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Manufacture of Dairy Products in South Africa 2016

  • March 2016
  • 133 pages
  • Who Owns Whom
Report ID: 2675571

Summary

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The Manufacture of Dairy Products : This report focuses on the South African dairy product sector, an industry that is divided into a primary and a secondary sector. The primary industry consists of milk producers who own and operate dairy farms while the secondary industry consists of processors who produce the six categories of dairy products, Milk and Cream, Concentrated Milk, Buttermilk and Yoghurt, Whey, Butter and Oils, and Cheese. Processors range from a few larger processors of dairy products who operate nationally, a larger number of smaller processors who operate in specific areas, and a number of producer distributors (PDs) who sell their own produce directly to retailers and consumers. Annual fresh milk production generates revenue of R10bn and the annual market for dairy-based products exceeds R40bn.



Drought: Dairy milk production grew by 5.5% in 2015, the highest annual increase since 1983, in response to increasing demand as a result of the shortage of milk, lower feed prices, higher raw milk prices and favourable weather conditions. However, current drought conditions have resulted in agriculture being declared an emergency in five provinces. Although the extent of the impact of the drought on the dairy industry will only be fully realised as the year unfolds, milk production is declining, some dairy farmers have begun selling lactating cows and a shortage of feed is expected to last for at least the next year.



Report Coverage:
The Manufacture of Dairy Products discusses the dairy sector in South Africa, highlighting current conditions and factors influencing the success of the sector. In the report 38 eight industry players are profiled, including the top four dairy market leaders: Clover which has 26% of the market

Lactalis, known as Parmalat

Unilever

and Danone. Also profiled are smaller players such as Farmgate Dairy (Pty) Ltd based in KwaZulu-Natal which employs 60 people, and Western Cape processor, the Polar Ice Cream Company (Pty) Ltd t/a Kulfi.

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