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1. 1
An Assessment of Zimbabwe’sDairySector, J
une 2014
By Edwin Phiri
Introduction
Thisreport presentsthefindingsof an assessment that wascarried out on the dairy sector in
Zimbabwewhich will be used to inform the design of the country’sdairy development program.
S
mallholder dairy farmingin Zimbabweisassociated with amultitude of benefitsthat include
increased income, employment generation, food and nutrition, organicwaste recyclingand uplifting
of social statusand standardsof living. Prior to the land and agrarian reform Zimbabwehad robust
systemsof growingthe national dairy herd, amilk recordingsystem that provided valuable datato
track milk production and quality changes, awell organized marketingsystem, good quality milk and
milk productsthat were competitivein regional markets, and robust private sector-led artificial
breedingsystemsthat used quality proven genetics. In addition, extension service provision was
dominated by publicsector institutionsthat include the Department of Agriculture, Technical and
Extension S
ervices(Agritex), Department of Research and S
pecialist S
ervices(DR&S
S
), Dairy
MarketingBoard, theAgricultural and Rural Development Authority (ARDA), and the Department of
Veterinary S
ervices.
S
tructural adjustment programs, liberalization of policies, and the country’seconomicdecline
precipitated budget cutsthat produced avacuum that hasleft the dairy industry includingmany
smallholder farmers, with limited accessto agricultural extension support servicesto the detriment
of dairy production. Prior to the agrarian reformsand the economicdecline, 35 smallholder dairy
projectshad been established around the country1
. Currently most of theinfrastructure that had
been set up through these projectsisnow in apoor condition asaresult of beingold, over used or
not workingefficiently. While vestigesof some of these dairy support systemsstill exist, there is
need to explore potential for revival or development of new systemsbased on local and/or external
best practices. Afavorable framework for thisisthe Government of Zimbabwe’sNational Dairy
S
trategy that aimsto develop dairyingso asto ensure broad-based, viable production of sufficient
wholesome milk and itsderivativesto meet the national needsat an affordable cost.
Methodology
The information contained in thisassessment report wasobtained through the use of amixed-
methodsapproach combiningformal and informal methodsto collect the requisite dataand
information on the dairy sector in Zimbabwe which involved the use of the following;
 Literature review of evaluation reportsof previousHeifer Zimbabwe, Land OLakes/US
AID
and S
NVsupported dairy projectsaswell asother relevant documentsincluding
Government of Zimbabwe dairy policiesand programsaswell assecondary sourcesof data
availableonline
 Key informant interviewswith publicand private sector stakeholdersin the dairy sector such
asthe Zimbabwe Association of Dairy Farmers, the departmentsof Livestock Production and
Development, VeterinaryS
ervicesand Nestle Zimbabweamongothers
 Focusgroup discussionswith small holder dairy farmers
1
S
NV2013, Dairy BreedingS
urvey Report

2. 2
Actorsin the DairySector in Zimbabwe
The followingare the key actorsthat were identified in the country’sdairy sector;
 Government of Zimbabwe through the Livestock Production and Veterinary S
ervices
Departments
 Land OLakesInternational Development in partnership with US
AID
 S
NV
 Technoserve
 The Zimbabwe Association of Dairy Farmers
 Nestle Zimbabwe
 TillersInternational
 International Relief and Development
Background and Overview of the DairySector in Zimbabwe
Zimbabwehistorically had arelatively robust dairy industry filled with commercial farmersand
heavily subsidized smallholder farmers. But land reforms, economicwoesand natural disaster
devastated thecountry’sdairy sector and itsproductiveindustry leavinghuge portionsof the value
chain broken. Many of the nation’ssmallholder farmersfirst started dairyingat the invitation of the
Zimbabwean government which saw the sector asameansof reducingpoverty, raisingfarm
incomesand improvingnutrition and employment in rural areas. Farmerswere linked to milk
collection centersand inputs, servicesand transport were often subsidized and administered by the
government. While many farmersinitially realized more profitsfrom dairyingyear round than they
had ever experienced farmingseasonal staple crops, the schemeswere not financially viable without
external support.
