The prices of all dairy products were higher at the Fonterra GlobalDairyTrade sale which took place on 5 February. The trade-weighted index increased by 2,4% from the previous sale held on 16 January. The upward trend in international prices is ascribed mainly to low milk production growth in many countries as a result of depressed milk prices and high grain prices. MPO economist Dr Koos Coetzee said that milk producers in South Africa are experiencing similar market conditions and upwards adjustments to producer prices are urgently required to encourage sufficient milk production in future. To read more <click here>

MPO introduces new service

The MPO introduced a new service which entails an inhibitor insurance programme which was developed by MARSH Risk Consulting (MRC) at the MPO North route meetings held in Limpopo this week. The aim of the programme is to insure MPO members against the presence of antibiotics in raw milk.  The cell captive approach will be applied which is similar to a programme implemented by MRC for Clover producers. This programme could be extended in future to include milk buyers and provide additional specialised insurance products to milk producers. MPO CEO Mr Bertus de Jongh said this is an excellent opportunity for producers to reduce their risk.

Enquiries about compensation for farm workers

The 52% increase in the minimum wage for farmworkers, as announced by Minister Oliphant on 4 February has led to various enquiries from milk producers regarding, among others, legal requirements with respect to compensation for farm workers who work overtime, over weekends and on public holidays. The Basic Conditions of Employment Act (75/1997): Sectoral Determination 13: Farm Worker Sector, South Africa published on 17 February 2006 contains all the requirements with regard to issues other than minimum wage. To access the Act <click here> and <here>

Successful start to MPO North route meetings

The MPO interacted with milk producers during well-attended and successful MPO North route meetings held at the Thatch Palace in Polokwane on Tuesday and Klein Paradys in Modimolle (Nylstroom) on Wednesday. Mr Bertus de Jongh, MPO CEO’s  overview of the MPO’s existing and planned new services which include tailor-made financing for milk producers and the development of a manual on the establishment of successful share-milk schemes was well-received by milk producers. Dr Koos Coetzee, MPO chief economist, encouraged producers with information indicating  positive economic trends for the local and international dairy industry. Producers in the area confirmed that they currently experience difficult financial circumstances owing to high input costs and stagnant producer prices. In spite of this, producers in general appreciate the services rendered by the MPO and encourage the organisation to continue promoting the interests of milk producers.

Nestlé-Pfizer merger approved

The South African Competition Tribunal approved the merger of South Africa’s largest supplier of infant formula products Nestlé with third largest supplier Pfizer Nutrition. The approval is subject to licensing out the acquired infant formula brands S-26 and SMA to an independent licensee who will be obligated to re-brand the products for a 10-year period followed by another 10-year period during which Nestlé will not be allowed to re-introduce the Pfizer brands in South Africa . Nestlé South Africa stated ‘We are pleased with the outcome and we respect the recommendations of the Tribunal,’ upon approval of the $11,85 billion deal. To read more <click here>.

MPO KZN positive about planned future services

The Central Committee (CC) of MPO KwaZulu-Natal (KZN) held its first meeting of the year on 14 February under the leadership of president Mr Tom Turner to review current MPO activities and planned new services aimed at improving, amongst others, the imbalances in the dairy value chain. Mr Bertus de Jongh, MPO CEO, gave feedback on MPO activities and highlighted possible future services such as alternative price determination mechanisms for the dairy industry, the development of a leading milk price indicator and an investigation into the equitable distribution of profits within the dairy value chain. Members of the CC reacted positively to the new developments explored by the MPO. Dr Koos Coetzee, MPO economist, shared the latest local and international economic trends in order to enable producers to make informed decisions and provide them with the relevant facts required for constructive discussions with other role-players.

Spotlight on topics at Practical Silage Farmers’ Day in North West

Ms Lise Roberts of RSG conducted an interview with MPO Northwest chairman Mr Johan Strydom about the topics to be presented at the MPO North/Biomin Farmers’ Day taking place on Mr Sakkie Roode’s farm Doornhoek in the Lichtenburg region on 20 February. Use the tag below or click on: http://www.rsglandbou.co.za/mp3/middag_13/25%20Landbou%20Insetsel%2012%20Februarie%202013%20Johan%20Strydom%20Kuilvoerdag%20in%20Noordwes.mp3 to listen to this interview.

Swartland silage lessons

Turn to page 52 of the February edition of The Dairy Mail (TDM) for tips and advice from the Swartland on cost-effective silage production.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Litres: 5 000ℓ/week                          Area: Pretoria

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail to Yolanda.s@mpo.co.za.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or at philip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements.

Don’t miss Practical Silage Farmers’ Day in North West!

Mr Johan Strydom, chairman MPO North West has pleasure in inviting milk producers to a farmers’ day with the theme Convert your silage into concentrate on 20 February 2012. The event will take place on Mr Sakkie Roode’s farm Doornhoek in the Lichtenburg region from 08:30. Registrations will commence at 07:30. The programme promises to be interesting and informative, and includes a presentation on the science of silage by an international expert, practical demonstrations and product exhibitions. For more information, <click here> or contact Benita on 073 116 8544 or send an e-mail to benita@mpo.co.za.

