According to the recently released Stats SA PPI data, the price index of milk on farm level (producer price of milk) decreased by 12,5% from July 2015 to August 2015 and by 8,5% from August 2014. This is the sharpest decrease since 2012. The PPI index for cereals, the major input for milk production, increased by 38,7% from August 2014 to August 2015. The increase in grain prices and decrease in milk producer prices will affect milk production in the coming year. Current price levels are unsustainable and will have to change. Prices milk processors received, as indicated by the manufactured dairy product price index, increased by 1,4% from August 2014 to August 2015.
Published on Friday, 9th October 2015 - 11:13
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