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Edgar Vhera, Agriculture Specialist Writer
THE Government’s import substitution drive coupled with increased local raw milk production has seen imports of dairy products dropping by 23 percent from US$27 million in 2023 to US$20 million last year.
Statistics from Zimbabwe National Statistics Agency (ZimStats) show that dairy product imports declined from US$26 590 726 in 2023 to US$20 400 815 in 2024.
In volume terms, dairy products import dropped seven percent from 7 270 603 to 6 736 637 kilogrammes.
The imports include milk, cream, yoghurt, buttermilk, ice cream, whey, butter and cheese, among other products.
Figures released by the Dairy Services Unit (DSU) also show that raw milk production increased by 15 percent from 99 821 752 litres in 2023 to 114 699 440 litres last year.
Presenting the 2023 national budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube said: “In order to augment local production, and also cognisant of the need to provide the local industry ample time to invest in the necessary infrastructure and dairy herd, Government has over the years, suspended duty on imported milk powder.
“Furthermore, in order to enhance self-sufficiency in milk production, Government, with effect from January 2022, introduced a levy of five percent on the value of imported dairy products. The funds are ring-fenced towards re-capitalising the Dairy Revitalisation Fund, which is targeted at growth and development of the dairy sector by increasing the national dairy herd, as well as enhancing competitiveness of the sector.”
He said as a favour to the duty reprieve, dairy processors are expected to increase support to out-grower schemes, with a view to build the stock of dairy herd towards self-sufficiency in raw milk production.
Prof Ncube said in line with the objectives of National Development Strategy 1 (NDS1), there was need to gradually substitute imports through increased production, coupled with a simultaneous increase in the uptake of raw milk by processing companies from 70 million litres to 130 million per annum by 2025.
The Government then gradually reduced ring-fenced milk powder imports through suspension of duty as follows:
The effects of these fiscal measures are bearing fruit as milk product imports dropped 16 percent from US$37 million in 2021 to US$31 million in 2022. In 2023 they declined by 15 percent to US$27 million and continued on the downward trajectory to the current 23 percent plunge in 2024.
The country’s dairy sector is expected to be milk self-sufficient from local production, as stakeholders target a 15 percent increase in raw milk output from 115 million litres last year to 132 million this year.
The nation requires 131 million litres of milk for self-sufficiency and is currently 16 million litres shy of achieving the goal.
Zimbabwe Association of Dairy Farmers (ZADF) national chairman, Mr Edward Warambwa, said milk production, which is continuing on an upward trend, which shows that the target can be achieved this year.
“The target is to grow by 15 percent from last year’s output to achieve 132 million litres, which is enough to meet our national annual milk requirement,” he said.
Mr Warambwa said ZADF in collaboration with development partners, Government and private sector had launched the breeding strategy to help independent dairy breeders improve dairy genetics and herd growth.
The country’s self-sufficiency goal appears likely this year, thanks to the good rains across the country, imports and distribution of dairy cattle with improved genetics, enhanced forages for animal nutrition, and improved animal breeding through artificial insemination, among other factors.
Online Reporter