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Gororo Eddington
In light of the intricate socio-
political and economic challenges
and land tenure issues facing the
country, is there a f...
1. Dairy industry overview
2. Opportunities
3. Challenges
4. The future
3
4
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
200...
1. Large scale
▪ Yields > 4000 kg/lactation
▪ 97-98 % of milk on the formal market
▪ Some vertical integration
2. Small-sc...
 USAID – Zimbabwe Agricultural Competitive
Program (Zim-ACP)
 European Union (EU) – e.g. Stabex 98
 Heifer Internationa...
 Milk processing companies
 Kefalos, Nestle, DZL
 Loans for purchase of heifers
 Milking plant and maintenance service...
 34 registered processors
 Capacity = 400 million litres per annum.
 Major processors:
 Dairibord Zimbabwe Ltd
 Denda...
 Processing levels (2012)
 Processed 52,000 tons
 National demand 180,000 tons p.a.
 Gap filled by imports, mostly fro...
 Liquid milks
 UHT – e.g. Steri, Longlife
 Pasturised – e.g., Chimombe
 Flavoured milk
 Fermented milks – Inkomasi, L...
 Packaging
 Plastic bottles
 plastic satchets
 PVC cups
 cartons
12
 Input supply
 Shortage of key raw materials
 Stockfeed pricing and availability
 GMO policy
13
 Support services
 Shortage of key skills especially nutrition
and machinery science
 Research and extension services: ...
 Production
 Viability
 Availability and costs of long term finance
 Distance to processing plants
 Infrastructure
 ...
 Collection and distribution
 Distance to processing plants
 Infrastructure: poor road networks and cold
chain
 Smalle...
 Processing
 Low volumes (capacity utilization)
 Shortage of key skills
▪ dairy science and technology
▪ pasture resear...
 Retailing, marketing and consumption
 Competition from imports of cheap milk and milk
products
 Cheaper milk substitut...
 Dairy development in the country
 Policies and regulations – dairy act, regulations,
land tenure
 These policies are t...
THE FUTURE IS BRIGHT
Opportunity 1
 Zimbabwe dairy consumption per capita is
very low
▪ Growing dairy consumption is bigg...
Opportunity 2
 Current demand outstrips local production and
supply
▪ 180,000 tons versus 53,000 tons
21
Opportunity 3
 Population growth
▪ 17 million projected by 2030 versus 13million in
2013
22
Opportunity 4
 Increase in average income & urbanization and
changes in consumption patterns
▪ Demand for animal based pr...
 Industry Organization
1. Synergies through e.g., cooperative milk
collection centres (MCC)
2. All stakeholders need to p...
 Value chain approach (business
development)
1. Private sector investment in dairy
2. Processing milk locally
3. Backward...
 Increase milk yields
1. Yields
▪ per cow, hectare, lactation, year, labour day,
etc.
2. Genetics
3. Environment (managem...
 Production efficiency
1. Minimise losses – spillage, spoilage,
contamination
2. Disease control - particularly
▪ tickbor...
CONTACT THE AUTHOR
Eddington Gororo
Email: gororoeddington@yahoo.com
Mobile: +263 77 3916 375
28
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Future of dairing in zimbabwe

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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.

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Future of dairing in zimbabwe

  1. 1. Gororo Eddington
  2. 2. 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? 2
  3. 3. 1. Dairy industry overview 2. Opportunities 3. Challenges 4. The future 3
  4. 4. 4
  5. 5. 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 23,000 5
  6. 6. 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 6
  7. 7.  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 7
  8. 8.  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 8
  9. 9.  34 registered processors  Capacity = 400 million litres per annum.  Major processors:  Dairibord Zimbabwe Ltd  Dendairy  NestleZimbabwe  Kershelmar  Kefalos  Alpha-Omega Dairies,  Dorkin Dairies  Clavelshay Dairy  Forward and backward integration 9
  10. 10.  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 10
  11. 11.  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 11
  12. 12.  Packaging  Plastic bottles  plastic satchets  PVC cups  cartons 12
  13. 13.  Input supply  Shortage of key raw materials  Stockfeed pricing and availability  GMO policy 13
  14. 14.  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 14
  15. 15.  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 15
  16. 16.  Collection and distribution  Distance to processing plants  Infrastructure: poor road networks and cold chain  Smaller milk volumes  Famers are scattered 16
  17. 17.  Processing  Low volumes (capacity utilization)  Shortage of key skills ▪ dairy science and technology ▪ pasture research, agronomy and development ▪ breeding science  Capitalization 17
  18. 18.  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 18
  19. 19.  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 19
  20. 20. 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 20
  21. 21. Opportunity 2  Current demand outstrips local production and supply ▪ 180,000 tons versus 53,000 tons 21
  22. 22. Opportunity 3  Population growth ▪ 17 million projected by 2030 versus 13million in 2013 22
  23. 23. Opportunity 4  Increase in average income & urbanization and changes in consumption patterns ▪ Demand for animal based protein sources will increase ▪ eggs ▪ meats ▪ milk 23
  24. 24.  Industry Organization 1. 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 24
  25. 25.  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) 25
  26. 26.  Increase milk yields 1. Yields ▪ per cow, hectare, lactation, year, labour day, etc. 2. Genetics 3. Environment (management) 4. Sustainable intensification 26
  27. 27.  Production efficiency 1. Minimise losses – spillage, spoilage, contamination 2. Disease control - particularly ▪ tickborne, ▪ mastitis and ▪ reproductive diseases) 3. Nutrition and feeding 27
  28. 28. CONTACT THE AUTHOR Eddington Gororo Email: gororoeddington@yahoo.com Mobile: +263 77 3916 375 28

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