This after the buyer, Dairybelle, allegedly failed to meet a deadline to pay the 70% still outstanding for milk delivered in December.

Michiel Wessels purchased a tanker and has been delivering 24 000 litres of milk to the depot in Bloemhof every second day. He says the manner in which payments are handled has already placed strain on his cash flow situation.

“The thing with Dairybelle is they only pay 37 days after statement. So it was a relief to know I had somewhere to go with my milk but the money was only available much later.”

However, this was then further delayed. Wessels says he only received the final outstanding payment for milk delivered in November last year, on February 3, nearly a month after it was due. He says he has now only received 30% of the payment for milk delivered in December.

In the latest development, Dairybelle has allegedly informed him they can only pay him on February 16. Wessels says more than 75% of his milk cheque goes towards day-to-day operating costs. His suppliers are now refusing to extend further credit.

“Feed companies and pharmaceutical companies are not prepared to help us anymore because they seem to realise there is something going on in the dairy industry and this is leaving them feeling uncertain.”

OFM News has repeatedly tried to get comment from Dairybelle on the situation to no avail. There are allegations that the problem is affecting several milk producers delivering to depots in Bloemhof, Cookhouse and in the Western Cape.

Sabrina Dean/OFM News