Costs and cost sharing
Each country the situation is different, based on how the public and
private sectors operate. More information on the costs of fortifying specific
commodities is provided under the commodity tabs.
- In countries where food prices are strictly controlled or subsidized
by the government, the on-going cost of the programme (the main additional cost
is premix) may be covered by the government while the industry covers the
on-going Quality Assurance/Quality Control costs.
- In countries where there is a free market, the industry passes on
the cost to the consumer. Fortification usually results in a once-off cost
increase to the consumer. However, the incremental cost is generally very small
when compared to the fluctuations in the prices of raw materials and
commodities, which are also passed on to the consumer.
- In some countries the government contribution to the cost of
fortification may include: exemption from duties and taxes on the imported
components of both equipment and premixes; adjustments in VAT and other taxes
to cover the cost of the programme; or inclusion of premix costs in the
national drug budget of the Ministry of Health.
Related Information:
- Table: Micronutrient Fortification Sources,
Levels and Costs.
|