AGRICULTURAL NEWS - The producer price for milk reached R5,10/l to R5,20/l in December, its highest level since 2014, according to the Milk Producer’s Organisation (MPO).
The MPO’s key market signals report for January 2018 stated that the producer price for milk had been about R4/l in January 2014. After starting to recover, it dropped to just over R4/l again in August 2015.
MPO Economist Dr Koos Coetzee said the importance of the current producer price was its relation to the current feed price.
“The big positive is the fact that feed prices have come down so much,” he said.
Based on a derived feed cost calculation comprising maize and soya bean costs, the cost of these commodities had nearly halved from highs of close to R5 000/t in June 2016.
