Dairy: producers under pressure

2009-02-16 00:00

THE capability of South African milk producers to supply the local consumer market is under threat due to uncertain economic conditions that have been rampant in the dairy industry in recent years.

This is according to the chairman of the SA Milk Producers’ Organisation (Sampro), Melt Loubser, who said local processors have experienced dramatic increases in input costs.

He added that this trend could result in more price increases during the coming months.

The retail prices of dairy products increased in the 12 months up to October 2008 by much less than that of most other food product groups, according to the survey by the National Agricultural Marketing Council.

The same survey shows that the consumer prices of four of the eight dairy products decreased from July to October 2008.

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