Dairy expert advocates 0% import duty on milk processing equipment

Dairy expert advocates 0% import duty on milk processing equipment

A dairy expert, Mr Udeme Etuk, Managing Director of Chanan Elo’a Integrated Farms Ltd, says stakeholders in the dairy sub-sector is advocating for zero per cent import duty on all processing equipment.

Etuk told Newsmen on Tuesday in Lagos that the three billion dollars business had not experienced any huge development in value addition as a result of lack of processing equipment, especially in the powdered milk section.

According to him, there should be zero per cent customs duty on cold-chain vehicles, milk tanks, veterinary, laboratory, logistics equipment and a three-year tax holiday for producers of dairy products.

“We recommend zero per cent import duty on dairy equipment, like cold chain, milk collection logistics, transport equipment, milk tanks, veterinary tools, laboratory equipment and others.

“To help the sector develop in terms of adding value and improving quality and production of milk and other dairy products which are not available in Nigeria.

“Also, a minimum of three years tax holidays for dairy producers to enable the industry grow,” he said.

Etuk also suggested that restrictions should be placed on liquid milk and milk production because quality of locally produced liquid milk could be improved and was available.

According to him, government should retain the existing five per cent duty on full cream and skimmed powdered milk only because the equipment is not available to produce powdered milk.

He urged that 15 per cent duty should be imposed on vegetable fat filled powdered milk because we had not exhausted the nutritional value from local milk.

Etuk said that it was also important to establish a airy Development Fund.

“A 15 per cent dairy importation levy should be imposed on all dairy products, including powdered milk, cheese and butter, pull the resources and establish a dairy development fund.

“The find will be domiciled in Bank of Industry to provide soft loans to investors in the country. We cannot compete with farmers in Europe because they are heavily subsidised.

“There should be a compensation schedule for cattle rearers and a well robust insurance process when they lose one cow.

“However, that is where we encourage clusters and ranching for improved dairy production quality, quantity and improve the business,” he said.

He also called for five-year import substitution programme for all importers of powdered milk to introduce local content, 10 per cent in the first and second year, then 20 per cent in the third year, 30 per cent in the fourth year and 50 per cent in the fifth year.

He said that Nigeria’s daily demand for milk was currently five million litres as at November 2018 but that this needed to be increased to 12 million litres to round the growing population.

Etuk said that the country currently imports 1.3 million dollars worth of dairy products annually, adding that the local cow breeds in the country currently produced 2 litres of milk daily.

He said: “We need to urgently revamp the sector by cross breeding the cows to boost milk production and regulation on imported cattle should be reviewed so as to improve quality of the country’s cattle.

“Kenya gets minimum of seven litres of milk from their local cattle breeds and the government off-takes 80 per cent of what is produced daily.

“We should also look into the area whereby governments will off-take what farmers produce, that way, they will be assured of markets for their product.’’

He disclosed that the country currently had about 21 million cows, adding that cows available for milk production was six million, while others were for beef and other products.

He also said that the N93 billion livestock development fund was not too much, adding that it was to ensure standardisation.

Supreme Magazine that livestock contributes only two per cent of the 29 per cent of agriculture’s contribution to the country’s Gross Domestic Products (GDP).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Source: NAN

Photo Credit: Google