Is SA's milk running dry?
Possible milk shortages in SA may result in a milk price hike.
CAPE TOWN - The Milk Producers Organisation of South Africa (MPOSA) on Tuesday warned of a possible milk shortage, amid soaring production costs.
A drastic rise in the cost of maize has hit the industry quite hard.
MPOSAs Bertus de Jongh said maize is a key, and very costly, component in dairy production.
He added that all dairy products are becoming very expensive to produce.
We dont produce sufficient milk for local demand at the moment and we havent seen much of that happening. We believe this may result in shortages, which will, unfortunately, be reflected in the milk price.
De Jongh said dairy production was no longer highly profitable.
Our major concern is the long-term where therell be an escalating population growth, less farmers and insufficient agricultural land which will eventually impact South Africa as well.