(NEWZIMBABWE, FAIRFAX NZ NEWS) Zimbabwean heads Dairy New Zealand
12/11/2013 00:00:00
by Fairfax NZ News
ZIMBABWEAN James Muwunganirwa has been on the job for just over a month as DairyNZ 's regional leader for the lower North Island and is enjoying it.
It is a far cry from working as an extension leader in his homeland in the early 2000s where farm invasions left him and other Ministry of Agriculture extension officers in vulnerable positions.
"The extension managers felt very powerless at the time because we were tasked with taking advice to the government in terms of coming up with a national plan of re-settlement, which was not being adhered to,” he said.
It was then that Muwunganirwa looked at coming to New Zealand.
He had joined the Ministry of Agriculture in Zimbabwe after leaving university, and worked in the extension services department in various capacities but left his home country in 2005 when the economy started going pear-shaped and the land invasions peaked.
"I had started a small family with my wife, Gladys, and I sort of cast my eyes on the horizon. I was looking at the future - what it had in terms of my young kids and my wife - and it was looking bleak.
"It so happened that a mate I had worked with had come out in 2002 and he had worked on a couple of dairy farms in the South Island before he left to join the Ashburton District Council."
Muwunganirwa's friend encouraged him to look for job opportunities and he received a job offer while still at home.
"So that's when I took the leap of faith. So I packed my bags and hopped on to the plane, leaving my wife and two kids behind,” he recalled.
"My plan coming here was that I wanted to initially get a very good handle on New Zealand pasture-based farm systems and on the back of that to go into what I always wanted to do, which is extension work.
"I am working with farmers to improve profitability and sustainability of their dairy farm businesses."
He started off milking cows in the South Island for a 50-50 sharemilker south of Timaru. At that job he milked 650 cows in a grass-only system as an assistant herd manager.
After doing that job for 18 months, he decided it was time for more responsibility so he moved to North Canterbury to a similar-sized herd but also looked after one-half of the farm and half of the herd.
"At that point my wife joined me, because I had left them for a while."
Muwunganirwa had the role for 3 years before he felt he was "ripe enough in terms of getting back into extension work".
He got a job with DairyNZ as a consulting officer based in Whangarei, before coming to his present role in the lower North Island. His region includes 1,100 dairy farms in the Horizons, Greater Wellington and Hawke's Bay regions.
"My job entails driving on-farm change and ensuring it results in the securing of profitability, the sustainability and the competitiveness of dairy farms in the lower North Island," he said.
He has a team of three consulting officers working on improving herd reproductive performance and helping farms to comply with new regulations around the nutrient management programmes of Horizon's One Plan.
"Our role is to make sure we assist farmers in terms of coming up with nutrient management plans that will see them getting the consents they require for those farms that are in the priority catchments."
He also runs a couple of dairy discussion groups, one in Shannon and one in Otaki.
The main topics of discussion in the groups are managing surplus, maintaining pasture quality and capturing the cash.
"This spring has been uncharacteristically good to the extent that most people have found themselves with huge surpluses that they have had to deal with and that obviously presents challenges in managing pasture quality.
"We are trying to ensure that farmers are as profitable as they can be in a high pay-out year."
He said trends showed that in such years expenses tended to rise as everyone wanted to produce more milk so they could chase the dollar.
Labels: AGRICULTURE, DAIRY, JAMES MUWUNGANIRWA, NEW ZEALAND
Read more...
Grace Mugabe takes on Nestle
Fighting back ... Grace Mugabe launching a range of milk products
04/07/2012 00:00:00
by Staff Reporter
THEY say nothing beats a mother’s milk, and Zimbabweans are soon to find out. Zimbabwe’s supermarkets this week began stocking dairy products from First Lady Grace Mugabe’s farm in Mazowe – a brazen challenge to Swiss food conglomerate, Nestle, which bowed to political pressure to stop buying milk from Gushungo Dairy Estate.
The country’s biggest supermarket chain, OK, on Wednesday was selling pints of fresh milk and sour milk under Mugabe's Alpha Omega brand. Also being processed at the farm is powdered milk, ice cream and various other products which will soon enter a market dominated by Nestle.
Zimbabwean blogger Cynic Harare observed that the packaging was “pretty dull”, but added: “It tastes like milk, which means it’s better than some stuff around. It’s a bit cheaper too.”
In a recent interview with state media, President Robert Mugabe’s wife boasted that her dairy farm had 2,000 cows and was the second biggest in the SADC region, with the capacity to milk 64 cows at one go.
In 2009, Nestle announced it would stop buying milk from Gushungo Dairy Estate – built on a farm which was seized from a white farmer – after coming under pressure from rights activists who threatened to campaign for a boycott of Nestle products.
Labels: DAIRY, GRACE MUGABE, LAND REFORM, NESTLE
Read more...
