South African dairy growth predicted by FAS

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The USDA Foreign Agricultural Service forecasts significant growth in South Africa's dairy industry, overcoming recent challenges.
South African dairy growth predicted by FAS
South Africa's dairy industry, despite facing weather and disease challenges, is poised for growth due to favorable economic conditions.

The USDA Foreign Agricultural Service (FAS) predicts a 2% increase in liquid milk production for 2025, driven by declining feed costs and increased US dairy exports. The commercial dairy herd, primarily Holstein and Jersey, has experienced productivity issues and consolidation.

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A recent outbreak of foot and mouth disease has compounded challenges. However, demand for processed dairy products is expected to rise, especially exports to China. Domestic consumption varies, with an increase in retail sales of certain dairy products.

As production improves, imports of UHT milk are expected to decline. The South African dairy sector is a considerable part of the country's agriculture, offering numerous employment opportunities. Milk South Africa, a nonprofit organization, continues to represent the industry's interests, promoting growth amidst evolving economic factors.


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