Namibia’s dairy industry faces challenges in push for fair competition

NAMIBIA – Namibia’s dairy sector is grappling with high costs and stiff competition from imported milk products, threatening the survival of local producers. 

According to a recent industry report, the industry is seeking urgent solutions to level the playing field and ensure its long-term sustainability. 

The Bank of Namibia has stepped in with a bold recommendation, suggesting subsidies or zero-rated taxes on dairy products to help local farmers compete.

The report highlights that Namibia’s dairy farmers are struggling to keep up with cheaper imports flooding the market. 

High input costs, such as feed and equipment, have made it difficult for local producers to match the prices of foreign goods. 

This has led to a significant drop in the number of dairy farmers, with only nine extensive producers remaining operational in 2023. 

The situation has raised concerns about food security and the future of the country’s agricultural sector.

Officials from the Bank of Namibia argue that removing taxes on dairy products could be a game-changer. 

“Subsidies or zero-rated taxes will give our farmers a fighting chance against imports.” 

The proposal aims to lower production costs and make Namibian milk more affordable for consumers, encouraging them to choose local options over imported ones.

Farmers have welcomed the idea but say more action is needed. Johannes Müller, a dairy farmer from the Otjozondjupa region, said, “We can’t survive on promises alone; we need real support to keep our farms running.” 

Müller’s farm, like many others, has faced rising expenses that eat into profits, forcing some producers to scale back or shut down entirely.

The push for competitive equality comes as Namibia imports a large portion of its dairy needs, mainly from South Africa and Europe. 

These imports often benefit from lower production costs abroad, putting local farmers at a disadvantage. 

Industry experts warn that without intervention, Namibia risks losing its dairy sector altogether, which could lead to job losses and higher reliance on foreign food supplies.

The government has yet to respond officially to the Bank of Namibia’s proposal. However, discussions are reportedly underway to explore how subsidies or tax breaks could be implemented. 

Analysts suggest that any policy change must balance support for farmers with keeping dairy affordable for consumers. 

For now, Namibia’s dairy dilemma remains a critical issue, with the quest for fair competition hanging in the balance as stakeholders await decisive action.