Milk market misleading

Many producers have walked away from Dairy Belle following drastic price decreases and rumours abound that the company is running out of milk.

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Dr Koos Coetzee, Milk Producers Organisation (MPO) economist, said that if the producer price for milk goes any lower there will be milk shortages in the country because of all the farmers that will exit the industry. Dr Coetzee said that various factors were having a negative impact on the dairy farmers including water shortages in some parts of the country and the high grain prices. This could further impact the availability of milk going forward.

Read the full story in the 3 August 2012 issue of FW.