Dairy industry players have expressed readiness to fill the void left by the ban on imported fresh milk although it accounted for about 45 percent of the domestic market.
The players say the influx of cheap foreign milk products crippled local producers who could not compete on pricing, as such, they have adjusted their production capacity.
Malawi Dairy Industries director Bob Dzombe said in an interview on Wednesday that the industry is ready to scale up production within six months and that consumers will not feel the gap.
He said: “The influx of foreign milk has been challenging. We don’t know how the production costs in their economies are because that milk reaches Malawi at a very cheap price, leaving local products less competitive.
“However, with the ban we believe the local industry’s production capacity could sufficiently supply the domestic market because although roughly 45 percent of the supply was imported, those with capacity challenges will work on scaling up and this could take between six months and one year.”
Dzombe, who admitted that their prices have been affected by the foreign products, believes local producers would offer affordable prices in line with the cost of raw materials in the supply chain.
Shire Valley Milk Producers Association (Shimpa) chairperson Kapito Saini said the ban could enable processors to increase farm-gate price of milk as they have also been failing to set milk prices at a market value due to competition with foreign products.
She said: “Processors buy our milk at K455 per litre, which is low, but they argue that their cost of production is high while to make their prices competitive with foreign competition is difficult.
“We believe this move could enable the realignment of the market to set the commodity’s price at a reasonable value, which is affordable to consumers while also compensating farmers.”
Saini said Shimpa, which supplies over 90 percent of the milk to the country’s processors, is currently producing 140 000 litres a day, but has the capacity to reach 170 000 litres per day under good production incentives.
“We believe with proper extension services, better farm-gate prices of at least K700 per litre, dairy farmers could be motivated to produce about 200 000 litres per day because we have 13 000 active members,” he said.
Milk Producers Association executive director Herbert Chagona said the policy shift is good, but should define fresh milk as many imports are in the form of ultra-high temperature, which takes a big chunk of dairy exports and crowds out local fresh milk.
“This policy will be meaningful if milk processors increase prices at farm-gate,” he said.
Spot checks show that since the ban was imposed on March 13, local producers have started supplying their products such as fruits, vegetables and Irish potatoes in retail shops.
Ministry of Trade and Industry spokesperson Patrick Botha described the excitement as positive, but urged industries to scale-up production to ensure the ban achieves its intended purpose.
“The feedback is encouraging and it shows that Malawians have embraced the buy local concept. We hope the private sector will seize this opportunity to produce more of these products that meet the quality, standards and volumes to satisfy the market,” he said.
In a government Gazette dated March 13 2025, Minister of Trade and Industry Vitumbiko Mumba announced an import ban on maize flour, fresh milk, rice and fruits, except those that do not grow in Malawi, peanut butter, honey, popcorn, toothpicks, matches, tomatoes, Irish potatoes and bottled water, among others.
He said the ban on imports that can be produced locally, which is a temporary measure to run for three years, is meant to protect and uplift the local industry.
He also disputed claims that the ban will contravene regional integration drive.
