International prices continue upward trend 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 [...]

Clover to implement new purchasing scheme 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 [...]

Weak rand good news for producers 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 [...]

Production growth disappointing 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 [...]

More Western Cape milk buyers increase price 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 [...]

MPO disappointed with selective industry information 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 [...]