Dairibord Holdings Limited Chief Executive, Anthony Mandiwanza said that milk intake decline by the company intake in Zimbabwe was due to a combination of increased competition and depressed productivity at the farm level.
The country’s milk output remains below demand, which is estimated at below 120 million litres per annum according to the Chief Executive.
“Raw milk remains a critical raw material for the business,” Mandiwanza said. “During the year, Group milk intake declined by 16% comprising a 20% decline for Zimbabwe operations and 15% growth in Malawi.”“National milk production in Zimbabwe was flat on 2016 at 66.4 million litres mainly due to floods in the first four months of the year and incidents of foot and mouth disease,” Mandiwanza said.
The Dairibord Holdings Chairman, Leonard Tsumba, however, said that the company is pursuing various initiatives to increase milk intake, which is currently below demand.
“Specific strategies include upscaling productivity for the existing herd, attracting more farmers, and growing the herd through the heifer procurement scheme,” Tsumba said.
“The Heifer Program which started in 2012, is now contributing 15% of raw milk intake in Zimbabwe.”
Mandiwanza said, “The Group has put in place several initiatives aimed at growing the herd, improving veterinary support, feed formulation and input procurement. These initiatives, together with the improved Quality Premium Scheme (QPS) will drive milk intake in 2018.”
Mandiwanza also said that both government and private sector remain key players in addressing the demand-supply imbalance going forward.
“Government policy on land tenure, particularly issuance of 99 year leases and the command livestock scheme, will benefit milk production at national level,” Dairibord Chief Executive said.
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