Technical challenges and Agribusiness prospects for for developing pro-poor small scale dairy processing schemes in Omaheke Region on Namibia:Lessons from Zimbabwe’s Dairy Development Program

Abstract

A study was conducted to assess the potential of establishing small-scale dairy processing

schemes that would bring development and economic growth, alleviate poverty and enhance

the standards of life of the Namibian livestock rearing population. Lessons were deducted

from the Zimbabwe Smallholder Dairy Development Program (DDP). Secondary data was

collected at Nyarungu DDP head Quarters and the NPC, DVS, DEES in Namibia. A

structured questionnaire was also used to collect data to assess the potential for milk

production in Otjinene. Descriptive statistics were computed using SPSS (version 16.0).

Economic viability of small-scale processing centre in Zimbabwe and Otjinene was done

using the GMA and NPV tools. The potential for milk production in Otjinene was 12 716

l/day which was obtained from 748 households, each producing an average of 17 litres per

day. It was concluded that Otjinene has potential to produce surplus milk that would sustain a

processing centre. DDP processing centres had negative GM, indicating unvaiblity coupled to

a horde of challenges. GM and NPV for Otjinene Projected centre were positive indicating

viability and profitability. In conclusion, the smallholder dairy processing centres that are

marginally viable or unviable in Zimbabwe are feasible and profitable options in Otjinene.

The success of the Otjinene centre was attributed to the number of cattle for milk production

and the processing of different high value products that increases the revenue bases. Nevertheless similar assessments need to be done during the late summer and the dry season in order to estimate the potential milk supply surpluses or shortfalls in different seasons.