Dairy· Livestock Featured

Dairy Farming & Processing

Dairy · Primary production, processing and breeding

Zimbabwe's raw milk production is 70 million litres against national demand of 130 million litres — a 60 million litre annual shortfall creating opportunities across production, processing and heifer breeding.

Dairy Farming & Processing
Overview

The dairy sector consists of small-, medium- and large-scale dairy farmers, processors, input suppliers, financial service providers, farmer and industry organisations and Government. Milk production is dominated by 85 large and medium-scale commercial dairy farms which contribute 88% of total milk production output, while 4,528 small-scale dairy farmers contribute the remaining 12%. Processing of milk is dominated by five large-scale dairy processors handling 85% of the milk, with 27 registered small-scale processors and 12 medium-scale processors handling 8% and 2% respectively. The balance of 5% is sold through the informal market.

Industry Overview

Milk production is largely dominated by 85 large and medium-scale commercial dairy farms contributing 88% of output. The remainder of the value chain includes 5 large-scale processors (85% of milk processed), 27 small-scale processors (8%), 12 medium-scale processors (2%) and 5% informal market.

Investment Opportunity

Where the capital goes.

The production of raw milk is below the national demand of 130 million litres against production of 70 million litres per annum — a 60 million litre gap. There is room for further expansion of milk production to supply the local market. There are approximately 20 dairy heifer breeders in the country, mostly large-scale farmers breeding for their own herd growth. Annual heifer sales are 200–300 with potential to grow to 500–1,000. Opportunities span primary milk production, large- and medium-scale processing, small-scale processor consolidation, and dedicated heifer breeding.

Production Statistics

Numbers from the prospectus.

National demand
130m litres
per annum
Current production
70m litres
per annum
Supply gap
60m litres
annual shortfall
Commercial farms
85
producing 88% of output
Small-scale farmers
4,528
producing 12% of output
Heifer sales potential
500–1,000
vs 200–300 today
2019 production value
US$68.4m
2023 production value
US$80m
Market Opportunity

Local demand, export demand and production gaps.

01
Local demand of 130 million litres per annum against 70 million litres of local production.
02
Structural under-supply creating a 60 million litre gap available for import substitution.
03
Growth in institutional and retail demand across the SADC region.
04
Opportunity to scale heifer breeding from 200–300 to 500–1,000 units annually.
05
Consolidation opportunity across 27 small-scale and 12 medium-scale processors.
Export markets
SADC regionCOMESA
Competitive Advantages

Why Zimbabwe.

Approximately 33 million hectares of arable land for crop and livestock production.

Over 10,000 small, medium and large dams — potential to irrigate up to 2 million hectares.

Temperate climate favourable across five agro-ecological regions.

Strong human capital base with a 90% literacy rate.

Strategic location on the North-South Corridor — regional logistics hub.

Preferential market access through SADC, COMESA, ACP, AfCFTA and WTO.

Multi-currency system eliminating exchange rate risk; dividends and profits freely remittable.

Investment Promotion & Protection Agreements (bilateral and multilateral).

Infrastructure

Enabling infrastructure.

10,000 small to medium dams with 2 million ha irrigation potential.
Currently only 216,000 ha irrigated — 173,000 ha non-functional and available for rehabilitation.
Road, rail and air transport network connecting Zimbabwe to SADC markets.
Modern communications and hydro / thermal power infrastructure.
Investment Benefits

Why invest in this opportunity.

01
Immediate import substitution against 60 million litre annual deficit.
02
Established processing and cold-chain distribution network to build on.
03
Access to SADC market of 300 million consumers under existing trade protocols.
04
Strong government support for herd growth through 99-year lease reforms.
Register Interest

Register interest in Dairy Farming & Processing.

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investors@investzimbabwe.co
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