Invitation to MPO Western Cape route meetings

MPO Western Cape chairman Mr Philip Blanckenberg wishes to extend an invitation to all milk producers in the province to attend one of the route meetings taking place from 4 to 7 March 2013. Producers will, amongst others, be informed about local and international economic prospects and feedback regarding MPO activities, including planned new services. Thereafter, milk producers will be given the opportunity to discuss topical matters of importance to the dairy industry during an interactive session. Milk producers are also invited to enjoy refreshments with the MPO management members and fellow producers upon conclusion of the respective meetings.

Please RSVP before or on 28 February with Danel du Toit on 028 424 2890 or send an e-mail to danel@mpo.co.za.

Diarise SALHC 2013

Be sure to diarise the eighth South African Large Herds Conference (SALHC) 2013, which will be held at Sibaya Casino and Lodge, Durban, KwaZulu-Natal, from 3 to 5 June 2013. The theme of the 2013 conference is Dairy Farming – The New Revolution and promises delegates to be worth every minute of their time. For more information <click here> or contact Julie McLachlan on 083 740 2720 or send an e-mail to julie@cendel.co.za

Links

Milk Producers’ Organisation

The Dairy Mail

Contact us

Bertus de Jongh – Chief executive officer

Barbara Bieldt – Manager, market protection and development

Dr Koos Coetzee – Economist

Philip Swart – MPO member services

Major South African milk processor Clover informed its producers that a new purchasing scheme will be implemented with effect from 1 March 2013. Preliminary indications are that the new scheme also entails producer price increases. The extent of increases will be confirmed at a later stage. MPO CEO Mr Bertus de Jongh said that substantial producer price increases are urgently required to encourage sufficient milk supply in future.

Imports marginally higher 

Dairy product imports during January 2013 is marginally (+6%) higher than during January 2012. However it is still 80% less than average monthly imports during 2012. The main reasons for the increase are an increase in liquid milk imports, compared to the very low level of imports in January 2012 as well as higher cheese imports. The recovery of international cheese prices in recent months coupled with a weak rand, will probably limit imports in future. Exports continue to perform well. More than 17 800 tonnes of dairy product were exported during January 2013. This is lower than in January 2012 but 13% higher than average exports during 2012. The weaker rand will impact positively on the competitiveness of South African processors in Southern African Customs Union, Southern African Development Community and other markets. MPO economist Dr Koos Coetzee said that exports during January again exceeded imports on a milk equivalent basis and that the country remains a net exporter of dairy products.

Slowdown in international milk production growth

Depressed milk prices and high grain prices internationally have impacted negatively on milk production growth in many countries. Milk producers in the United States (USA) and United Kingdom (UK) suffer as a result of depressed producer and high grain prices. In the USA the producer price declined to R 4,18 per litre in January. The US milk: feed price ratio is currently at 1,58: 1 which is regarded as very low. Furthermore, it was reported that cow slaughterings in the USA during 2012 was at the highest level in 26 years. Income of dairy farmers in Northern Ireland will probably decrease by 53% this season and is expected to decrease by 42% in England. The Dairy Trader quoted National Farmers’ Union chief economist Phil Bicknell as saying that farmers cannot go on producing at little or no profit indefinitely. In Australia farmers recently held a crisis meeting to protest against producer prices that do not cover production cost and urged politicians to reform the industry. The unfavourable prices have already resulted in stagnant or very low production growth in many countries. Milk production in the European Union is expected to remain below 2012 levels at least until spring. With the exception of New Zealand, production growth in Southern Hemisphere countries has also slowed down. The United States Department of Agriculture predicts production for 2013 at 2012 levels. In importing countries production grows at too slow a rate to reduce import demand. According to MPO economist Dr Koos Coetzee, South African producers are experiencing similar conditions. The South African milk: feed price ratio is at its lowest level in many years and farmers are battling to make ends meet with stagnant producer prices. He said that the recent announcement of price increases from March 2013 will bring some relief but will probably not be sufficient to encourage higher production.

Free State dairy farmers in the grip of low producer prices

In a press release issued on Wednesday chairman of MPO Free State Mr Bernard Maree expressed the concern that a large number of Free State dairy farmers will not be able to survive the current low producer prices coupled with high input prices. The ratio between the milk price and animal feed price in the province is currently at its lowest level ever. Animal feed prices are still increasing and it is expected that lucerne prices, in particular, will increase significantly in the near future. Several farmers have sold their herds and many other sales may follow. According to Mr Maree the production cost of milk currently exceeds the price of milk. “Farmers cannot continue to produce at a loss,” he said. He also referred to price hikes in farm inputs and services such as veterinary, electricity and labour costs. Mr Maree indicated that producer prices will have to increase significantly to avert a disaster in the Free State and to guarantee the sustainability of the region as a milk production area.

