Summary
This case study examines the operational challenges faced by Namibia Dairies (ND), a dairy processor part of the Ohlthaver & List (O&L) Group. The document details significant barriers to growth, including trade disputes over milk dumping from South Africa, regulatory hurdles in Angola and Botswana, and domestic issues regarding VAT claims, finance, and a shortage of skilled engineers.
Key insights
- Namibia Dairies faces a critical threat to its future and the wider domestic industry due to the dumping of long-life (UHT) milk from South African companies that import product from South America. This situation has intensified following the expiration of an eight-year infant industry protection measure, leading ND to lobby the government for punitive tariffs and consider claims through the WTO and ITAC.
- Trade with Angola is hindered by arbitrary foreign exchange regulations that delay payments for months, as well as severe border delays. While trucks typically take 1-2 weeks to enter Angola, ND pays for private pre-inspections in Windhoek to reduce this to 2 days. Consequently, ND has removed its ground staff from Angola.
- Exporting to Botswana is described as virtually not worthwhile due to meticulous standards certification and labeling requirements. The microbiological analysis and inspection process takes 4 weeks, which consumes more than half of the product's 7-week shelf life.
- Domestic operational barriers in Namibia include unacceptable delays in VAT claims dating back to 2006, conservative banking practices that leave the company "asset rich and cash poor", and a lack of skilled engineers from local tertiary institutions.
- ND identifies a lack of a defined industrial policy and a disconnect between the Namibian government and the private sector. The company suggests that SADC business environments would improve through harmonized border procedures, the removal of non-tariff barriers, and the development of strong regional institutions.
Cite the original document
- APA
- South African Institute of International Affairs (2012). Namibia Dairies. https://saiia.org.za/saiia-toolkit/namibia-dairies/
- Chicago
- South African Institute of International Affairs. Namibia Dairies. 2012. https://saiia.org.za/saiia-toolkit/namibia-dairies/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=Namibia Dairies |date=24 July 2012 |url=https://saiia.org.za/saiia-toolkit/namibia-dairies/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2012namibia, author = {{South African Institute of International Affairs}}, title = {{Namibia Dairies}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/saiia-toolkit/namibia-dairies/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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