Milk Production & Distribution

Introduction 

The Eastern Cape produces 21% of milk output in South Africa; and has the potential to expand production even further. The historically-strong Eastern Cape dairy industry is growing rapidly as producers shift to the high-rainfall coastal areas. Opportunities exist to expand processing from a plentiful raw milk base to UHT milk, milk powder, and speciality cheeses. There is further potential in high-quality competitive dairy exports to new markets.

Dairy farming in SA focuses on raising female cattle for long-term production of milk which may be either processed on-site or transported to a dairy for processing and eventual retail sale. Dairying is the fourth largest agricultural sector in South Africa. Most dairy farms sell the male calves borne by their cows, usually for veal production, rather than raising non-milk-producing stock. Many dairy farms also grow their own feed, typically including corn, alfalfa and hay.   This is fed directly to the cows, or stored as silage for use during the winter season. Additional dietary supplements are added to the feed to increase quality milk production. 

The number of milk producers in South Africa has decreased from 3 899 in January 2007 to 3 608 in August 2008. The number of producers per province is shown in  Table 1 under the statistics section . Since 1997, the number of producers has decreased by 48%. The largest decrease in producers occurred in the Northern Cape (74,4%), while the number of producers in the Free State decreased by 23%.  The number of Eastern Cape milk producers in Aug 2008 was 395 and the percentage production for the province in 2007 was 21.8 of the total South African production. 

Types of breed 

There are different breeds of dairy cattle that are farmed with in SA. The most popular breeds   are the Holstein (Friesland), the Jersey, and the Ayrshire, but there are other breeds like the Guernsey, Milk Shorthorn, S.A. Dairy Swiss, Dexter, and the Simmentaler which are less popular in the South African dairy farming. 

Volumes 

Total milk to market for 2007 was estimated at 2,47 billion litres, up 1,9% on the previous year. Production for 2008 is estimated by the MPO at 2,565 billion litres, up 3,9% on 2007. Milk consumption in 2007 was estimated at 2,55 billion litres. The growth of dairy consumption has decreased as a result of higher food and fuel prices, as well as higher interest rates. The weaker growth in demand will continue for some time. Based on the current figures with regard to production, the Eastern Cape produced 540 million litres of milk in 2007. This equates to approximately 540 000 tons of milk. 

The South African secondary industry consists of a few larger processors operating nationally, a large number of smaller processors who operate in specific areas, and a number of producers who sell their own produce directly to retailers or consumers – known as producer-distributors  (PDs).  The South African dairy market is divided into 60% liquid and 40% concentrated products. Pasteurised liquid milk and UHT milk are the major liquid products, while hard cheese is the major concentrated product 

The percentage composition of the South African liquid and product market are divided up as follows : 

During 2007, 44 000 tons of product were imported and 18 000 tons exported. On a milk equivalent basis, South Africa has been a net importer of dairy 

products since 2005.     A dairy company based in Humansdorp imported their milk from Argentina when milk production was low, however this is no longer the case as milk production has increased. The positive growth of exports during the first quarter of 2008 will, if it continues, result in a net export situation by the end of 2008. 

The dairy companies that was interviewed on average received approximately   600 - 680 tons of raw milk, chemicals, sugar, ingredients, flavourants, fruit pupls, paper and cardboard on a daily basis over 7 day cycle. The 2 companies receive approximately 400 000 – 600 000 litres and 630 000 litres respectively from the coastal region stretching from Tsitsikamma to Alexandria, as well as Cradock and as far as KwaZulu Natal. The other ingredients and packaging originate from various centres within South Africa. 

Transport

Raw milk is collected from farms daily or every other day and taken to dairies by tankers for processing . But, b efore this is done however, the driver or direct under his supervision does an alizarol test (sample) from the milk container from which such milk is to be loaded before loading the raw milk into the vehicle tankers. Most of the large dairy companies have their own vehicle fleet for the distribution of various products from the factory and some of the transport is outsourced.  

Strategically located centres allow reliable and flexible product distribution to key customers in South Africa. The makeup of the fleet varies according to the packaging of the products.  The distribution vehicles are customised to maintain the quality of the products and refrigerated vehicles, which varies from rigids to articulated vehicles are used to ensure that chilled and frozen products move quickly from the truck into the customers’ cold storage facilities. The size of the truck varies according the distance that is travelled.   

For statistics in the Milk Production, please click here Milk Production & Distribution