Concern about impact of minimum wage

In a press statement released on Monday, 4 February, AgriSA president Mr Johannes Möller said “The 52% increase in the minimum wage for farmworkers, as announced by Minister Oliphant this afternoon, has not duly taken into account the implications for agriculture and employment which will have drastic implications for this sector and related industries.” Although milk producers generally pay higher than minimum wages they will experience pressure to increase wages. Mr Bertus de Jongh said that milk producers find it difficult to survive at current cost and income levels and a sharp increase in wages could result in many farmers exiting the industry. To read more <click here>.

MPO North reviews important issues

MPO North regional management met on Thursday to discuss matters of interest to milk producers in the region. Under the leadership of Mr Joubert Fourie, chairman MPO North, issues such as an inhibitor insurance programme and tailor-made financing for milk producers were attended to. The success of the Lichtenburg Dairy Organisation (LDO) in reducing input costs by purchasing products on behalf of MPO members was noted andMPO North regional management once again confirmed their support for the initiative. Concern was expressed about the fact that milk producers in the region are under financial pressure as a result of increasing feed costs and stagnant producer prices. The meeting agreed that further upward adjustments of producer prices are urgently required.

Young team benefited from IDT training courses

Mr Danie Schimper, milk producer from the farm Koppieskraal in the Senekal region said that his “young team benefited from training courses” presented by the MPO’s Institute of Dairy Technology (IDT). Students attended five day courses on milk production and artificial insemination presented by IDT instructor Mr Justice Matebula. The courses are AgriSeta accredited skills programmes and students received certificates upon successful completion of the respective training programmes. For more information regarding training courses for farm workers please contact Jas Wasserman at 082 490 2465 or send an e-mail to jas@mpo.co.za

Focus on silage

Ms Lise Roberts of RSG conducted an interview with MPO North West chairman Mr Johan Strydom about the MPO North West and Biomin Practical Silage Farmers’ Day on Wednesday 20 February 2013. Use the tag below to listen to this interview.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Litres: 5 000ℓ/week                          Area: Pretoria

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail toYolanda.s@mpo.co.za.

Activate feed’s full potential

“To prepare and store silage correctly requires insight into the silage production process”. Turn to page 26 of the February edition of The Dairy Mail (TDM) for an interesting article on the subject.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or atphilip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements.

Don’t miss Practical Silage Farmers’Day in North West!

Mr Johan Strydom, chairman MPO North West has pleasure in inviting milk producers to a farmers’ day with the theme Convert your silage into concentrate on 20 February 2013. The event will take place on Mr Sakkie Roode’s farm Doornhoek in the Lichtenburg region from 08:30. Registrations will commence at 07:30. The programme promises to be interesting and informative, and includes a presentation on the science of silage by an international expert, practical demonstrations and product exhibitions. For more information, <click here> or contact Benita on 073 116 8544 or send an e-mail tobenita@mpo.co.za.

MPO route meetings to kick off in Limpopo

Producers are invited to attend the MPO North’s route meetings at the Thatch Palace in Polokwane, starting at 10:00 on Tuesday, 12 February and Klein Paradys in Modimolle (Nylstroom), starting at 10:00 on 13 February 2013. The meetings will be informative and insightful and are not to be missed! If further information is required, please contact Ms Benita Oelofsen at 073 116 8544 or send an e-mail to Benita@mpo.co.za.

Diarise SALHC 2013

Be sure to diarise the eighth South African Large Herds Conference (SALHC) 2013, which will be held at Sibaya Casino and Lodge, Durban, KwaZulu-Natal, from 3 to 5 June2013. The theme of the 2013 conference is Dairy Farming – The New Revolution and promises delegates to be worth every minute of their time. For more information <click here> or contact Julie McLachlan on 083 740 2720 or send an e-mail tojulie@cendel.co.za.

Links

Milk Producers’ Organisation

The Dairy Mail

Contact us

Bertus de Jongh – Chief executive officer

Barbara Bieldt – Manager, market protection and development

Dr Koos Coetzee – Economist

Philip Swart – MPO member services

Local producers may benefit from the weakening rand as it has already resulted in a sharp increase in the cost of imported products. Import parity, based on skimmed milk powder and butter, increased from R3,50 in June 2012 to R4,18 currently at R8,80 per US$. Every 10 cent weakening in the value of the rand will result in a further 5 cent/litre increase in import parity. MPO economist Dr Koos Coetzee said  the cost to local processors who are forced to import will be higher than the cost of locally produced products. The import parity gap (difference between import parity and producer price) is shown in Figure 1

Source: MPO calculations

MPO investigates alternative price determination mechanisms 

The MPO is investigating alternative price determination mechanisms for the dairy industry in view of the imbalances in the dairy value chain. Recent industry statistics compiled by Dr Koos Coetzee clearly demonstrates the increasing gap between retail, wholesale and producer prices. CEO Mr Bertus de Jongh, Dr Koos Coetzee and Ms Barbara Bieldt met with Mr Rod Gravelotte-Blondine, co-founder and former managing director of SAFEX to discuss the options available in this regard. Mr Blondine will conduct relevant research, including the model applied by the Chicago Milk Exchange for further discussion with the MPO. Furthermore, the MPO is exploring the possibility of developing a leading milk price indicator with regard to expected producer price increases.

