The Viability Of Small Holder Dairy Farming in Zambia

The objectives of the study were to assess the relative profitability of smallholder dairy farming and determine the socioeconomic factors affecting it in 6 of the then 9 provinces of Zambia. The study was driven by the lack of research-based information in this area despite the involvement of an overwhelming number of donor funded projects and the Government in promoting smallholder dairying. Gross margin analysis revealed an estimated profit of 57.9% per litre of milk. Econometric analysis of the socioeconomic factors indicated that dairy cow herd size and distance traveled to deliver milk to milk collection centers had a statistically significant effect on the profitability of smallholder dairying ceteris paribus.Thus results suggest that the Zambian smallholder dairy enterprise is a viable venture and could play an important role in rural poverty reduction employment and wealth creation as well as in enhancing household nutrition and food security.