Milk producers must MANAGE THEIR grain purchases carefully over the next few months, said Etienne Terre’Blanche, managing director of the Milk Producers’ Organisation (MPO). He warned milk producers not to be caught unawares by price fluctuations of grain.
Maize producers presently still have large supplies and milk producers could enter into agreements with those producers who have not yet traded their grain. This would be to the benefit of both seller and buyer, Terre’Blanche said. He added that milk producers, who are currently under pressure as a result of lower producer prices, will find it difficult to survive should grain prices suddenly increase. Therefore it would be sensible for milk producers to safeguard themselves against possible price increases. – Staff reporter
