CAPE TOWN– The South African Milk Producers Association (MPA) says it has seen a 25 per cent increase in milk production, a surprising achievement in light of the drought situation in parts of Western Cape Province.
Drought conditions in the province has had a negative impact on most industries but for the milk industry, this is not the case. Production is up although the number of milk producers is down.
In the past 10 years, close to 8,000 dairy farmers have closed shop and there are now only 1,300 dairy farmers nationwide. At the moment, supply exceeds demand but despite this, the outlook still looks positive.
We have got a very good industry. Demand is growing at about four per cent% a year. Its’ a very steady industry,” said MPA Chairperson George Kuyler.
“The problem is we working with weather conditions and big droughts. First it was in the northern parts of the country and now it’s in the Western Cape so that affects production.”
The MPA says one of the main reasons demand is low is because the market is flooded with milk imports.
Source: NAM NEWS NETWORK