The evolution of Zimbabwe’s stockfeeds industry

By Rowan Hayter

Zimbabwe's stockfeeds industry has undergone remarkable transformation over the past decade, with total feed production surging by 62% since 2016. However, beneath this impressive growth figure lies a complex story of shifting market dynamics, changing consumer preferences, and evolving agricultural practices that have fundamentally reshaped the landscape for beef producers.

The numbers tell a story

The most striking feature of Zimbabwe's feed industry growth has been its uneven distribution across livestock sectors. While total feed production has climbed from 553,000 metric tonnes in 2016 to an impressive 896,000 tonnes in 2024, this expansion has been overwhelmingly driven by the poultry sector. Poultry feed production has nearly doubled from 372,000 tonnes to 645,000 tonnes over the same period, reflecting growing population demands and the search for affordable protein sources.

In stark contrast, beef feed volumes have declined by 13% since 2016, dropping from 83,000 tonnes to 72,000 tonnes in 2024. This divergence tells a compelling story about Zimbabwe's changing agricultural priorities and economic realities.

Understanding the beef feed decline

The decline in beef feed consumption reflects broader structural changes in Zimbabwe's cattle industry. Historically, the beef value chain relied heavily on formal trade and export markets, with commercial operations dominating the sector during the 1990s and early 2000s. However, over the past two decades, beef as a commodity has become less valuable in real terms.

Today, the real value in cattle farming lies not in the meat produced, but in the biological asset itself, the cow as a store of wealth. This fundamental shift has altered feeding patterns and investment priorities for cattle farmers across the country.

Beef compound feed demand operates on two distinct levels: a fixed volume consistently used by large feedlot operators, and a variable volume that fluctuates dramatically with rainfall patterns and national veld carrying capacity. During drought years, beef feed volumes spike as veld grazing capacity diminishes, while good rainfall years see reduced demand for supplementary feeding.

Market volatility and external shocks

The industry has weathered several significant disruptions that illustrate its vulnerability to external factors. The 2017-2018 period saw substantial impacts from Avian Influenza, while 2019 showed an artificially healthy recovery driven by subsidised maize prices as low as USD 60 per tonne from the Grain Marketing Board. This period coincided with the tail end of two consecutive drought years, which drove beef feed demand as natural grazing became minimal.

The transition to USD-based pricing in 2020 proved particularly challenging as businesses readjusted their models to cope with economic realities. However, 2021 and 2022 demonstrated the industry's resilience, with significant growth driven entirely by increased poultry demand as Covid-19 prompted many backyard farmers to turn to poultry rearing to supplement their incomes.

The economics of feed formulation

Understanding feed pricing reveals the sophisticated science behind modern animal nutrition. Feed millers employ "best-cost formulation" strategies, designing feeds to meet precise nutritional requirements at the lowest possible cost. This involves continuous adjustment of formulations as different ingredients – maize, brans, cotton cake, soya meal – fluctuate independently on commodity markets.

A typical beef feed formulation illustrates this complexity: wheat bran comprises 39.5% of the ration, providing safe energy and fibre to buffer acidosis, while maize bran adds 23% for energy and palatability. Molasses at 15% serves multiple purposes: energy, dust control, and palatability enhancement. Smaller components like soyabean meal (3%) balance protein and amino acids, while specialised additives like mycotoxin binders provide risk management.

Current commodity pricing shows the global nature of these markets, with soyabean meal trading at $321 per tonne USD landed in Harare, while yellow maize futures sit at $200 per tonne. These international prices directly impact local feed costs and, ultimately, farmer profitability.

Current market position

In 2024, beef feed represents 72,484 metric tonnes worth USD 28.6 million, accounting for 8% of total feed tonnage but only 6% of total industry value at an average price of USD 395 per tonne. This relatively low value density compared to other feed sectors reflects both the nutritional requirements of beef cattle and the price pressures facing the industry.

Strategic responses and future outlook

Feed millers are pursuing several strategic initiatives to improve efficiency and reduce costs. Solar installations are reducing fuel and electricity costs while improving reliability. Bulk handling infrastructure, including on-site grain silos and feed bins, is streamlining operations and reducing labor costs. Automation upgrades are improving both labor efficiency and consistency in animal performance outcomes.

Perhaps most critically, expanded storage capacity for maize, brans, and protein meals provides the flexibility to purchase raw materials when prices are favourable, helping to smooth out commodity price volatility.

Partnership as the path forward?

The industry's future success depends heavily on strengthened partnerships between feed millers and farmers. Clear communication about product needs, backed by committed purchasing decisions, enables millers to maintain specialised product lines. Understanding that commodity costs must be passed through – though millers absorb volatility where possible – helps maintain realistic expectations about pricing.

Supporting industry-wide initiatives to secure better commodity pricing benefits all participants, while recognising that millers "don't fight the market, we follow it" helps align expectations with market realities.

Zimbabwe's stockfeeds industry exemplifies the dynamic nature of agricultural markets. While overall growth has been impressive, the decline in beef feed reflects deeper structural changes in cattle farming economics. Success in this environment requires adaptability, strategic investment, and strong partnerships throughout the value chain.

For beef producers, understanding these market dynamics is crucial for making informed decisions about feeding strategies and investment priorities. The industry's evolution continues, shaped by global commodity markets, local weather patterns, and changing consumer preferences – factors that will undoubtedly continue to influence Zimbabwe's agricultural landscape in the years ahead.

This article is based on industry data and analysis presented at ZHB’s 2025 Beef School, highlighting key trends and challenges facing Zimbabwe's stockfeeds sector.