Zimbabwe: Dairy Sector Surpasses Nds1 Target, Herd Reaches 65 660k

29 January 2025

The dairy sector has leap-frogged the National Development Strategy 1 (NDS1) target of a 30 000-herd by 2025 by a whopping 119 percent to 65 660, thanks to Government's collaborative efforts with the private sector.

Running from January 1, 2021 to December 31 in 2025, the NDS1 sought to increase the dairy herd from 16 000 to 30 000 by 2025. It also sought to increase raw milk production from 70 million litres to 130 by 2025.

To improve performance of the dairy value chain, NDS1 set the following key performance indicators: increase the dairy herd from the current level of 16 000 to 30 000 by 2025, increase production of raw milk from the current level of 70 million litres to 130 million by 2025, and increase raw milk uptake by processing companies from the current 70 million litres to 130 million by 2025.

The NDS1 went on to set the following strategies to improve performance of the dairy value chain - continued implementation of the Dairy Revitalisation Programme to increase the milk herd funded by a voluntary levy on cheese and butter imports, manage the import of milk powder and promote local raw milk production, and support upgrading and modernisation programme for existing firms.

"Challenges being faced manifest in the form of low milk volumes and lack of viability. At farmer level, the most significant constraints include lack of proper dairy breeds, failure to access and afford stock feed, poor access to markets and related infrastructure and limited access to investment funds," read the NDS1 blueprint.

Statistics released by the Dairy Services Unit (DSU) recently showed that the dairy herd now stands at 65 660, a 119 percent rise from the 2025 target of 30 000.

Raw milk production has been on an increase from 70 million litres to 115 million litres last year with production in 2025 expected to reach 132 million litres, thereby surpassing the 130 million target.

Source: DSU

In response to benchmark set for the dairy industry in NDS1, Finance, Economic Development and Investment Promotion Minister, Professor Mthuli Ncube put into motion mechanisms to revive the industry in the 2022 and 2023 national budgets.

In the 2022 budget Prof Ncube, mindful of the need to revitalise the local dairy industry, introduced a five percent levy on the value of imported dairy products to re-capitalise the Dairy Revitalisation Fund (DRF).

In the 2023 budget Prof Ncube said there was need to gradually substitute imports through increased local production, coupled with a simultaneous increase in the uptake of raw milk by processing companies from 70 million litres to 130 per annum by 2025.

"It has, however, been observed that there is a reduction in the uptake of locally produced raw milk, as well as limited support to local dairy farmers in preference to imported milk powder.

"In view of the above, I propose to gradually reduce ring-fenced milk powder imports under suspension of duty," he said.

Government gradually reduced on a sliding scale ring-fenced duty-free milk powder and cheese imports starting at 75 percent in 2023 to 50 percent in 2024 and then to 25 percent in 2025.

The implementation of these fiscal measures is beginning to bear fruit, as milk product imports dropped 16 percent from US$37 million in 2021 to US$31 million in 2022. It has declined a further 15 percent to US$27 million in 2023 with statistics for 2024 still to come out.

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