Zim milk production drops 4%

RUTENDO RORI

Zimbabwe’s annual raw milk production declined by 4% to 76.6m litres in 2020 from 79.6 litres produced in prior year, largely due to a plethora of challenges including high production costs, a Ministry of Lands, Agriculture, Fisheries Water and Rural Resettlement report has shown.

Milk production in the country has been declining due to successive drought that stifled the dairy sector in the past few years.

The downward trend appears to be continuing this year.

Average milk production in the first three months of this year was 5.94m litres, which was 7% lower than what the sector reported in the same period last year.

The decrease is attributed to incessant rains and general unavailability and high cost of feed.  

Zimbabwe requires about 120m litres of milk annually.

Zimbabwe’s total herd stands at 39,000 with 19,000 milking cows.

However, Zimbabwe requires 35,000 dairy cows for them to meet the national milk target.

Average production per cow per day was 13 litres against a target of 18 litres.

The smallholder dairy sector still contributes about 4% to national milk production.

The decrease in milk production has seen some major supermarkets across the country without fresh milk.

Only, a few retail outlets have locally produced fresh milk and some imported brands from South Africa.

Due to the challenging operating environment, the country’s largest milk processor, Dairibord Holdings Limited, reported a loss of ZWL$76.6m during the year to December 31 2020, from a profit of ZWL$671.5m delivered in prior year.

Its operating costs grew by 10% compared to 2019 owing to foreign currency exchange rate movements, imports, utilities costs, repair and maintenance. An operating profit margin of 4% was attained down from 8% in prior year.

Sales volumes were 12.5% below 2019. The performance was particularly affected by a lacklustre outturn in the second quarter in which volumes dropped by 48% on year on year due to Covid-19 restrictions that impacted trading hours and sales channels.

Dairibord board chairman, Josphat Sachikonye said the operating environment was challenging.

He said the liquid milks category declined by 9% due to the decline in raw milk intake and supply constraints in the importation of milk powders.

The decrease in raw milk intake was as a result of stock feed prices due to its shortages culminating from droughts in proceeding years.