May 7, 2008

Milk, poultry and pork prices in South Africa to increase
 

Prices of milk, poultry and pork in South Africa will surely increase; the only question is when, said Johan Willemse, board member of Absa, one of the region's largest financial services organisations.

According to Willemse, who is also a professor of agriculture economics at the University of the Free State, farmlands in South Africa and abroad are tracking food prices.

Farming input prices, including grains and oil-based costs such as diesel and fertilizer, had doubled over the past year.

Even as milk farmers are paid more for their products, they were still struggling to make ends meet, leading to consolidation in the sector.

South Africa's milk output has grown by about 25 percent since 2001/02, but demand has grown by more.

Bread prices are also expected to increase as higher wheat prices had not been fully passed on by bakers, Willemse said.