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 licensing Multiple site Inspections High business registration fee Multiple inspections of premises Delays and bureaucracy caused by regulators Annual fees charged by regulators Multiple testing of products Cost of administration Cost of lost sales due to restricted access to markets Cost of vehicle inspections R epetition of similar regulatory functions Cost of meeting the reporting requirements Rent seeking behaviour and corruption Increased product prices due to high costs of regulations High local government fees Fire inspection fees Reduced product range due to regulations Costs 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 15 th, 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 12 th, 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 10 th May, 2013 TFDA require IDP to re-register after 5 years Filled out forms & paid fees for their products amounting US$ (Cheese US$ , Sour Milk US$ , Yoghurts US$ ) 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