Milk price expected to surge, warns economist


Milk price expected to surge, warns economist

While consumers continue to grapple with high food prices triggered by the current drought and the ailing economy, milk will soon be added to the list of costly staple foods, according to FNB senior agricultural economist Paul Makube.   In a statement published Tuesday, Makube noted that dairy farmers were facing production shortages and would likely run into supply issues in the coming months.   He pointed out that some dairy processors were already paying commercial farmers an average of 60c/ℓ more for milk to ensure consistent supply in winter.

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This would play a key role on stabilising the price of milk and ither dairy products in 2017.   Makube further pointed out that it was important for commercial and small-scale dairy farmers to explore sustainable and technology-driven means to reduce energy consumption and costs, as this had a huge impact on their profit margins.   “For instance, some commercial farmers are successfully using alternative energy solutions like solar power during peak hours, when tariffs are at their highest. When implemented in conjunction with milking schedules, solar power can go a long way to reduce operating costs for dairy farmers,” he concluded.


Edited by: Samantha Herbst Creamer Media Deputy Editor