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Milk Producers caught up in "perfect storm" scenario

───   SABRINA DEAN 15:27 Thu, 23 Jul 2015

Milk Producers caught up in "perfect storm" scenario | News Article

Bloemfontein - Eastern Free State milk producers have been caught up in the turbulence of what is being described as a “perfect storm” scenario.

Free State Milk Producers Organisation Chairperson Gideon Lamprecht says the recent announcement of the closure of a milk depot in Clocolan is particularly worrying as it comes on the back of other challenges such as the drought and an oversupply of milk:
 
'Gideon Lamprecht - producer challenges' 
 
He says short term prospects are not looking good:
 
'Gideon Lamprecht - perfect storm'
 
Landbou Weekblad this week reported that the milk company Montic, a subsidiary of the holding company Sontic Group, gave notice to dairy farmers on 1 July that its depot in Clocolan will be closed down in September.
 
The article quotes Sontic CEO Martin Swanepoel as saying part of the reason for the closure is that 75% of the smaller-scale dairy farmers in the area are unable to provide the type of certification required by retail chain stores.
 
Sabrina Dean/OFM News 

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