Strong growth in dairy demand

Information provided by SAMPRO shows that the market for dairy products continues to grow. Retail sales of fresh milk and UHT milk increased by 1,1% and 8,6% respectively during the 12-month period to the end of September 2015, compared to the 12-month period to September 2014. Positive growth was also reported for all other dairy products, with the exception of cream cheese (-0,3%).  Prices of dairy products also increased from September 2014 to September 2015, with the exception of UHT milk where prices decreased by 2,9%. According to MPO economist Dr Koos Coetzee, retail sales of dairy products continue to grow despite a general slowdown in retail sales. Changes in the income distribution of the South African population remain a major driver of increased demand.