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The Contribution of Lesotho Dairy Products to the Livelihoods of Dairy Farm Households in Maseru and Berea Districts in Lesotho

Agriculture forms a major source of livelihood for many people in Lesotho. The major agricultural activities include crop production and animal husbandry. Many farmers produce agricultural goods, mainly crops for subsistence purposes. There are also some subsistence farmers who participate in animal husbandry. Subsistence farmers keep livestock mainly for social and economic purposes. For instance, some farmers rear animals for prestige, ploughing, paying bride prices as well as producing milk for household use. The traditional breeds of cattle in many parts of Lesotho are kept mainly for domestic use. Despite a large number of Basotho farmers keeping livestock for subsistence purposes, there are some farmers who rear cattle for producing milk. These cattle are purchased from the neighbouring South Africa, while some are crossbred in the country. Some dairy farmers are members of associations, while others are not. Both association members and non-members market the milk in the local dairy industry, Lesotho Dairy Products (LDP). The supply of milk to the local dairy industry is not sustainable due to the small number of farmers participating in dairy farming. This has thwarted the capacity of the dairy industry to produce a variety of dairy products for the domestic market. As a result, the local market is flooded with milk products imported from South Africa. This shows that the forward linkage between LDP and farmers is too weak. This has in turn affected the output (backward linkage) of the dairy industry negatively. The industry specialises in the production of a few dairy products. Besides creating employment opportunities for dairy farmers, farm workers, as well as people working in the industry, the dairy industry has limited backward linkage within the local economy. It does not produce essential agricultural inputs for farmers such as pesticides and dairy cattle. In the light of these, this research study investigates the contribution of the dairy industry in improving the lives of dairy farm households and the economy of Lesotho. This is achieved by looking at production linkages (forward and backward) between dairy farmers and LDP.