Zimbabwe surpasses NDS1 herd growth target, achieving 65,660 cattle

ZIMBABWE – The dairy sector in Zimbabwe has surpassed the National Development Strategy 1 (NDS1) target for herd growth, reaching 65,660 cattle, a 119 percent increase from the initial goal of 30,000 by 2025. 

According to Dairy Services Unit (DSU) reports, the growth has been attributed to collaborative efforts between the government and the private sector in boosting dairy farming.

NDS1, which runs from January 1, 2021, to December 31, 2025, aimed to increase the national dairy herd from 16,000 to 30,000 and raise raw milk production from 70 million litres to 130 million liters.. 

The DSU reported that milk production has been steadily increasing, reaching 115 million litres last year, with projections indicating that production will hit 132 million litres by 2025, surpassing the set target.

Efforts to enhance the performance of the dairy value chain have been guided by key strategies, including the Dairy Revitalisation Programme, which has been funded by a voluntary levy on cheese and butter imports. 

The programme has facilitated herd expansion and provided support for upgrading and modernising dairy processing firms. 

Additional measures have included managing milk powder imports to promote local raw milk production and ensuring increased raw milk uptake by processing companies.

A report by the DSU indicated that despite the sector’s success, challenges such as low milk volumes and viability concerns remain. 

Farmers continue to face constraints, including limited access to quality dairy breeds, difficulties in affording stock feed, poor market access, and inadequate investment funding. 

These challenges have necessitated government interventions through fiscal policies aimed at sustaining the industry’s momentum.

In response to the NDS1 targets, Finance, Economic Development, and Investment Promotion Minister, Professor Mthuli Ncube, introduced financial mechanisms in the 2022 and 2023 national budgets to support the dairy industry.

In 2022, a 5% levy was imposed on imported dairy products to recapitalise the Dairy Revitalisation Fund. 

The 2023 budget further reinforced the need to substitute dairy imports by promoting local production and increasing raw milk uptake by processing companies.

According to the Minister, a reduction in the uptake of locally produced raw milk had been observed, along with limited support for local dairy farmers due to preference for imported milk powder. 

To address this, the government implemented a gradual reduction of duty-free milk powder and cheese imports on a sliding scale, starting at 75% in 2023, reducing to 50% in 2024, and further dropping to 25 percent in 2025.

The implementation of these fiscal policies has begun to yield results, with milk product imports declining by 16% from US$37 million in 2021 to US$31 million in 2022. 

A further decline of 15 percent was recorded in 2023, bringing the figure down to US$27 million.

Statistics for 2024 are yet to be released, but early indications suggest a continued downward trend in dairy imports as local production expands.