tawandamusarurwa
Business Reporter
THE dairy industry expects milk processors to increase capacity utilisation to 70 percent this year, up from 60 percent last year, as investments in the sector continue to grow.
Approximately US$20 million worth of investments were injected across the dairy value chain in 2022, with 60 percent channelled towards improving efficiency and capacity at the processing level, which includes the manufacture of cream, dairy beverages, fermented milk, ice cream and yoghurt, among many milk products.
As such, capacity utilisation grew from as low as 40 percent in 2020 to an average of 60 percent in 2022, according to the Dairy Processors Association of Zimbabwe (DPAZ).
Milk production has been progressively increasing from 76,7 million litres in 2020, 79,6 million litres in 2021 to 91,4 million litres last year.
Local processing capacity stands at 400 million litres per annum.
Zimbabwe is, ultimately, angling for self-sufficiency.
To meet national demand, the sector needs to produce at least 131 million litres per annum.
More than US$20 million is being used to import milk every year.
Only 3 percent of powdered milk is produced locally.
The National Development Strategy 1 (NDS 1), Government’s economic blueprint, targets to grow total milk production to 103 million litres this year, with productivity per cow projected to reach 16 litres per day from the current 15 litres.
The dairy herd is expected to reach 32 000 from 19 202 in 2020.
Overall, the initiatives are forecast to spur direct and indirect employment of 43 920 people in 2023, from 39 930 in 2020.
DPAZ secretary-general Mrs Tendayi Marecha said local milk production was on a growth trajectory, but there was still need to grow capacity.
“We recorded 14 percent growth in milk production last year. We are so excited because it is indicating we are moving in the right direction in terms of meeting our national requirements.
“I hope we will continue increasing our capacity utilisation, because we were at 40 percent in 2020 and we moved to 60 percent in 2022,” said Mrs Marecha.
She said more investment will be channelled towards propping up small-scale dairy producers.
Many small-scale farmers were failing to meet the cooling standards of 4 degrees Celsius. As such, more investment in cooling systems is needed.
“This year, we will be focusing more on cooling. If we get more cooling and we pick up more milk from smallholder farmers, I am sure we will exceed 103 million litres because there is a lot of milk being produced but not being picked up,” she added.
The sector will continue focusing on the farm level, under the graduation model, where small-scale farmers are groomed into medium scale, then commercial farmers.
Online Reporter