Zimbabwe's Dairy Sector Suffers as Levy Funds Remain Untapped

The Zimbabwean government has not released over US$3.4 million collected from a 5% dairy import levy, which is crucial for smallholder dairy farmers. This levy, introduced in 2022 and enacted in January 2023, aims to support local milk production, financing the importation of superior dairy heifers and semen, and reducing reliance on foreign imports. Since its implementation, Zimbabwe has imported US$67.9 million worth of dairy products, generating around US$3.395 million for the Dairy Revitalisation Fund (DRF). However, farmers report no financial aid yet, hindering their ability to improve herds and expand operations.

Deputy Agriculture Minister Davis Marapira confirmed ongoing discussions with the Treasury to expedite the release of funds, ensuring that dairy farmers benefit from the levy. The Livestock and Meat Advisory Council's executive administrator, Reneth Mano, expressed that the disbursement is overdue and expects it to facilitate the smallholder dairy revitalisation programme by the fiscal year's second half of 2025. The fund seeks to enhance Zimbabwe's dairy competitiveness, aiding farmers in improving the genetics of their herds and feeding practices to lower production costs. Despite these challenges, the objective remains to align local producer prices with regional standards.