Zambia projects milk output at 60 million litres by 2015
By Gift Chanda
Thu 17 May 2012, 08:50 CAT
ZAMBIA is targeting to increase annual milk output to 60 million litres by 2015, an industry official said yesterday. Jeremiah Kasalo, who is the Dairy Association of Zambia (DAZ) executive director, said the country's annual milk output to the formal market currently stands at 44 million litres.
Kasalo said anticipated population increases and improved people's incomes both locally and globally is expected to push up demand and that would require countries to step up their production levels.
"The focus of the industry in the medium term would be to improve production and productivity of milk. We want to increase the number of small-holder farmers' involvement in the sector," Kasalo said in an interview. "By 2015 we want the number of small-scale farmers to increase to 5,000.
Currently, we have about 3, 000 smale-scale farmers directly supplying milk to the formal market but we want this number to increase to 5, 000. We also want to see that milk that is going to the formal market, because current it is about 44 million litres per year, increases to somewhere around 60 million litres."
He said to achieve the projected targets, it meant that farmers ought to have a source of good breeding stock at an affordable price.
"This means that government needs to step up the establishment of these breeding centres which will be able to produce good heifers which farmers can buy affordably," Kasalo said. "It will also be good for the government to look beyond maize production. A lot has been put towards maize production, it is time we looked at other agricultural areas.
If a similar arrangement like the maize subsidy under FISP can be undertaken for the livestock sector where farmers can access some subsidised drugs for their animals and feed for a period of time, we are not saying forever, that would boost the livestock sector and particularly milk production in the country."
He explained that as African countries move to open their markets, it is important that Zambia positions itself by becoming competitive.
Kasalo said this meant the country needed to quickly address constraints that normally push up production costs for farmers.
One of the impediments he said was access to cheap financing.
He said despite the government through the Central Bank trying to ease the interest rates by coming up with a benchmark rate for commercial banks to follow, the cost of borrowing in the country has remained high.
"We would want a reduced interest rate for the agriculture sector especially," he said. "The banks should respond to the policy rate by the Bank of Zambia."
And Kasalo urged the government to step up the monitoring of border posts to ensure that there is no illegal export of maize and wheat bran following the ban.
He said in the past, a ban would be imposed but the exports continued because of inadequate monitoring at the country's borders.
Kasalo said the move to ban the exports of bran was commendable but urged millers and feedstock traders to react to the move by lowering the prices of feedstock.
He said the two commodities that were banned from being exported are expected to flood the market, and that it would be ironic for the dealers not to obey the economic rules of supply and demand.
Kasalo also urged the millers to form partnerships with key players in the livestock sector in a bid to establish the actual feedstock requirements for the livestock sector.
"As an association what we would love is the best price for our farmers at the same time making the millers stay in business," said Kasalo.
"We don't want to command a price which will again make these millers fail to operate. We want a win-win situation. But definitely we want the prices to ease."
Labels: CATTLE, DAIRY
Read more...
A dairy farmer par excellence
Thursday, 09 February 2012 00:00
Fortious Nhambura Features Writer
"I had to quit my job to focus on my passion - dairy farming - and I had to make a tough decision that meant relocating from the bright lights of the city to the farm," said Mr Lovemore Mugabe as he supervised the afternoon milking session of his 350 dairy cows.
Located about 50km west of Hwedza Centre, Magure Farm has lived to become a testimony of hard work and perseverance. It is a clear example of what a Zimbabwean can do when presented with an opportunity.
In the past, dairy farming was an elitist activity restricted mostly to white farmers, people like Mr Mugabe have helped to disabuse this thinking that large- scale dairy farming is for the rich.
Mr Mugabe's decision to leave a thriving transport business has not led him to a dead end but has helped in improving his social and economic life in a big way.
Starting with less than 20 commercial dairy cows in 2002, Mr Mugabe has grown to establish a herd of 900 cattle with a total of 350 cows going under the milk shed, 400 being heifers and the remainder comprising dry cows.
He got the Magure Farm under the land redistribution programme, moving from a small plot in the same area.
Immediately he sought to improve the operations at the farm as an example to other farmers in the area.
"I started by improving the working conditions of my workers because one will never be successful with a hostile workforce. I took everything within my stride since money was not readily available.
"I took the opportunity because dairy farming is my passion. This is now my everyday life. That's why I relocated with my family from Marondera to this farm. At first it was difficult convincing my wife and children but they are now solidly behind me. This business does not need ‘cellphone farmers'.
"I started small but picked up over the years. From a small herd of 13, my herd has grown to over 900 cattle. The herd consists of Holsteins and Jerseys and milking short cows."
Mr Mugabe said business was affected during the hyperinflationary period and only started picking up in 2010. He said "cellphone farming" was not ideal for any type of farming.
"The business requires the presence of the farmer for proper monitoring of animals and milking otherwise the investment will be lost.
"Mind you, dairy farming is a capital-intensive project. Just like any other businesses you need to be seriously involved with the entire production line otherwise you will not survive for long.
