Milk industry roleplayers recently voiced their concern over a lack of information and communication in the milk industry. Theo Hendrickse, CEO of Parmalat, believes this is one of the main reasons the dairy industry is not reaching its full potential. “With rising input costs on the farm and processing side, it’s becoming increasingly important for the industry to work together,” said Hendrickse. “We have the ability to be one of the best dairy producers in the world.
To realise our full potential we must engage from consumer to producer. Conversations also have to be about more than just the milk price.” Prof Johann Kirsten, head of the Department of Agricultural Economics at Pretoria University, added that communication should be extended to consumers. “The industry needs to communicate clearly why prices are increasing,” he said. Prof Kirsten added that the industry itself needs to become more transparent as it’s hard to get access to pricing systems and models of retailers and processors. He said it’s no wonder farmers sometimes claim the retailers’ share in the milk price is around 40%, while retailers claim it’s only 12%. industry should also use earlier recommendations instead of generating new studies each time a crisis hits. Government also needs to play a more active role in supporting agriculture. “If you don’t invest in agriculture – whether through research or protection mechanisms – and your population grows, then you aren’t going to have access to enough food,” said Prof Kirsten. He added that government needs to stimulate production to sustainable levels. ccording to Hendrickse, “The poor condition of the textile industry and Eskom could have both been prevented if earlier research had been taken seriously and acted upon. We must ensure we don’t make the same mistake and that suggestions for improvement are acted upon.” – Glenneis Erasmus
