Increased imports on the back of limited local supply

Imports during the first eight months of 2014 were significantly higher than during the same period last year. During January to August 2014, 32 000 tonnes of dairy products were imported, 21% more than during the same period last year. Despite the lower quoted prices on global markets, import prices are still high with full-cream milk powder imported at R50,00 per kilogram and long-life milk at an average R7,50 per litre.

Exports were also higher than in 2013 with 123 825 tonnes of dairy products exported during the first eight months, up 7% on last year. Export prices were higher than imports. From January to August 2014, South African processors and retailers exported nearly 90 000 tonnes more than imports. On a milk equivalent basis, exports for the eight-month period exceeded imports by 131 million litres.