South Africa’s milk producers have faced stagnant producer prices and sharp increases in input prices for many years.
The milk:feed price ratio, the ratio between the price of a kilogram of feed and the producer price of a kilo of milk, provides a reliable indicator of the profitability of milk production.
A milk-to-feed ratio of 1,3:1 will keep the industry in balance. If the ratio drops to below that, milk production will not increase. If the ratio stays at that level, production will decrease.
Local milk production decreased in 2020, 2021 and 2022. Total production during the first half of 2023 is 1,7% lower than during the same period in 2022.
The profitability of milk production has improved since mid-2022.
The price of feed, based on 70% maize and 30% soya beans, decreased from R6 700/t in November 2002 to R5 048/t in April 2023.
The producer price of milk pushing the price ratio to its highest level of 1,5:1 since August 2018.
SAFEX FUTURES
The latest (August 2023) feed prices of R3 694/t (yellow maize) and R8 920/t (soya beans) are equal to a weighted feed price of R5 230/t.
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Denne historien er fra September 01, 2023-utgaven av Farmer's Weekly.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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ARC names best dairy producers of the year
The Agricultural Research Council (ARC) recently announced the winners of the 2024 National Master Dairyman Awards at an event hosted by AgriExpo in Stellenbosch, Western Cape.
Lion breeders to give up bone stockpiles?
The Ministry of Forestry, Fisheries and the Environment issued an official notice in mid-November in which it called on lion breeders to voluntarily hand over their lion bone stockpiles to the state as soon as possible.
Thousands of British farmers march on parliament against inheritance tax
Thousands of UK farmers gathered in London, England, on 19 November to demand the government repeal a proposed inheritance tax on agricultural land, which they argued threatened the future of family-run farms (see page 4), Al Jazeera reported.
Avocado frittata with sundried tomatoes, feta and olives
This wholesome, vibrant frittata is perfect for brunch or a light supper. Recipe and photo: The South African Avocado Growers' Association.
Feed, hay, and other costs are up, so it's time to get creative
Breeders and riding schools need to explore innovative ways to generate income in order to ensure their survival, says Dr Mac.
How to make polystyrene seedling trays last longer
While thinking about how to prolong the lifespan of polystyrene seedling trays that are exposed to harsh sunlight, Bill Kerr began to wonder if a coat of paint might offer a solution.
Living the 'culture' in agriculture
Creation Wines has won numerous awards, was ranked fourth in the World’s Best Vineyards in 2023, and more recently won the V d’Or award for the Best Brand Experience. The owners, Carolyn and Jean-Claude Martin, spoke to Glenneis Kriel about how their winery became a top tourism destination.
Time to take a deep breath on the slopes of the Magaliesberg
Around 100km from both Johannesburg and Pretoria in Gauteng and a tad over 40km from Rustenburg in North West, Farmer’s Weekly found a fine retreat on a working farm where couples may kindle their romance.
African penguins could be extinct by 2035 how to save them
Protecting the critically endangered African penguin is good for the environment, other animal species, and the economy, say Lorien Pichegru and Dr Alistair McInnes of Nelson Mandela University, Katrin Ludynia of the University of Cape Town, and Peter Barham of the University of Bristol in the UK.
An urgent need to confront Nassella in SA
South American grass species from the genus Nassella were unwittingly introduced to South Africa over 120 years ago and continue to invade montane veld. As Mike Burgess writes, research-based action is required.