S
ince theadvent of formal smallholder dairy schemes, only amaximum of 5%of national milk supply
per year hascome from the smallholder dairy sector2
. On the other hand the decline in large scale
commercial dairy production in Zimbabwe hasmeant that the country’smilk supply now dependson
productivity in the smallholder dairy sector. Critical to the contribution by the smallholder sector is
improvement in dairy cattle quality aswell asprudent management and provision of quality inputs
and services. National milk production in the country hasdeclined from ahigh of 260 million litres
per year in 1996 to the current level of 56 million litres. At itspeak, the country had over 200,000
dairy cowscompared to the current herd of 26,000 which hasseen the country importingan average
of 5 million litresof milk amonth.
Financingdairy farmersin Zimbabwe hasbeen achallenge and dairy farmershave called on the
government and dairy processorsto facilitatethe importation of heifersfrom neighboringS
outh
Africato help increase milk production. Last year the country produced 56 million litresof milk but
indicationsfrom milk processorsare that the figure may go down by between 3%and 4%due to
challengesfacingthe sector, amongthem cheap importsfrom the region especially neighboring
S
outh Africaasthe country consumes10 million litresof milk per month but produces5 million litres
monthly and the balance ismet by imports. The Zimbabwe Association of Dairy Farmerssaysif the
dairy sector isgiven thenecessary support, milk production in the country would increase by up to
60%in aspace of nine months. The association insiststhat dairy farmershave the potential to
2
Hamunakwadi, 2008

3. 3
producemilk for the country if they are capacitated. Milk processorsare processingmilk at lessthan
half their capacity because of the challengesaffectingthedairy industry, the association says.
S
ome of the country’sleadingdairy farmsare reported to have imported 90%of their heifersfrom
S
outh Africawith alandingcost for each cow of US
$16003
.The Ministry of Agriculture saysthereare
currently 222 registered dairy farmersin Zimbabwe with Dairiboard Zimbabwe beingsupplied by just
60 dairy farmerscompared to 215 in the year 2000. Traditionally, commercial farmersdominated
the dairy sector in Zimbabwe and these farmershave either left the country or have turned to other
cash makingenterprisessuch asflower production, beef cattle ranching, or wild game ranching. This
change hasresulted in areduction of the availability of milk and an increase in pricesto the
consumer with chronicelectricity power outagesalso affectingthe dairy industry4
.
The picture however isnot all gloomy asdairy production wasexpected to improve in 2013 dueto
on-goingsupport initiativesthrough Nestlé Zimbabwewhich hasbeen importingdairy cowsand
partneringwith ADRA, Zimbabwe Farmers’ Union, Commercial Farmers’ Union and the National
Association of Dairy Farmers. The current milk levels, which remain below the national milk
requirementsof about 120 million litreshowever present opportunitiesfor further investment in the
dairy sector asthe industry iscurrently operatingat 45%capacity.
In an attempt to addressthedeclinein dairy production, the Government hasalso moved in to halt
the continued and disruptive acquisition of dairy farmsto save the industry from collapse.
Dairibord’splan for revival of dairy farminginvolvesacquiringheifersand loaningthem out to
farmersand in return, farmerswill provide milk to the company. An initial batch of 250 in-calf heifers
hasalready been disbursed to 10 farmerswith an additional one million litresper annum expected
from thisbatch. Ultimately, the company hopesto import atotal of 1 000 heifersat an average cost
for each animal imported of US
$2 000. Dairibord’sheifer programmeishowever just the first step of
many that need to be taken to restorethe viability of the dairy industry.
Afew new playershave sprungup in the industry and these are Kefalos, Dendairy and Alpha&
Omega. Increasingindustry capacity solvesonly one of the challengesbeingfaced by the local dairy
industry asanother shortcomingthat wasexposed duringDairibord’sresultsbriefingisthe flood of
importsfrom S
outh Africa. Importsnow make up asignificant portion of milk consumed in
Zimbabwe. In fact, imported brandsof milk are more visible than local onesin the supermarketsand
these have helped to bridge an unsatisfied gap between demand and supply. S
outh African milk
landshere at alower price which cannot be matched by local producers, thusmakinglocally-
produced milk uncompetitive. Alitre of imported milk landsin Zimbabweat about US
$1,05 while
locally-produced milk costsUS
$1,20 —agap of 14%. The difference emanatesfrom local raw milk
beingmore expensive to produce than in S
outh Africaand theregion in general. Raw milk costs62
UScentsalitre locally compared to 40 UScentsand 44 UScentsin S
outh Africaand Zambia,
respectively.
