Milk import ratio continues

Milk import ratio continues

JAKARTA (JP): The government plans to continue applying an
import-ratio policy of 1:2.4 for milk products for the first
semester of this year.

A statement issued by the Ministry of Agriculture's
Directorate General for Animal Husbandry said yesterday that
based on the current policy, milk-processing companies are
allowed to import the equivalent of 2.4 liters of fresh milk for
every liter of fresh milk they buy from domestic farmers.

The import-ratio policy for milk products, which has been
implemented since 1982, is meant to guarantee the distribution of
fresh milk produced by domestic farms.

Under the ratio, milk-processing firms are allowed to import a
certain amount of fresh milk after they have bought one unit of
local fresh milk.

The ratio is reviewed every six months based on negotiations
between milk-processing firms, the Federation of Indonesian Milk
Cooperatives and the national coordinating team for milk
distribution.

Last month, the Director General for Animal Husbandry, Erwin
Soetirto, announced that the government plans to replace the
import-ratio policy, which is a non-tariff barrier, with a tariff
to conform with the rules of the World Trade Organization (WTO).

He did not mention when the change will take place.

The implementation of tariffs on milk imports is expected to
help prepare the country's milk industry for free trade. The WTO
stipulates that in the year 2005, tariff barriers for
agricultural products will be removed. (pwn)