2000News

Increase in milk import quotas urged to meet demand

Customs Director Miguel Cocco said that the new authorities should go before the World Trade Organization and negotiate an increase in the milk and chicken import quotas in order to meet the demand of consumers in the DR. He denied that the Customs Department is applying the 84% WTO milk surcharge, since the pre-set quota has not yet been met. The present charge is 20%. He said that the shipment of 1,900 tons of powdered milk remains in Customs because it was imported without the corresponding Ministry of Agriculture permits. The importing of the milk without the corresponding permits has resulted in the shipment lagging in Customs for 45 days, which has affected the supply to dairy industries. He said that to date 20,748 tons of powdered milk has been imported, and another 1,900 metric tons are in Customs, pending the import permit from the Ministry of Agriculture. That leaves another 9,352 tons pending for this year. He called upon the authorities to prevent any scarcity that would bring about an increase in prices, once quotas are met. "It is not possible, with such little time, to increase the production of milk to the required levels, and given the international commitment, authorities must plan ahead finding the most logical, rational formulas to negotiate with the basic products as foremost is the consumer," he said. The Association of Powdered Milk Importers (Asociacion de Importadores de Leche en Lata) has requested that the President-elect increase the quota to 50,000 metric tons. Milk has made headlines as industrial sectors say that if the 84% is applied, the locally manufactured cheese and ice cream will increase considerably in price, placing these at a significant disadvantage with imports of finished products that do not have to pay the surcharge. Cattle ranchers have supported the 84% surcharge, but sectors say they do not have enough production to supply the local market, and thus imports are necessary. Given the long blackouts that are affecting the nation, powdered milk is preferred to the also more expensive locally produced fresh milk. Cattle ranchers have been benefitted by the market expansion factor caused by the lower cost of powdered milk.