Milk producers urged not to climb out during industry low
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Senekal - Despite difficult questions and heated debate during a meeting in Senekal last week, the Milk Producer’s Organisation (MPO) believes there is still enough passion to ensure the survival of the industry.
The MPO’s Manager of member services, Philip Swart, says milk producers in the Free State are really caught between a rock and a hard place. He says this is why they specifically invited agricultural economist Johan Willemse to address struggling producers. He says Willemse summarised the situation in a few key points:
“It goes about the high input costs of the producers, which is largely brought about by things like the price of maize, soyabeans, electricity and labour, to mention a few. Secondly is contribution of the drought, which largely revolves around the price and availability of fodder.
“A third point he highlighted is the low milk price offered by buyers. If you look at supermarket shelves you see the positive gain in dairy product prices but this has not flowed back to producers.”
Swart is urging producers not to throw in the towel when the industry finds itself at the lowest point of the cycle. He says the upswing is on its way and recommends that milk producers also seek opportunities to work together to reduce costs and maximise profits.
The MPO’s Manager of member services, Philip Swart, says milk producers in the Free State are really caught between a rock and a hard place. He says this is why they specifically invited agricultural economist Johan Willemse to address struggling producers. He says Willemse summarised the situation in a few key points:
“It goes about the high input costs of the producers, which is largely brought about by things like the price of maize, soyabeans, electricity and labour, to mention a few. Secondly is contribution of the drought, which largely revolves around the price and availability of fodder.
“A third point he highlighted is the low milk price offered by buyers. If you look at supermarket shelves you see the positive gain in dairy product prices but this has not flowed back to producers.”
Swart is urging producers not to throw in the towel when the industry finds itself at the lowest point of the cycle. He says the upswing is on its way and recommends that milk producers also seek opportunities to work together to reduce costs and maximise profits.