"That is all it takes to be a successful farmer. In fact, this is true for any field one might be in," Mr Mugabe said.
His "never-say-die" attitude has rewarded him handsomely. For his efforts, Mr Mugabe has already scooped the Nestle Milk Producer of the Year twice, in 2005 and 2010, beating a host of others including established white farmers, in recognition of his hard work.
Mr Mugabe produces 800 000 litres of milk a month.
On the farm, Mr Mugabe does not only focus milk production, he is also into cash crops to feed the nation and capital assets to finance occasional expenditure.
He produces the bulk of the stockfeed on the farm as grazing alone will not bring the desired production quality hence the need for supplementary feeding.
"The animals need good and sufficient food to remain healthy and productive. As such, I always give supplements during the wet season and silage during the drier months.
"I have 103 hectares of maize that we process for silage to feed the livestock, food for the family and workers.
"I have a full complement of workers divided into six categories that include fields, veterinary services, milkmen, herdboys, security and machinery," he said.
Specialisation of duties has enabled his workers to concentrate on their different sections and produce the best results.
"Imagine when you have to milk the cows twice a day, that requires a lot of manpower," he said.
Mr Mugabe said there was no way one could be involved in animal production and have nothing to do with crop productions.
Over the years he has strived to improve the quality of milk from his farm.
For him, maintaining good quality requires maintaining standards within the milk production line.
"The prices of milk are favourable but every farmer must always seek to produce a better quality product. We are getting US$0,45c per litre but there is 25 percent premium for good butter quality. So one can get above US$0,70c if he gets his quality right and if one does not get these premiums, the overheads will bring him down," Mr Mugabe said.
Through the assistance of Nestle Zimbabwe, Mr Mugabe was able to expand his byre to milk 24 cows at a time.
He said Nestle was playing a major role in reviving the dairy industry through financing of mechanisation and improvement of farmers' herd.
"We have not set on laurels. We are working together as dairy farmers in the area to ensure that we improve milk production. We always meet to discuss production quality and hygiene.
"To ensure we improve our herd, we always sell heifers amongst ourselves. The aim is to ensure that all dairy farmers in the area have high yield cows," he added.
Just like others dairy farmers, Mr Mugabe's biggest worry is the erratic electricity supply.
He said: "Our biggest worry is the persistent power outages, but I believe this is a national problem. Zesa used to give us schedules for loadshedding but not any more. We used to have four days of power per week but this is now distorted.
"Consequently we have to rely on two high powered generators to power the milking machines and cool storage tanks but at a huge cost. The generators have a capacity of 1000kva."
Mr Mugabe urged other farmers to work together with police to curb stock theft.
Owing to the good rapport with the community, he has not recorded theft over the past eight years.
With the country's dairy herd estimated below 40 000, down from a peak of 192 000 in 1992, it is the work of people like Mr Mugabe that can lead the revival of dairy farming.
According to statistics from the National Association of Dairy Farmers, Zimbabwe's milk production rose from about 3,6 million litres a month to 4,6 million last year.
Capacity utilisation among dairy processors is below 30 percent owing to reduction in farm production.
The Zimbabwean dairy industry is aiming to improve milk production from the current 50 million litres to over 200 million litres annually over the next five years.
Labels: A2 FARMERS, DAIRY, NEW FARMERS
Read more...
Dairibord raises stake in Malawi
Friday, 12 August 2011 02:00
Business Reporter
DIVERSIFIED Dairibord Holdings Limited has increased its shareholding in Dairibord Malawi Limited to 68,4 percent. The ZSE-listed firm increased its interests in DML through the acquisition of 8,4 percent equity.
Group chairman Mr Timothy Chiganze told shareholders in the group's financial statement for the six months ended June 30, 2011 that the transaction was funded through a dividend declared by the company.
Other shareholders in the Malawi operations include National Investment Trust of Malawi, which controls 22,8 percent and the Dairibord Share Ownership Trust, which owns the remaining 8,8 percent.
Dairibord, which is expected to spend about US$7 million this year, says it is negotiating with ME Charhons major shareholders, Cairns Holdings to recapitalise the company, which is not operating viably.
During the period under review, ME Charhons contributed a loss of US$125 471 to the group, compared with a profit of US$1 869 from the same period last year.
"The funding plan for the company has been protracted, affecting the capitalisation of the company," said Mr Chiganze. "Discussions are currently underway with Cairns, the major shareholder in ME Charhons, to find a solution."
For the six months under review, Dairibord turned over US$42,4 million, representing a 35 percent growth compared with the same period last year.
Total operating costs grew 38 percent due to increasing costs.
Sales volumes for the period were 27 percent ahead of the same period last year driven by 40 percent growth in volumes of liquid milks, 42 percent growth in volumes of foods and 14 percent growth in beverages.
