Report highlights shifts in South Africa’s milk, dairy market for February 2025

SOUTH AFRICA – A report by Milk South Africa (Milk SA), known as Dairy Digits, has released its latest findings on key market indicators for unprocessed milk and dairy products as of February 2025. 

Compiled from reliable sources, including Milk SA statistics and South African Revenue Service (SARS) data, the report offers a snapshot of the dairy sector’s performance.

Though, Milk SA notes it cannot guarantee the accuracy of the information and is not liable for actions based on it.

According to the report, unprocessed milk purchases in South Africa showed growth. In 2024, a total of 3,456 thousand tonnes were purchased, marking a 3.49% increase from 3,339 thousand tonnes in 2023. 

For January 2025, an estimated 290 thousand tonnes were bought, reflecting a modest 1.16% rise compared to the same month last year. 

Dairy imports, however, dropped significantly, with 33.9 thousand tonnes recorded from January to December 2024, down 30.10% from 48.5 thousand tonnes in 2023. 

Dairy exports also saw a decline, falling to 53.5 thousand tonnes in 2024 from 56.1 thousand tonnes in 2023, a decrease of 4.63%.

The report further details price trends. The producer price index (PPI) for unprocessed milk in January 2025 stood at 95.8, a 5.4% drop from the base of December 2023. 

In contrast, the PPI for dairy products, such as full-cream milk and cheddar cheese, rose to 104.6, up 3.8% from the same base period. 

International dairy prices, tracked from January 2015 to February 2025, showed butter and skimmed milk powder values fluctuating, with recent data indicating butter at around 70,000 rand per tonne, according to USDA price surveys adjusted by South African Reserve Bank exchange rates.

Nico Fouché, a contact at Milk SA, emphasized the report’s purpose, saying, “Dairy Digits is here to give the industry clear signals about where the market is heading.” 

“The drop in imports and exports suggests a shift towards local reliance, but price declines for unprocessed milk could challenge producers.”

Additional data from Statistics South Africa and the Department of Agriculture revealed that the price index for all farming requisites fell to 128.6 in July 2024, down 5.5% from the 2015 base.