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Dairy sector sees growth

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DAIRY farmers in Zimbabwe produced 104,63 million litres in the first eleven months of 2024, just 11 million litres shy of the target for the year, despite a challenging operating environment.

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The country’s dairy industry experienced a resurgence, with August 2024 marking a record monthly high of 10,15 million litres, the highest output in seven years.
This growth stems from expanding dairy herds and strategic investments across the sector, even as challenges persist.
According to the latest official data from the Agriculture ministry, milk output for the first eleven months of 2024 increased by 16 percent to 104,63 million litres, compared to 90,31 million litres during the same period in 2023.
Chief executive of the Zimbabwe Association for Dairy Farmers (ZADF), Paidamoyo Chadoka, attributed this growth to targeted investments in herd expansion and improved efficiency.
“There has been a significant contribution by new entrants into the industry during 2024. Most farmers are adopting cost-effective methods to maximise milk yields while minimising feed costs,” she said.
“Despite the El Niño conditions, most farmers sustained production throughout the year by adopting feed preservation techniques such as silage production and hay baling.”
Chadoka highlighted improvements in operations management, enhanced extension services, and better animal health care as key factors driving growth. She expressed confidence that the annual target for 2024 would be met.
“We are confident this target will be attained, given the joint efforts by stakeholders to revitalise the dairy sector. However, the potential for increased output continues to be threatened by sluggish milk producer prices, rising production costs, particularly for feed, and intermittent power supply,” she added.
Milk intake by processors rose 16 percent in the first eleven months of 2024 to 96,39 million litres, compared to 83,02 million litres during the same period in 2023. Retail milk production also increased by 13 percent, reaching 8,23 million litres, up from 7,28 million litres in the comparable period.
In November 2024, milk output climbed by five per cent to 9,79 million litres, compared to 9,32 million litres in November 2023. The average monthly milk output for the first eleven months of 2024 stood at 9,51 million litres, up from 8,21 million litres in the previous year.
Despite a nine per cent production increase in 2023 to 99,82 million litres, this fell short of both the projected 100 million litres and the target of 103 million litres.
The sector faces ongoing challenges, including low productivity, limited herd numbers, weak genetics, and high production and processing costs. Limited access to affordable financing and foreign currency, high compliance costs, and the effects of climate change also hamper growth.
Chairperson of the Zimbabwe Dairy Industry Trust, Themba Mutsvairo, underscored the need for long-term financing solutions.
“Currently, the willing-buyer, willing-seller system is no longer providing adequate foreign currency for processors to meet their obligations. Local financial services are unable to support our capital expenditure and operational needs. Additionally, the short-term financing options available are prohibitively expensive,” he said.
The cost of milk production in Zimbabwe remains high at approximately US$0,67 per litre, significantly above the regional average. Farm gate prices are US$0,40 in South Africa, US$0,37 in Zambia, and US$0,30 in Europe.
Although the dairy herd has grown, a considerable gap remains in meeting Zimbabwe’s national milk requirement of approximately 130 million litres annually.
newsdesk@fingaz.co.zw

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