Company responds to tariff claims

THE Central Dairy Ltd said there has never been any tariff and custom duty levied on imported dairy products.
It released a statement in response to a report that the Government had imposed tariffs on dairy import intended to protect Central Dairy Ltd (Ilimo Dairy Farm).
“Ilimo Dairy has slashed the price of fresh milk previously 100 per cent imported into PNG by a 50 per cent margin, from (about) K12 to under K6 (plain and simple). “Other products produced by the Ilimo Dairy Farm (yoghurts, flavoured milk and others) have shown similar discounts to the PNG consumer.”
It said social and economic benefits provided by the company included the creation of 200 new jobs, engagement of hundreds of out growers in Central who supply components of the feed which the farm required, turning subsistence farmers into cash crop farmers, conservation of forex, training, up-skilling and the introduction of innovation in the region.
“Indeed, a case for protecting PNG manufacturers can be made, particularly infant industries, if PNG wishes to grow its economic base, such protections by way of tariffs, custom duties or other forms of direct or indirect subsidies are afforded by all of PNG trading partners to their producers,” it said.
“These may include grants, rebates, concessional finance and much more. The view that PNG farmers and agriculture producers are required to compete in their home market with no protection against established industries overseas, is in our view plainly erroneous and has nothing to do with PNG’s national interest and is intended to frustrate any attempt by PNG to break the vicious cycle, in which it is expected to feed its people with expensive imports draining its foreign currency reserves, amongst others.”