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Oliver Kazunga-Senior Business Reporter
The Livestock and Meat Advisory Council (LMAC) is actively engaged in discussions with Government to mobilise funding to bolster the growth and development of Zimbabwe’s livestock sector, an official has said.
According to the council, the sector has the potential to significantly contribute to the country’s economy, with an estimated annual export capacity of 15 000 tonnes of beef to the Middle East and other markets.
During its peak in the 1990s, Zimbabwe, through the State-owned Cold Storage Commission (now Cold Storage Company), was a major exporter of beef to the European Union, annually shipping 9 100 tonnes and earning the country US$45 million.
Zimbabwe’s beef exports to the EU were suspended in August 2001 due to an outbreak of foot-and-mouth disease, resulting in a significant financial setback for the CSC.
Speaking at the 12th Annual National Agri-business Conference held during the ongoing Zimbabwe Agricultural Show this week, LMAC chief executive Dr Reneth Mano said a market survey conducted by ZimTrade revealed the Middle East as a lucrative and relatively untapped market for Zimbabwe’s livestock sector.
Dr Mano observed that while the Government had focused on financing crop production since 2010, it was now imperative to shift attention towards supporting livestock production to facilitate the sector’s development and growth.
“We work hand in hand with the Government and we have been advocating for a much more comprehensive financing mechanism on the livestock side similar and parallel with the crop production side,” said Dr Mano.
“A properly structured facility for the livestock sector with (the involvement of the farmers across) the value chain, we will have a very good chance of transforming the livestock sector and really anchoring the sector for growth in the export space.
“We have a lot of scope and opportunity that we have learnt from ZimTrade that opportunity exists in the Middle East and far beyond.
“In other words, we do have the capital already invested in the (cattle) feedlots to export almost 15 000 tonnes of beef just from the current super and choice grade carcasses that we are producing from our 5,4 million herd.”
In 2020, the Government approved the Livestock Recovery and Growth Plan (2021-2026), aimed at implementing effective interventions to address livestock production and productivity challenges meant to position the industry as a key driver of economic transformation.
The Government anticipates the livestock industry to reach a value of US$3,4 billion next year, following significant strides in improving productivity and combating cattle mortality after the outbreak of tick-borne diseases that affected nearly half a million cattle since 2016.
In 2021, the livestock industry was valued at US$1,1 billion and experienced a 36 percent growth to US$1,5 billion last year.
Dr Mano observed that while neighboring countries like Zambia, Botswana, and Mozambique were exporting beef, Zimbabwe was yet capitalise on its own livestock sector’s potential requiring a well-structured financing arrangement.
He noted the crucial role of Zimbabwe’s livestock production system in uplifting the livelihoods of citizens in rural areas.
“We propose a properly structured livestock co-finance facility from the banks and the Government,” said Dr Mano.
“We believe that the livestock industry by its very nature, any financing of growth and development particularly focusing on multiplication of heifers; and making sure that we have adequate capacity to breed enough animals, there is a very little chance of any defaults.”
When asked about the capital requirements for the planned livestock facility, Dr Mano said discussions were ongoing and it was premature to speculate on the exact amount.
However, he said the industry and the Ministry of Lands, Agriculture, Fisheries, Water and Rural Development would collaborate with stakeholder to determine a reasonable facility size that aligns with the initial export order.
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