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MPO press releases

22 March 2007

PRESS RELEASE ISSUED BY BERTUS DE JONGH, MANAGING DIRECTOR OF THE MILK PRODUCERS’ ORGANISATION

Widespread milk shortages experienced
There is a shortage of milk on supermarket shelves and consumers must brace themselves for shortages throughout the winter, said Mr Bertus de Jongh, managing director of the Milk Producers’ Organisation (MPO). “The signals that we are picking up from the market, indicate that there are milk shortages and that producers cannot produce enough to meet the demand.”

De Jongh said the shortages are a direct result of price signals relayed to producers two years ago, when the milk price dropped unexpectedly. “Milk production is a biological industry that operates in long-term cycles, and the message from two years ago is now being followed through,” De Jongh said.

“The sharp increase in maize and feeds costs combined with low producer prices, forced producers to reduce production in order to survive financially,” De Jongh said.

“Furthermore, the weakening rand has made it too expensive to import dairy products to supplement local shortages,” De Jongh said.

“In the long term these shortages will have an extremely negative impact on the dairy industry. Consumers will simply turn to alternative food sources and the dairy industry will lose market share, which will be difficult and very expensive to regain,” De Jongh said. “All role players in the dairy industry now need to work together and make decisions that will be in the interest of the long-term prosperity of the entire industry.”

For more information, contact Bertus de Jongh at 082 552 0594.

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