Importingmilk isastop-gap measure, theultimate goal beingto revitalize local milk production. Milk
isan essential source of nutrition and government isunlikely to ban imports, especially where local
production fallsshort of demand. Government could, however, investigate whether thereare
3
http://www.financialgazette.co.zw/dairy-farmers-appeal-for-support/
4
Zimbabwe Commercial FarmersUnion, 2010

4. 4
certain unfair practicesby S
outh African dairieswhich make their milk cheaper. Namibian dairy
farmers, for example, once accused their S
outh African neighboursof predatory pricing, using
genetically modified feedsand on-exportingsub-standard Brazilian milk. It isonly when the industry
can rebuild the national herd, produce enough milk to meet demand and lower production costscan
it become competitive.
Review of PreviousDairyProjectsSupported byHeifer in Zimbabwe
Heifer Zimbabwe hasin the past supported small holder dairy farmersin the country workingin
collaboration with AfricaNow and the Dairy Development Program. Community dairy projectswere
developed through the distribution of 125 dairy cowsto 125 needy familiesand the establishment of
milk processingfacilities. These projectsaimed at promotingself reliance amongsmall holder
farmersthrough the placement of dairy heifers, breed improvement and support for marketingof
milk and milk products. The projectswereimplemented at the height of the agrarian land reform in
the country that commenced in 2000 and asaresult, someagricultural activitieswere disrupted
leadingto reduced output in productssuch asmilk.
The shortagein milk supply to the Zimbabwean population presented the dairy projectswith a
market opportunity for milk and other dairy products. However, thedairy centerswere found
wantingin businessplanningso asto take advantage of theavailable market opportunities. This
handicap on the part of the dairy centersresulted in dairy farmersbeingpaid uncompetitive
amountsfor milk deliveriesto the centers. Asaresult, dairy farmerswere side marketingtheir milk
becauseof lucrative pricesthat were offered on thealternative market. Milk deliveriesto the dairy
centerswere also affected by transport problemsfaced by all the dairy centers.
An evaluation of theprojectssupported by Heifer in Zimbabwe indicatesthat there wasaneed to
capacitate dairy farmerswith skillson enterprise development which would have gone alongway in
revitalizingthese dairy projectsin the wake of the adoption of the USdollar in the economy. The
dairy projectsthat Heifer supported in Zimbabwe failed to adapt to the new challengesbrought
about by the adoption of the USdollar in the economy and asaresult, they operated at below
optimum production levelscharacterized by low milk inflow from members. The mortality rate of
the dairy cattle wasalso high at 53%of the distributed livestock due to recurringdrought and
farmersnot beingfully prepared to deal with the adverse effectsof the droughts. Dairy cattlewere
exposed to veldt grazing, instead of theexoticpasturesthey were used to and they were also
exposed to communal plunge dippinginstead of the recommended sprayingmethod. Accordingto
the evaluation report, the cattle were also drinkingwater from stagnant streamsthusexposingthem
to water borne diseasesand most of the cattle died from tick bornediseasessuch asheart water,
red water and gall sickness. Acombination of drought and shortagesof drugs, vaccinesand
supplementary stock-feedswasnot conducive for thesedairy projects.
The high cattle mortality rate wasabigcontributory factor towardsthe fast decline in milk
production and thishad adirect effect on the production of milk productssuch asyoghurt,
pasteurized milk and sour milk which also declined. Transportation of milk to the milk centers
becameabigproblem because all the vehiclesdonated to the projectswere not road worthy
becauseof their age and the non-availability of spares. Farmershad to rely on publictransport but
later stopped because publictransport gradually became anightmare due to aseriousshortage in
fuel supply. The publictransport chargesbecame equally exorbitant and eroded farmers’ income.

