YEAR-END MESSAGE FROM THE MPO

Who would have thought that 2021 would be a great year for our industry? Most parts of the country have received record-breaking rainfall, and achieved record-breaking crop yields, and record prices for milk (even if it does not feel like it). However, there is no doubt that trading terms are still very difficult, with input costs skyrocketing.

The long-awaited restructuring at the MPO is already bearing fruit. We have stabilised our financial position, gained more members, and we now have an organisation that is lean, mean and fit for purpose. The MPO board of directors have had the privilege of conducting eight interviews after receiving dozens of applications for the position of chief executive officer. We have identified an outstanding candidate whom we will be able to introduce in the next couple of days, once we have taken care of all the necessary formalities. Watch this space!

Unfortunately, it is true to say that milk producers are under severe financial pressure, because our input costs are rising at a much faster rate than our milk income. The organised violence and looting across KwaZulu-Natal and Gauteng in July, on top of the disruption caused by the pandemic, could easily have been a nail in the coffin for many of us. However, the quick recovery by our entire industry speaks volumes about our resilience. We are only marginally down in production compared to the previous year. The red flags are very visible, though, and I know of a number of farmers who are investing in alternatives to dairy that provide better returns.

I could not do without my family, my staff, my Board, my suppliers, my veterinarian, my neighbours, and of course my milk buyers. I think that this is an appropriate time to thank them all and to let them know that my success could not have been achieved without them. Have a great Christmas and a prosperous New Year. – Colin Wellbeloved