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Albertina Nakale
WINDHOEK – The Cabinet finally approved the long-awaited bill to regulate the import and export of milk and other dairy products.
Dairy farmers are concerned that if the bill regulates the import and export of dairy products does not get the green light for small Namibian dairy farmers.
The country's 16 dairy farmers and the entire dairy industry are in desperate straits.
But dairy farmers can now sigh The Deputy Minister of Information and Communication Technologies, Engel Nawatiseb, who announced the firm's resolutions Thursday, revealed that the firm had approved, in principle, the law Project. , Bill Amending the Act of 2018 on the Control of the Import and Export of Dairy Products
He stated that the Ministry of Agriculture, the Ministry of Water and Forests It is expected that the bill will be submitted to the Cabinet Committee for consideration before being tabled in the National Assembly.
On February 23, a special meeting was held between the management of the Dairy Producers Association and representatives of processor Nammilk. a reduction in the price of raw milk for Namibian producers by 10 cents per liter and a further reduction of 10 cents by the end of April.
This was the second price cut in the last seven months for producers, but these price reductions could potentially mean the end of some dairy producers' activities. In addition to price reduction, producer payments are deferred on a monthly basis.
Producers were warned not to increase milk production because surplus milk is unlikely to be imported into the market. There are currently fewer than 3,000 commercial dairy cows in Namibia.
This critical situation in the dairy industry can be attributed mainly to the influx of UHT milk and other closely related dairy products in Namibia. At the time, imported UHT milk was sold on the shelves of Namibian retailers for only N $ 10.99 per liter. In reality, this milk is cheaper than a liter of bottled water in Namibia and sold in the same store. In addition, cheap imported UHT milk found on the Namibian plateaus is cheaper than the same packages sold on the same day in South Africa.
All actors called for an immediate and serious intervention to prevent the collapse of the industry.
Compared to N $ 5.20 per liter in South Africa, the price of raw milk for production is currently N $ 6.05 per liter. The market offers a fully open and unregulated trade of milk and other dairy products. The result is increased import competition, which risks replacing local milk production and manufacturing.
Almost all butter and cheese sold in Namibian stores are imported. The Namibian dairy industry was on the brink of collapse in late 2015 and has gone through two difficult years since then, when drought conditions caused massive losses of maize crops in South Africa and resulted in a considerable increase food costs.
Costs remain the most important factor in the total production costs of dairy farmers. According to the dairy farmers' cost index of the Namibian Union, food costs have increased by nearly 50 percent in 2015 and production costs have risen by about 28 percent. during the same period
.
Namibia's only long-life milk production plant, belonging to the Ohlthaver & List group, could be closed if the trend continues, resulting in nearly 500 job losses.
The Namibian dairy industry has not received any price increases in the past two years; it had to accept a price reduction of 10 cents per liter of raw milk, while the costs of producing fuel and fodder increased considerably.
Milk prices in South Africa are exempt from VAT for consumers and Namibia against the importation of subsidized dairy products. In Namibia, a 15% tax is levied on all milk sold.
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