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Business Reporter
dairy processors in Zimbabwe have submitted a proposal to the Government on how best the industry can be driven back to its past glory following an influx of imported dairy products on the local market, an official in the industry said on Friday.
The processors want Government to consider introducing a 25 percent levy on milk imports.
Speaking during a tour of the new US$7 million plant in Kwekwe, Dendairy director Mr Daryl Archibald said all the players in the dairy industry have met with the Government over possible initiatives that can ensure revival of the sector.
“Nestle, Dendairy and Dairibord have submitted their proposals to the Ministry of Finance on how best the Government can chip in towards making sure that a level playing field is created between imports and locally produced goods.
Mr Archibald said Zimbabwe consumes at least 10 million litres of milk every month with half of it being imported from South Africa as boxed milk.
He said the Government was also going to impose a small duty on imported raw materials such that dairy producers will start producing locally at high capacity.
Mr Darren Coetzee, who is also a director of the company, bemoaned the influx of imported dairy products on the local market which he said was threatening the revival of the industry and called on the Government to impose strict policies on imported products so that they get something for the national coffers.
The dairy industry is currently operating at 45 percent capacity, producing 51 million litres of milk annually against a national demand of around 120 million litres.
The vacuum has been being filled by imports mainly from South Africa, New Zealand, the European Union, the United States and Australia.
National milk production increased from 150 million litres in 1980, peaking at 256 million litres in 1990 before plummeting to an all-time low of 36 million litres in 2009.
The industry has since shown signs of recovery and it has managed to produce 51 million litres in 2011 through an initiative that was spearheaded by the Zimbabwe Dairy Industry Trust. Government has also moved in to halt the continued and disruptive acquisition of dairy farms to save the industry from collapse.
The country has a potential to process 400 million litres of milk per year.
Mr Coetzee said the company was looking for partnerships with local milk producers as they are looking to meet the three million litres milk requirement for its new Tetrapak plant.
Dendairy invested US$7 million for the purchase of a Swedish-made Tetrapak processing plant which has seen the company becoming the first local dairy firm to introduce long shelf-life milk on the market.
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