5. 5
The sidemarketingof milk became more attractive becauseit wascash on delivery yet at the project
milk centersit waspayment after 30 days. In ahyper inflationary environment such asthe one that
prevailed in Zimbabweat the time, by thetime the farmer received the payment the real value had
been lost.
Asfar asthe social and economicbenefitswere concerned, the farmersstrongly believed that their
incomeand livelihoodshad considerably improved. The farmersproudly mentioned that they had
been ableto meet their children’seducational requirements. Thehigher income levelshad enabled
them to meet their family recurringexpensessuch asamongothers, health bills, agricultural inputs
and basicfood items. Othershad improved their homesteadsand their social statushad also
improved with some of them beingappointed to leadership positionsin their community. The
farmersfurther acknowledged that their familiesand immediate communities’ nutritional levelshad
increased because of higher intake of both milk and milk products. There could have been adecline
in milk output but the farmersstill confidently felt that the lower quantitiesproduced werestill
earningthem enough to survive comfortably although better dairy breedswerestill required.
The evaluation report also pointsout that Heifer Zimbabwe should be complimented for the
achievementsattained because theprojectswereembarked on at the height of the political,
economicand social changesinstigated by the agricultural reform program. Thisprogram created a
difficult and challengingoperational environment that resulted in anumber of NGOseither
voluntarily closingdown or beingforced to leave the country. The overall effect of all thiswasthat
the sustainability of these projectsbecame abigchallenge. Dairy cattle survive better on exotic
green grassand properly prepared fodder and thiswasnot achieved. National shortagesin drugs,
vaccines, dipsand stock feedsalso had detrimental effectstowardsthe envisaged sustainability of
the projectsasmilk production can only be asuccesswhere thereisorganized and good fodder
production. Dairy cattle cannot survive on veldt grazingand thefarmersneeded to work towards
growingexoticgrasseslike bananagrass, giant Rhodesgrassand star grassand makesure that they
produced silage from maize stalks, soyabean stalks, wheat straw and other leguminousstalksthat
they harvested from their fields.
The farmersneeded to take dairy farmingasabusinessand there wasneed for better systemsof
breedingtheir cows, weaningtheir calvesand acquiringmore knowledge on dairy farming. S
ome of
these issueswere covered in the trainingcoursesthe farmersreceived but in order to ensure
successof the dairy projectsrefresher courseswere very necessary given that the bulk of the
farmerswere elderly people. There istherefore need for Heifer to consider supportingyouth in
dairy farmingtargetingthose with an interest in dairy farming. Thereisalso need to strongly
integrate crop production and dairy farmingasthese complement each other. Women’s
participation in the dairy projectswasviewed asamajor breakthrough aswomen were taking
leadingroleswith men on the other hand gradually acceptingthat women are equal partnersin
socio-economicdevelopment.
Constraintsto dairyproductionin smallholder farmingareas
The smallholder dairy farmingindustry in Zimbabwe iscurrently characterized by poor geneticmake-
up of dairy herdsleadingto low milk volumes. Exoticpurebred cattle comprise only 6%of the entire
herd, while exoticcrossbreedscomprise 33%. The low prevalence of purebred dairy cattle is
attributed to the high susceptibility of these cattle to diseasesand poor feedingand general

6. 6
management. Feed shortage duringthedry season isamajor milk production constraint. In general,
most farmersdo not have money to purchase commercial feeds. Furthermore, the few producers
who have the money to buy feedsdo not easily and consistently accessfeedsfrom commercial feed
companieslargely because of lack of demand economiesof scale. Thefarmersallege that the
commercial feed companiesare more interested and loyal to large scale commercial dairy farmsthat
buy largequantities. Thisnecessitatesthe development and dissemination of feed technologiesand
interventionsin order to increase feed availability at farm level.
