Ex-ante benefit-cost analysis of an animal production and forage centre for a smallholder dairy value chain in Zimbabwe

Many smallholder dairy schemes in Africa face sustainability constraints due to shortages of feed resources and poor productivity. Extension supported dairy animal production and forage centres constructed alongside the milk collection centres are possible solutions to these constraints. The objectives of this study were to (1) determine farmers’ willingness to pay for construction and services provided by the centre, and (2) perform an ex-ante benefitcost analysis of the centre in the smallholder dairy value chain. A cross-sectional survey was performed in four smallholder dairy schemes and a total of 185 smallholder dairy farmers selected by simple random sampling were interviewed using a pre-tested questionnaire. The results show that 78% of farmers indicated they would be willing to construct such a centre on their own, while 94% indicated they would be willing to pay for artificial insemination services provided by such a centre. The main advantages of the centre to the dairy enterprise would be ready access to feed, fodder and cost savings (82% of farmers). About 92% of farmers would prioritize feeding milking cows in order to increase milk production. Ex-ante benefit cost analysis indicate that such a centre would be profitable with a benefit: cost ratio of 5.4: 1. The implications of the results is that Governments should support alternative models of smallholder value chain development that includes establishing animal production and forage centres in the smallholder dairy value chain in order to improve milk production and productivity, and the contribution of smallholder dairy to the national economy.