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08:33Last update on: 13 Aug 2013
The Namibian
Tue 13 Aug 2013
SMS Of The Day * THIS nation is in dire need of a massive conference on housing. When we experienced a crisis in the education sector a crisis-control brain-storming conference was organised which resulted in the best deal ever for the Namibian child, nam Food For Thought * BOURGEOISIE has become a daily occupation if not the order of the day of the upper-echelons, President Hifikepunye Pohamba we urge you to revisit this unpatriotic geocentricism among your staff and the well-connected, for everybody to r Bouquets And Brickbats * COMMISSIONER of Prisons, can you please explain the strategies you use to appoint officers to certain positions? It is my observation that you are being fed with wrong information then you just promote individuals without making p SMS Of The Day * I THINK Paulus ‘The Rock’ Ambunda lost his belt because of this promoter and trainer. How can a world champion still be training at the Katutura Youth Complex where there is not enough equipment. I think they must follow the example of Ha Food For Thought * NAMIBIA Dairies are unable to match low prices of imported milk and this ultimately means the consumer will have to pay more for local milk. Look at the prices of the local chicken. All these profits are going in the pockets of a few in Bouquets And Brickbats * I AM pleased to hear that Cabinet has responded positively to the proposal of Namibia Dairies to support the industry. The restrictions which support the industry by reducing competition to ensure the survival of the industry is a SMS Of The Day * CEO’s golden handshakes. Somewhere on our statute books there must be a provision that if a board of directors suspends/dismisses a CEO without due regard to legal provision (substantive/procedural law) such board must carry the costs for Food For Thought * JACKY Asheeke was so right with her last column- why are the fathers of the dead children not being prosecuted? (Reference to the children who died in shack fires last week) Our justice system still protects men over women. In this cont Bouquets And Brickbats * ALEXACTUS Kaure, your column in Friday’s newspaper opened my eyes. One hardly finds impartial case study analysers in Namibia. Let’s not destroy the Polytechnic’s strong foundation (Tjivikua) as yet. At least wait until the transf SMS Of The Day * WHY doesn’t NBC listen when they are criticised? The little red chairs on Good Morning Namibia have done their part and are dirty especially at the arm rests. Please listen for once. You interview professionals and internationals on those Food For Thought * MINISTRY of Education, in order to address the shortages of teachers at primary schools why don’t you consider employing us who hold a diploma in lifelong learning and community education for teaching posts? We also did health education Bouquets And Brickbats * MY fellow Namibians, I am not a Swapo member but a third term for President Hifikepuye Pohamba will be a step closer towards attainment of Vision 2030. Believe me His Excellency has made crucial bold decisions, and I don’t regret
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BUSINESS - COMPANIES
| 2013-07-22
Restrictions on import of dairy products should be “last option”
WINDHOEK- South African producer and distributer of dairy and beverage products to Namibia, Clover Industries Limited says quantitative restrictions on the import of dairy products into Namibia should be the last option for the local dairy industry. Clover Executive Commercial, Jimmy Botes said during a public consultation on quantitative restrictions on the importation of dairy products into Namibia held in Windhoek on Thursday.
“Quantitative control is the last option and can be abused by certain players in the industry. It is not the way to go,” he cautioned.
The Ministry of Trade and Industry has received an application for the imposition of quantitative restrictions in terms of the relevant provisions of the Import and Export Act on the importation into Namibia of fresh, extended shelf life (ESL) and Ultra High Temperature (UHT) milk; buttermilk, curdled, yoghurt and other fermented milk from the Namibian dairy industry.
Since 2012, the local dairy industry has been under constant pressure from cheaper dairy imports. The local dairy market is fully deregulated; hence open for competition with imported products based on free market principles. The main competition is the UHT market and also lately, the introduction of ESL milk. Imported UHT milk competes directly with locally processed UHT milk, while ESL milk competes directly with local fresh milk. However, notwithstanding free market principles prevailing in the Namibian dairy market, the local producers and large scale processors are in a disadvantaged position against the imported products. These relate mainly to inherent differences in production costs and production methods, distribution costs to local retailers, as well as the application of Value Added Tax (VAT). Urgent interim measures are necessary to ensure the continuation of members of the Dairy Producers Association (DPA) of Namibia.
Botes however stressed that his company offers the consumer good products at affordable prices.
