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MPO press releases

16 August 2007

PRESS RELEASE ISSUED BY ETIENNE TERRE’BLANCHE, MANAGING DIRECTOR OF THE MILK PRODUCERS’ ORGANISATION

MPO and DoA hold successful workshop
“The Milk Producers’ Organisation (MPO) is very positive about the prospects of future cooperation between itself and the Department of Agriculture (DoA) regarding support measures for the dairy industry,” said Etienne Terre’Blanche, managing director of the MPO, after a recent workshop between the MPO and the top management of the DoA.

Terre’Blanche reiterated the importance of growing and sustaining the dairy industry in South Africa by organising itself and pointed out that there was no reason for our country not to become an exporter of dairy products.

At the workshop the MPO explained to the DoA that, as a result of an unbalanced supply chain where some 4 000 farmers sell their product to eight processors who in turn sell their product through four retail chains, dairy farmers have no control over their product due to their diminished negotiation powers.

Small to medium farmers are in the worst position because they don’t reap the benefits of economies of scale and therefore are also the ones who are forced to leave the industry because of financial predicament. The MPO informed the DoA of its actions to assist farmers to form groups in order to increase negotiation powers with regard to the prices of inputs and their product.

The MPO also stated that it supports the addition of value to raw milk by dairy producers, since it enables producers to regain control over their product and to gain independence from the major buyers in the market.

The DoA has requested that the MPO identifies areas where the department can assist industry. A follow-up meeting to discuss these recommendations will be scheduled soon. The department indicated that the Comprehensive Agricultural Support Programme (Casp) will be the vehicle used by the DoA to facilitate and implement support measures to agricultural industries.

“We look forward to presenting our recommendations on government assistance for the dairy industry and trust that future discussions will be fruitful,” Terre’Blanche said.

The workshop was held at Cedara Agricultural College in KwaZulu-Natal and concluded with a visit to developing farmer, Siphiwe Majola, and a producer-distributor, Kevin Lang of Fairfield Dairy.

For further information, contact Etienne Terre’Blanche on 012 843 5600 or 082 900 7676.

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