Milk production in South Africa stood at 3.1087 million metric tons in 2023. Over the last two years, milk production has experienced a decline with a year-on-year decrease of 0.3% in both 2022 and 2023. The compound annual growth rate (CAGR) for the past five years has been a decline of 3.7%, reflecting a downward trend beginning in 2019.
From 2013 to 2018, milk production saw a generally positive trend with annual growth rates fluctuating between 0.29% and 6.04%. However, 2019 marked a significant downturn with a 23.44% drop, which affected the overall growth trajectory. Since then, production levels have seen slight recoveries but have remained relatively flat in recent years.
Future trends to watch for include:
- The forecasted milk production, which is expected to show a slight decline with a 5-year CAGR of -0.2%, resulting in a forecasted production of 3.0669 million metric tons by 2028.
- Potential market impacts such as climatic conditions, feed costs, and policy changes that could influence production levels.
- Developments in dairy farming technologies and practices that could enhance productivity and offset the declining trend.
