Millers decry �dumping� of SA products into local market
Isaac Pinielo | Thursday August 17, 2017 18:00
The association’s chairman, Nkosi Mwaba said this is particularly so in wheat flour products that he said are being dumped into Botswana at below cost.
“Sadly, the Ministry of Investment, Trade and Industry has taken a decision to remove a critical protection mechanism that was levelling the playing field between Botswana and South Africa,” he said.
He indicated that the ministry is in the process of a 10-year phase out decision on the 15% wheat levy that was protecting the local milling industry, noting that the levy is now at 10.5% and is being phased out every year at a rate of 1.5%. According to Mwaba, maize and wheat millers run integrated operations and without the wheat milling component, the maize milling activity will collapse as well.
“Without the wheat levy, millers estimate that they will not survive longer than five years in Botswana.
It is absolutely critical that the government reconsiders this decision urgently if farmers are to still have an attractive market in the mid-term looking at the bigger picture,” he said.
Citing recent reports from the US Department of Agriculture, Mwaba said the Southern African landscape on maize production has shifted significantly with Zambia, Malawi and Zimbabwe having produced 3.3 million tonnes, 3.6 million tonnes and 2.2 million tonnes respectively.
He said these figures for each of these countries represent the fact that they have each produced more than their local consumption and are now net exporters of maize. “Interestingly, the governments of these countries have taken decisions to close their borders on maize imports and lift existing restrictions on exports of this commodity,” said Mwaba.
He expressed support of the view that this development means that there will be shrinkage in regional demand for maize in South Africa due to the fact that Zambia, Malawi and Zimbabwe are off the table as potential markets this season.
He said these are great developments for African countries with similar challenges as Botswana in the grain market, adding that with a joint effort and support from the government, Botswana can reach this level of self-sufficiency as well. “We are currently in discussions with various farmers associations across the country to discuss our position and demonstrate our buying power and level of support,” he stated.
He noted that they will be inviting various stakeholders to their meetings to strengthen direct linkages and relationships with farmer representatives and other stakeholders.