Cost efficiency key to unlocking dairy sector growth: Mutsvairo

ROBIN PHIRI

Zimbabwe’s dairy sector must urgently embrace cost-efficiency measures to unlock growth, stay competitive, and meet the national annual milk consumption requirement of 765 million litres, the Zimbabwe Dairy Industry Trust (ZDIT) chairman, Themba Mutsvairo, has said.

He emphasized that the sector’s sustainability hinges largely on addressing high production costs—particularly the soaring price of stock feed, which accounts for between 70% and 80% of overall production costs.

“The current milk production at primary, farm level is not adequate for our nation. This indicates a pressing need to boost domestic output and enhance efficiencies,” Mutsvairo said in an interview with Business Times.

He urged a strategic shift in how Zimbabwe approaches dairy production and consumption, stating, “Given the crucial role of milk and dairy products in food and nutrition security, we need a paradigm shift in Zimbabwe when we talk of milk consumption caps.”

While the dairy industry recorded a 14.9% increase in milk production last year—reaching 114.7 million litres—this remains far below the required 765 million litres needed annually to meet the nutritional needs of Zimbabwe’s estimated 17 million citizens.

Mutsvairo called for a move away from merely targeting higher aggregate production to a more people-centric approach.

“The focus should be on increasing milk consumption per capita, rather than just producing more milk,” he said, pointing to World Health Organization (WHO) guidelines which recommend an average milk consumption of 45 litres per person per year in upper-middle-income countries like Zimbabwe.

“This will not only improve nutrition but also create a sustainable market for our dairy products—if the milk is affordable to many,” he added.

Mutsvairo warned that the sector’s high cost structure could render it uncompetitive in the face of cheaper imported dairy products flooding local markets.

“We are buying milk at the highest price compared to regional parity. However, if we put our act together and deal with the elephant in the room—which is the cost of feed—we will be able to produce milk competitively,” he said.

He cautioned that with the African Continental Free Trade Area (AfCFTA) implementation on the horizon, Zimbabwe’s dairy industry could be overwhelmed by lower-priced imports unless immediate reforms are made.

“One thing we should be asking ourselves as the dairy value chain is: are we ready for regional competition under AfCFTA?” he asked.

Mutsvairo also called for collective action and collaboration among all stakeholders in the dairy value chain—from farmers to processors and policymakers.

“We know the challenges, and we must work together as a value chain to find solutions. By prioritizing cost-effectiveness, Zimbabwe’s dairy sector can unlock its growth potential and remain competitive in the regional market,” he said.

Echoing Mutsvairo’s sentiments, Deputy Minister of Lands, Agriculture, Fisheries and Rural Development, Davis Marapira, acknowledged the growing concerns over ballooning production costs, particularly energy costs and outdated infrastructure.

“The cost of production is indeed skyrocketing. Farmers have raised red flags about electricity shortages. But today, solar is very cheap. No one wants to invest US$200,000 in solar to be off-grid or even partly off-grid,” Marapira said.

He criticized the reluctance of some stakeholders to reinvest in cost-saving technologies.

“If we don’t want to invest, where do we want to put our money? The whole idea of making money is either to cut costs or grow the money by investing it,” the deputy minister said.

He also took issue with the state of dairy infrastructure, especially among processors.

“We are only producing 120 million litres this year. What are we doing as farmers? We’re using outdated equipment. Some processors are using equipment as old as 100 years ago. We have to be innovative and modernize our systems,” Marapira said.

To this end, the ministry has been engaging the European Union to support affordable mechanization through single-digit interest loans. The aim is to lower capital costs and stimulate investment in modern farming technologies.

Meanwhile, the Zimbabwe Dairy Industry Trust continues to work closely with players across the dairy value chain to tackle longstanding challenges and drive the sector’s competitiveness.

The Trust has rolled out multiple initiatives—including farmer training programs focused on productivity and cost-efficiency—designed to strengthen sector-wide performance.