Root Cause Analysis of Factors associated with High Cost of Dairy Feed under the Zimbabwean Stock Feed Manufacturing Sector

Alpha Marlvin Manjera¹ , Patience Siwadi² , Paidamoyo Patience Chadoka³

Section:Research Paper, Product Type: Journal-Paper
Vol.9 , Issue.3 , pp.37-44, Sep-2021

Online published on Sep 30, 2021

Copyright © Alpha Marlvin Manjera, Patience Siwadi, Paidamoyo Patience Chadoka . This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
 

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Abstract :
This paper sought to demystify the cost components and present a cost build up by identifying the root causes of a high cost of dairy feeds. It is based on the rationale that there is great concern for the dairy industry in Zimbabwe which has shrunk over the two decades from 1990s when production reached over 200 million litres per annum to the present 76 million litres per year. Underperformance has hovered around viability problems which include the cost of stock feed exerting pressure on the uncompetitive milk producer prices dictated by the processors. The study utilized 32 companies within and work with the stock feed manufacturing sector in Zimbabwe. A qualitative approach to identification of the root causes of high cost of dairy feed was adopted through use of an interview guide. The study revealed that all factors associated with high cost of dairy feeds points to unavailability of cheaper raw materials. The study concluded that this is a combination of statutory instrument 145 of 2019, soya barn, lack of coordination and linkages, lack of direct dairy funding, high cost of producing maize, soya, leakages of raw materials to external markets, lack of sustained backward and forward market integrations. The research the study recommended the review of the SI 145 of 2020 to incorporate stock feed manufacturing and strengthen contract farming and regulate the export of grain. In addition, there is need to review the soya ban for stock feed manufacturers to get raw materials at their cheapest during harvest.

Key-Words / Index Term :
Feed Cost, Stock Feed Manufacturing Sector, Dairy Meal, Cost Driver, Statutory Instrument

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