Online Reporter
Zimpapers Business Hub
DAIRY farmers are pleading for assistance in accessing long-term capital to establish large-scale irrigated pastures, as the dairy sector moves to lower production costs and boost milk production in the country.
Large-scale irrigated pastures have several benefits for Zimbabwe’s dairy industry, including boosting milk output and helping the country meet its domestic requirements for the commodity, which would cut imports and promote job creation.
Irrigated pastures would also enable dairy farmers to maintain a stable supply of feed for their cows, reducing reliance on imported ones, which are expensive.
As such, the dairy farmers have implored the Government and local financial institutions to put in place tailor-made long-term financing facilities for the establishment of irrigated pastures. This will improve the sustainability of dairy farming in Zimbabwe.
Zimbabwe Association of Dairy Farmers (ZADF) chairperson Mr Edward Warambwa said operating costs and the lack of long-term capital were stifling dairy operations in the country.
“High operating costs and lack of access to long-term capital are limiting the dairy sector’s growth as we would want to produce competitive milk. For instance, we would want to establish irrigated pastures to reduce production costs. But at the moment, our financiers do not have long-term loans for us,” he said.
“We are trying by all means to find money or to explain to our banks so that we can be funded to do this and reduce our production costs by going the pasture way. Some farmers, at the moment, are growing lucerne on a small acreage given the funding constraints associated with establishing such projects.”
Zimbabwe has seen a significant increase in milk production in recent years, targeting to reach 150 million litres by 2025, with consumption now at 130 million litres.
The country is progressively moving towards self-sufficiency, with imports of milk powder declining as production rises.
Dairy farmers are presently constrained by limited access to affordable long-term credit, which affects their ability to invest in their farms and improve their operations. The high cost of feed, in particular, makes it difficult for farmers to afford the necessary nutrients for optimal milk production, with feed costs accounting for 65-75 percent of total expenses, which makes it challenging for farmers to maintain profitability.
The costs can significantly decline if substituted with irrigated pastures. As it stands, Zimbabwe’s milk production reached 114,7 million litres in 2024, a 15 percent increase from the previous year, but still fell short of the national demand of 120 million litres-40 million litres per year.
This shortfall highlights the need for innovative solutions to enhance milk production and reduce reliance on imports.
Climate change has also negatively affected milk production, with the El Niño-induced drought in the 2023/2024 growing season causing pasture shortages, highlighting the need for the development of large-scale irrigated pastures, which can transform Zimbabwe’s dairy industry, making it more sustainable, productive and profitable.
With the right investment and support, dairy farmers in Zimbabwe can unlock new opportunities for growth, ultimately contributing to the country’s economic prosperity.
These developments come as the Government has acknowledged the challenges faced by dairy farmers, including value-added tax regulations, multiple levies and high operating costs.
In response, it has reaffirmed its commitment to recapitalise the Dairy Revitalisation Fund through the five percent levy on imported dairy products.
Addressing participants at the ZADF 11th annual general meeting in Beatrice recently, Lands, Agriculture, Fisheries, Water and Rural Development Deputy Minister Davis Marapira said:
“These initiatives demonstrate the Government’s commitment to the dairy sector and its willingness to work with stakeholders to address existing challenges.
“By working together with stakeholders, the Government hopes to overcome the existing challenges and unlock the sector’s full potential.”
ZADF has been implementing several key initiatives to boost milk production and ensure the sustainability of the dairy industry.
One of them is a nationwide artificial insemination programme aimed at increasing the dairy herd size and improving milk production.
To make the programme more accessible, ZADF offers subsidised semen to farmers, enabling them to access high-quality dairy genetics at a more affordable cost.
Additionally, the association is working closely with the Government to implement drought-mitigating strategies that will help protect the dairy industry from the impacts of climate change and ensure its long-term sustainability.
These initiatives demonstrate ZADF’s commitment to supporting dairy farmers and promoting the growth and development of the dairy industry in Zimbabwe.
