Zimbabwe’s dairy farmers await support as US$3.4M levy funds remain unreleased

ZIMBABWE – Zimbabwe’s dairy farmers are facing financial difficulties due to delays in the release of funds from a statutory levy intended for dairy sector revitalization.

The Zimbabwean government has not released over US$3.4 million collected from a 5% dairy import levy, which is crucial for smallholder dairy farmers.

This levy, introduced in 2022 and enacted in January 2023, aims to support local milk production, financing the importation of superior dairy heifers and semen, and reducing reliance on foreign imports.

Since its implementation, Zimbabwe has imported US$67.9 million worth of dairy products, generating around US$3.395 million for the Dairy Revitalisation Fund (DRF). However, farmers report no financial aid yet, hindering their ability to improve herds and expand operations.

Deputy Agriculture Minister Davis Marapira confirmed ongoing discussions with the Treasury to expedite the release of funds, ensuring that dairy farmers benefit from the levy.

The Livestock and Meat Advisory Council’s executive administrator, Reneth Mano, expressed that the disbursement is overdue and expects it to facilitate the smallholder dairy revitalisation programme by the fiscal year’s second half of 2025.

The fund aims to enhance Zimbabwe’s dairy competitiveness, aiding farmers in improving the genetics of their herds and feeding practices to lower production costs. Despite these challenges, the objective remains to align local producer prices with regional standards.

Zimbabwe targets quadrupling dairy output to meet 2030 demand

 The delay comes as Zimbabwe is positioning its dairy industry as a critical contributor to the nation’s Vision 2030 agenda, with an ambitious goal of producing 480 million litres of milk annually.

This goal, aimed at reducing dependency on imports, also seeks to harness growing regional demand for dairy products and bolster trade opportunities within Africa.

According to the Livestock Meat and Advisory Council (LMAC), Zimbabwe will need to increase its population of lactating cows to 100,000 to meet these production targets.

LMAC executive administrator, Dr. Reneth Mano, highlighted the trade potential of this expansion.

“As the country targets upper-middle-income status by 2030, the need for raw milk and value-added dairy products will expand. This creates significant trade opportunities for exports in the region, where dairy consumption is also on the rise,” he said.

Currently, Zimbabwe produces approximately 115 million litres of raw milk annually, falling short of the self-sufficiency target.

Domestic milk consumption remains below the World Health Organization’s (WHO) recommended level for low-to-middle-income countries, with per capita consumption under 10 litres annually against the WHO’s benchmark of 45 litres.

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