Dendairy plans to boost production by 25% in 2025

ZIMBABWE – Zimbabwean dairy processor, Dendairy, has announced plans to increase its milk production by 25% in 2025.

The company’s production, which rose to 4 million liters per month in 2024 from 3 million liters per month, is set to reach 5 million liters per month next year.

This surge is part of a broader trend of increasing milk production across Zimbabwe, driven by significantly reduced production costs in the sector.

Historically, Zimbabwe’s dairy production has seen dramatic fluctuations. In 1990, the country’s dairy processors produced 260 million liters of milk annually. However, this number plummeted to just 40 million liters by 2008 according to data from Dairy Service unit (DSU). 

Recently, there has been a positive turnaround: in the first quarter of 2024, milk production rose to 27.3 million liters, up from 22.6 million liters during the same period in 2023.

The data reveals that overall, Zimbabwe’s milk production grew by 9% in 2023, reaching 99.8 million liters, compared to 91.4 million liters in 2022.

With an annual demand of around 120 million liters, the latest data suggests Zimbabwe might meet all domestic dairy needs by 2024.

Dendairy, which operates at 30-40% capacity, has ample room for growth. Established in 2004 and based in Kwekwe, the company is Zimbabwe’s second-largest dairy producer and third-largest milk producer, accounting for over 10% of the country’s milk intake.

Additionally, Dendairy has expanded its operations into Mozambique and Zambia. Its primary competitors in the Zimbabwean milk market are Dairibord, which holds 39.1% of the milk intake, and Prodairy, with 20%.

A key factor driving the increase in milk production is the reduction in production costs, thanks to a Zimbabwean Government agreement with the European Union to supply calves and Lucerne, a high-protein grass.

This initiative has lowered livestock feeding costs, reducing the price of domestically sourced milk to 50 cents per liter, down from 70 cents.

For many years, Zimbabwe has grappled with foreign exchange shortages and hyperinflation due to economic mismanagement.

Import substitution through improved local agriculture and processing has been crucial in reducing foreign currency demand and lowering the cost of living.

By 2025, Zimbabwe aims not only to meet domestic dairy demand but also to explore potential export markets for its dairy products.

Dendairy’s ambitious production plans are a significant step toward achieving these goals, positioning the company as a key player in the country’s dairy industry and contributing to Zimbabwe’s economic resilience.

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