ZDIT projects an eight percent increase in milk production
By Own Correspondent
In the 5 months to May 2016 raw milk production increased by 16,6 percent to 26,5 million liters.
THE Zimbabwe Dairy Industry Trust (ZDIT) is projecting an eight percent increase in milk production this year from prior year level largely driven by the decline in imported finished dairy products which strengthened value chain for the industry since 2014.
The total amount of milk produced in 2015 stood at 57,53 million liters compared to 55,479 million liters produced in 2014.
In the 5 months to May 2016 raw milk production increased by 16,6 percent to 26,5 million liters.
In his presentation at the Zimbabwe Association of Dairy Farmers Union annual general meeting, ZDIT chairperson Tatenda Napata said the industry with government’s support is able to meet the dairy national requirements and has set a target of local milk production of between 97-100 million liters by 2019.
Napata said the industry value chain strengthening has seen farmer investment in growth of national herd, imported to about 400 heifers as from 2010.
“ …..breeding and multiplication of dairy herd through artificial insemination has seen the national herd growing to 2000 animals from 5000 in 2008.Significant investments have been made in installation of modern processing equipment and machinery ,new processors have entered into the dairy industry,” he said.
According to Napata during the period 2014 to 2016 about US$ 21,9 million was invested in new and modern processing plants capable of procuring a wider world class project range.
Napata said while a gradual growth in milk production to 58million liters in 2015 from 37million in 2009 is still short of the national requirement which is currently estimated at 120million liters annually, he was confident that with full implementation of dairy revitalization strategy, the industry would meet its target output within the timeframes set in 2014.
As a temporary measure the government introduced a scheme which allows for use of duty free milk powders for manufacturing purposes to enable the industry to augment production as well as enhance competitiveness which is currently 20% more expensive than regional parity.
“In order to protect local farmers and encourage volume increase as an industry we have standard operating procedure which has been developed to monitor uses of duty free milk powder and encourage processes to develop their producer bases. All processors are now required to use powder in line with their raw milk intake.
New ration for permits allocation is that every one liter of raw milk intake entitles the processor to 0,122g powder milk,” he said.
Meanwhile, government has implored Agribank to seriously consider support to small scale dairy farmers.
In a speech read on his behalf on the same occasion, Finance minister Patrick Chinamasa said the government was exploring a number of initiatives in order to promote access to affordable credit investments.
Chinamasa said the government is also remapping the farms acquired under the land reform program and subsequent finalization of the issuance of tradable security documents, 99 year leases and permits will help unlock capital. FinX