry and
growth of present businesses
High cost of compliance
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THE FUTURE IS BRIGHT
Opportunity 1
Zimbabwe dairy consumption per capita is very low
▪ Growing dairy consumption is biggest opportunity to create a sustainable industry
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Opportunity 2
Current demand outstrips local production and supply
▪ 180,000 tons versus 53,000 tons
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Opportunity 3
Population growth
▪ 17 million projected by 2030 versus 13million in 2013
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Opportunity 4
Increase in average income & urbanization and changes in consumption patterns
▪ Demand for animal based protein sources will increase
▪ eggs
▪ meats
▪ milk
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Industry Organization1. Synergies through e.g., cooperative milk
collection centres (MCC)
2. All stakeholders need to participate in▪ Dairy industry activities
▪ Milk branding activities
▪ Public-private partnerships
These activities will drive growth for all stakeholders
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Value chain approach (business
development)
1. Private sector investment in dairy
2. Processing milk locally
3. Backward and forward (Vertical) integration
4. Diversification (variety of product forms)
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Increase milk yields
1. Yields
▪ per cow, hectare, lactation, year, labour day,
etc.
2. Genetics
3. Environment (management)
4. Sustainable intensification
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Production efficiency
1. Minimise losses – spillage, spoilage,
contamination
2. Disease control - particularly
▪ tickborne,
▪ mastitis and
▪ reproductive diseases)
3. Nutrition and feeding
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