At a time most economic sectors have been severely chocked by the effects of global coronavirus pandemic, Zimbabwe’s dairy industry does not seem to have been hurt much after modest investments by big players were recorded during the lockdown period which began in March.

Official data say local investors injected over US$5 million into the sector in the last six months.

According to a recent Government report on the state of the industry during the lockdown period, overall capacity utilisation declined between March and July this year to 33 percent. But some positives have been noted in the dairy industry despite some job losses.

Declared a pandemic by the World Health Organisation on 11 March this year, the highly contagious disease, which has so far killed 820 000 people and infected nearly 24 million worldwide, has rattled global economies.

Borders were sealed off and passenger planes grounded save for those carrying critical cargo and returning residents.

Zimbabwe introduced lockdown restrictions at the end of March as part of efforts to limit the spread of Covid-19.

Other cross cutting challenges noted by the report, done by the Ministry of Industry and Commerce, include foreign currency shortages for the importation of critical raw materials and spare parts, delays at the borders as clearance process were taking long for both imports and exports and depressed demand.

The report provides an overview of the state of industry focusing on major companies.

It is divided into the various sectors namely food and drink and tobacco, wood and furniture, textiles and clothing, leather, metals and electricals, chemicals, fertiliser, plastics and packaging, cement and the motor industry. It covers all the country’s 10 provinces.

Reads the report in part: “During the lockdown period, overall capacity utilisation has remained steady (in dairy industry) at an overall average of 34 percent in July 2020 as compared 35 percent in March 2020.

“However, for some specific milk products such as liquid milks, capacity utilisation is high (approximately 60 percent) and is getting better,” reads the report in part.

During the lockdown, the sector recorded about US$5 million worth of new investments across the value chain.

Nestle has invested US$1,1 million in its cereals manufacturing line. Exports grew from US$63 000 per month to US$200 000.

Dairibord invested US$1,1 million in plant upgrade while Dendairy invested US$3 million during the second quarter report said.

Dendairy is anticipating to produce around 50 percent of the national milk production target of 82 million litres.

However, job losses have been recorded at processing and retail levels with a 4 percent decrease in the numbers for those directly employed and 10 percent indirectly employed.

The increasing cost of dairy feed and access to water on the back of the drought has contributed to the reduction in raw milk produced, the report noted.