RAPID RISE IN DAIRY IMPORTS

MBABANE – Efforts to protect the country’s blossoming dairy industry seem to still be in vain.

This follows the rapid rise in imports of dairy products that are sufficiently produced in the country. 

Figures that have just been released by the Eswatini Dairy Board (EDB) show that over 8.74 million litres/kg of dairy products were imported during the last quarter of 2020 (October to December). 

This is a notable rise from the 6.5 million litres/kg of dairy products that were brought into the country during the previous quarter of the year under review.

Imported

The imported products include fresh milk, emasi (sour milk), creamers, flavoured milk, yoghurt, ice cream, raw milk and custard, to mention but a few.

According to the report, the highest numbers for imports (about 3.3 million) were recorded in the last month of 2020.

Yoghurt, sour milk (emasi), fresh milk and margarine, to mention but a few, are among the products still imported in large quantities.

The continued increase in dairy imports is a serious cause for concern and it is against EDB’s bid to protect the local industry.  

Sufficiently

Last year the company had proposed that a 40 per cent import levy be charged on all dairy products which are sufficiently produced locally, such as emasi (sour milk), yoghurt, fresh milk and fresh cream.

The levy was supposed to kick in on July 1, 2020, but there were reportedly registered concerns from some of the stakeholders who felt the timing could be bad due to the effects of the coronavirus pandemic.

As a result, Dairy Board CEO Dr Tony Dlamini, in a statement, had announced the suspension of the levy until further notice. 

Implications

At the time, he said the sector on its own had not been left unscathed by the devastating financial implications of the economic downturn.

“The Board has to assume its mandate and responsibility to ensure an enabling environment for all dairy industry stakeholders even during circumstances of this nature.

Proposed

“It is for this reason that the Board takes this opportunity to notify all stakeholders that the proposed dairy import levy review scheduled for July 1, 2020, has been suspended until further notice,” Dlamini had said.

Efforts by this publication to establish if this levy would be charged in the new year were fruitless at the time of compiling this report.

Meanwhile, when justifying the move to increase the levy, Dlamini explained that the country’s dairy industry had realised remarkable improvements in its value chain, particularly in milk production and processing. 

However, he said the industry was still at an infancy stage and needed protection against competitive pressure from mature and developed economies. 

He said it was on this basis that the Board sought to use one tool of protecting an infant industry by invoking Section 25 of the Dairy Act, which proposes a review of levy for all imported dairy products.

Charged

For all other dairy products that are not sufficiently produced in the country, they will be charged at 13 per cent on the invoice value.   

Dlamini had urged importers to help support the local dairy industry by making use of local processes by engaging them with specifics of their brands to produce and pack for them as opposed to importing products which can be sourced in the country thus developing the dairy industry. 

He gave the board’s 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.

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