Online Reporter
Business Reporter
THE Government has been urged not to renew the duty-free importation of milk powder to protect local producers, who have managed to ramp up production in recent years.
Despite the increase in local production, imports of milk products have been rising this year.
Statistics from the Zimbabwe National Statistics Agency (ZimStats) show that milk product imports declined by 45 percent from US$37 million in 2021 to US$20 million last year.
However, between January and September this year, imports had reached US$21 million, raising fears this year’s import bill could be relatively higher.
Livestock and Meat Advisory Council executive administrator Dr Reneth Mano said there was need for the Government to stop duty-free imports of dairy products.
“It is time for Government to change strategy and reimpose border duties on all dairy products (except baby formula) to protect our dairy farming industry from unfair competition with cheap subsidised powdered milk and cheese from Europe,” he said.
“Scrapping the duty-free import policy and replacing it with a 10 percent surtax on all imported dairy products to fund expansion of small-scale dairy farmers in all the 10 provinces of Zimbabwe is the way to go.”
There is need for a policy rethink, he added, to support farmers to produce 500 million litres for Zimbabwe to achieve and sustain national self-sufficiency in all dairy products by 2030.
“Should the Ministry of Finance strictly adhere to the 2023 policy commitment to phase out duty-free import quotas for dairy products by 2026, then from January 2026, imports of all dairy products shall attract 5 percent import duty at the port of entry. Add the standard 15 percent value-added tax (VAT), and the total border taxes on dairy milk in 2026 would be 20 percent,” he said.
Dr Mano said such a policy would increase local prices of dairy products to correctly reflect the cost of production.
Zimbabwe Association of Dairy Farmers chairperson Mr Edward Warambwa said it was important to protect local producers from unfair competition posed by imported dairy products.
“By year-end, we expect to reach approximately 130 million litres of milk. This projection is based on current production trends and the anticipated benefits of favourable weather conditions. If farmers implement effective management practices and take advantage of the improved grazing conditions, we may even exceed this target,” he said.
Zimbabwe Dairy Industry Trust chairperson Mr Themba Mutsvairo said most of the products imported were ingredients used locally in the production processes of foodstuffs such as bread, maheu, dairy fruit blends and whey-based drinks (byproduct of cheese/yoghurt making) that had dairy components.
“This implies that the growth in demand for dairy-related products is exceeding the advance in local primary milk production,” he said.
“Our capacity as dairy processors is expanding in response to the growing demand; therefore, we will continue to support local primary milk production and closing the demand gap through importing dairy ingredients for products that use dairy components.”
In the 2023 National Budget, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube indicated that there was need to gradually substitute imports through increased local production.
“It has, however, been observed that there is a reduction in the uptake of locally produced raw milk, as well as limited support to local dairy farmers in preference to imported milk powder.
“In view of the above, I propose to gradually reduce ring-fenced milk powder imports under suspension of duty,” he said then.
The Government gradually reduce, on a sliding scale, ring-fenced duty-free milk powder and cheese imports starting at 75 percent in 2023 to 50 percent in 2024 and then to 25 percent this year.
