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MPO press releases

6 November 2007

PRESS RELEASE ISSUED BY ETIENNE TERRE’BLANCHE,
MANAGING DIRECTOR OF THE MILK PRODUCERS’ ORGANISATION

Inquiry into UHT milk imports in the pipeline
The Milk Producers’ Organisation (MPO) is currently investigating the possibility of implementing an import tariff on UHT milk.

South Africa is one of the countries with the lowest milk production costs in the world and the fact that products can be imported at lower prices, can be traced back to subsidies and sporadic surpluses abroad. “What concerns us, is that pre-packed, imported UHT milk is more prominent on the shelves of some retail outlets, at the cost of local brands,” says Etienne Terre’Blanche, managing director of the MPO.

“The MPO monitors all dairy imports and since May this year, the amount of imported UHT milk has increased sharply,” says Terre’Blanche. Milk treated at ultra high temperatures (UHT) has a very long shelf life and is therefore very popular.

“We are in the process of informing the relevant parties in the industry, as well as the authorities concerned, regarding the current state of play,” says Terre’Blanche.

The MPO, with the support of the local industry, aims to apply for the implementation of an import tariff on UHT milk and to submit the application to the International Trade Administration Commission (Itac) for consideration early in 2008.

The MPO’s action is further supported by the fact that the volume of UHT milk imported in 2006 and 2007, qualified UHT milk for an additional tariff, known as a special safeguard, due to the dramatic increase in the volume of imported products

“These imports indicate a trend of even greater volumes of UHT milk being imported in the long term. This can destroy the local market and will eventually lead to consumers being dependent on expensive imported dairy products.”

According to Terre’Blanche, the MPO is not opposed to normally priced dairy product imports. “However, the continued increase in low-priced, imported products has the potential to significantly damage the South African dairy industry.”

For further information, contact Etienne Terre’Blanche at 012 843 5600 or 082 900 7676.

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