Drought to influence milk price

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The prices of various milk products could increase in the near future due to expected losses of income by farmers in the Western Cape.

AgriWestern Cape has warned that the industry could suffer up to R14-billion in losses due to the ongoing drought.

Up to 400 000 permanent and seasonal jobs are also at risk.

Farmers are required to reduce their water consumption by up to 60% as dam levels continue to decline in the Western Cape.

AgriWCape CEO, Carl Opperman says, “Certain areas of the agriculture sector are already in Day Zero, because we cannot irrigate any further. It will have a devastating effect not only on the agricultural side, but also the total value chain, e.g. milk has got to go into yoghurt, to all the cheeses etc. There’s no water, we’ve got to make a plan to see where we can move those animals – a high cost – and at the risk of losing them entirely.”