Concern about marginal growth in milk production

The MPO is concerned about the marginal growth in milk production during the first eight months of 2014. Total milk production during this period is only 0,1% more than during the same period last year. According to Nielsen figures supplied by Sampro, the market for long-life milk has increased by 6,0% in the 12 months to June 2014, compared to the same period in the previous year, while the demand for pre-packed cheese increased by 28,4%. Clearly, the 0,1% growth in total production is not sufficient to supply the demand. This has resulted in imports for the first seven months increasing by 22%, compared to the corresponding period last year. MPO economist Dr Koos Coetzee commented that the slow growth in milk production is not sufficient to supply in the growing demand for dairy products. Retail prices of dairy products have increased by between 4,9% and 10,2% from June 2013 to June 2014.