.gif)
Some 200 registered dairy farmers in Fiji are expected to benefit from the implementation of a $2 million Milk Price Subsidy Scheme.
The scheme, a temporary measure, aims to increase self sufficiency in Fiji’s dairy industry to 50 percent by 2015, said Acting Minister for Primary Industries and Attorney-General Aiyaz Sayed-Khaiyum in his submission to Cabinet.
“The objective of the Support Scheme is to encourage farmers to increase farm milk production by improving the base line of the industry including dairy farm infrastructure, farm administration, and better quality dairy herds thereby producing quality dairy products to the consumers,” Sayed-Khaiyum said.
He said it was estimated that annual milk production - currently at 10 million litres - would increase by a further 30 million litres by the end of 2014 as a result of this scheme.
Under the scheme, dairy farmers will enjoy a subsidy of up to 25 cents per litre above the base price of 55 cents per litre, although farmers will not see this 25cents per litre in cash form but aid-in-kind implemented through the government-owned Rewa Cooperative Dairy Company (RCDC).
“This means that RCDC will supply farm inputs instead of cash for farm improvement in order to increase milk production,” Sayed-Khaiyum said.
Only registered farmers that supply milk directly to RCDC will be eligible for the subsidy.
“Out of the total of 326 registered dairy farmers in Fiji, 226 are supplying milk direct to the RCDC. These 226 farmers would be eligible for assistance under the scheme.
Farmers joining the scheme are to ensure that the subsidy income derived from the sale of the milk is used to further improve the farm as per terms and conditions agreed between the farmer and the RCDC.
Farmers who default on the agreement will cease to receive any further assistance under the Support Scheme and will be asked to reimburse the extra earning derived as a result of joining the Scheme, Sayed-Khaiyum said.
The 2009 National Budget had provided for $2.0 million for the implementation of the scheme.
