Staff Writer
Dairibord Holdings is optimistic that its expanded raw milk supply will mitigate some of the negative effects of the El Niño-induced drought.
The leading dairy processor said the drought has severely impacted agricultural yields, raising concerns about economic growth and food price inflation.
The adverse weather conditions have also curtailed raw milk production, a critical input for the dairy industry.
“The prevailing drought conditions exerted a substantial negative impact on agricultural yields, which is anticipated to impede overall economic growth and contribute to food price inflation. This adverse condition is also projected to curtail raw milk production,” Dairibord’s chairperson Josphat Sachikonye said in a statement accompanying the group’s financials.
He said the Zimbabwe Stock Exchange-listed group’s substantial raw milk supply growth realised during the first half of the year is expected to partially offset some of these potential adverse consequences
Despite these efforts, the company remains cautious about the potential long-term consequences of the drought.
If the dry spell persists, it could further strain the dairy industry and lead to supply shortages and price increases.
The drought is a stark reminder of the increasing vulnerability of Zimbabwe’s agriculture sector to climate change.
Experts warn that more frequent and severe droughts are likely to occur in the future, posing a significant threat to food security and economic stability.
To address the challenges posed by climate change, experts have called on the government and private sector to invest in climate-resilient agriculture practices, improve water management, and develop early warning systems to mitigate the impacts of droughts and other extreme weather events.
