The Minister attributed the rise in prices of sterilized milk, some milk derivatives and infant milk to several factors, including the rising cost of distribution due to high fuel prices, stressing in this regard that sterilized milk and its derivatives are classified as services with liberalized prices and that, therefore, the prices of these substances change according to market developments and the balance between supply and demand.
In response to a written question from the parliamentary representative Driss Sentissi, Haraki Group, concerning “the high price of sterilized milk and some milk derivatives and infant formulas,” Fettah Alaoui said that the production of sterilized milk and its derivatives depends largely on raw materials imported from abroad, especially milk powder.
She said, in this regard, that the import price of the substance has doubled in recent months, negatively affecting the internal prices of the substance, which have increased by about one dirham per liter between January and October last.
He added that the increase in import prices of dairy products, including milk powder used in the production of sterilized milk and infant milk, is among these factors, given that the price per kilogram of milk powder rose from 25.8 dh in 2021 to 37.8 dh in 2022, an increase of 46%.
This increase coincides mainly with a seasonal phase, marked by a lack of local production of milk, in addition to the inflation of the cost of fodder, which has contributed, in turn, to the decrease in the number of cattle among farmers, automatically resulting in a decline in the production and collection of milk for the industrial sector.
This increase is also related to the increase in prices of commodities, especially those related to fodder, in international markets, such as corn, whose price has increased by 32%, giving rise to an increase in prices of these products in domestic markets.
Faced with this situation, the Minister stressed the efforts made by the government, through a series of measures taken in this area, to mitigate the impact of these factors on the prices of dairy products, in this case the suspension of customs duties and value added tax (VAT) applicable to imports of milk powder. In addition to these measures is the reduction of customs duties on the number of cattle that can be imported and slaughtered to protect dairy cows and be able to supply the market with red meat.
Nadia Fettah Alaoui said, in the same sense, that efforts have focused on the fight against unregulated sales channels of milk and the orientation of domestic production to the dairy industry to fill the gap in this substance.
In addition, she mentioned the efforts undertaken by the government to address the problems related to the shortage of certain substances or their high prices, and to address all developments induced by the internal and external upheavals that have a direct impact on the daily living conditions of Moroccan families.
As a reminder, the price of dairy products has risen considerably, affecting the activity of breeders and farmers, but also the purchasing power of Moroccan consumers. Today, the price of UHT milk is between 11 and 12 dirhams per liter.
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