By Benadetta Chiwanda Mia:
Minister of Trade and Industry Vitumbiko Mumba has affirmed commitment to work towards creating a conducive business environment that protects and promotes enterprises owned by indigenous Malawians.
Mumba made the remarks on Wednesday during a visit to the production site of Much Milk Company Limited, Malawi’s first powdered milk manufacturer, located in Mpemba, Blantyre.
During the visit, it was revealed that the company has been grappling with key challenges including limited access to local markets and difficulties in securing shelf space in major retail outlets.
Much Milk Company Limited Managing Director Madalitso Phiri said despite the company’s efforts to penetrate the domestic market, they were compelled to pay K500,000 to one of the retail shop outlets to have their products stocked on the shelves.
“It is a challenge for a local product to secure shelf space in supermarkets. Some retailers demand payment before accepting our products. We had no choice but to pay because consumers kept asking about where they could buy our powdered milk,” Phiri said.
Founded in 2019, Much Milk Company Limited was established to create a sustainable market for dairy farmers and address the country’s demand for powdered milk.
Phiri further revealed that the company secured K74 million in financing from the Malawi Agricultural and Industrial Corporation for machinery procurement.
He said the factory has been operating below capacity due to inadequate electricity supply, as the Electricity Supply Corporation of Malawi has yet to provide the larger transformer they applied for four years ago.
In response to the concerns raised, Minister Mumba visited the outlet’s officials in Blantyre to verify the claims and later announced that the matter would be referred to the Competition and Fair Trading Commission for further action.
“This practice is illegal under the Competition and Fair Trading Act. Retailers can charge for premium shelf placement but demanding payment just to stock a product is discriminatory,” Mumba said.
Much Milk Company Limited currently sources raw milk from a cooperative of 164 dairy farmers, contributing to local economic empowerment and agricultural development.
0 Comments