Concerns about Fertilizers and Feeds Bill

The MPO is concerned about the implications of the Fertilisers and Feeds Bill, recently published for comment by the Minister of Agriculture, Forestry and Fisheries. If the Bill is approved, farmers who mix their own feed will have to register every individual feed component used by them with the Department of Agriculture, Forestry and Fisheries. Farmers will also be forced to use qualified animal scientists to formulate feed. This will result in cost increases and an additional administrative burden on farmers. At a joint meeting with members of other livestock industries, attended by Dr Koos Coetzee and Mr Philip Swart of the MPO, it was decided to lodge a serious objection to the Bill. The draft legislation was published in spite of an agreement in principle beforehand that farmers who  mix feed exclusively for their own use will be excluded from the Bill. To read the Bill <click here>.

Follow-up meeting with Stud Book

Mr Bertus de Jongh had a follow-up meeting with Drs Pierre van Rooyen and Japie van der Westhuizen of Stud Book on Thursday, 24 January as part of the MPO’s continued effort to facilitate a consultative process between all role players currently involved with milk recording. Mr de Jongh confirmed that the MPO believes that the continued existence of a milk recording scheme is of critical importance to the primary dairy industry. Issues such as the role of the milk recording scheme in the industry, effective communication and consultation between all role players, the importance of the retention of scientific capacity within the industry and the integrity of the data base need to be discussed by stakeholders.

Matters of importance to Free State milk producers discussed

The management of MPO Free State held a meeting under the leadership of Mr Bernard Maree on Thursday, 31 January to discuss matters of importance to milk producers in the region. MPO economist Dr Koos Coetzee gave an overview of key market trends locally and internationally. Concern was expressed about the negative impact of ill-advised producer price reductions last year which led to prevailing low producer prices in the Free State. Dairy farm margins in the region are under pressure from rapidly increasing input costs and stagnant producer prices. Co-operation with the Free State Master Dairymen Association and the possible combination of the Master Dairymen Awards function with the MPO Free State annual congress were also discussed.

Lucerne shortages experienced

Shortages of lucerne are currently experienced in certain regions as a result of plantings being lower than previous seasons. This can be ascribed to high maize prices and a high demand for lucerne for export. According to MPO Northern Cape chairman, Mr Albie Muller, lucerne is not available in the region because of exports to the Middle East in particular.

Increase in import parity price

Ms Lise Roberts of RSG conducted an interview with Dr Koos Coetzee, MPO economist about the impact of the increase in the import parity price. To listen to this interview, use the tag below or click here: http://www.rsglandbou.co.za/mp3/jan_13/518%20Dr%20Koos%20Coetzee%20Invoerpariteit%2030%20Januarie%202013.mp3

Optimise milk production with the correct feed mix

Watch the mail for the February edition of The Dairy Mail (TDM) with the theme “From feed to food” and read how to optimise milk production with the correct feed mix. The magazine contains interesting and informative articles on topics such as TMR and supplementation, pasture and silage production, safe feed for safe food and dairy as part of a balanced diet.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Litres: 5 000ℓ/week                          Area: Pretoria

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail to Yolanda.s@mpo.co.za.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or at philip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements.

Don’t miss Practical Silage Farmers’Day in North West!

Mr Johan Strydom, chairman MPO North West has pleasure in inviting milk producers to a farmers’ day with the theme Convert your silage into concentrate on 22 February 2012. The event will take place on Mr Sakkie Roode’s farm Doornhoek in the Lichtenburg region from 08:30. Registrations will commence at 07:30. The programme promises to be interesting and informative, and includes a presentation on the science of silage by an international expert, practical demonstrations and product exhibitions. For more information, <click here> or contact Benita on 073 116 8544 or send an e-mail to benita@mpo.co.za

Diarise SALHC 2013

Be sure to diarise the eighth South African Large Herds Conference (SALHC) 2013, which will be held at Sibaya Casino and Lodge, Durban, KwaZulu-Natal, from 3 to 5 June2013. The theme of the 2013 conference is Dairy Farming – The New Revolution and promises delegates to be worth every minute of their time. For more information <click here> or contact Julie McLachlan on 083 740 2720 or send an e-mail to julie@cendel.co.za

Training in fire prevention and management

The Working on Fire Academy presents various accredited training courses on the prevention and management of fires. Please <click here> for more information.

Links

Milk Producers’ Organisation

The Dairy Mail

Contact us

Bertus de Jongh – Chief executive officer

Barbara Bieldt – Manager, market protection and development

Dr Koos Coetzee – Economist

Philip Swart – MPO member services

Milk production growth dropped to 0,1% in December 2012, down from the previous month’s 2,4% growth. Monthly milk production were higher than the corresponding months in the first half of 2012, but slowed down during the second half. Total production for 2012 is estimated at 2 686 million litres, up 2,7% on 2011 and 2,3% more than in 2010. The slowdown in production growth evident from Figure 1, will probably continue at least during the first half of 2013 unless producer prices are adjusted upwards, making it possible for producers to increase production. According to MPO economist dr Koos Coetzee, this slowdown in production growth can have a negative impact on the local supply of dairy products as production have also slowed down in major exporting countries like the USA, Australia, Argentinia and New Zealand. International demand for dairy products remains robust and prices at the latest Fonterra internet sale were at the highest level since December 2011. Higher world prices and the free-falling rand has resulted in a sharp increase in import parity prices to its highest level since February 2008. Further international price increases are possible. Processors may find it difficult to source enough milk locally and will have to pay more for imported products.

