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Improved conditions for dairy farmers

At an MPO media conference held on Thursday, 11 May MPO economist Dr Koos Coetzee said conditions had improved since last year He expected milk production to recover later this year and grow by about 2%. Production had declined last year and in the first quarter of 2017.
According to Dr Coetzee milk producers need a feed to milk price ratio of 1:4 to break even and that a ratio of 1:6 seems likely in the light of current grain price trends. The average producer price had increased by 9% since April 2016 while maize prices had decreased by 29% and soya prices by 16%. Dr Coetzee said dairy farming was expected to be more profitable in 2017.

Published on Monday, 22nd May 2017 - 11:35

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