Price increase relief for dairy farmers

Namibia Dairies (Pty) Ltd have announced that the company has entered into a mutual agreement with the Dairy Producers Association of Namibia (DPA) on a raw milk price increase for the next 12 months.

Managing Director of Namibia Dairies, Hubertus Hamm said, “For the period July 1 to September 20, 2012, farmers will receive a 25 cent per litre increase on their current factory gate price.”

He added that as from October 1, 2012, Namibia Dairies will in-source all milk transport operations, and the parties (Namibia Dairies and the DPA) have agreed to move to a farm gate based pricing structure. This means that Namibia Dairies will now pay for the transport cost which was previously paid by the farmer(s).

Chairman of the Dairy Producers Association of Namibia Kockie Adriaanse expressed his delight at the new pricing structure. “We are extremely happy with the new structure as the price increase will bring relief to farmers who have seen their profitability under pressure due to high feed, fuel and energy costs.”

Although the Namibian farm gate price is significantly higher than South Africa, both parties agreed on a fair price to ensure farmers are sustainable, the Namibian economy is supported and local production of hormone and antibiotic free milk is assured for the future.

“This new pricing structure will ensure that dairy farmers receive a further net increase of 22 cents from October 1, 2012. Effectively famers will receive an 11% (or 43 cents per litre) raw milk price increase going forward,” Hamm concluded.