Dairying in the smallholder sector in Zimbabwe is practiced for profit making, feeding the family and to produce manure to support crop production. Large-scale dairy producers are contributing 97%, while the remainder is coming from small-scale farmers in Zimbabwe.

Zimbabwe used to produce approximately 260 million litres of milk per year in the early 1990s, however, production of raw milk has drastically declined to levels below the annual national demand of 120 million litres, implying a deficit of 45 million litres. This could be because of the recent

drought and the devastating effects of Cyclone Idai in 2019. According to figures from the Dairy Services, total raw milk supply for the first half of 2019 was 39,2 million litres representing a 13% growth compared to the same period in 2018. Government is targeting milk production to rise and is hopeful that by 2022 Zimbabwe will be self-sufficient in milk production.

The trends in milk production has been declining (Table 1); this results in ample opportunity for the smallholder dairy sector to contribute positively and immensely to local milk production.

Government and We Effect’s dairy project

Zimbabwe’s milk production is set to improve after the government, in partnership with We Effect Zimbabwe and other partners, launched a four-year dairy project worth US$8 million last year. The project is expected to increase the country’s annual milk output.

The scheme benefits 4 000 smallscale farmers and is part of a US$45 million European Union funded Zimbabwe Agricultural Growth Programme (ZAGP). The project included a national milk mapping exercise to guide the implementation.

The ZAGP could map the traditional milking areas and identified at least 33 districts where the project can be implemented. The areas with the highest milk production densities are Umguza, Kwekwe, Marondera and Groromonzi.

The project’s target districts were identified through milk densities, dairy cow numbers and distribution, biophysical characteristics and dairy infrastructure.

Dairies paying duty in foreign currency

The Zimbabwe Association of Dairy Farmers (ZADF) decided in 2019 the sector will leverage on the policy measures exempting dairies from paying duty in foreign currency for certain selected inputs to boost productivity as well as enhance its contribution to economic growth.

Government exempted twelve food and beverage companies from paying duty in foreign currency when importing certain raw materials necessary for their production processes in a move expected to boost production and consumption of locally manufactured goods.

“The amendment to the Customs and Excise through Statutory Instrument 170 of 2019 exempting dairies from paying duty for some of the critical imports is indeed a welcome development for our dairy industry,” Kudzai Chirima, ZADF Chairman said in an article on Zimbabwesituation.com.

“This is so, because the exempted companies will find it easier to import the required and specified raw materials without the hassle of trying to secure foreign currency from the interbank market, given that the products they manufacture from the same raw materials are sold locally in local currency, especially in the face of critical foreign currency shortages in the economy.”

This will make the benefitting companies more competitive, expand their production and boost their income.

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