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MPO press releases

18 September 2007

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

Milk shortage continues
Despite better milk prices for milk producers, the milk shortage continues. The past winter was one of the coldest in many years and followed the driest summer in the South African interior in the past decade.

Disappointing grain harvests and lower production of silage and other roughage, affected milk production negatively this year. Especially during July this year, milk production dropped significantly in comparison to July 2006.

While the shortage continues, demand for milk is at a healthy level. However, this attributes to the fact that since April this year the monthly milk shortage is constantly at the 20 million litre mark.

While a better milk price has brought much relief to producers, it has not yet managed to meaningfully increase production. The short-term capacity for improving milk production is limited and varies from region to region. In general farmers need between 12 and 18 months to significantly increase milk production.

Running costs are still on the rise for farmers and unless this is countered by higher producer prices, the milk shortage will remain intact for longer.

The current international milk shortage, helped along by factors such as climate, the availability and affordability of feed and an increase in demand, attributes to substantially more expensive world prices. This makes it harder to counter local milk shortages through imports.

For more information, phone Etienne Terre’Blanche on 012 843 5600 or 082 900 7676

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