Reduced growth in beverage volumes was attributed to the late commissioning of the Cascade plant, which has now been commissioned.
The new Cascade plant is expected to contribute significantly during the second half of the year.
Mr Chiganze said during the period under review, exports remained depressed, contributing just 1 percent of total sales volumes as the group focused on the profitable domestic market.
"As product supply improves from the recently installed capacity, the group will re-open old markets and grow volumes," said Mr Chiganze.
He added that national raw milk production continues to increase and raw milk received by the group was 29 percent ahead of the same period last year.
Although monthly national raw milk production in Zimbabwe has increased to 4,2 million litres, this is still below consumer demand, estimated to be over six million litres per month.
Labels: DAIRIBORD ZIMBABWE HOLDINGS, DAIRY, MALAWI
Read more...
Dairy farmers association sets up revolving fund
Tuesday, 21 June 2011 01:00
The National Association of Dairy Farmers has established a revolving fund to help farmers procure inputs and finance other related expenditure. Chairman of the association Mr Ajs Kirk said the fund was intended to underpin the current growth in milk production.
It will strictly be accessed by the association's members, and is meant to finance things like stockfeeds, dairy cattle and vaccines.
Owing to the instability in the agricultural sector in the last few years, milk production in the country slumped from more than 20 million litres a month to the current 3,5 million.
Similarly, the dairy herd dropped from 192 000 to 22 000.
But Mr Kirk said milk production is on the rise again owing to the prevailing economic stability, something that the association wanted to underpin through the revolving fund.
"Dairy farmers have been facing shortages of working capital to acquire inputs but this has been addressed by the fund that we have introduced," he said.
"Payments for veterinary charges, money to acquire stockfeeds and for buying cattle is being sourced from this fund," Mr Kirk said.
He said farmers from as far as Gokwe and Umzingwane had already started benefitting from the fund. - New Ziana.
Labels: DAIRY
Read more...
Govt develops comprehensive dairy policy
By Diniwe Mumba in Senanga
Sun 26 Dec. 2010, 04:00 CAT
THE Ministry of Livestock and Fisheries Development has developed a comprehensive dairy development policy.
Livestock minister Bradford Machila said the key out puts of the policy included the enactment by parliament of the dairy industry development Act this year.
"The immediate impact of our intervention is that many smallholder farmers will see opportunity for making regular and steady income throughout the year through dairy farming" he said
Machila, who was speaking during the launch of the milk collection centre in Senanga, Western Province urged dairy farmers to focus on improved management of their cattle to ensure that they had high pregnancy, calving rates and high milk yields that go hand in hand with good record keeping, the basis for profitable dairy farming.
He was however happy to note the significant improvement in the milk production in the country.
"Statistics indicate that in the year 2000, Zambia was producing about 136 million litres of milk per year. By 2009, the country was producing 215 million litres of milk per year and a large portion of the increase in the national production was as a result of the involvement of the smallholder dairy farmers" he said.
The project is being implemented by a consortium of Micro Bankers Trust, Golden Valley Agricultural Research Trust and Agro Consult Africa of the Netherlands with the support of the European Union under the support to dairy diversification and savings program for food security.
Machila thanked the consortium for taking the initiative to start the milk collection centres that were a learning process that gave farmers great experience in the dairy commercialisation.
The milk collected at the centres is from the indigenous Barotse breed of cattle and some of it is brought to these centers by boats and canoes.
Machila announced that the ministry in conjunction with cooperating partners was setting up an artificial insemination centre at Ngonga in Mongu saying it was through the center that productivity of the dairy cross-breed cattle would improve.
This means that farmers would be getting more milk per animal hence increased income per household.
And speaking earlier, Micro Bankers Trust chief ex-ecutive officer Grace Nkhuwa said the bank had a passion for financing agricultural activities especially for small-scale farmers.
Labels: BRADFORD MACHILA, DAIRY
Read more...
Iranian firm to set up dairy plants
Saturday, 27 November 2010 21:59 Agriculture
PLANS by an Iranian firm Souts, which manufactures farming machinery, to launch three dairy processing plants in the country have reached an advanced stage, an official said last week. Iranian Ambassador Mohammad Pournajaf said negotiations with the ministries of Agriculture and Foreign Affairs to establish the dairy plants had been completed.
He said the location and size of the plants had been determined and the project was expected to be completed in the next six months.
“Following the visit by our Head of State Mahmoud Ahmadinejad earlier this year, a lot of projects were agreed on and this is one of them.
“Souts, one of our firms which manufactures machinery for agriculture, will be installing three dairy processing plants in Zimbabwe within the next six months. With this project we hope to improve the dairy supply in the country and at the same time improve the bilateral relations as has been the case with Motira tractors,” he said.
Labels: DAIRY, IRAN, MAHMOUD AHMADINEJAD
Read more...