Milk SA’s future reviewed 

The chairmen, vice chairmen and CEO’s of the MPO and Sampro met on Tuesday, 22 January to review the future and strategic principles of Milk SA. The meeting was requested by the MPO in view of the fact that an application for the continuation of the statutory measures in terms of which Milk SA was established must shortly be submitted to the National Agricultural Marketing Council (NAMC). Possible harmonisation of certain strategies and the development of new strategies were also considered during the meeting. Agreement was reached about the future direction of the organisation. Sampro will prepare the application to be submitted to the NAMC for further consideration by the parties involved

MPO Western Cape considers important matters

The MPO Western Cape considered important matters at a management meeting held on Friday, 18 January under the leadership of chairman Mr Philip Blanckenberg. Issues such as the outbreak of lumpy skin disease, the farm workers’ strike and the route meetings taking place during the first week of March were attended to. Elections of management also took place during which Messrs Blanckenberg and Hartmann were re-elected as chairman and vice chairman, respectively with Mr George Cuyler being appointed as third director to the MPO board. Ms Estelle van Dyk was elected as new regional management member. The MPO congratulates all on their appointments.

Plot path for business succession

“Farmers need to shift to proper business succession planning rather than being unprepared for the future,”. Turn to page 39 of the January edition of The Dairy Mail(TDM) for tips and advice on succession planning.

Diarise SALHC 2013

Be sure to diarise the eighth South African Large Herds Conference (SALHC) 2013, which will be held at Sibaya Casino and Lodge, Durban, KwaZulu-Natal, from 3 to 5 June2013. Large Herds Conference takes an holistic approach to dairy farming, concentrating on issues peculiar to the large herds operator. Topics such as Systems Management, Strategies for change, Operations Management, Market Trends, Environmental and Technological Trends, Finance and Taxation, Human Resource Management, Motivation and Lifestyle are addressed. These conferences are for progressive dairy farmers serious about their business. However, the conferences are not all work and include social events such as happy hours, cocktail functions, safaris, gala dinners, farm visits and ladies’ programmes. This event gives South African dairy farmers a unique opportunity to join a select group in the farming community and also benefit from the most up-to-date information available. Delegates from leading dairy dairy farming areas around the world share knowledge and information on techniques and technology that are of significant benefit to local farmers.  The aim of the conferences is to put participants in the position to, after the conference, take away a strategic business plan for their own farms, based on their own individual circumstances and needs. This is achieved by creating various opportunities for one-on-one interaction during the conference. The theme of the 2013 conference is Dairy Faming – The New Revolution and promises delegates to be worth every minute of their time. For more information, contact Julie McLachlan on 083 740 2720 or send an e-mail to julie@cendel.co.za

Outlook for dairy industry

Ms Lise Roberts of RSG conducted an interview with Mr Boeta Venter, managing director of Nkunzi Milkyway about his views on the outlook for the dairy industry. To listen to this interview, use the tag below.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Litres: 5 000ℓ/week                          Area: Pretoria

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail toYolanda.s@mpo.co.za.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or atphilip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements.

Farm workers benefit from IDT courses

Fifty two farm workers from the Moletji Dairy in Polokwane and the Warden District Agricultural Union benefited from training presented by the MPO’s Institute for Dairy Technology (IDT) from 14 to 18 January. Students attended five day courses on milk production, socio economic empowerment and animal care. All the courses are AgriSeta accredited skills programmes and students received certificates upon successful completion of the respective training programmes. For more information regarding training courses for farm workers please contact Jas Wasserman at 082 490 2465 or send an e-mail to jas@mpo.co.za.

Successful farm managers’ course

A successful dairy farm managers’ course was presented at the University of Pretoria’s Experimental Farm in Pretoria from Tuesday to Thursday this week. Dr Nico Schutte of the MPO’s Cendel said he was impressed with the enthusiasm and high level of participation from the students registered for Module 1 of the course, dealing with biosecurity and herd health.

Links

Milk Producers’ Organisation

The Dairy Mail

Download the Eastern Cape Classification here

The Western Cape milk buyers Intshona and Sonnendal recently announced increases in their producer prices. Intshona’s producer price increased with 15 cents per litre from 1 October with a further increase of 15 cents per litre from 1 November. Sonnendal increased its producer price with 20 cents per litre from 1 October and said that a further price increase is possible. Mr Bertus de Jongh, MPO CEO, said the price increases are welcome and will contribute to stabilise the market.

