WINDHOEK – The government is mooting an investigation of possible under-declaration of milk and dairy product imports. This was revealed by Minister of Trade and Industry Calle Schlettwein in the National Assembly on Tuesday when he set the record straight on statistics regarding dairy products.
Schlettwein also used the opportunity to rap Clover of South Africa over the knuckles for retrenching 34 Namibians, saying he is saddened by this purely profit-driven move, which does not take into account the well-being of citizens.
Schlettwein was reacting to a recent statement by dairy company Clover that it was forced to retrench 34 Namibians and that it has stopped serving many localities away from the capital as a result of the negative impact of Namibia’s quantitative restrictions on the import of dairy products.
Schlettwein pointed out that the local dairy sector, which is under government protective measures, employs 1 750 Namibians, saying it is important to have a home-based productive capacity able to serve all corners of the country and reduce vulnerabilities in the market.
“According to the official import data on the [automated system for customs data] of Namibian Customs, some 650 562 litres of milk were imported into Namibia in 2013. The current quota restrictions limit those imports to 500 000 litres. … The percentage of imports restricted is only 24 percent.
Equally on yogurt products, the official import figures for 2013 indicate an import volume of 204 555 litres, while the quota is 200 000 litres, representing a 2 percent restriction,” he told the house.
Schlettwein said if these figures were anything to go by, this mild restriction could not have caused any serious shortages in the market. Import figures that were quoted however appear much higher than the official figures, which could indicate under-declaration, a matter that needs to be investigated, he said.
Towards the end of last year, the Dairy Producers Association (DPA) noted with utmost concern that some local retailers may be misleading consumers with ill-advised messages that imply their being out of stock of dairy products is the result of the regulations on dairy imports. The DPA said should low stock levels be experienced in any retail outlets in Namibia, this should not be attributed to imports that have been restricted, but rather due to failure on the part of importers to comply with the requirements of permit applications.
Japie Engelbrecht, the chairperson of the DPA said pricing policies that could be compared to predatory pricing by some local retailers is one of the contributing factors to the current dilemma of the dairy industry in Namibia.
“We hope to see a real change soon in that local retailers will embrace these newly instituted measures in the interest of the local macro economy and ultimately the consumers. Should dairy importers adhere to the quota application requirements, the consumer would eventually benefit from these measures,” he said.
By Deon Schlechter