By Wezi Tjaronda WINDHOEK Consumers will from April pay 50 cents more per litre of fresh milk. The price increase comes in the wake of demands by the Dairy Producers’ Association (DPA) for an increase in the price of milk to prevent the industry from collapsing. Namibia Dairies announced the price increase yesterday, saying it expressed fear that the collapse of the dairy industry could lead to a dependence on imports and an increase in retail prices due to lack of local competition. DPA chairperson, Japie Engelbrecht, welcomed the increase saying, “It is not what we wanted but it is a start. Everything we can get will make a difference.” The industry has several times warned of the collapse of the industry due to, among others, price increases that have not been effected for the past two years on fresh milk. Instead, the industry had to accept a price reduction of 10 cents per litre on raw milk in the middle of 2005. In addition, all input prices including fuel, transport, medicine and fodder had increased and were carried by the producers, with the price of fodder alone increasing by close to 40 percent in 2006. Engelbrecht had warned early this month that nine producers of northeast Gobabis would close their operations if price increases on raw milk were not implemented shortly. Commenting on the increase, the DPA chairperson said, “If nothing came the way of these producers at the end of February, they were going to stop.” Namibia Dairies Managing Director Desmond van Jaarsveld said in a press statement the increase will primarily benefit the producers who are facing tough times or collapse of their businesses as a result of increases in feed and transport costs. “We have paid heed to the plight of the milk producers and the continuation of numerous jobs in that sector. The price increase aims to benefit the suppliers as the full 50 cents is passed on to the suppliers, pro rata to their total milk supply,” added Jaarsveld. The price increase will be implemented at retail value on April 1. The dairy company has in the meantime taken initiatives including the introduction of a super dairy farm encompassing modern production equipment and herd management systems to ensure optimal production of milk for the sustainability of the dairy industry. A feasibility study in this regard is at an advanced stage. Namibia Dairies has also implemented the SAP business system, ISO 9001:2000 certification, the Operational Improvement Management (OIM) programme, rationalisation of depots, route optimisation and other improvements to transform the company into a world-class operation, said Ohlthaver & List’s public relations department.