Milk prices shoot up

THE price of raw milk paid to dairy farmers will go up by about ten per cent on Sunday.

Retail prices of pasteurised milk, long-life milk and other local dairy products such as cottage cheese and yoghurt will follow suit. The price increase was agreed between Namibia Dairies and the Dairy Producers’ Association in May.In April, the price of fresh milk went up by 50 cents a litre after the Dairy Producers’ Association (DPA) demanded an increase to prevent the industry from collapsing.This is bad news for the consumer but a great boost for dairy farmers, who were penalised for overproduction last year.Now, the DPA is offering them incentives for producing more than their quota.The turnaround came after low producer prices paid in South Africa caused a near collapse of that country’s dairy sector, leading to acute shortages of milk there.Because less milk is being exported from South Africa to Namibia, Namibia Dairies had to up its production.Its production of long-life (UHT) milk, for example, has increased from 300 000 litres to over 600 000 a month.UHT milk produced in Namibia currently enjoys infant-industry protection by the Ministry of Trade and Industry until 2012.This includes a 40 per cent import levy slapped on UHT milk imported from other countries.The price increase was agreed between Namibia Dairies and the Dairy Producers’ Association in May.In April, the price of fresh milk went up by 50 cents a litre after the Dairy Producers’ Association (DPA) demanded an increase to prevent the industry from collapsing.This is bad news for the consumer but a great boost for dairy farmers, who were penalised for overproduction last year.Now, the DPA is offering them incentives for producing more than their quota.The turnaround came after low producer prices paid in South Africa caused a near collapse of that country’s dairy sector, leading to acute shortages of milk there.Because less milk is being exported from South Africa to Namibia, Namibia Dairies had to up its production.Its production of long-life (UHT) milk, for example, has increased from 300 000 litres to over 600 000 a month.UHT milk produced in Namibia currently enjoys infant-industry protection by the Ministry of Trade and Industry until 2012.This includes a 40 per cent import levy slapped on UHT milk imported from other countries.