Figures recently released by SAMPRO show that liquid milk consumption grew by 4,3% in the 12-month period ending June 2018, compared to the same period in 2016 to 2017. While the demand for fresh milk decreased by 3,2%, the exceptional 9,6% increase in the demand for long-life milk resulted in a growth of 4,3% in liquid milk demand.
Retail prices of fresh milk decreased by 0,8% from June 2017 to June 2018 and the price of UHT milk decreased by 3,5%. The demand for pre-packaged cheese and maas grew by 9,7% and 8,8% respectively, while there was a decrease in the demand for cream cheese, yoghurt, butter and cream. The butter price increased by 20,8%.
According to MPO economist Dr. Koos Coetzee, the liquid milk market will continue to grow. Lower imports and increased exports reported in this newsletter will, in time, create a supply/demand balance again. – MPO Newsletter