7 February 2012

Namibia: Dumping, Costs Dry Up Milk Industry

THE dairy industry remains threatened by high costs and the dumping of cheap milk products in Namibia, the Dairy Producers' Association (DPA) has said.

The DPA has for "some time now" tried to motivate Government to protect the industry against the import of subsidised milk products, the association said at at its management planning sessions last week. "Even though the Ministry of Trade has launched a study about the above, the dairy industry hopes that the measures of government (if approved) will not be too late to save this strategic industry," the Namibia Agricultural Union (NAU) said in its latest newsletter.

Another major concern is the spiralling costs of transport and feed. According to the newsletter, the DPA is still in negotiations to reduce transport costs.

"Namibian producers will not be able to handle the pressure of a stable milk price with no prospects of an increase any longer," the NAU said. At the meeting, the DPA also expressed its common consent about possible support for small scale producers.

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