Dairy cattle enterprisesrequire ahigh capital base which isnot available to most small holder
farmers. Capital isrequired to purchase not only good grade cattle, but also feedsand veterinary
services. Lack of credit to buy dairy animalswaslisted asthe first constraint in re-buildingthe
smallholder dairy herd. Asaresult of financial and general hardshipsduringthe economicdecline
period, most milk collection centersstopped or drastically reduced operationsand there isneed to
providefinancingor loansfor the revival of the milk collection centers. Financial institutionsoffering
loan schemesto small holder dairy farmersarefew, with NGOs(59%), and the Government of
Zimbabwe(22%), beingthe dominant playersand yet the cost of purchasingagrade heifer ishigh as
they arealso not readily available. Owingto this, dairy farmersareunable to procure suitable dairy
breeds. Dairibord Zimbabwe and Nestlé Zimbabwehave taken the initiative to support dairy heifer
acquisition and breeding. There is, therefore, potential complementary support of the smallholder
sector.
Water isavery important component for the dairy cow to maintain body functionsand for milk
production. However, thisimportant resource isnot adequately harnessed and developed in most
partsof smallholder areasin natural farmingregionsIII and IV. Asaresult of water shortagesduring
the dry season, freewater intake of lactatingdairy cowsisreduced and limitsmilk production and
reduceshealth status5
. Water isalso required to irrigate legumesand pasturesthat will be used as
feed by the dairy cattle. There isalso need for smallholder dairy breedingprogramsthat aim at
promotingthe use of modern technology (AI, estrussynchronization, sexed semen, ET) which would
result in increased dairy incomes. In formulatingbreedingstrategies, it isimperative to take into
account the farmer’sproduction environment, characteristics, aspirations, needs, and capabilities.
The unavailability of animalswith desired characteristicscan be regarded asone of the impediments
to herd growth and expansion. There istherefore room for the adoption of modern dairy breeding
technologies.
There isneed to develop and disseminate feed technologiesand interventionsto increase feed
availability at farm level. Farmershaveageneral ideaon how to produce and processtheir own feed
but there isaneed for in-depth additional knowledge. Under nutrition and seasonal fluctuationsin
quantity and quality of feed are major constraintsto Zimbabwe smallholder dairy viability. To meet
the nutritional requirementsof the dairy cows, some farmershave been forced to spend part of
their preciousincome on purchasingcommercial dairy meal supplements. Aspointed out by
producers, inputsfor intensified fodder production are expensive and farmersonly take up
technologiesthat they consider profitable. Technical information and extension servicesare
inadequateto transfer forage production information to smallholders.
5
Guendel, 2006

7. 7
There isashortage of trained veterinariansin the rural areas, and farmershave to rely on
Community Animal Health Workers. However, these para-professionalsare also very few. These
paraprofessionalsare an important meansof reachingout to many farmers, and the strategyshould
be multiplied and replicated. Resultsof research and extension highlight the need to strengthen
linkagesand tiesbetween research, extension and producers. The main extension service providers
identified are Government and NGOs. Like many other government services, research and extension
isaffected by genericissuessuch aslack of transport, understaffing, poor motivation, lack of
refresher coursesand low staff morale. Farmersare also faced with transport challengesasferrying
milk to the collection centersiscurrently amajor constraint due to some of the distancesthat need
to be covered.
Conclusion
In conclusion, dairy businessdevelopment isaprocess. It requiresafact based approach to strategic
planning. Professionally managed dairyingwill guarantee milk volumesfor processorsand form a
basisfor initiatingmicro processingasthe raw milk supply chain will be guaranteed. There are
opportunitiesfor women and youth in dairy farmingand support for the sector hasto be derived
from stakeholdersacrossthe dairy value chain with thestronginvolvement of the private sector.
Dairyingin the smallholder areasispractised to produce milk for feedingthefamily and for sale, to
producemanure to support crop production and to providedairy animalsfor insurance and
financingemergency cash needsand for social status. S
mallholder dairy farmingassistsfarmersto
diversify, spread farmingrisksand createsopportunitiesto make some idlingresourceslike crop
residuesenter the human food chain. There isneed for the creation of an enablingbusiness
environment throughout the dairy sector aswell asmarket linkagesthat will transition familiesfrom
beingdonor dependant to businesspartners.