Market study on Dairy Investment Opportunities in Zambia Feb 2017 Chali Nyirenda Business and Partnership Coordinator AgriProFocus Zambia,
Market studyon Dairy Investment
Opportunities in ZambiaFeb 2017
Chali Nyirenda
Business and Partnership Coordinator
AgriProFocus Zambia,
CONTENT
• Introduction
• Overview
• Investments at farm level
• Investment in milk collection
• Investment in milk processing and distribution
• Conclusions
Map of Africa
Zambia is a landlocked country in Southern Africa located between latitudes 8° and 18° south and longitudes 22° and 34° east and covers a total area of 752,612 squarekilometers.
MAP OF ZAMBIA
Table 1: Zambia’s General Economic Overview
Capital City Lusaka
Other main cities Ndola, Kitwe, Livingstone
Area 752,612 sq. km.
Population (growth) 13.1 million, 40% urban (CSO,2010), 2.8% growth/year
Official Language English
Monetary Unit, exchange rate
Zambian Kwacha, 1 US$ = ZK9.8(Feb 2017)
Annual Rate of Inflation 7.78% ( Dec. 2014) 8.7% Dec 2016
No of Cattle 3, 038, 000 (2010)
Zambia’s neighbours DR Congo, Tanzania, Malawi, Mozambique, Botswana, Namibia,Zimbabwe and Angola
Main industries Mining, agriculture, tourism and manufacturing
The Dairy Value Chain
Farmers
•Commercial
•Small and Medium scale
Milk Collection Centre
•Mapepe MCC
•Fisenge MCC
•Chinjala MCC
•Coma Dairy Cooperative
•Magoye MCC
Processors
•Parmalat Zambia Ltd
•Varun Beverages Zambia Ltd
•Vineyard Estates
•Zamilk Zambia Ltd
Distributors Consumers
Government Institutions
Ministry of Fisheries and Livestock
Zambia Bureau of Standards
Ministry of Commerce Trade
and Industries
Support Services
Service providers
Breeding Impulse- AI Services
Vet 24- Extension Services
Financial Institutions
Commercial Banks
Micro Finance Institutions
Non Governmental Organisations
Raw milk prices (2013) at different levels in four African countries x US $
0.338
0.221
0.325
0.479
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Kenya Uganda Tanzania Zambia
Factory gate
To MCC
To farmer
Investment at farmers level
• Forage production and conservationInvestment in pastures and forage conservation for the dry period
• Water (boreholes)Milk = 85-87% water and cows require 80 to 120 l/water/day
• Provision of concentrates 1 kg good concentrates -> 1.5 to 2 kg milk
Investment at Milk Collection Centre
Investment at milk storage and transportation• Milk cans• Solar hot water boiler• Solar can cooling• Motor Bikes for milk transport to the
MCC• Mobile milk cooling tank• Bicycles for milk transport to the MCC
Investment in milk processing and distribution
• Batch pasteurisation of milk
• Mini milk processing
SUMMARY OF INVESTMENT OPPORTUNITIES
Level Item
Farm • Forage production & conservation• Water boreholes• Feed Concentrates• Grinding/crushing of grain• Improved cattle• More cattle
Milk quality • SS milking cans• solar hot water boiler
Milk collection • Can cooling• Bicycles and motor bikes • Mobile milk cooling• Milk cooling tanks• Solar hot water boiler• Can platform tipper• Digital milk intake and testing unit• Refrigerated 20ft containers• Milk collection pick-up truck
CHALLENGES OF THE ZAMBIAN DAIRY SECTOR
• Low level of extension services
• High input costs of fuel, energy and major stock feed ingredients such as maize and soybeans leading to increase in feed price
• Threat of cheap illegally imported products entering the domestic market
• Marketing of Dairy products is a big challenge especially for small scale farmers due to their perishability in nature
• Diseases such as foot and Mouth Disease(FMD), Contagious Bovine Plural Pneumonia (CBPP) and East Cost Fever (ECF) if not managed lead to loss of livestock
THANK YOU FOR YOUR ATTENTION!!