Govt urged to introduce levy on imported milk

Published: 04 December 2013

The Government should consider introducing a 25 percent levy on milk imports to protect the local dairy sector, an industry player said on Friday.

Zimbabwe consumes at least 10 million litres of milk every month with half of it being imported from South Africa as boxed milk.

The local dairy industry is currently operating at low capacity with milk production reaching 51 million litres last year against national demand of about 120 million litres.

Dairy products manufacturer, Dendairy director, Daryl Archibald said at least half of Zimbabwe's monthly milk requirements were being met through imports from South Africa.

"Whatever we produce here we get charged a levy but when all this boxed milk is coming nothing is being charged to help grow the local dairy industry.

"If the 5 million realised by South Africa each month, 25 percent of that, which is only $1,2 million, is charged by the Government the industry will grow quickly," he said.

Archibald was speaking during a media tour of the firm's milk processing plant in Kwekwe, Midlands Province.

He said Zimbabwe used to produce twice as much as it consumed but now consumes twice as much as it produces.

"We used to produce 20 million litres of milk and used to export 10 million litres every month. Zim can be and will be competitive again in dairy and we will be back to exporting dairy products from this country."

He said the industry should however work together to resuscitate operations.

"The dairy sector has been growing at about 5 to 6 percent per year since 2009 and we need to keep that going for the next 7 to ten years," he said.

- New Ziana.