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If one reads the international press, especially regarding dairy, we have a lot to be thankful for. Although the European Union (EU ) implemented its intervention programme on 1 March 2009, it appears that the worldwide recession is having a much more severe effect on producers abroad. Milk price reductions of more than 50% are the order of the day and many producers are simply unable to keep their heads above water. The following quotation by Jackie Cahill is typical of many reports in the overseas press: “For the first time ever, virtually all dairy farmers in Ireland will incur a loss on their enterprises at the same time as they have invested unprecedented amounts of borrowed capital to comply with stringent EU and Irish regulations on the environment”.
When one compares this with South Africa, where milk prices are still at a reasonable level, input costs are starting to decline and interest rates are becoming increasingly favourable for those who utilise loans, one realises once again that our industry is actually relatively stable. We have not been spared the worldwide economic slump, however and this is very obvious in the purchasing power of consumers. We hope this will also improve over the next few months. We should, however, expect increasing pressure on the effective addressing of such environmental issues as global warming, carbon emissions and the like. We are presently adapting our “Best Farming Pactices” to conform to these requirements and will discuss them with you in due course.
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