Processors also suffer losses

The 25 to 30 cents reduction in the average producer price in July this year led to processors also suffering losses conservatively estimated at R400 million on an annual basis. According to Stats SA, ex-factory prices of dairy products decreased by 1% from June to July while average prices of all food at factory gate increased by 0,3%. Although market conditions will force prices back to higher levels, both producer and processor prices are now recovering from a lower level. Mr Bertus de Jongh MPO managing director said that leaders in the dairy industry have a responsibility to provide positive leadership.

Zambian Farmers’ Union visits MPO

Officials from the Zambian National Farmers’ Union visited the MPO on Wednesday for discussions with MPO economist Dr Koos Coetzee and the manager of producer services, Mr Philip Swart. The purpose of their visit was to gain information on the MPO structure and services and, in particular, the MPO’s information collection and distribution system. The Zambian Farmers’ Union plans the development of an information service for their members. Further contact between the two organisations is envisaged in the future.

KZN Master Dairyman crowned

At the Master Dairyman awards function, which was held at the Fern Hill Hotel in Howick on 11 October 2012, Mr Charlie MacGillivray of Gartmore Farm in Howick was crowned as the KZN Master Dairyman for the year 2011. Mr Pete Durham from Dundee was the runner-up with Mr Kevin Lang of Howick in the third place. Mr MacGillivray also received a special award for the most effective milking team. The MPO congratulates the above dairymen on their achievements. At this event Mr Willie and Ms Celia Pretorius, former milk producers from Lidgetton, were recognised for their outstanding contribution and dedication to the dairy industry.

From left to right: Kim Schwikkard on behalf of Tony Schwikkard, Pete Durham, Charlie MacGillivray, Celia and Willie Pretorius and Shaun Ainsworth on behalf of Kevin Lang.

More than 6 000 pupils in North West involved in MPO School Milk Days

More than 6 000 pupils in Lichtenburg and Delareyville were involved in MPO North West School Milk Days, which took place in Lichtenburg on 9 and 10 October and Delareyville on 11 October. MPO representatives under the leadership of Messrs Johan Strydom, chairman, and Louis Lemmer, vice-chairman, visited seven schools in Lichtenburg where 5 121 pupils were informed about the nutritional benefits of milk and dairy products. Each pupil also received milk sponsored by Clover and Melpro. Mr Johan van Niekerk, chairman of the MPO branch in Delareyville, arranged for five schools with a total of 1 511 pupils to be visited on 11 October. The MPO’s popular colouring-in book,School of Milk, was distributed to pupils, who also received a portion of milk sponsored by the Lichtenburg Dairy Organisation and packaged by Wesmelk. Ms Maretha Vermaak and Christine Leighton of Milk SA’s Consumer Education Project informed pupils why they need to include dairy products in a healthy, balanced diet. Ms Benita Oelofsen, MPO North regional co-ordinator, said the events were enjoyed by all and that the MPO expresses its appreciation to all role-players involved who contributed to the success of these School Milk Days.

New chairman for Taurus board

Mr Neville Hobbs, MPO Free State regional management member, was elected as chairman of Taurus at a board meeting held last week. The MPO congratulates him on his election.

Spotlight on NEB profiling

Negative energy balance (NEB) profiling is a powerful management tool integrating the expertise of the dairy stockman, herd veterinarian and nutritionist together with quality analytical data provided by the diagnostic laboratory. To read an interesting article on this topic, turn to page 43 in the October edition of The Dairy Mail.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 40 000ℓ/month                       Area: KwaZulu-Natal

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail to Yolanda.s@mpo.co.za.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or at philip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements.

Countdown has started!

The COUNTDOWN to the World Dairy Summit on 4-8 November 2012 has started. There are ONLY 17 days to go to the World Dairy Summit! We offer travel packages to the World Dairy Summit for five days including flights, car hire or airport transfers and accommodation. Experience the true splendour of the Mother City in November. Don’t delay – call us for all your travel arrangements today. Our qualified and experienced staff will see to it that you have the most memorable stay! Contact Agri Travel & Tours on 012 843 5720 or melanie@agrivia.co.za.

Invitation to IDT information days

The MPO’s Institute for Dairy Technology (IDT) hereby invites all milk producers in Gauteng and Mpumalanga to its information days, which will take place on 20 and 22 November respectively. Producers can, amongst others, look forward to talks on practical and creative biosecurity for livestock, the adjustment of fresh cows to a lactation diet and dairy cattle nutrition. The registration cost of R50 per person includes refreshments.

Enquiries: Dr Jan du Preez on 083 656 3638 or send an e-mail to jan.dupreez@mpo.co.za.

Invitation to Biogas in South Africa 2012 seminar

All role-players in the industry are invited to  Biogas in South Africa 2012, a practical one-day seminar, to gain knowledge from industry specialists and learn how to access grants, incentives and soft loans in this regard. The seminar will take place on 16 November 2012 at the Ambrosia Hall Conference Centre, Midrand. Gain practical knowledge on the application of biogas in agriculture, food-processing and packaging and other industries where organic waste is available. Biogas is produced when organic material is digested in the absence of oxygen. The resultant methane-rich gas can produce energy in the form of electricity and heat. The by-product or effluent is versatile natural compost. High-profile representatives from the Industrial Development Corporation, Eskom, the Department of Trade and Industry, the South African Pipeline Gas Association (SAPGA) and more will present financing and technical solutions geared at making your biogas project a viable waste beneficiation plant. For more information < click here > or contact Ryan on 076 626 1621 or Mark on 072 445 4739.