Clover also believes in fair competition and warned against “monopolistic behaviour” in the dairy industry, he said.
He said the company is very insignificant and small in Namibia, and provides only about 10% cent of dairy products to local consumers.
“We offer good products and at an affordable price. It is not about the market share, but about the principle,” he added.
Meanwhile, at the same occasion, Director of Planning in the Ministry of Agriculture, Water and Forestry (MAWF) Bernd Rothkegel, speaking on behalf of Agriculture Minister John Mutorwa, noted that no regulations have been passed under the Control of the Importation and Exportation of Dairy Products and Dairy Products Substitutes Act.
“This means no control measures in terms of this Act are in place. Why this is the case, while the industry finds itself in difficulties for the past couple of years, are not yet known to some of us,” he stressed.
According to the minister, the DPA said interim support measures could not be provided for under the Import and Export Control Act and the Control of the Importation and Exportation of Dairy Products and Dairy Products Substitutes Act. Possible consideration was given to inclusion of dairy products, as a controlled product under the Meat Industry Act. However, the concern was raised that the amending of the Meat Industry Act to include dairy products would be too time consuming and not helpful in addressing the immediate crises of the dairy producers and processors.
In the meantime, the DPA preference to have dairy products included in the Meat Industry Act, together with the Meat Board’s approval to amend the said Act accordingly, promoted the submission of a proposed Bill of the Meat Industry Act. The amendments proposed the inclusion of controlled products besides meat products of cattle, sheep, goats and pigs and also dairy products, hides and skins, poultry (broilers) and eggs of poultry.
“Quantitative control is the last option and can be abused by certain players in the industry. It is not the way to go,” he cautioned.
The Ministry of Trade and Industry has received an application for the imposition of quantitative restrictions in terms of the relevant provisions of the Import and Export Act on the importation into Namibia of fresh, extended shelf life (ESL) and Ultra High Temperature (UHT) milk; buttermilk, curdled, yoghurt and other fermented milk from the Namibian dairy industry.
Since 2012, the local dairy industry has been under constant pressure from cheaper dairy imports. The local dairy market is fully deregulated; hence open for competition with imported products based on free market principles. The main competition is the UHT market and also lately, the introduction of ESL milk. Imported UHT milk competes directly with locally processed UHT milk, while ESL milk competes directly with local fresh milk. However, notwithstanding free market principles prevailing in the Namibian dairy market, the local producers and large scale processors are in a disadvantaged position against the imported products. These relate mainly to inherent differences in production costs and production methods, distribution costs to local retailers, as well as the application of Value Added Tax (VAT). Urgent interim measures are necessary to ensure the continuation of members of the Dairy Producers Association (DPA) of Namibia.
Botes however stressed that his company offers the consumer good products at affordable prices.
Clover also believes in fair competition and warned against “monopolistic behaviour” in the dairy industry, he said.
He said the company is very insignificant and small in Namibia, and provides only about 10% cent of dairy products to local consumers.
“We offer good products and at an affordable price. It is not about the market share, but about the principle,” he added.
Meanwhile, at the same occasion, Director of Planning in the Ministry of Agriculture, Water and Forestry (MAWF) Bernd Rothkegel, speaking on behalf of Agriculture Minister John Mutorwa, noted that no regulations have been passed under the Control of the Importation and Exportation of Dairy Products and Dairy Products Substitutes Act.
“This means no control measures in terms of this Act are in place. Why this is the case, while the industry finds itself in difficulties for the past couple of years, are not yet known to some of us,” he stressed.
According to the minister, the DPA said interim support measures could not be provided for under the Import and Export Control Act and the Control of the Importation and Exportation of Dairy Products and Dairy Products Substitutes Act. Possible consideration was given to inclusion of dairy products, as a controlled product under the Meat Industry Act. However, the concern was raised that the amending of the Meat Industry Act to include dairy products would be too time consuming and not helpful in addressing the immediate crises of the dairy producers and processors.
In the meantime, the DPA preference to have dairy products included in the Meat Industry Act, together with the Meat Board’s approval to amend the said Act accordingly, promoted the submission of a proposed Bill of the Meat Industry Act. The amendments proposed the inclusion of controlled products besides meat products of cattle, sheep, goats and pigs and also dairy products, hides and skins, poultry (broilers) and eggs of poultry.
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(August 13)
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