Dairy producers canvass tax exemption for better local products

BY ONOME AMUGE

Stakeholders in Nigeria’s dairy production sector have called for the implementation of relevant strategies, including a zero tax exemption policy, on dairy equipment to help develop the quality and quantity of local dairy products for Nigerian consumers.

They made the demand during the recently concluded 2022 summit on National Livestock Transformation Plan (NLTP) organised by the Federal Ministry of Agriculture and Rural Development (FMARD), in partnership with Agriculture Correspondents of Nigeria (ACAN) and the Sahel Consulting Agriculture and Nutrition in Abuja.

Jimmy Johnmark, general manager, Arla Farm, a dairy farm located in Kaduna State, explained that Nigeria currently produces less than 10 percent of milk locally because there is not enough equipment to boost production that would satisfy the population.

Johnmark opined that the high tax on the equipment contributes significantly to the low quality of dairy products, adding that most people tend to “cut corners” because of the high taxation pressed on equipment.

He noted that this factor affects the quality of dairy as higher taxes on equipment slows down the process of production and affects the quality and quantity of dairy products in the long run.

“Most of the dairy equipment is not produced locally, and we need to import a lot of these things to be able to function in that industry.

“If there is no zero tax, just like in the other agricultural machinery, then we are bound to have this process being slowed and investment will not be much, thereby affecting milk quality,” he said.

Johnmark appealed to the government to facilitate the production and processing of dairy products by making it easy for producers to access the equipment at an affordable price.

The general manager of Arla Farm also called for more establishment of milk processing centres in each state and rehabilitation of the few in existence.

The establishment of more centres, he said, would contribute to empowerment, curb wastage and improve the value chain.

Demo Kalla, an animal science lecturer from Ahmadu Bello University, Zaria (ABU), said there was a need to encourage local fabrication of dairy equipment to reduce imports and to have more milk aggregators in the dairy clusters to facilitate milk collection.

Kalla also stated that the reduction of the high price of dairy equipment will ensure they are more available to local producers, while playing a significant role in increasing local production and consequently reducing dairy imports.

A communique presented at the summit urged the federal government to review the implementation elements of the national livestock transformation plan with clear delineation of roles and responsibilities as well as provision of funding, resource mobilisation, climate adaptation and resilience strategies for the programme.

“There should be greater engagement with the private sector on the huge economic potential of NLTP with the aim of attracting greater investment. This would require the development of NLTP Business Case(s) as a primary tool of engagement,” the communique read in part.

It enjoined the agriculture ministry to establish a coordination platform to promote greater synergy, interaction, collaboration and learning among stakeholders.

The federal government was also encouraged to revive and strengthen local governance structures, principles, approaches and natural resources management protocols for resolving conflicts in support of the NLTP.