Last year, Dairiboard Malawi announced that it was exiting the market, citing prolonged losses. Supposedly the development would make room for other milk products companies to benefit local farmers, but Malawi Milk Producers Association (MMPA) expressed concern for imported milk products, that are hindering local farmers from benefiting.

In its position paper to the Ministry of Finance, Economic Planning and Development for the 2019/20, the association said that the imports that are threatening the local milk production industry, therefore proposing that Treasury should introduce 25% duty on all milk powders and milk products and re-invest the proceeds in the local dairy industry to develop the smallholder dairy sector in Malawi.

The introduction of the duty, according to the association’s president Hebert Chagona, will help provide a level playing field for the locally produced milk that is in its infancy and does not have similar economies of scale to reduce cost in the region. Dairiboard Malawi was buying about 300 000 litres of milk from nine milk bulking groups, translating to an annual income of K612 million for dairy farmers, according to figures from the association. The imports have therefore, negatively affected local farmers from selling their milk either to households or milk products manufacturers.