Zimbabwe: Dairy industry under threat

Published 2024년 5월 10일

Tridge summary

The Zimbabwean dairy industry is facing a sustainability crisis due to high operating costs, which account for 70% of total expenses and are primarily driven by feed stock, labor, and power costs. These high production costs have made local dairy products uncompetitive, leading to the import of cheap dairy products from neighboring countries, especially South Africa. The cost of milk production in Zimbabwe is significantly higher than in other regional countries, averaging US$0.60 per litre compared to the regional average of US$0.40-0.50 per litre. In an effort to improve milk production and competitiveness, the Zimbabwe Association of Dairy Farmers (ZADF) has launched a nationwide artificial insemination initiative in collaboration with development partners like We Effect. Despite the challenges posed by the El Niño-induced drought, Zimbabwe experienced a 9% increase in milk production in 2023 and a 21% increase in the first quarter of 2024 compared to the previous year.

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Original content

Source: Dairy industry under threat -Newsday Zimbabwe RISING costs, which are accounting for 70% of total expenses, are threatening the sustainability of Zimbabwe’s dairy industry, NewsDay Business has learnt. The cost of feed stock largely accounts for total expenses. Zimbabwe Association of Dairy Farmers (ZADF) chief executive officer, Paidamoyo Chadoka said local dairy products were uncompetitive due high production costs, which has resulted in cheap dairy products from neighbouring countries, particularly South Africa, flooding the market. “Zimbabwe lacks competitiveness due to the unsustainably high cost of production compared to regional counterparts,” she said. “Our cost of production is mainly driven by stock feeds costs, labour and cost of power, critical components which are too high when compared to other countries. “The producer price of milk per litre in Zimbabwe averages US$0,60 compared with an average price of US$0,40 per litre in South Africa, US$0,36 in Zambia, ...

Source: Zimbabwesituation