{"id":14623,"date":"2012-09-14T16:27:50","date_gmt":"2012-09-14T14:27:50","guid":{"rendered":"http:\/\/www.myza.co.za\/09\/consumers-warned-of-rise-in-milk-price\/"},"modified":"2012-09-14T16:27:50","modified_gmt":"2012-09-14T14:27:50","slug":"consumers-warned-of-rise-in-milk-price","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/consumers-warned-of-rise-in-milk-price\/","title":{"rendered":"Consumers warned of rise in milk price"},"content":{"rendered":"

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Consumers can expect the price of milk to rise over the coming months as supply drops, according to industry experts. <\/p>\n

Tom Turner, a dairy farmer in Nottingham Road and the president of the Milk Producers\u2019 Organisation of SA, has warned that high grain prices will put a strain on dairy farmers, and therefore the supply of milk, as it becomes more expensive to feed cows. <\/p>\n

\u201cWe are going into dangerous territory,\u201d he said. <\/p>\n

\u201cWe would rather warn people early on.\u201d <\/p>\n

The dangerous territory that Turner refers to is the industry ratio used to measure the price of milk against the price of feeding cattle. Ideally the ratio of milk price to grain cost should be 1.16:1. At the moment the average price of milk sold by farmers is R3.40 a litre, whereas grain costs roughly R3.50 a kilogram. <\/p>\n

Turner said this meant that farmers would feed their cattle less grain in an effort to curb costs, which meant cows would produce less milk. <\/p>\n

\u201cIt is not an exact science, [but] as long as the price of grain remains where it is, there will be pressure on supply,\u201d he said. \u201cBased on the current grain price related to the milk price, we will be put under strain.\u201d <\/p>\n

The deputy chief executive of Clover, Manie Roode, said he acknowledged soaring grain costs for farmers, but there was also a seasonal element that played a part in the supply and price of milk. <\/p>\n

\u201cMilk flow has a seasonal dynamic, with the beginning of the year always showing a decline \u2013 it tapers off from January onwards,\u201d he said. <\/p>\n

Roode added that the price of milk could not be forecast. <\/p>\n

\u201cAt the moment the price is stable, but we don\u2019t know what will happen in the future and we will constantly reassess the situation.\u201d <\/p>\n

With grain constituting a large chunk of dairy farming expenses, the rising price of the staple has a direct correlation to the price of milk. <\/p>\n

The chief economist at Grain SA, Wessel Lemmer, said that prices for yellow maize, which is used in animal feed, were up 10 percent from last year, at R2 500 a ton. <\/p>\n

Lemmer said farmers should stock up on grain over the next two months because he expected the price to go up further after October. \u201cThey have a chance now to acquire sufficient stock, as we expect prices to increase,\u201d he said. <\/p>\n","protected":false},"excerpt":{"rendered":"

Consumers can expect the price of milk to rise over the coming months as supply drops, according to industry experts. Tom Turner, a dairy farmer in Nottingham Road and the president of the Milk Producers\u2019 Organisation of SA, has warned that high grain prices will put a strain on dairy farmers, and therefore the supply […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[8275,953,2143],"class_list":{"0":"post-14623","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-durban","8":"tag-newspaper","9":"tag-the-mercury","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14623","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=14623"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/14623\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=14623"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=14623"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=14623"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}