Economic Analysis of Smallholder Dairy Farming in Zimbabwe

This study evaluates the economic viability of smallholder dairy schemes in Zimbabwe by assessing the key dairy performance indicators such as average milk yield per cow per day calving percentage calf mortality lactation length and calving index. The Cost-Benefit Analysis (CBA) and Gross Margin Analysis (GMA) are used to assess the financial and economic viability of the scheme. The study found that on average the milk yield per cow per day is 6.36 litres and the lactation length is 260 days. The calving percentage is 71 percent. This study also found that smallholder dairy farming is financially and economically viable. The gross margin per cow is Z$ 527.86. Dairy farming was also found to have a higher gross margin per hectare than maize. The financial Internal Rate of Return for the scheme is 22.04 percent and the economic Internal Rate of Return is 17.36 percent. The study established that there is potential for developing smallholder dairy farming in Zimbabwe.