Challenges of the dairy industry in Southern Africa

Louw, Johannes Michiel Adriaan (2013-03)

Thesis (MBA)--Stellenbosch University, 2013.


ENGLISH ABSTRACT: The world population is growing rapidly and places additional pressure on the natural resources of the world. The increase in the world population leads to increasing focus on food security and the nutrition of the world population. Developed countries can only produce up to a certain level to satisfy the demand for food in the world. The additional production needs to come from countries where economic and agricultural development has been lagging. The research identified five major drivers of the future growth of agriculture. These drivers of future growth create opportunities for countries in Africa and help to address the development challenges for their different agricultural sub-sectors. The dairy industry in Southern Africa can play a significant role in addressing food security and nutritional needs of the growing population. Large numbers of livestock are present in Southern Africa because the landscape is lending itself to livestock farming and cultural believes see livestock as wealth in the hands of the owner. There are however serious challenges to address in order to achieve sustainable growth in the dairy industry in Southern Africa. The focus of the report is on the identification of the challenges in the dairy industry in Southern Africa, thus helping with the formulation of a growth strategy and business model. The report used a qualitative method of literature study to determine the challenges faced by the dairy industry in three Southern African countries, i.e. South Africa, Tanzania and Zambia. The contrasts between these countries are significant, but there are also many common elements and challenges. From this range of factors a set of key “challenges for action” has been derived, which are put forward as a basis for public and private sector efforts to strengthen growth in the sector. The list of challenges also assisted in the proposal of a business model to address part of the challenges of development in the dairy industry.

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