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Zimbabwe Dairy Industry - Tendayi Marecha

Zimbabwe's dairy industry is struggling with low milk production and high demand. Milk production meets only about 50 million liters of the estimated 120 million liters needed annually, forcing Zimbabwe to import milk. While dairy processing plants have excess capacity of 400 million liters, they currently only utilize 45% of capacity. Per capita milk consumption is only 7 liters. The government is trying to increase consumption through marketing campaigns. Zimbabwe has strong SPS regulations and inspection services to support dairy safety and quality, but exports face technical barriers in key markets like Botswana and Zambia due to duties, unclear regulations, and lack of work permits for Zimbabwean vendors. Continued economic recovery is expected to raise disposable incomes and milk demand within

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Phil Da Mcee Jacobs
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89 views8 pages

Zimbabwe Dairy Industry - Tendayi Marecha

Zimbabwe's dairy industry is struggling with low milk production and high demand. Milk production meets only about 50 million liters of the estimated 120 million liters needed annually, forcing Zimbabwe to import milk. While dairy processing plants have excess capacity of 400 million liters, they currently only utilize 45% of capacity. Per capita milk consumption is only 7 liters. The government is trying to increase consumption through marketing campaigns. Zimbabwe has strong SPS regulations and inspection services to support dairy safety and quality, but exports face technical barriers in key markets like Botswana and Zambia due to duties, unclear regulations, and lack of work permits for Zimbabwean vendors. Continued economic recovery is expected to raise disposable incomes and milk demand within

Uploaded by

Phil Da Mcee Jacobs
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Zimbabwe Dairy Industry Case study

By
Tendayi Clementine Marecha
at
SADC Stakeholders Sanitary and
Phytosanitary Awareness Workshop
Pretoria 12-13 September 2013
Milk production and consumption
• Estimated demand is 120 million litres per annum
– current supply of just over 50 million litres
– Zimbabwe a net importer of milk and milk products.
• Country processing capacity in excess of 400 million
litres
• Currently <45% capacity utilisation
• negative impact on unit cost of production with adverse
effects on competitiveness
• Per capita consumption of milk is 7 litres
• efforts to resuscitate the milk drinking culture through
a “Think Milk Drink Milk” campaign spearheaded by
the Zimbabwe Dairy Industry Trust (ZDIT).
SPS strengths for Zimbabwe
• Legislation: this includes Acts and Statutory
Instruments
a. Dairy Act. (Min Of Agric)
b. Food & Food Standards Act (Min of Health)
c. Public Health Act; (Min of Health)
d. Animal Health Act; (Min of Agric)
• Port Health Services: Min of Heath & Min of
Agric
Government Support Services
SPS Strengths for Zimbabwe
• Government support services across the value
chain
• Quality management for input suppliers
• Quality management at farm level
• Quality management at (MCC) milk collection
centre
• Quality management for the Processor
• Quality management in food outlets/
supermarkets
Dairibord Zimbabwe Private Limited
DZPL export primarily to Mozambique, Botswana and are trying to penetrate the
Zambian market.

Botswana: technical barriers to trade


1. Export ice cream sticks which are sold mostly via the vending channel
2. Opportunity to grow the sales is limited due to labour challenges.
- Zimbabweans that are willing to be vendors in Botswana struggle to get
work permits .
- The government requires that locals be employed for these jobs but the
locals are unwilling.
3. 40% duty placed on milk imports affects price competitiveness

Zambia: SPS barriers


1. Since the FMD problem the milk import regulations into Zambia are unclear
2. Although on paper the government agreed to remove the ban
- One of our customers pursuing the setting up of vending operations in
Livingstone has not had any joy
3. Procedure is not very clear
Conclusion
• Zimbabwean economy is recovering
– disposable incomes have improved
– forecast an increase in milk consumption
– Local milk production cannot meet demand
– need for imported products which meet
standards.
THANK YOU

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