Dairy industry in deep water The worsening situation in the Namibian dairy industry needs immediate and serious attention.
A special meeting was recently held between the management of the Dairy Producers Association and the representatives of the processor with regard to a raw milk price reduction for Namibian producers of 10 cents per litre. This will be the second price reduction in the last seven months for producers.
A further 10-cent reduction is possible by the end of April 2018.
According to the Namibian Agricultural Union these price reductions could potentially mean the end of business for some dairy farmers.
The union said in addition to a price reduction, payments of producers are being deferred on a monthly basis. Producers have also been warned not to increase any milk production, as excess milk will most probably not be taken up in the market.
“This critical situation in the dairy industry can be ascribed to mostly the influx of cheap UHT milk and closely related other dairy products into Namibia.”
According to the union, imported UHT milk, mostly from South Africa, was selling in Namibian shops for as little as N$10.99 per litre in the past two weeks.
It said in reality this milk is cheaper than a litre of bottled water sold at the same shop.
In addition, imported UHT milk found on Namibian shelves is cheaper than the same product in South African shops, it claimed.
The NAU said the long-awaited bill to control imports and exports of dairy products is essential and it is due to be tabled in parliament this year.
STAFF REPORTER
A special meeting was recently held between the management of the Dairy Producers Association and the representatives of the processor with regard to a raw milk price reduction for Namibian producers of 10 cents per litre. This will be the second price reduction in the last seven months for producers.
A further 10-cent reduction is possible by the end of April 2018.
According to the Namibian Agricultural Union these price reductions could potentially mean the end of business for some dairy farmers.
The union said in addition to a price reduction, payments of producers are being deferred on a monthly basis. Producers have also been warned not to increase any milk production, as excess milk will most probably not be taken up in the market.
“This critical situation in the dairy industry can be ascribed to mostly the influx of cheap UHT milk and closely related other dairy products into Namibia.”
According to the union, imported UHT milk, mostly from South Africa, was selling in Namibian shops for as little as N$10.99 per litre in the past two weeks.
It said in reality this milk is cheaper than a litre of bottled water sold at the same shop.
In addition, imported UHT milk found on Namibian shelves is cheaper than the same product in South African shops, it claimed.
The NAU said the long-awaited bill to control imports and exports of dairy products is essential and it is due to be tabled in parliament this year.
STAFF REPORTER