Milk intake remains stable

The total milk intake in the first five months of 2017, as reported to MILK SA is currently estimated at 1 186 million litres, 0,03% down on 2016. During May 2017 an estimated 228,6 million litres of milk was delivered, compared to 229 million litres in May 2016. Milk flow in coming months will probably remain barely at current levels. Difficult production conditions in inland areas and disease problems will limit production growth in these areas. The lower grain prices will increase intensive producers’ margins. In coastal areas the scarcity and cost of roughage will probably limit production growth. Based on production during the first five months and assuming a normal spring total milk production during 2017 is currently estimated at 3 070 million litres, marginally up on 2016.