The Dairy Processors Association of Zimbabwe (DPAZ) is optimistic that the Resilient African Feed and Fodder Systems (RAFFS) project will reduce production costs, enabling competitiveness within the African Continental Free Trade Area (AfCFTA).
Launched by the African Union-Inter African Bureau for Animal Resources (AU-IBAR) and supported by the Bill and Melinda Gates Foundation, the RAFFS project aims to revolutionize the agricultural sector, particularly in feed and fodder production.
The AfCFTA and its economic implications
AfCFTA is an African Union initiative designed to promote intra-African trade, enhancing the economic potential of the continent. However, Zimbabwe faces significant challenges in competing with its regional counterparts due to higher production costs. According to Tendayi Marecha, Secretary-General of DPAZ, Zimbabwe’s milk production costs are the highest in the Southern African Development Community (SADC) region, with prices per liter significantly above those of neighboring countries like Zambia, Malawi, and South Africa.
Addressing cost barriers in milk production
Feed costs constitute a substantial portion of dairy production expenses, ranging from 70% to 80%. The RAFFS project aims to alleviate these costs by enhancing the availability and affordability of feed and fodder. Marecha emphasized the importance of transitioning from high-cost feed solutions to more sustainable fodder and grazing practices. This shift is essential for reducing the overall cost of milk production and improving Zimbabwe’s competitiveness under the AfCFTA framework.
Policy and strategic initiatives
The RAFFS project, under the guidance of AU-IBAR, is also aimed at educating policymakers about the critical areas needing attention. With only four years remaining before the implementation of zero-rated milk imports across borders, there is an urgent need to rectify existing inefficiencies in the dairy sector. Marecha highlighted the significance of developing a robust feed and fodder value chain and mainstreaming these discussions to garner policy support.
The Zimbabwean government has already initiated supportive measures by promoting anchor farmers engaged in fodder production. This policy, pending statutory approval, is expected to significantly lower production costs and enhance the sustainability of the dairy industry. Additionally, dairy processors are increasingly investing in feed production to support their supply chains.
The broader impact of global crises
The RAFFS project also addresses the broader impacts of global crises such as COVID-19, climate change, and geopolitical conflicts, notably the Russia-Ukraine war. These crises have exacerbated vulnerabilities in African feed and fodder supply chains, necessitating a resilient approach. By focusing on resilience, the RAFFS project seeks to mitigate the adverse effects of these crises on the agricultural sector, ensuring sustainable business operations and livelihoods.
Collaborative efforts and future outlook
The RAFFS project is a collaborative effort involving six core countries: Uganda, Cameroon, Kenya, Somalia, and Zimbabwe. Over its three-year span, the project aims to establish a comprehensive understanding of the challenges and opportunities within the feed and fodder systems. This understanding will drive strategic interventions to strengthen resilience and improve agricultural productivity across the continent.
DPAZ members, including prominent entities like Nestlé, Dairibord, Dendairy, Prodairy, Kefalos, CBS, YoMilk, and Sagemore, are actively participating in these efforts. These organizations are committed to enhancing fodder and feed production, thereby contributing to the overall goal of reducing production costs and increasing competitiveness.
The RAFFS project represents a significant step towards transforming Zimbabwe’s dairy industry. By addressing feed and fodder costs, educating policymakers, and fostering resilience against global crises, this initiative promises to enhance the sector’s competitiveness within the AfCFTA. The collaborative efforts of various stakeholders, coupled with strategic government policies, are crucial in realizing the full potential of this transformative project.
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