Zim Gvt launches US$4 million dairy value chain project
By Delicious Mathuthu
The Zimbabwean Government in partnership with Swedish Embassy, on Thursday (20 April 2023) officially launched a US$4 million dairy project that seeks to strengthen the local dairy industry value chain, for sustainable livelihoods among small holder farmers.
The project, which will last for the next four years, is dubbed the Inclusive, Market Oriented Value Chains for Economic Development (iMoved).
iMoved comes hot on the hills of another project, European Union sponsored €40 million Transforming Zimbabwe Dairy Value Chain (TranZDVC) which is coming to an end this year, 2023.
As the dairy industry in the country takes a new trajectory which has seen milk production uncrease from almost 65 million litres in 2016 to 91 million in 2022, the new inclusive value chain project seeks to advance the dairy, soya bean and horticulture sector linkages to minimise costs and ensure sustainability.
Speaking on the official launch of the project in Mashonaland East Province, Chikomba District at Chivandire Farm in Furtherstone, Lands, Agriculture, Fisheries, Water and Rural Development Ministry Permanent Secretary Dr. John Basera said iMoved is a step informed by past and present TranZDVC project experiences and targeting about 10,500 small holder farmers, with 4,000 targeted for soya bean production.
Creation of milk collection centers, identifying and recruiting integrators and employing an out-grower model to boost production in the sector are some of the programs anticipated.
“The iMoved project is built on lessons learnt from previous and current programmes implemented by We Effect Zimbabwe, i.e., the EU-funded Transforming Zimbabwe’s Dairy Value Chain project in Zimbabwe (TranZDVC) and other previous dairy projects.
“…The project is targeting 10,500 smallholder farmers in 13 districts of Zimbabwe for the three value chains, dairy, soya and horticulture.
“The project will also graduate 9 (nine) viable Milk Collection Centres into business hubs which will then be linked to large processors.
“Ten new integrators will also be recruited to each mobilise 50 dairy farmers using an out-grower model through an anchor farmer.
“For soybeans approximately 4,000 female and male farmers will be trained in soybeans agronomy and their value addition, the objective being to increase incomes from soybean production by up to 50% and increase productivity from 800 kg/ha to 1,500 kg/ha.
“A total of 13 Soybean Processing Hubs (SPHs) will be set up to crush cooking oil, make soybean cake and make soya meal. These SPHs will either be run by an Oil Processors Association (OPA) or individual Agripreneurs,” Dr. Basera said.
The project will see Green Hubs, where farmers will grow fodder crops like lucerne and rye grass being supported, with reliable water under solar, water abstraction and infield drip water distribution system being set up.
Government will also work towards creating linkages between smallholder farmers, private sector companies and stakeholders in the dairy, soya beans and horticulture value chains, to increase productivity and incomes.
On-farm feed production will be encouraged to minimise costs.
“With the main cost driver in milk production being the cost of feed as it currently stands at 76% of variable costs, smallholder farmers especially women and young people will benefit from diversified income sources and complimentary value chains that will promote on-farm feed formulation.
“A succession and upscaling of the celebrated matching grant facility, semen facility, dairy models, activities on reducing cost of feed, renewable energy, value chain partnerships, digital platforms, financial and market linkages will be done under iMoved,” Dr. Basera said.
He said participants in the project will also benefit from infrastructure which will see them growing horticultural produce for sale, to boost their incomes along with growing dairy feeds.
“The production of fodder will also be enhanced through the promotion of composite green hubs, where feed entrepreneurs will grow fodder like rye grass and lucerne, as well as high-value crops like sugar beans, green mealies, cabbage and covo or rape.
“These horticulture crops will be for local sale with guaranteed income for project participants while fodder will be channelled into the feed market increasing availability and lowering costs,” he said.
The EUand Zimbabwe Government formulated the Zimbabwe Agricultural Growth Programme (ZAGP) from 2016 to 2023, under the 11th European Development Fund with a budget of EUR 40 million.
The overall objective of ZAGP is to contribute to the development of a diversified and efficient agriculture sector that promotes an inclusive green economy.
Under the program, the dairy value chain received a total of €7 million of which 90% was funded by the European Union and the balance came from the Embassy of Sweden which is now funding the iMoved project.
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