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IMPORT OF AVAILABLE DAIRY HIGH -EDB

18/09/2020 09:03:00 BY ASHMOND NZIMA

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MBABANE – Dairy products that are produced in abundance in the country continued to be imported in large quantities in the first half of 2020.

Due to the increased imports, from July this year, the Eswatini Dairy Board (EDB) had proposed that the import levy be charged on all dairy products which are sufficiently produced locally, such as emasi (sour milk), yoghurt, fresh milk and fresh cream.

However, the plans to introduce the 40 per cent levy on imported dairy products had to be put on hold until further notice due to disruptions in the consultations exercise caused by COVID-19.

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While the wait for a decision on the levy continued, dairy import figures for the period January to July 2020 showed that over four million litres/kilogrammes of the locally-produced products were imported. The imports were headlined by yoghurt whose volume exceeded two million.

Meanwhile, EDB wants to introduce the levy in a bid to protect the blossoming local industry.

According to an earlier correspondence signed by CEO Dr Tony Dlamini and posted on the company’s website, EDB was proposing an import levy charge of 40 per cent (on invoice value) on all dairy products which are sufficiently produced locally. The charges, according to Legal Notice Number 27 of 2011, currently range between 10 and 12 per cent.

“Our country’s dairy industry has since realised remarkable improvements in its value chain, particularly in milk production and processing. However, the industry is still at an infant stage and thus needs protection against protective pressure from mature and developed economies.

“It is on this basis that the Board seeks to use one of protecting an infant industry by invoking Section 25 of the Dairy Act which proposes a review of levy for all imported dairy products. This industry protection measure will further lead to greater investment opportunities within the country,” reads the correspondence in part.

According to the proposal, any new addition to the said products which will be sufficiently processed locally will also automatically attract the 40 per cent levy charge.

“All other imported dairy products are to be charged at 13 per cent on the invoice value.

“Importers are therefore urged to help support the local dairy industry by making use of our local processors, that is, engaging them with specifics of their brands to produce and pack them as opposed to importing products which can be sourced in the country thus developing the dairy industry,” reads the communiqué.

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The Board assured of its commitment to creating an enabling environment for all dairy stakeholders in order to promote industry interaction and to further uplift the economic position of the country.

“Stakeholders are informed that all necessary legal procedures and processes will be followed carefully in the implementation of this proposal,” reads the proposal.

It was reliably gathered that engagement of stakeholders on the proposal was put on hold due to the COVID-19 regulations which bars large gatherings.

Dr Dlamini’s phone rang unanswered yesterday when this publication sought an update on the suspended levy.

This publication, on the other hand, had earlier reported that there was an increase in locally-manufactured dairy products in the past year.

Volumes of dairy products produced locally that include pasteurised milk, dairy blend juice, yoghurt and fresh cream increased in 2019 compared to 2018. For pasteurised milk, the volume increased from 195 513 to 236 852 litres. Over 1.8 million litres of yoghurt were produced in 2019. It was an increase from the about 1.5 million litres produced the previous year.

EDB is the Eswatini Dairy Board. It is a regulatory and developmental body of the dairy industry in the country with an aim of promoting milk production, processing, distribution, consumption and investment in all phases of the industry, as per Section 12 of the Dairy Act (1968).

EDB’s Quality Control department carries out the regulatory function of the Board. This is done through working with processors, retailers, distributors and producers of milk and dairy products. The department also regulates the import and export of dairy products.