We had heard about the drought in the mid-west, but to see it first hand was quite a shock. The road verges looked like they had been sprayed with herbicide, the grass was yellow and the maize looked like onions. In many areas the maize crop is a write off, many dairy and beef cows are going to be sent to slaughter through lack of feed and commodity prices were sky rocketing. We arrived in the middle of a heat wave and record breaking temperatures were predicted for the rest of the week, it was a scorcher the first day but it rained hard that night, the first rain in two months evidently and that cooled down the rest of the week, hottest part of the day was early evening.

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The MPO is disappointed with industry information supplied by Sampro and published in the latest Landbouweekblad, which is considered to be misleading. The claim that producer prices have increased faster than the retail prices of dairy products over the past year is selective. It must be seen in context since producer prices remained virtually unchanged over the past four years, while wholesale and retail prices continued to increase. The MPO is therefore of the opinion that a comparison of the producer price with the retail prices of dairy products should include information recorded over at least the past four years. Producer prices in fact only started recovering in November last year. Similar information published by Sampro earlier this year led to sudden price reductions by one of the biggest milk buyers, which were counter-cyclic and not in line with prevailing market trends. According to the MPO CEO, Mr Bertus de Jongh, several other buyers also followed with producer price reductions which could cost the primary industry as much as R1 billion over twelve months in addition to the significant potential losses to be suffered by the said milk buyers. Furthermore, the statement that the market is flooded by imported products is irresponsible since market information over time clearly indicates that dairy products are imported only when local milk production is not sufficient to supply the total demand. Industry information shows that the gap between producer prices and import parity has widened over time and that local prices are lower than import prices over time. The MPO appeals to organisations which publish industry information to do so with a sense of responsibility towards the whole industry. To only publish figures showing short-term and selected periods without any context, leads to misleading market signals.

Slowdown in milk production growth

Milk production growth has slowed down from June this year. Milk production during August 2012 was 2,8% more than during the same period in 2011. The total milk production for the first eight months was 3,9% more than during the same period in 2011. The total production for 2012 is currently estimated at 2 697-million litres, which is 3,1% higher than in 2011. A further slowdown in production growth as a result of escalating input prices and reduced producer prices in the middle of the year, is likely. Recently released demand figures indicate that the total demand for dairy products on the local market as well as in neighbouring countries still outstrips production growth

Successful MPO KZN AGM and congress

The MPO KwaZulu-Natal’s annual general meeting (AGM) and congress, which was held at Fern Hill Hotel, Howick, on 20 September 2012, was a success and well attended by members and industry role-players. At this event Mr Steve Colenbrander gave an interesting presentation on how commercial farmers must stand together to remain in control of their business models. His overview of the economic outlook for dairy farmers was encouraging. Mr Bertus de Jongh, MPO CEO, addressed attendees on the importance of using the reliable industry data that is collected by the MPO and which is readily available at all times. During the MPO KZN president’s annual report, Mr Tom Turner reflected on the key dynamics to ensure the future survival of the dairy industry. Mr Turner was congratulated for his communication on East Coast Radio in recent times, which had a positive impact and is seen as an effective way of educating the general public. Mr Turner was re-elected as MPO KZN president for the ensuing year, with Mr Edsel Hohls as vice-president and Mr Tigger Bryden as third director of the province.

Meat and dairy on forefront of record food prices

In a new report titled Re-entering agflation: world food prices to hit record high, Rabobank International states that global food prices will set records during 2013 with meat and dairy prices being the primary drivers. However, it is not expected that the social impact will be as severe as in 2008, when shortages of staple foods caused riots in a number of developing countries. Increasing prices for agricultural commodities are mainly ascribed to the effects of the severe drought experienced in the United States and elsewhere. The Rabobank report states that commodities used for feed such as maize and soybeans account for the current shortages, while shortages of staple-food commodities such as wheat and rice occurred in 2008. According to Rabobank, the increases in meat and dairy prices will have global consequences, but not to the same extent as the increase in the price of staple grains in 2007 and 2008. To read more < click here >.

Milk consumption lowers blood pressure

A study conducted by scientists from the US Department of Health’s National Heart, Lung and Blood Institute revealed that people who consume milk for long periods of time are less likely to suffer from high blood pressure. The study was conducted over 15 years and involved over 2 000 volunteers with no history of high blood pressure. It was found that 31% of the research subjects were less likely to have high blood pressure if at least 2% of their daily calorie intake came from milk. To read more       < click here >.

 India to allow foreign investment in its retail sector

The Indian government has approved an amendment to the existing policy on foreign direct investment (FDI) to allow foreign investment in its retail sector. According to Rabobank’s dairy sector analyst, Mr Kevin Bellamy, this could open up the world’s largest dairy market to Western brands. This amendment enables international retailers to buy up to a 51% stake in India-based multi-brand retailers. Mr Bellamy said: “This is the first step towards introducing outside dairy products into the Indian dairy market.” To read more    <click here >.

