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Manufacture of Dairy Products in South Africa 2021

Natalie Bryden | South Africa | 25 January 2021

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R 9 500.00(ZAR) estimated $ 599.44 (USD)*

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Report Coverage

This report focuses on the manufacture of dairy products in South Africa and includes information on the volume of products sold and market share per product, developments, trends and corporate actions, regulation and other influencing factors. There are profiles of 32 companies including dominant companies such as Clover, Woodlands and Lactalis and relatively small dairy processors that distribute regionally such as Douglasdale and Coega Dairy.

Manufacture of Dairy Products

There has been considerable consolidation in the dairy industry at production level over the last 20 years, and large farms account for 80% of South Africa’s total milk production. Rising production costs, imports, less producers, drought, changing consumer preferences, regulation and competition from international companies have created challenges, especially for small producers. While the number of milk producers has continued to decline, milk production has increased, indicating fewer commercial farms with larger herds. Large farms producing more than 5,000 litres per day supply 80% of South Africa’s total milk production.

Changes in Consumption

Some consumers are shifting to dairy products with low levels of lactose and sugar due to rising health concerns, and there is increasing demand for plant-based products. Consumers are driving innovation in dairy products such as protein and extended shelf life beverages, gut-health innovation using probiotics and fermented dairy drinks and new flavours and texture-enhanced products.

Coronavirus

As fresh milk is highly perishable, the dairy industry was hard hit by the crisis. There was a sharp decline in demand for certain dairy products such as cheese as the initial lockdown included the closure of restaurants and hotels. The decline was partly offset by increased household sales of dairy products with a longer shelf-life, such as UHT milk. Disruptions in the milk supply chain prevented some smaller dairy farmers from getting their milk to market.

Table of Contents

PAGE
1. INTRODUCTION 1
2. DESCRIPTION OF THE INDUSTRY 1
2.1. Industry Value Chain 2
2.2. Geographic Position 3
3. SIZE OF THE INDUSTRY 3
4. STATE OF THE INDUSTRY 8
4.1. Local 8
4.1.1. Trends 11
4.1.2. Developments 12
4.1.3. Corporate Actions 13
4.1.4. Regulations 13
4.1.5. Enterprise Development and Social Economic Development 16
4.2. Continental 17
4.3. International 21
5. INFLUENCING FACTORS 25
5.1. Coronavirus 25
5.2. Government Intervention 26
5.3. Economic Environment 28
5.4. Rising Operating Costs 29
5.5. Utilisation 29
5.6. Labour 30
5.7. Technology, Research and Development (R&D) and Innovation 32
5.8. Cyclicality 33
5.9. Environmental Concerns 34
6. COMPETITION 36
6.1. Barriers to Entry 36
7. SWOT ANALYSIS 37
8. OUTLOOK 38
9. INDUSTRY ASSOCIATIONS 38
10. REFERENCES 39
10.1. Publications 39
10.2. Websites 39
APPENDIX 1 41
Summary of Notable Players 41
COMPANY PROFILES 45
BANDINI CHEESE (PTY) LTD 45
CLOVER SA (PTY) LTD 47
COEGA DAIRY (PTY) LTD 52
DANONE SOUTHERN AFRICA (PTY) LTD 54
DARLING ROMERY (PTY) LTD 56
DENMAR ESTATES (PTY) LTD 58
DEWFRESH (PTY) LTD 60
DOUGLASDALE DAIRY (PTY) LTD 62
DWR HERTZOG 65
FAIR CAPE DAIRIES (PTY) LTD 67
FAIRFIELD DAIRY (PTY) LTD 70
FAR END DAIRY (PTY) LTD 72
FARMGATE DAIRY (PTY) LTD 74
FRONERI SOUTH AFRICA (PTY) LTD 76
GATTIS ICE CREAM (PTY) LTD 78
LA MONTANARA MELKERY (PTY) LTD 80
LACTALIS SOUTH AFRICA (PTY) LTD 82
LADISMITH CHEESE COMPANY (PTY) LTD 85
LIBSTAR OPERATIONS (PTY) LTD 87
MOOIVALLEI SUIWEL (PTY) LTD 92
MOUNTAINVIEW DAIRY CC 94
NESTLE (SOUTH AFRICA) (PTY) LTD 96
ORANGE GROVE DAIRY (PTY) LTD 100
POLAR ICE CREAM COMPANY (PTY) LTD 102
RHODES FOOD GROUP (PTY) LTD 104
SUNDALE FREE RANGE DAIRY (PTY) LTD 109
TRADEMODEL SEVEN (PTY) LTD 111
TRANSEM (PTY) LTD 113
UNILEVER SOUTH AFRICA (PTY) LTD 115
UNIQUE DAIRY PRODUCTS (PTY) LTD 118
WOODLANDS DAIRY (PTY) LTD 121
WYNN-WITH MILK FARM (PTY) LTD 125