The Namibia Dairy Producers Association (DPA) has called on government to subsidise one litre of raw milk with N$1.00 as a possible intervention by the government to prevent the collapse of the dairy.
According to the Namibia Agricultural Union (NAU) weekly news, the call was made to Minister of Agriculture, Water and Forestry Alpheus !Naruseb during a meeting with producers held at Gobabis, Omaheke region last week Thursday.
“The need for government subsidies: N$1.00 per litre of raw milk to registered milk producers is needed to cover increased fodder costs,” NAU weekly news quoted the producers.
According to producers, the country’s major challenge is the high cost of fodder which negatively affects the competitiveness of the final products.
“The feeding cost varies between 70% – 80% of the production cost which is very significant. The subsidy will assist producers to keep producing,” producers said.
Furthermore, they also proposed the passing and implementation of the control of the importation and exportation of dairy products and dairy product substitutes bill, 2020 and approval of the regulations thereof.
“There is a need to fast track the passing of the Control of the Importation and Exportation of Dairy Products and Dairy Product Substitutes Bill, 2020 as well as the formulation of the regulations to restore trust within the industry,” producers told !Naruseb.
DPA recently complained about the closure of the Hardap Dam sluices close to Mariental saying that the closure, coupled with the ongoing drought has put the country’s dairy industry on the verge of collapse.
Hardap dairy producers alone supplies 80% of the milk nationwide.
Therefore, the association said there is a need for all relevant stakeholders to work together collectively to seek for possible solutions in order to avoid the total collapse of the industry.
Furthermore, the association decries the continuing drought in some parts of the country, saying that the drought coupled with the poor economic situation in the country has forced some dairy farmers to exit the industry.
The association further said milk production is decreasing in most dairy producing regions due to reasons such as producers reducing feeding cost which affects the volume of milk produced and in most cases producers selling some of their dairy cows for slaughtering.
This, according the association has a negative influence to the supply of raw milk to the processor.
According to the association, the annual milk production volumes have declined with nine percent (two million litres) from 2018 (23 million) to 2019 (21 million).
Based on the association benchmark (milk production cost index), feeding cost is 71% of the production cost, and comparing 2018 4th quarter to 2019 4th quarter feed, costs increased by about 13%, in that total expenses remain higher in comparison to the income.
– ktjitemisa@nepc.com.na