00:00Nestle announced on July 3rd that it would leave the local juice and milk categories,
00:06raising concerns among dairy farmers who have relied on the company
00:10as the primary purchaser of locally produced cow's milk for more than 60 years.
00:17Agricultural consultant Dr. Donnie Rogers said the government's intervention
00:22helped secure a more favorable transition period for farmers
00:26who faced uncertainty after the initial announcement.
00:31He said the original six-month timeline was inadequate
00:35given the potential impact on dairy operations.
00:39Rogers had previously called for Nestle's exit period to be extended to at least 12 months,
00:46warning that a rushed transition could have caused lasting damage to the dairy sector.
00:52He explained that farmers could have been forced to prematurely stop milk production from their cows.
01:00Rogers said, quote,
01:02Farmers would have to adopt a forced drying off of animals, which prematurely stops milk production.
01:09This means that the only option for that animal would be to slaughter for meat.
01:14Following concerns raised by stakeholders, Prime Minister Kamala Passat-Bissessa established a ministerial team
01:22to engage Nestle and represent the interests of dairy farmers.
01:27Rogers described the outcome as a positive one after Nestle announced that on July 19th,
01:34it had agreed to an exit period ranging from 9 to 12 months.
01:38He said, quote,
01:39This indicates to farmers and those associated with the industry that the Prime Minister listened to the calls and acted
01:47decisively, end quote.
01:49Rogers also rejected suggestions that Nestle's decision was linked to local economic conditions,
01:56arguing that the move forms part of a wider global restructuring program.
02:02He pointed to divestments and restructuring exercises undertaken by the multinational company in several countries.
02:09He also warned against misinformation surrounding the company's exit,
02:15saying speculation could undermine efforts to attract a buyer for Nestle's local processing facility.
02:22He said, quote,
02:32Despite the uncertainty, Rogers believes that the situation presents an opportunity
02:38to rebuild local dairy production.
02:42According to Rogers, T&T imports approximately $350 million in liquid milk annually
02:49and about $750 million in dairy products overall, accounting for 10% of the food import bill.
02:57Meanwhile, economist Dr. Valmiki Arjun noted that Nestle has undertaken similar restructuring exercises
03:03in other countries, including Jamaica, Ecuador, and Nicaragua.
03:09Arjun said, quote,
03:11The pattern is clear.
03:12Nestle is reallocating capital to reduce costs, improve margins, and gain market share in faster-growing categories, end quote.
03:21He said the establishment of an interministerial team was the correct response
03:26because the issue affects agriculture, trade, finance, labor, manufacturing, and food security.
03:34He added that the situation highlights the risks of relying too heavily on a single purchaser,
03:41saying, quote,
03:42One entity, especially a foreign one, should not dominate an entire value chain, end quote.
03:48Looking ahead, Arjun suggested that T&T should pursue a more diversified dairy industry,
03:55including farmer-owned cooperatives, local-private sector investment, and public-private partnerships.
04:02Vishana Pargu, TV6 News.
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