Segmentation
 • Milk
 • Condensed milk
 • Butter milk
 • Whey
 • Butter
 • Cheese
 • Ice Cream

Vision
To increase South Africa's share of specific markets.

Production Capacity
South Africa competes globally against the following major milk/dairy producing countries: Russia, European Union, USA, Australia and New Zealand. If the world production is indexed at 100, the accessible international market represents only 5%, increasing to 8% in the year 2000 as a result of the WTO agreement. Exports from the EU hold 55% of that 5% effectively controlling market price, and New Zealand producers have 25% of that 5%. South Africa is a small player in the international market and thus a price-taker. After Australia and New Zealand, South Africa is one of the cheapest milk producers in the world. South Africa also has one of the most deregulated dairy processing industries in the world. It is common knowledge that trade barriers and subsidisation have distorted world agricultural markets and contribute to the instability of commodity prices.

The industry provides a livelihood for some 212 000 people, it is the fourth largest sector in the agricultural industry, accounts for a production value of R4 338 million and constitutes 17% of all animal products and 7% of the total agricultural production. The national milk herd is estimated at 1,3 million dairy cows of which approximately 637 000 are cows in production. The industry comprises of 7 559 milk producers, 495 producer-distributors and 292 milk-buyers.

Imports
Imports have been on the increase since 1991 (one thousand tons) to 28 500 in 1996, whey, butter and skimmed milkpowder were the principal commodities imported and accounted for 50% of all imported dairy products.

Exports
Imports have been on the increase since 1991 (one thousand tons) to 28 500 in 1996, whey, butter and skimmed milkpowder were the principal commodities imported and accounted for 50% of all imported dairy products.

Objectives

•	To achieve a 5% growth in milk production per annum
•	To formulate long-term strategic goals for the industry
•	To approach new markets from a united front
•	To identify a product range with export potential
•	To identify development areas for investment
•	To involve SMMEs within the industry
•	To develop an industry export strategy.

Export Promotional Assistance

•	Finalise the establishment of an export council
•	Organise and encourage role players to take part in at least one outward trade and investment mission
•	Identify foreign exhibitions with potential for marketing of industry-specific products, and encourage participation of the industry in these exhibitions
•	Assist with programmes for primary export market research into identified new markets
•	Identify a product range with export potential.