(Ecofin Agency) - West Africa is the leading region for powdered milk imports in Africa. While demand for dairy products is growing in the area, developing local dairy industries remains a significant challenge.

In West Africa, calls to ban imports of whole milk powder could harm local dairy processors supplying urban consumers, according to Christian Corniaux, Deputy Director of the Selmet Research Unit at CIRAD, speaking with Ecofin Agency.

While NGOs have pushed for greater use of local milk and the development of mini-dairies, Corniaux points out that relying on local milk collection remains a challenging goal. Collecting milk is often costly since most production is in rural areas focused primarily on livestock for meat. Additionally, collecting small quantities from remote areas with limited electricity and no cooling systems is expensive.

Corniaux believes dairy companies should work more closely with rural producers but acknowledges that local processors need to keep costs down. Imported powdered milk, which is cheaper, helps them remain competitive. Without it, he says, some dairies might be forced to shut down.

"Banning whole milk powder imports would be counterproductive for West African dairy processors. Many argue that only local milk should be used, but that would mean factories could operate only when local milk is available," Corniaux explains. He notes that in Senegal, for example, a dairy like Laiterie du Berger collects thousands of liters of milk daily, yet they rely on powdered milk to meet demand in markets like Dakar, where competitors use only powdered milk.

Over the past decade, fat-filled milk powder (FFMP), a lower-cost powdered milk enriched with vegetable fats, has become widespread in West African ports. Priced 30–40% less than local milk, FFMP faces just a 5% import tax, which keeps imports high and affects local dairy industries.

“People often say West Africa has no dairy policy, but that’s not true,” Corniaux says. “The policy allows for the entry of products like FFMP, while there are efforts to develop local milk production and collection. The competition, however, has shifted. Even whole milk powder is being outcompeted by FFMP on the market.”

Corniaux suggests that West African governments could raise tariffs on vegetable fat milk blends like FFMP and support local dairies with subsidies, animal feed programs, and tax incentives. For instance, in Senegal, an 18% VAT is applied to locally collected milk, which serves as a raw material for making yogurt, cheese, and butter.

West Africa spends between $1.6 and $1.9 billion on dairy imports annually. The largest buyers include Nigeria, Senegal, Côte d'Ivoire, Mali, Ghana, and Mauritania.