Bloemfontein - Free State diary farmers are selling their herds because the local production costs of milk exceed its price. Free State Milk Producers' Organisation chairperson, Bernard Maree said there were concerns that a large number of dairy farmers would not be able to survive the current low producer prices, coupled with high input prices. He said several farmers have sold their herds and many others may follow. Maree said rising costs included increases in veterinary costs, a proposed electricity increase and a minimum wage increase. Dairy farmers in the Free State received a lower milk price compared to other regions, which was a consequence of a non-market related price cut in June. Maree said producer prices would have to significantly increase to avert a disaster in the Free State and to guarantee the sustainability of the region as a milk production area.

Sapa