Ban on powdered milk imports risks undermining West Africa’s dairy sector

WEST AFRICA – West Africa, the largest importer of powdered milk on the African continent, faces a complex dilemma as calls for a complete ban on powdered milk imports gain momentum. 

While these efforts aim to boost local dairy production, experts warn that such a move could cripple the region’s dairy industry, which heavily relies on imports to meet growing urban demand.

Christian Corniaux, deputy director of CIRAD’s Selmet research unit, highlighted the precarious balance between supporting local dairy farmers and maintaining the economic viability of processors. 

Speaking to Agence Ecofin, he emphasized that imposing an outright ban would disrupt supply chains and potentially force many dairy companies to shut down.

“The collection rate for local milk remains low,” Corniaux noted.

 “Milk is primarily produced in rural areas within livestock systems designed more for meat production than dairy. It is costly and logistically challenging to transport small quantities of milk from remote areas without access to electricity or cooling systems.”

Despite advocacy from NGOs to promote local milk and establish mini-dairies, the practical hurdles remain significant. 

Corniaux stressed that while dairy companies must strive to collaborate with rural stakeholders, they are equally bound by the need to remain profitable. 

This often necessitates blending imported powdered milk with local milk to maintain production levels and meet urban demand for diverse dairy products.

He pointed to the case of Laiterie du Berger in Senegal, which collects thousands of liters of milk daily.

“To sustain operations and compete in markets like Dakar, where rivals rely exclusively on powdered milk, they must use imported powder. Without it, their business model would collapse,” Corniaux warned.

One of the main concerns revolves around Fat-filled Milk Powder (FFMP), a product enriched with vegetable fats.

Cheaper by 30 to 40% compared to locally produced milk, FFMP has surged in popularity, accounting for a significant share of West Africa’s monthly milk imports. 

These products are taxed at just 5%, a rate that critics argue undercuts local producers and stifles growth in the domestic dairy sector.

Corniaux argued that West Africa’s dairy policy, often criticized as non-existent, tacitly supports the import of these cheaper alternatives. 

“While whole milk powder once offered some competition, FFMP has now overtaken it,” he said.

To address these challenges, Corniaux called for a dual approach: increasing import duties on FFMP while offering subsidies and tax incentives to bolster local milk collection and improve animal feed. 

He highlighted Senegal’s 18% VAT on collected milk as a deterrent to local production, urging reforms to encourage the manufacture of high-value dairy products like cheese, yoghurt, and butter.

West Africa spends between US$1.6 billion and US$1.9 billion annually on dairy imports, with Nigeria, Senegal, Ivory Coast, Mali, Ghana, and Mauritania leading the way. 

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