Operations of the Value Chain

Broadly speaking beef is produced in Zimbabwe under three farming systems (Table 50).

Farming system Farmer type Description/farmer type No. of

households % area (Ha Land million)

% Size

(Ha)

Fully Communal Communal Subsistence mixed farmer with using shared communal grazing and few purchased inputs. Animals for draft power, manure, milk, savings and status.

527,104 75.9 16.4 54.6 31

Partially

communal/commercial Old resettlement A1

Small A2

A range of relocated farmers using

communal grazing and limited intensive production techniques. Animals for both communal and commercial uses including sales.

149,106 21.5 8.9 29.8 60

Fully Commercial Old small scale commercial Large A2 Commercial Semi intensive commercial production with supplementary feeding on enclosed land. Animals for sale for commercial gain.

17,700 2.6 4.7 15.6 266

Total 693,910 100 30 100

TABLE 50: SUMMARY OF ZIMBABWE BEEF FARMING SYSTEMS USED IN THE ANALYSIS The current beef cattle herd is estimated to be around 5.5 million head (figures are uncertain). The largest proportion of the national beef cattle herd is farmed on a relatively small scale and using a communal farming system, with emerging commercial and fully commercial farmers representing 22% and 6% of the cattle population respectively. An important proportion of communal and partially communal/commercial farmers have no livestock.

In the majority of beef production systems, off-take has declined (reflecting increased risk aversion, increased draft use, need for organic fertilizer, milk use and savings through animal holding), and, average animal size fallen (reflecting a return to more traditional breeds). Average carcass weight of animals slaughtered has declined from 200kg/animal to 167kg/animal as animals are kept longer and traditional breeds increase. Weaning rates have also declined.

Off-take rates are disputed in Zimbabwe, but 11% for commercial and 5% for communal are regularly cited. Challenges facing farmers selling cattle include: high formal and informal levies, duties and rents; and, endemic stock theft. A proportion of the national herd is informally slaughtered, although this figure is in dispute. Production is constrained by these and other

188

systemic issues including: poor access to extension services and advice; lack of resources for basic disease and parasite management; inadequate water supply for cattle in rural areas; and, inadequate animal nutrition, particularly licks and micro-nutrients.

Pre-production actors include input suppliers: feed manufacturers, veterinary medicine sellers/agrodealers, veterinarians/animal health workers and breeders. For the majority of farmers, these actors currently play a somewhat diminished role as few inputs are purchased. Vaccines and dips are the most important. Ratios of animal health workers to cattle owners are very low (e.g., 1 animal health worker to 700 farms in Chiredzi).

Cattle leaving farms is either slaughtered locally for local use or transferred via middlemen or auctions to abattoirs. Traders play an important role in intermediating between abattoirs and farmers. Important recent changes in the abattoir sector include the decline of large scale abattoirs and the growth in ‘toll’ slaughtering where the abattoir does not take ownership of the animals. It is estimated that 62 medium to large abattoirs slaughter 70-75% of the national herd, but that there are over 160 abattoirs registered. Challenges faced by abattoirs include: throughput, most abattoirs are under-utilised; grading, sellers complain that the old grading system fails to compensate adequately for the reversion of the national beef herd to traditional breeds and carcass weight and quality as declined; utilisation of the 5th _{quarter, sellers complaining that price does not adequately} compensate for this high value element; and, collapse of the hide export and domestic use reducing overall animal slaughter values.

Post slaughter meat is sold to retailers, butchers, caterers and meat processors. Zimbabwe has a small but well-established meat processing sector, largely making sausages, burgers and pies for local sale. Most meat is sold as mixed meat pieces through urban butchers, retail outlets, restaurants and door-to-door meat and meat product traders. Issues in this element of the value chain include: shortages and high costs of imported elements (e.g., packaging and casings), decline of demand from farm workers (although to some extent compensated by the increase of small scale mining operations in the country), and, the threat of informality (risk of under-cutting of formal meat sales by illegal trade with lower food safety standards).

In terms of governance and institutional frameworks, Zimbabwe has a full set of government and non-government bodies. Government structures still reflect the national objective of veterinary control and export orientation.

The Government of Zimbabwe has a National Livestock Development Policy and Programme which aims to support integration of small scale farmers into the formal market chain. Export sales and FMD control are not highlighted in this policy, but are the focus of the proposed “Command Livestock, Fisheries and Wildlife Program”. This programme aims to return Zimbabwe to competitive export. As part of this a National Livestock Identification programme is proposed based on electronic RFID tags.

The functional analysis highlighted 10 value chain dysfunctions (this is not an exhaustive list – neither are these dysfunctions ranked).

189

• Undervaluation of animal benefits: considering only economic and not social/environmental benefits potentially distorts national policy by over-valuing commercial vs communal production practices.

• Grading practices favour improved animals and commercial farmers. • Abattoir management practices capture the value of the 5th _quarter. • Traceability is inadequate and promotes illegal trading and theft. • Prices are not transparent due to the lack of information systems. • Absence of cash in the economy discourages trade and increases costs. • Economic uncertainty reduces risk taking and encourages animal retention.

• Informal transaction, rent seeking and direct levies diminish investment and growth in the sector.

• Absence of disease management reduced the overall economic potential of the value chain. • Drought management is very poor: particularly water access, stocking rates, supplementary

feeding and grazing management.