The monthly milk intake in May 2016 is estimated to be 8,3% lower than in May 2015. This is the largest year-on-year decrease in history. The downward trend started in November 2015. According to recently released milk intake figures from Milk SA, the total milk intake in the first five months of 2016 of 1 158 million litres is 5,3% lower than during the same period last year. This period of seven months of decreasing milk intake also represents the longest period of negative growth since 2010.
The outlook for the rest of 2016 remains depressed and the possibility of a recovery in milk production in the coming spring is slim. Grain prices will remain high and farmers still face roughage shortages in many areas. In North West, farmers who are hard-hit by failed grain crops are busy liquidating their herds. Recent producer price increases will help other farmers survive but are still not enough to enable them to increase production in coming months.
Published on Thu, 30th Jun 2016 - 08:13