230 on dairy training programme
Thursday, 14 October 2010 07:41 Agriculture
The Department of Livestock Produ-ction and Agritex have embarked on a programme to train 230 farmers from Nharira and Sadza Dairy schemes in the Chikomba District of Mashonaland East.
In an interview on Tuesday, Chiko-mba livestock specialist, Mr Cosmas Ratsakatika, said 160 of the farmers would be from Nharira and the remainder from Sadza.
“The training is aimed at reviving production levels that had dipped from 1 000 litres a day to the current 150 litres a day,†Mr Ratsakatika said.
He said they were training farmers on the basics of increasing fodder and silage production and use. “The training will also enable farmers to practice proper record keeping, adopt right feeding and culling methods to boost herds while keeping their focus on increasing the calving percentage from 34,5 percent to 40 percent,†Mr Ratsakatika said.
Apart from this, the farmers will also be trained on feed formulation, clean milk production and proper storage procedures. To this end, the Ministry of Health and Child Welfare has also been roped in to take care of sanitary training requirements.
Mr Ratsakatika said a district management team — comprising representatives from different Government departments — would train farmers on handling of finances and marketing. After the training, farmers are also expected to up their daily yields from 1, 9 litres per day per head to more than eight litres.
Apart from directly boosting their incomes, they are also expected to start a yoghurt making business. The training began on Monday and will run until December.
“The first day recorded over 50 farmers at Nharira while 35 commercial dairy producers also received training at their farms. “The response was just overwhelmi-nging,†Mr Ratsakatika said.
Labels: DAIRY, NEW FARMERS, YOGHURT
Read more...
Egg and poultry cartels in the wings
LLOYD GEDYE - Nov 05 2010 12:13
Never mind the bread cartel, wheat cartel and flour cartel, while we're at it let's throw in an egg cartel and a poultry cartel for good measure.
Pioneer Foods's whopping R1-billion fine for anti-competitive practices may have grabbed the headlines, but the real story was hidden in the detail -- Pioneer Foods has not only been involved in bread, flour and wheat cartels, but also in poultry and egg cartels.
The Competition Commission's statement on the settlement reached between it and Pioneer, detailed for the first time investigations into the poultry and egg markets.
The statement made it clear that the fine imposed on Pioneer was also aimed at settling these matters, which are under investigation, and that Pioneer would rat on alleged colluders in the egg and poultry cartels.
The commission's investigation into the poultry market was initiated in April last year and its statement claims that Rainbow Chickens, Astral Foods, Country Birds Holdings, Afgri, the South African Poultry Association and the Animal Feed Manufacturers' Association played a part in the cartel.
Paying too much
They are alleged to have divided up markets and shared information and the statement suggests that South Africans could be paying 25% too much for chicken as a result.
The egg cartel investigation was launched in May this year and 20 egg producers are being investigated -- Nulaid, Hy-line South Africa, Avichick, Eggbert, Top Lay, Fair Acres, Heidel Eggs, Lund Eggs, Waterglen Pluimvee, Paardeberg Flinkwink, Golden Yolk ND Lay Well, Rodendal, Nantes Eggs, Eikenhof, Elkana, Windmeul Eggs, Morningside, Sunrise Eggs, Eden Rock and Cocorico.
Pioneer has applied for corporate leniency for the involvement of its subsidiary, Nulaid, in collusion in the egg market and so it will help the commission prosecute the other members of the cartel.
Pioneer's involvement in these alleged cartels has highlighted the fact that, while the agreed settlement of more than R1-billion is the largest settlement in South African history, Pioneer still got off fairly lightly.
According to current legislation, the commission could ask for a maximum fine of 10% of the Pioneer Foods Group's annual turnover for each individual case it chose to prosecute involving Pioneer Foods.
'Pioneer could have faced a maximum fine'
So, with a turnover for the 2009 financial year of R16,3-billion and anti-competitive practices flagged in the bread, wheat milling, flour milling, egg and poultry markets, Pioneer could have faced a maximum fine in the region of R8-billion, which is 80% of the company's market capitalisation.
The Black Sash took umbrage over the fine this week, arguing that it was not high enough.
"Not only did Pioneer Foods fix the price of bread, a staple food, but it inflated and profited illegally from the sale of other basic goods, including wheat, maize, poultry and eggs," said the Black Sash in a statement.
Pioneer Foods have been locked in negotiations with the commission for months, trying to bring to an end its reputation-damaging involvement in the bread and milling cartels.
In May 2008 the commission referred its case against bakers Sasko and Duens (Pioneer Foods), Albany (Tiger Brands), Blue Ribbon (Premier Foods) and Sunbake Bakeries (Foodcorp) to the Competition Tribunal, alleging that they had colluded in a bread cartel.
Later three of them admitted guilt and settled with the commission, but Pioneer decided to take the commission on, claiming it was not part of a bread cartel.
