Livestock sector vital cog in national economy

The livestock sector plays a crucial role in Zimbabwe’s agricultural economy, significantly contributing to food security, employment and rural livelihoods.

With vast grazing land, a favourable climate, and increasing demand for animal products, this sector offers tremendous potential for economic growth and development.

Zimbabwe’s livestock sector includes cattle, poultry, goats, sheep, pigs, and emerging livestock such as rabbits and fish farming.

Cattle production, particularly beef and dairy farming, serves as the dominant enterprise, with communal farmers owning the majority of the national herd.

The poultry industry has witnessed substantial growth, driven by small- and large-scale producers catering to domestic demand.

Livestock farming, long seen as a traditional and under-industrialised sector has vast potential of becoming the driving force behind a deep economic transformation. The industrialisation journey extends beyond meat production alone.

It drives an entire local economy, spanning from the upstream agricultural sector for animal feed to the downstream supply of various nearby businesses, while fostering the development of leather industries, animal by-products and logistics services, particularly to ensure compliance with the cold chain.

It also strengthens the resilience of livestock farmers by providing them with more profitable market opportunities and better protection against market volatility.

During the recent inaugural Zimbabwe International Trade Fair (ZITF) Livestock conference in Bulawayo, it was noted that the livestock sector is vital to Zimbabwe’s economy, supporting 70 percent of rural households and playing a crucial role in food security and employment.

For instance, in Bulawayo it was noted that the sector’s value chain supports close to 30 000 households through providing employment and industry suppliers.

Acting Permanent Secretary for Bulawayo Metropolitan Province Mr Morres Cholasa Mbewe said the livestock sector creates a ripple effect throughout the local economy benefiting the suppliers and various related industries.

“The city of Bulawayo is a crucial hub of livestock framework and processes. The livestock sector in Bulawayo supports over 30 000 households, providing employment and income for many in our community.

“This not only enhances the livelihoods of those who live on farming but also creates a ripple effect throughout the local economy, benefiting the suppliers and various related industries,” he told delegates.

The conference, held under the theme, “Transforming Livestock Futures: Strategies for Resilience and Prosperity” was an opportunity for policymakers, industry players, financiers, farmers and innovators to chart a new course of action to establish and sustain a resilient and sustainable livestock industry.

The Government has set a target of growing the sector to a value of US$3,4 billion this year. However, the livestock sector has been urged to capitalise on the global meat market, which is projected to reach US$1,3 trillion by 2027, by aggressively re-entering the export market. During its peak in the 1990s, the state-owned Cold Storage Commission (now Cold Storage Company, CSC) was a major beef exporter to the European Union (EU), exporting 9 100 tonnes annually and earning US$45 million.

However, exports were suspended in August 2001 due to a foot-and-mouth disease outbreak, causing a major financial setback for the CSC.

Professor Obert Jiri, Permanent Secretary in the Ministry of Lands, Agriculture, Fisheries, Water, and Rural Development told delegates that with the global meat market expected to reach US$1,3 trillion by 2027, there lies a significant opportunity for countries such as Zimbabwe to enhance exports and value addition. He stressed that the sector should move forward regardless of CSC’s status.

“If CSC comes, thank God. If it continues the way it is, thank God again. But we must re-enter the export market in a big way. We must reduce the cost of production and other challenges that hinder the sector.”

Professor Jiri underscored that livestock is not just an economic asset but a crucial part of rural livelihoods, food security, and cultural identity.

In 2021, the Ministry launched the Livestock Growth Plan (LGP) as part of the Agriculture Food Systems and Rural Transformation Strategy (AFSRTS).

The plan aims to establish a US$2 billion livestock economy by 2025, focusing on animal health, animal nutrition and animal genetics.

Professor Jiri told delegates that financing growth is essential for realising the sector’s full potential, but access to finance remains a major challenge for farmers.

“Therefore, we must advocate for innovative financial solutions that specifically address the unique challenges of livestock production. This includes creating targeted credit facilities, cultivating public-private partnerships, establishing insurance schemes, and expanding microfinance options. These strategies will empower farmers to invest in improved practices and technologies,” he said. He noted that the livestock value chain offers significant opportunities, from production to processing and marketing.

“Enhancing value and increasing income potential is vital. Through capacity building, value addition, and maintaining high standards of quality and safety for livestock products, we can create market-driven opportunities that benefit individual farmers and bolster our national economy,” he said. Agriculture, Lands, and Rural Resettlement Deputy Minister Davis Marapira urged the livestock sector to scale up production and make a meaningful contribution to the national gross domestic product (GDP).

Dep Min Marapira stressed the need to boost the national herd, which currently stands at 5,7 million, to be competitive under the Africa Continental Free Trade Area (AFCFTA).

The AfCFTA unites African Union Member States, creating a market of 1,3 billion people with a GDP of US$3,4 trillion.

This initiative aims to boost economic growth, generate jobs, enhance intra-African trade, reduce dependence on external markets, and promote regional integration.

He noted the sector’s crucial role in sustaining rural livelihoods but stressed the need for significant growth.

“Current figures are not contributing to the economy. There is no growth in the livestock sector. We need farmers to bring growth so there is a contribution to the GDP. We have about 5,7 million cattle while Tanzania has around 32 million and Kenya over 25 million. Yet, we are still talking about 5,7 million. There is no growth.”

To boost the national herd, the Government is leading an artificial insemination programme for rural farmers, promoting cross-breeding with quality bulls.

Mr McDonald Mlotshwa, a livestock expert, noted that key opportunities for Zimbabwe’s livestock sector under the AfCFTA include increased market access, boosted exports, and enhanced value addition, as it creates a single market of 1,3 billion people with a combined GDP of over US$3,4 trillion.

Reduction of trade barriers and elimination of tariffs on 90 percent of goods under AfCFTA will make Zimbabwean livestock products more competitive and simplified customs procedures could reduce export costs and delays.

Added to that, for Zimbabwe, AfCFTA could attract investment in feed production, veterinary services and cold chain logistics to meet regional demand, he noted.

Partnerships with other African nations could improve genetics, breeding, and disease control such as combating foot-and-mouth disease.

“If Zimbabwe addresses production and export challenges, the livestock sector could significantly benefit from AfCFTA by expanding trade, attracting investment and increasing employment in agro-processing.

“Success will depend on policy consistency, infrastructure development and compliance with regional standards,” said Mr Mlotshwa.

Participants noted several challenges that persist in livestock marketing, including low cattle prices and regulatory burdens, but efforts are being made to ease compliance costs.

The issue of the “fifth quarter” (by-products like hides and offals) remains a contentious topic, with calls for fair compensation for farmers.

It was noted that expanding access to export markets is crucial for reducing local market saturation and improving profitability. Collaboration between Government, financial institutions, and private sector players was said to be essential for sustainable growth. Farmers were urged to move up the value chain by investing in processing facilities and cooperative-owned abattoirs.

Digital innovations such as blockchain, smart contracts, and virtual livestock auctions can enhance market access and transparency.

Added to that, public-private partnerships should focus on financing, training programmes, and policy frameworks to strengthen Zimbabwe’s livestock sector.

By embracing new technologies and strategic partnerships, Zimbabwe can position itself as a leader in sustainable livestock farming.