Calls for policy alignment and streamlining in the dairy sector

Judith Phiri,Zimpapers Business Hub

THERE are growing calls for policy alignment and streamlining in the dairy sector as the current regulation, the Dairy Act [Chapter 18:08] does not take into account small and medium dairy farmers who entered into the sector post Land Reform program.

This was revealed in the recently launched Dairy Value Chain Competitiveness Report. The report, launched by the National Competitiveness Commission (NCC) in collaboration with the Zimbabwe Dairy Industry Trust (ZIDT), is meant to enhance industry productivity and competitiveness across all sectors of the economy.

Small and medium dairy farmers in Zimbabwe play a significant role in the country’s milk production, accounting for a substantial portion of the total volume, though the exact percentage varies.

However, two decades after Zimbabwe’s landmark Land Reform program, the country’s Dairy Act [Chapter 18:08] remains frozen in time, failing to accommodate these key players.

Originally crafted for large-scale commercial operations, the decades-old legislation now acts as an invisible barrier, locking out the very farmers playing a crucial role dairy industry.

In a presentation of the report, NCC Director, Mr Brighton Shayanewako said fragmented regulations were contributing between 3 percent to 4.4 percent to the total cost of producing milk.

“These regulations include the Dairy Act [Chapter 18:08] which does not take into account small and medium dairy farmers who entered into the sector post Land Reform program.

“On permits, farmers require an average of 26 permits (fees) from numerous Government Agencies such as Agricultural Marketing Authority (AMA), VET Dairy Services, EMA and local authorities, which collect various fees and lack coordination among regulatory authorities. The fees for disposal of effluent and solid waste is a flat fee of US$800,” he said.

“It is recommended that there is need to amend the Dairy Act to reflect current developments in the sector, such as recognising small to medium dairy farmers. Government should also consider a tier system, which align fees to levels of productivity and pollution.”

Statistics on the dairy industry overview show that there over 1 500 small scale farmers producing over 200 litres per day, 142 medium scale farmers with production capacity of 200 to 500 litres a day while 98 farmers on large scale produce over 500 litres per day.

Mr Shayanewako said for a thriving dairy sector, collaboration between farmers, processors, policymakers, financial institutions and research bodies will be key.