Determined to clear their name
If Pioneer had agreed to settle with the commission its fines would probably have been calculated on the R3,4-billion turnover of its baking and milling division from the 2007 financial year -- an effective fine of R340-million if the full 10% had been sought, which would have been unlikely. But the company's managing director, André Hanekom, was adamant that it had a strong case and that it was determined to clear its name.
In the end Pioneer's defence came unstuck, with Sasko general manager Andries Goosen admitting to perjuring himself before the tribunal.
The commission was looking into laying perjury charges against Goosen, which could result in jail time, but it is unclear how the current settlement will affect those charges.
KK Combi, the Premier chairperson, refused to comment on Goosen, saying Goosen was facing action from the National Prosecuting Authority.
In February this year the tribunal announced its ruling, fining Pioneer R195-million. But the commission was not impressed with the fine and took the matter on appeal to the Competition Appeal Court to get it increased, which sparked the round of negotiations that resulted in the settlement.
Tribunal hearing
Pioneer also had a tribunal hearing into its milling business hanging over its head after the commission referred charges against it to the tribunal in March this year.
As agreed in the settlement, which has to be approved by the tribunal, Pioneer will pay a R250-million fine to the National Revenue Fund and R250-million to a new agro-processing competitiveness fund, which will be administered by the Industrial Development Corporation to promote competitiveness, employment and growth in food value chains.
Pioneer has also agreed to adjust its flour and bread prices over a defined period, which will cost it about R160-million.
Ebrahim Patel, the minister of economic development, told Parliament this week that it was anticipated that this would "stimulate price competition in the bread and wheat market".
"I take this opportunity, subject to confirmation by the Competition Tribunal of the settlement, to call on bakeries, supermarkets and the retail trade to pass the price reduction on to consumers," said Patel.
Capital expenditure to be increased
Pioneer has also agreed to increase its capital expenditure by R150-million over a two-year period, to R1,35-billion.
Patel said this commitment was intended to support efforts to improve the company's competitiveness through innovation and the upgrading of equipment and expansion of operations, instead of relying on price-fixing and collusion with competitors.
This was on top of the R195-million fine that was handed down by the tribunal in February, taking the total to just over R1-billion.
Commissioner Shan Ramburuth said the settlement with Pioneer went beyond just a penalty and included price adjustment for the benefit of consumers and a fund to promote competition in the agro-processing industry.
"The commission welcomes Pioneer's approach, as evidenced in this agreement, to resolving the matters and agreeing to undertakings aimed at a more competitive and dynamic economy in these crucial sectors," said Ramburuth. Labels: DAIRY, KARTELS
Read more...
Mugabe workers ‘besiege’ Nestle
by
18/12/2009 00:00:00
AT LEAST six workers from Grace Mugabe’s dairy farm, Gushungo Dairy Estates, stormed the company headquarters of Nestle Zimbabwe demanding that the company resumes milk orders terminated in October, it was claimed.
Workers at the Swiss food conglomerate claimed the six men arrived just after lunch and demanded to see “whoever is in charge so that they can deliver milk”. One Nestle employee said the six were driving in a white ERF truck parked outside the company’s HQ along Park Lane.
“These guys meant business I tell you,“ the employee said. The six men are said to have met with Nestle managing director Heath Tilley and finance director, Farai Munetsi, who drove them out of the premises to an undisclosed location – thought to be the Meikles Hotel.
By late Thursday afternoon, neither Tilley nor Munetsi were available for comment as they were both said to be in meetings.
Nestle stopped making milk orders at Gushungo Estates after being pressured by foreign rights groups and its business partners who threatened to boycott its products.
Nestle was buying 10 to 15 percent of milk processed at its Harare plant from Mugabe’s farm.
Labels: DAIRY, GRACE MUGABE, GUSHUNGO DAIRY ESTATE, MUGABE, NESTLE, SANCTIONS
Read more...
Indigenise Nestle: AAG
Herald Reporters
The Affirmative Action Group has implored Government to indigenise Nestle Zimbabwe, saying its decision to stop buying milk from Gushungo Dairy Estate was illegal and against the spirit of the Global Political Agreement.
Addressing journalists in Harare yesterday, AAG president Mr Supa Mandiwanzira, said Nestle Zimbabwe’s actions were a result of failing to indigenise some of the local firms.
"As AAG, we cannot accept this continued harassment of the Head of State. The First Family is a symbol of economic empowerment and they have taken a battering, simply because of the steps they have taken to empower the majority.
"We are taking a legal approach against Nestle Zimbabwe and not a confrontational approach. What we are now seeing are the consequences of not indigenising. Nestle Zimbabwe should be indigenised," said Mr Mandiwanzira.
He defended the indigenisation programme, saying it should be viewed as a guarantor of any foreign investment.
"Indigenisation is a guarantor of investment. Anyone who wants to operate in Zimbabwe should partner locals so that they secure their investment," he said.
