TANZANIA MILK PROCESSING ASSOCIATION

TAMPA HARMONIZATION OF REGULATORY FRAMEWORK IN THE

DAIRY SECTOR

Regulatory Issues in the Dairy Sector

• Issues in the dairy sector – There is a duplication of the regulatory functions – Compliance with the regulations is too costly – High costs of regulations affect the competitiveness of

the milk processors – TAMPA is advocating for harmonization of regulations in

the food processing sector

Regulatory Challenges: Findings from the study Multiple licensingMultiple site InspectionsHigh business registration feeMultiple inspections of premises Delays and bureaucracy caused by regulatorsAnnual fees charged by regulators Multiple testing of products Cost of administrationCost of lost sales due to restricted access to markets Cost of vehicle inspections

Repetition of similar regulatory functionsCost of meeting the reporting requirementsRent seeking behaviour and corruption Increased product prices due to high costs of regulationsHigh local government feesFire inspection feesReduced product range due to regulationsCosts of reduced sales due to limited access to market

Where are we now? • Phase 1- Conduct a comprehensive study on the issue- Done • Phase 2: Develop and validate the policy proposal- Done – Present the proposal to stakeholders and gather their inputs –

Partly Done – Compile the proposal, policy brief and fact sheet- Done• Phase 3- Influencing – in progress

• Current Direction – Prepare a draft layman’s bill to be submitted to the Government

• Form a Committee to work with TAMPA and consultant to prepare the bill and support the influencing process

Evidence of regulatory challenges from selected cases

• Tan Dairies Fire and Rescue Case • It took place in August 15th, 2012• Bill raised as fire inspection and certificate

2012/2013 • The bill amounts Tsh 500,000• It is payable according to the office one

occupies• Required to pay within fourteen days

Evidence of regulatory challenges from selected cases

• Tan Dairies weight & measure case• It happened in December 12th, 2012• Prepackaging machines fee amounting Tsh 1,550,000 ( Fresh Milk 500 & 250ML-TZS

700,000, DESA Mtindi 500& 250ML-TZS 700,000, Automatic Mashine-TZS150,000)

• Required to pay fee for each type of prepackaging machine

• Required to pay within fourteen days

Evidence of regulatory challenges from selected cases

• International Dairy Product LTD(IDP) Case• It took place on 10th May, 2013 • TFDA require IDP to re-register after 5 years• Filled out forms & paid fees for their products

amounting US$ 593.00(Cheese US$ 287.50, Sour Milk US$ 152.20, Yoghurts US$ 152.20)

• But, they were asked to pay fees for every flavour of yoghurt & type of cheese

• IDP has 7 flavours of yoghurt & 5 types of cheese. (7 x 152$ and 5 X 287.5!!!!!)

• Cost of doing business is too high

A way forward• Conducting joint inspections & sharing

products results• Removal of bureaucratic red tape of

regulatory authorities• Reduction of number of licenses and permits• Reduction of reliance on fees charged to

enterprises• Strengthen the capacity of TDB

The end!

Thank you for your attention TAMPA JUNE, 2013