Increasing global dairy prices and growth in SA exports

Ms Lise Roberts of RSG conducted an interview with Dr Koos Coetzee about the impact of increasing global dairy product prices and the steady growth in South African dairy exports.

MPO Milk Exchange

Milk required

Litres: 7 000ℓ/day                              Area: Florida (JHB)

Milk available

Litres: 38 000ℓ/day                           Area: Free State

Litres: 40 000ℓ/month                       Area: KwaZulu-Natal

Litres: 25 000 – 30 000ℓ/day            Area: Johannesburg

Please contact Yolanda Strydom on 012 843 5600 or send an e-mail toYolanda.s@mpo.co.za.

Demand for leasing cows

The MPO is receiving an increasing number of requests from producers who are interested in leasing cows or who want to make some of their own cows available for leasing. Interested producers can contact the MPO’s Philip Swart on 012 843 5672 or atphilip@mpo.co.za. The MPO is eager to assist in finding solutions for these requirements

Reap market benefits at the right time

To read how to improve farm productivity at a sustainable rate by combining the benefits of new tractor and implement technology with market opportunities, turn to page 50 in the September edition of The Dairy Mail.

Countdown has started!

The COUNTDOWN to the World Dairy Summit on 4-8 November 2012 has started. There are ONLY 38 days to go to the World Dairy Summit! We offer travel packages to the World Dairy Summit for five days including flights, car hire or airport transfers and accommodation. Experience the true splendour of the Mother City in November. Don’t delay – call us for all your travel arrangements today. Our qualified and experienced staff will see to it that you have the most memorable stay! Contact Agri Travel & Tours on 012 843 5720 or melanie@agrivia.co.za.

17 to 20^th September 2012

Classes – less than 100 Cows in milk minimum 3 animals / 100 + cows in milk min. 5 animals per class.

• First lactation
• Second Lactation
• Third lactation +
• Best Udder
• Progeny Classes – Daughters of one sire – Optional
• Farmers favourite / Oldest cow in herd / Bull Mother.

Judging will take in the region of one hour. The judge will be expected to give comments on each farm and at prize giving. Entries need to be separated and in there groups at the time of your confirmed appointment. Due to the distance between farms should the judge be running late the message will be conveyed on to the prospective breeder. Your herd and farm is advertised as an open farmers day on your specific day. You are encouraged and expected to invite industry related people to your specific viewing. Catering eg. Refreshments are optional at your discretion. A group will be travelling with the judge.

Monday 17^th September 2012

• 08H00 – Justin Hutchinson (Henley On Klip)
• 10H00 – Elfie Weitzman (Walkerville)
• 13H00 – Wessell and Jaco Pieters (Potchefstroom)
• 16H00 – Trevor Colby (Denneysville)

Tuesday 18^th

• 08H00 – Harry Vd Merwe (Bronkhorstspruit)
• 13H00 – Jannie Jacobs (Ohrigstadt)
• 16H00 + Overnight Gravelotte Game Farm – Leon Thom

Wednesday 19^th

• 08H00 – Leon Thom (Gravelotte)
• 13H00 – Kevin Brookes
• Thursday 20^th
• 07H30 – Karin Pretorious
• 10H00 – Raymond Erasmus (Hartebeespoort) Annual open farmers day, prize giving and Highveld Jersey Club AGM.

17 to 20th September 2012

Classes – less than 100 Cows in milk minimum 3 animals / 100 + cows in milk min. 5 animals per class.

• 1 First lactation
• 2 Second Lactation
• 3 Third lactation +
• 4 Best Udder
• 5 Progeny Classes – Daughters of one sire – Optional
• 6 Farmers favourite / Oldest cow in herd / Bull Mother.

Judging will take in the region of one hour. The judge will be expected to give comments on each farm and at prize giving. Entries need to be separated and in there groups at the time of your confirmed appointment. Due to the distance between farms should the judge be running late the message will be conveyed on to the prospective breeder. Your herd and farm is advertised as an open farmers day on your specific day. You are encouraged and expected to invite industry related people to your specific viewing. Catering eg. Refreshments are optional at your discretion. A group will be travelling with the judge.

Monday 17th September 2012

• 08H00 – Justin Hutchinson (Henley On Klip)
• 10H00 – Elfie Weitzman (Walkerville)
• 13H00 – Wessell and Jaco Pieters (Potchefstroom)
• 16H00 – Trevor Colby (Denneysville)

Tuesday 18th

• 08H00 – Harry Vd Merwe (Bronkhorstspruit)
• 13H00 – Jannie Jacobs (Ohrigstadt)
• 16H00 + Overnight Gravelotte Game Farm – Leon Thom

Wednesday 19th

• 08H00 – Leon Thom (Gravelotte)
• 13H00 – Kevin Brookes

Thursday 20th

• 07H30 – Karin Pretorious
• 10H00 – Raymond Erasmus (Hartebeespoort) Annual open farmers day, prize giving and Highveld Jersey Club AGM.