A study was conducted to assess the potential of establishing small-scale dairy processing
schemes that would bring development and economic growth, alleviate poverty and enhance
the standards of life of the Namibian livestock rearing population. Lessons were deducted
from the Zimbabwe Smallholder Dairy Development Program (DDP). Secondary data was
collected at Nyarungu DDP head Quarters and the NPC, DVS, DEES in Namibia. A
structured questionnaire was also used to collect data to assess the potential for milk
production in Otjinene. Descriptive statistics were computed using SPSS (version 16.0).
Economic viability of small-scale processing centre in Zimbabwe and Otjinene was done
using the GMA and NPV tools. The potential for milk production in Otjinene was 12 716
l/day which was obtained from 748 households, each producing an average of 17 litres per
day. It was concluded that Otjinene has potential to produce surplus milk that would sustain a
processing centre. DDP processing centres had negative GM, indicating unvaiblity coupled to
a horde of challenges. GM and NPV for Otjinene Projected centre were positive indicating
viability and profitability. In conclusion, the smallholder dairy processing centres that are
marginally viable or unviable in Zimbabwe are feasible and profitable options in Otjinene.
The success of the Otjinene centre was attributed to the number of cattle for milk production
and the processing of different high value products that increases the revenue bases.
Nevertheless similar assessments need to be done during the late summer and the dry season
in order to estimate the potential milk supply surpluses or shortfalls in different seasons.