The next big thing in agribusiness investment in Zimbabwe is– Dairy Let us explore more details here
The Zimbabwean dairy industry has been massively underperforming, as evidenced by a reduction in milk yield from 262 million litres in 1990 to <37 million litres in 2009 and a steady but slow increase to 82 million litres in 2021. The current demand for milk in Zimbabwe stands at 130 million litres, and there is a national capacity for processing 400 million litres per annum as of 2023
The Zimbabwe Sunday News recently reported that the current milk production capacity of that country was just 70 million litres per year compared with an annual demand of 120 million litres, leaving a deficit of 50 million litres.
The Zimbabwean deputy minister of Lands, Agriculture, Fisheries, Water and Rural Development, Vangelis Haritatos, said in the article that about 2 000 small-scale farmers were set to benefit from the government’s plans as part of the Presidential Input Scheme.
This scheme was aimed at addressing the under-performance of the dairy value chain in Zimbabwe by strengthening the linkages between production, processing and financing, he said.
The support programme to assist dairy farmers included a silage input scheme, mainly for small-scale dairy farmers; an enhanced agriculture productivity silage scheme for medium- and large-scale producers; as well as investment in modern technologies.
Apart from technical support, the government would also be paving the way for farmers to access loans to invest in the milk production value chain.
“Zimbabwe had a dairy herd of 123 000 cows in 1990, and at one point [dairy farmers] produced more than 260 million liters of milk annually, but production declined over hothe years, with an estimated 38 000 dairy cows left,” Haritatos said.
According to the International Farm Comparison Network Dairy Report for 2021, Zimbabwe ranked 136th in the world in terms of milk production, which was being produced on 220 farms across the country.
Research results published by Research Gate showed that, at farm level, low milk yields and calving rates, late age at first calving, and long inter-calving periods prevailed on Zimbabwean dairy farms.
These factors were directly linked to nutritional aspects, the use of inappropriate breeds, poor farm management, limited disease control, and poor extension services.
An independent agricultural economist has since said that Zimbabwe had exported milk and milk products to South Africa in the 1980s meaning there is still big opportunity to get back to the better old days
Among possible and tried and tested ways in which farmers can get the best of their farms is through land use and management planning, with this enterprise business strategy farmers get to know exactly their farm potential and the best possible way to explore ways of sustainable and profitable growth,
Going for growth is inevitable when farmers understand and utilise their farms effectively
Would you be so much interested in going for growth with land use and management planning? Let me know in the comment section and we will share with you ways in which you can capitalise on the potential.
When agribusiness matters, the best investment should consider the time value of money and the return to be expected and best described as ROI
afrostain land use and management planning
