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The dairy industry is being impacted negatively by the lower demand by cash-strapped consumers, which is leading to a decline in six out of nine dairy product categories. Ryan shares that a recent report issued by NielsenIQ showed that between June 2021 and June 2022, retail sales volumes of fresh milk, flavoured milk, yogurt, cream cheese and cream had declined.

However, during the same period, the sales of butter, prepacked cheese and UHT milk increased.

The report also shows that while retail sales prices of all nine dairy product categories had increased between 1.5% and 6.8%, these increases will lower the mini-inflation rates of 7.4%.

Ryan says that while this is relatively good news for consumers, the industry is facing a difficult road ahead, according to various stakeholders.

ALSO READ: Likely increase in potato prices on the cards

Another story in this week’s Farmer’s Weekly magazine focusses on the Bureau for Food and Agricultural Policy’s (BFAP) forecast of potato production in South Africa over the next decade. According to the recently released BFAP agricultural outlook report, the area planted for potatoes in South Africa is expected to decline by 4.7% to about 49 000 hectares this year. This is due to rising input costs.

Ryan says that as a result, production is expected to fall by 2.8% to 2.5 million tonnes. She says that under the baseline scenario, the area under production will stabalise once global markets begin to normalise.

The report further said that production is forecast to increase by an average of 1.7% a year, to reach almost 3 million tonnes by 2031, thanks to improvements in variety, production practices and plant protection products.

In addition to the above stories, Farmer’s Weekly also takes a look at the frustration of role players over the apparent neglect of the Tswane Fresh Produce Market. Ryan adds that a severe lack of maintenance has led to farmers and other role players calling for the privatisation of the market.

According to the municipality, there was not enough money for the necessary maintenance to be completed. But, Francois Knowles, the registrar of the Agricultural Produce Agents Council (APAC), says it was more a question of lack of political will, rather than a financial issue.

Knowles also said that the Tswane market had to look at basic issues, such as cleanliness and security. He added that proper attention was not paid to the issue, as people do not truly understand that farmer’s market agents and hawkers played in the food distribution value chain.

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