By JAMES KUNDA-
THE cost of importing a selected breed of cattle in Southern Africa has increased by K500 due to the recent volatility in the exchange rate, the Dairy Association of Zambia (DAZ) has said.
DAZ executive director Jeremiah Kasolo said in an interview that depreciation of the Kwacha has affected small-scale livestock farmers who are now struggling to meet the cost of importing a certain breed of cattle to boost dairy production.
“Some farmers are meant to import a certain breed of cattle which is still in the maturing stage locally, to boost dairy production.
‘‘Breed like the Jersey, Ayrshire, Frasians are imported from South Africa and because these animals are quoted in dollars, this has pushed up the cost of importing,’’ Mr Kasolo said.
Depreciation of the Kwacha has affected the sector so badly that it is difficult for small-scale farmers who are financially handicapped to meet the new capital requirement.
It was also difficult for purchasers to borrow money from lending institutions because most of the banks provided the initial capital requirement which was measured according to how much the Kwacha was trading then.
Mr Kasolo said now that the Kwacha was trading at K6 against the United States dollar, the cost of importing a Jersey breed of cattle was now K12, 500 per animal from the previous K12, 000.
“Frasians are now costing K13, 000 per animal from the previous K12, 500, while, the Ayrshire is now costing 12,000 from the previous K11, 500 per animal,” he explained.
He said the entire three breeds contribute about 10 per cent to Zambia’s annual dairy production capacity.