Determinants of Small-Scale Dairy Farming Profitability in Gokwe District: A Case Study of Gokwe Dairy Cooperative

Abstract

Small-scale dairy farmers constitute the bulk of dairy farmers in Zimbabwe, but they contribute very little to the total national milk intake in the country. The sector continues to record slow growth, amidst the market potential and concerted revival efforts by various stakeholders. Additionally, the exodus of well-experienced large scale farmers after the land reform program left a huge gap that could be filled by small-scale farmers. It has become apparent that 15 years after the effects of the land reform, small scale dairy farmers have remained contributing a modest 2% of the total national milk intake required. Many of the small-scale dairy farmers still face viability challenges even after receiving support from development partners, private sector, and the government and this is quite worrying. It is upon this background that this study was conducted to determine the factors that influence profitability in this sector and ascertain major constraints being faced by small-scale farmers at both individual farmer level as well as cooperative level. A cross sectional study was conducted in Gokwe District targeting 30 participants who were given questionnaires to fill in and this was complemented by interviews and focus group discussions. The collected data was analysed using descriptive statistics, gross margin analysis and binary logistic regression model. The results suggest that tertiary education, marital status, household and dairy cowherd size were significant in determining the profitability of small-scale dairy farmers in Gokwe District. The study concluded that access to and quality of information provided to marginalized and poor farmers had through a wide range of reform initiatives in agricultural extension services. Farmers’ access to institutional services had a significant positive effect to profitability. The fact that land is managed under a traditional system, with most small-scale farmers not having title deeds has led to overstocking and overgrazing, which ultimately lead to limited herbage production throughout the year. Most farm sizes are small, such that priority is on crop production rather than fodder production. Absence of leases for land has resulted reluctance by most small-scale farmers to have long-term investments and improvement, which is required to increase dairy production. Recommended policy actions, therefore, should be directed towards the construction of more milk collection centres (markets) near the farmers to reduce the distance to the market; establishment of breeding centres for dairy animals for farmer to increase their herd size; and knowledge transfer through provision of extension services to educate the farmers on dairy management. There is a need for policy actions towards strengthening market access through upgrading milk collection centres (markets) or constructing new ones to reduce the distance to the market; establishment of breeding centres for dairy animals for increased herd size; and increased knowledge transfer through provision of extension services to educate the farmers on dairy.