DAIRY PROGRAM

The dairy program differs significantly from the other commodity programs due to supply issues – mainly the lack of an exportable product. With the conclusion of eight national dairy studies in 2004, conducted jointly by RATES and ECAPAPA, it was revealed that there is no country in COMESA that is self sufficient in milk products, and installed processing capacity has a regional average of only 30%. Domestic milk consumption is also very low averaging about 36 liter/ person throughout the COMESA region (compared to the WHO recommended consumption of 200 liter/ person). One may be tempted to conclude that the region doesn’t have an inter/extra “trade” problem since there is little to trade, but rather a domestic liquid milk production and consumption problem.

However, RATES has recognized that there is a need for free and transparent ebb and flow of milk products throughout the region based on seasonal supply highs and lows, along with a focus on value added processed goods (UHT, yogurt, cheese, and ice cream) that do have a regional market. This is a sound strategy to pursue, especially as it highlights impediments to trade that may inhibit increased production and consumption.
The RATES dairy program is focused on the removal of extra/inter-regional export market trade constraints and promoting intra-regional exports of dairy products. RATES works primarily through Eastern and Southern African Dairy Association (ESADA), a regional dairy organization that was formed in 2005.