The Profitability of Muhlanguleni Cattle Feedlot in Chiredzi, Zimbabwe

Abstract

The primary aim of this study was to assess the profitability of the Muhlanguleni Cattle Feedlot in Chiredzi District over the period 2020 to 2024 and to explore the operational, financial and strategic factors influencing its performance. The study pursued three key objectives: to determine the actual profitability levels of the feedlot during the five-year period, to examine the factors that contributed to either high or low returns and to identify strategies that could enhance future earnings. Data were gathered from 141 respondents, including farmers, feedlot workers and key informants such as livestock extension officers, veterinary staff and local cooperative leaders. Participants were selected through a combination of random sampling for the survey and purposive sampling for interviews. The research applied a mixed methods design, combining statistical analysis using SPSS with thematic interpretation of qualitative responses. The study found that the feedlot remained profitable throughout the study period, with return on investment peaking at 27.27% in 2021 and remaining above 20% in most other years. Profitability was disrupted in 2022 due to livestock disease and policy instability but recovered quickly through improved management and reinvestment. Key drivers of profitability included access to formal markets, animal health control, feed management and the introduction of low-cost technologies. A binary logistic regression model was applied to assess the influence of selected operational factors on perceptions of profitability improvement, with operational efficiency and innovation emerging as near-significant predictors. Participants supported strategies such as adopting innovative business models, improving risk planning and enhancing feedlot discipline through record-keeping and coordinated marketing. This study recommends practical changes to feedlot operations, stronger support from development partners and targeted government interventions in infrastructure, extension services and livestock marketing policy.