Positive Outlook for SA agriculture

South African farmers can expect a profitable 2015. Speaking at the launch of the ABSA Agricultural Outlook 2015, on Wednesday, 26 November 2014 Mr Ernst Janovsky, head of Absa Agribusiness pointed out that all commodities are experiencing positive times. According to MPO economist Dr Koos Coetzee, who is also the author of the dairy outlook in this publication, milk producers can also look forward to 2015. The expected lower grain prices will improve the milk: feed price ratio to more profitable levels. South African producer prices currently remains firm in spite of the normal seasonal increase in milk production. Chances are good that producer prices will increase after the summer to ensure milk supply to processors. The international situation remains uncertain in view of the Russian ban and the lifting of quota restrictions in the EU. Substantially lower producer prices in major exporting countries will over time result in lower production and higher prices. Copies of the ABSA Agricultural Outlook are distributed with the December 2014 issue of The Dairy Mail.