Milk intake remains depressed

Total milk intake in June 2016 is estimated at 216 million litres, 5,8% less than the quantity delivered in June 2015. Monthly milk intake is in a decreasing trend since November 2015. During the first half of 2016, 1 381 million litres of milk was delivered to processors, 4,9% less than during the same period in 2015, but still 6,8% higher than the same period in 2014.

Conditions remain unfavourable for increased milk production with uncertain water supply in many areas, less favourable climatic conditions in pasture areas, high grain and roughage prices and farmers saving on feed for dry cows and heifers. The recently announced increases in producer prices will help farmers to survive but are not high enough to promote increased production. According to MPO economist Dr Koos Coetzee, milk intake in July 2016 is expected to be less than the same month in 2014.  Milk intake figures are supplied by Milk SA.