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MPO press releases

28 March 2008

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

Higher electricity costs will hit milk producers hard
Total electricity costs for milk producers could go up to more than R125 million per year should Eskom’s proposed electricity tariff increase of 60% be approved. Added to that, price increases will result in producers paying an estimated additional R55 million for more expensive animal feed, animal health products and other inputs. These figures are based on calculations made by the chief economist of the Milk Producers’ Organisation (MPO), Dr Koos Coetzee.

On behalf of milk producers, the MPO is appealing to government and Eskom not to introduce such a steep increase in electricity tariffs.

“Milk producers are already under pressure due to the sharp increases in animal feed, fuel and fertiliser prices and will find it difficult to also absorb higher electricity prices,” says Etienne Terre’Blanche, managing director of the MPO.

“Mistakes that were made in the past en had resulted in the current supply problem, cannot be rectified within one year without irreparable damage to agriculture,” says Terre’Blanche.

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

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