Mr Mandiwanzira said the refusal by the Switzerland headquartered company to purchase milk from the First Family’s dairy farm was illegal.
"It is illegal to segregate customers and it is illegal to segregate suppliers. They are against the laws of the country. We cannot have a company operating in Zimbabwe perpetuating an imperialistic agenda. It is unacceptable and Nestle Zimbabwe has crossed the line.
"When the Prime Minister was in Spain, he called for the removal of the restrictive measures.
"Nestle Zimbabwe’s actions are going against the gain in the inclusive Government and the progress it has made. Nestle Zimbabwe has buckled under the pressure of right wing Rhodies who do not want the inclusive Government to work," said Mr Mandiwanzira.
Labels: BEE, DAIRY, GLOBAL POLITICAL AGREEMENT
Read more...
Smallholder milk processing project empowers Choma dairy farmers
BY GILLIAN MUKULA MWABA
ZAMBIA has recorded a proliferation of different projects that have been introduced in the country to address issues related to poverty reduction or improving the delivery of services to the community.
Yet, a number of them have ended implementation of their activities without any positive impact on the intended beneficiaries despite spending colossal sums of tax payers’ money. On the other hand, some initiatives have left an indelible mark despite working with limited resources.
One such project which has left an unforgettable mark in Choma District in Southern Province is the 18-month Smallholder Milk Processing Extension Project (SMEP) whose implementation started in June 2007 at a total budget of only K381,000,000.
The pilot initiative, which aimed at promoting milk processing by small-scale farmers for improved community livelihoods and poverty reduction, has been effectively implemented by the livestock development branch (LDB), a wing of the department of veterinary and livestock development under the Ministry of Agriculture and Cooperatives (MACO) in Choma.
Through the implementation of the public service management (PSM) under management development division (MDD) at Cabinet office, the project has made tremendous efforts to enhance livestock extension services for purposes of improving the livelihood of the communities.
With project intervention, small-scale farmers in the area are now competent in producing and packaging flavoured yoghurt.
The farmers are not only able to reduce losses made on milk but determine the price of the commodity.
Before project implementation, milk processing companies or buyers dictated prices for the product.
Farmers can now decide to withhold their milk if unhappy with the price or add value to the product to make and package yoghurt.
The changed scenario has been made possible with financial support from the Service delivery improvement fund (SDIF) under PSM.
The SDIF has been demonstrating visibility of the reforms through supporting activities that bring about observable changes in service delivery and impact positively on the communities.
Commenting on the impact the project has left in the area, Choma District Dairy Cooperative Union board chairperson, Farmer Noole said their dream was to stand firm and compete at a commercial level.
“We are no longer going to allow commercial milk processing companies to determine the price of our milk. We want to hold the future of this industry in our hands and be able to improve our living stands,” he said.
Mr Noole revealed that Choma District Dairy Cooperative Union has received grant of K360,000,000 from a named non-governmental organisation (NGO) to install milk processing equipment which will include a 600-litre capacity pasteuriser.
He assured that with this assistance and best practices learnt from the SDIF project, the farmers were set to succeed.
Southern Province is an area characterised by cattle-rearing, an activity from which communities derive their livelihoods.
Milk-processing, therefore, holds the potential to enhance the livelihoods of these communities as an income-generating or employment-creating venture.
However, milk-processing has not been undertaken to any significant level by the communities because they lack the know-how and the equipment required.
The resultant scenario is where smallholder dairy farmers in the province are compelled to sell all their milk to commercial or large-scale processors at unfavourable prices and conditions.
Consequently, the potential of smallholder dairy farmers to raise more income from their dairy activities remains underutilised.
It is against this background that the LDB conceived and began implementation of the pilot project to promote milk-processing in Mazabuka, Monze, Choma and Kalomo districts.
The four districts were selected for the project because of the existence of well-organised smallholder dairy farming cooperative societies in those areas.
At the commencement of the project, the SMEP set five outputs, which are building capacity in milk-processing in dairy associations, production of milk by-products, reduced wastage of fresh milk, increased income from milk by-products and increased employment levels.
According to the provincial livestock production officer, Wakunguma Mukumbuta, who has been coordinating the project, the initiative has attained remarkable milestones under each of the five outputs it set at the start of the project.
For instance, milk-processing capacity has been built in the four dairy associations in the targeted districts through provision of training and equipment.
In addition, five dairy farmers in each association and four project staff have also been trained in milk processing, bringing the total number of persons trained to 24.
The project has also been able to provide processing, packaging and storage equipment to all four associations.
Dairy extension materials have been generated for continuous distribution while the processing technologies have been improved with continuous practice, leading to better quality yoghurt being produced.
Better packaging materials have also been introduced, leading to better marketing of the yoghurt.
Currently, all selected smallholder dairy cooperative societies are producing yoghurt and since the inception of the project, over 15,000 litres of yoghurt have been produced, reflecting a monetary value of at least K150,000,000 which has been used to boost farmer dividends, re-investment and the conditions of service for employees of the respective cooperative.
