| dc.description.abstract | At the attainment of Zimbabwe’s independence, the government of Zimbabwe established the
smallholder dairy development programme to encourage smallholder farmers to participate in
organized value chains. Although now more than three decades since the government
established this programme, smallholder contribution to formal markets remains very low at
5%. The objectives of this study were to (1) analyze the trends in smallholder milk production
and marketing including the effect of policies since the introduction of the smallholder dairy
development programme in 1983 (2) determine the main factors influencing milk production
in the smallholder dairy value chain (3) analyze the factors affecting milk market participation
(4) determine ex-ante the potential effect of introducing an animal production and forage
centre (APFC), and (5) assess the role of farmers’ cooperatives in the commercialization of
milk in the smallholder dairy value chain. Four dairy schemes were purposively selected and
185 farmers selected through simple random sampling were interviewed using a pretested
structured questionnaire. The analysis of variance results indicate that policies had an effect
on national and smallholder milk production. The results indicate that the Milk Collection
Centre (MCC) is the main market for milk produced in the organized smallholder dairy value
chains. Multiple linear regression analysis showed independent variables that were significant
in influencing milk production were household size, age and dairy farming experience of the
head of household, number of milking cows, and cost of concentrates. The first-stage
Heckman model showed determinants of milk market participation to be total number of dairy
cows owned, educational level and age of household head, household size, access to
information and extension services, and agro-ecological region. The second-stage Heckman
model indicates the determinants of volume of milk sales to the MCC to be the total number
of dairy cows owned, distance to the MCC, age of household head, land holding size, access
to extension services and agro-ecological region. Ex-ante benefit cost analysis of the APFC
indicate that such a centre would be profitable with a benefit cost ratio of 5.4:1. Farmers’
organization through the milk collection centres was found to be essential in making farmers’
access to information and lucrative milk markets. The Tobit model indicates access to
information, distance to the MCC and producer price of milk paid by the MCC were the major
determinants of the commercialization of milk sold to the MCC. The study recommends that
policies to improve milk production should include interventions that target the provision of
appropriate and adequate training in milk production. Policy interventions also need to target
increasing the number of dairy cows for smallholder dairy producers, targeting young and
educated farmers located in high potential agro-ecological regions I and II, and ensuring
market access. These should be provided with adequate and appropriate information and
extension packages in order to enhance milk market participation and volume of sales. The
APFC is a new concept for the smallholder organized dairy value chains, and policy
interventions should be directed at piloting the concept in order to assess its feasibility and
contribution to milk production. Establishing sub-centre MCC within easy reach of farmers
would enhance commercialization of the milk if favourable market and price policies are
developed and implemented.
Keywords: dairy development, organized, smallholder, value chain. | en_ZW |
