• Zimbabwe’s dairy sector recorded its highest output in 2025, with commercial raw milk production reaching 122 million litres and total output nearing 129 million litres
• The production surge was driven largely by government-led regulatory reforms
• Despite record volumes and improved productivity, rising production costs and stagnant producer prices continue to threaten farm-level profitability, making pricing reforms critical to sustaining growth

Harare - Zimbabwe’s dairy sector reached a structural turning point in 2025, with commercial raw milk production rising to a 23-year high of 122 million litres according to Zimbabwe economic review.

Including non-commercial household production, total national output reached 128.8 million litres, placing the country within reach of milk self-sufficiency for the first time in decades.

This resurgence follows a sweeping regulatory and cost reform programme introduced by Government, targeting long-standing bottlenecks in livestock, dairy and stockfeed value chains.

The Ministry of Finance and Economic Development and Investment Promotion (MoFED, IP) has positioned the reforms as central to restoring agriculture’s role as the backbone of the economy an anchor for 65 percent of rural livelihoods and a major contributor to exports.

Rather than relying on subsidies alone, the reform package focused on cutting fixed costs, removing duplicative permits, and simplifying compliance, fundamentally altering the operating economics of dairy farming.

Environmental and utility compliance previously a major cost burden for dairy farmers was substantially reduced. Environmental Management Agency (EMA) effluent and waste disposal fees were slashed, environmental impact assessment charges were reduced and deferred to the operational phase, and water abstraction and groundwater permit fees were either scrapped or reduced to nominal levels.

These changes lowered recurring and upfront costs, particularly for dairy farms dependent on borehole water in water-stressed regions. By shifting environmental compliance from a punitive to an enabling framework, the reforms reduced entry barriers for new projects while maintaining regulatory oversight.

The abolition of energy- and effluent-related levies further eased cost pressures, directly improving farm-level profitability and freeing up cash for reinvestment in feed, herd health and productivity.

Reforms to farm and processor registration tackled another structural constraint the high cost of operating formally. Farm registration fees were reduced to symbolic levels, certificate fees for small and medium farmers were removed, and processor and feed manufacturing registrations were converted to low, once-off payments.

This approach lowered the cost of compliance while encouraging formal market participation, improving access to structured markets, credit and export channels. The result has been a broader production base and improved data visibility across the dairy value chain.

Livestock movement rules were simplified through the removal of duplicate permits and a sharp reduction in movement clearance fees, lowering transport costs and reducing administrative delays.

At the same time, import and export facilitation measures significantly reduced the cost of accessing improved livestock genetics and external markets.

Cheaper import permits for heifers, semen and bulls improved herd productivity prospects, while sharply reduced export registration fees improved the competitiveness of Zimbabwean dairy and meat products.

Other key initiatives include the Command Livestock Programme, launched in 2018, under which 660 heifers were distributed to 151 beneficiaries across Matabeleland South.

The Presidential Silage Programme (PSP), implemented through the Agricultural Finance Corporation (AFC) and the Commercial Bank of Zimbabwe (CBZ), has supported 1,338 farmers to improve feed security.

On the development finance side, the European Union-funded Transforming Zimbabwe’s Dairy Value Chain for the Future (TranZDVC) project mobilised and registered over 4,000 new dairy farmers between 2019 and 2022, while importing 500 in-calf heifers from South Africa between 2020 and 2021.

The project also strengthened genetic improvement through the procurement of 4,000 straws of sexed semen and 4,000 straws of conventional dairy semen, alongside expanded artificial insemination services to reduce inbreeding and improve productivity.

 Together, these changes improved market access, supply-chain efficiency and export readiness, reinforcing the sector’s growth momentum.

Milk production has risen steadily from 76.7 million litres in 2020 to 121.8 million litres in 2025, confirming that the recovery is no longer cyclical but structural. According to the Dairy Services Unit, commercial output has expanded 85 percent since 2017, surpassing levels last seen in the early 2000s.

Zimbabwe Association of Dairy Farmers (ZADF) chairman Mr Edward Warambwa said the country recorded a record monthly output of 11.4 million litres in December 2025, while processor intake averaged above nine million litres per month in the second half of the year.

These gains reflect improvements in feed availability, herd management and farm productivity outcomes directly linked to lower compliance costs and improved investment conditions.

Despite record volumes, profitability remains fragile. Production costs rose to US$0.63 per litre in 2025, while average producer prices remained below cost at US$0.58 per litre. The mismatch highlights the limits of regulatory reform alone.

The dairy sector now employs about 42,000 people, with a herd of roughly 67,000 cattle, including 40,575 milking cows. Industry estimates suggest Zimbabwe could achieve milk self-sufficiency if current reforms are sustained and aligned with market-based pricing.

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