Baseline data before project implementation shows that dairy farmers had no capacity to process milk, hence there was no production of yoghurt in the dairy associations.
Although making of yoghurt is now ongoing in all the four associations, Choma should now be used as a case study for other districts that have similar conditions and may want to replicate the project.
This has made a difference to the dairy farmers who in the past sold milk to large-scale farmers who dictated the price of the commodity.
In some cases, the milk went to waste because buyers were not readily available while lack of storage facilities impacted negatively on sales.
What is also of significance is that project sites have improved their capacity to keep sales records as the SMEP made this a basic requirement.
Although the above milestones have been achieved, Mr Mukumbuta said the SMEP faced some challenges of low production of yoghurt in Mazabuka, Monze and Kalomo sites but that the scenario was likely to change for the better as the project was only on a pilot basis.
Apart from milk processing, each project site has its custom-designed extension services programme to meet the specific needs of its dairy farmers.
These programmes have been assisted with motorised transport provided by management development division (MDD) at Cabinet office, which is headed by Permanent Secretary, Ngosa Chisupa.
The project has also been focusing on development of extension programmes for each project site, and these programmes have been implemented under cost-sharing arrangements between the implementing institution and the dairy societies.
The project can be replicated in other provinces of Zambia to ensure value addition.
Send your contributions to: The Permanent Secretary, Management Development Division, Independence Avenue, P.O Box 30208, Lusaka or ps.mdd@cabinet.gov.zm or gillianmwaba@yahoo.com
Labels: CHOMA, DAIRY
Read more...
Mudenda advises dairy farmers on co-operation
Written by George Zulu
Thursday, November 13, 2008 6:14:14 PM
DAIRYSAV project coordinator Mweetwa Mudenda has said
lack of organised small-scale dairyfarmer groups in Western Province has led to the collapse of milk production in the province.
During a tour of selected dairy farms in the Southern Province organised by GART and Micro-Bankers Trust, Mudenda said
lack of milk production on a commercial basis in Western Province had resulted from the absence of organised farmer groups that focus on cooperatives as a business venture.
Some dairy farmers from Mongu and Senanga were part of the team that visited some dairy farms in Southern Province.
Mudenda said despite people having a lot of dairy animals, they did not take milk production as a source of income and investment by forming cooperatives.
“The only way dairy farmers can benefit from their animals is through milk production and forming of cooperatives which will manage their finances and the provision of technical support on how to increase the production of milk,” he said.
Mudenda expressed hope that the coming on board of the Barotse Royal Establishment (BRE) was an encouragement towards the revival of cooperatives in the province in order economically empower the people of Western Province.
He also expressed hope that the tour of Southern Province by dairy farmers from Mongu and Senanga would bring a different dimension in the manner people in the province view dairy farming at both commercial and subsistence levels.
Mudenda further said DairySav would also offer capacity building in dairy technical skills and expanded access to financial service, adding that this would enable the farmers avoid manipulation in the running of the cooperatives.
Labels: BAROTSE ROYAL ESTABLISHMENT, COOPERATIVES, DAIRY, DAIRYSAV, GART, MWEETA MUDENDA, WESTERN PROVINCE
Read more...
Monze dairy farmers plan to double production
Written by George Zulu in Monze
Saturday, November 08, 2008 6:25:59 AM
MONZE Dairy Farmers Cooperatives (MDFC) is working on plans to increase its milk production from 46,000 litres per month to 100,000 litres by the end of December this year. In an interview, MDFC manager Michelo Kasauta said the cooperative intends to increase the production of both sour and fresh milk by next month. He said the projected increase in fresh milk production is due to increased participation by small-scale dairy farmers in the district.
“The number of small-scale dairy farmers in the district has increased from 189 to 230 and this will result in the increased milk production especially during the rainy season when water and grass for our dairy animals is readily available in most parts of the district,” he said.
Kasauta said there were many other factors that would lead to the increase in milk production, among them the technical support received from co-operating partners such as the Golden Valley Agricultural Research Trust [GART] and government’s support to the sector.
He said dairy farmers were able to make and conserve animal feed using simple mechanisms for the dry season and that production of milk for the market had improved compared to the past years.
Kasauta also said increased investments in the dairy sector could ensure high production of dairy products for the local and export market for the benefit of farmers and consumers.
He also said the dairy co-operative had embarked on a small-scale production of yoghurt for local consumers.
Kasauta also commended the government for providing the cooperative with generators and other facilities for improved milk storage.
The Monze Dairy Co-operative has set up a milk collection point for its members in the area. Parmalat Zambia is one of the major buyers of milk from the Monze Dairy Co-operative for use at its dairy processing plants in the country.
Labels: COOPERATIVES, DAIRY, GART, MDFC, MICHELO KASAUTA, MONZE
Read more...
