Manufacture Dairy Products South Africa

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The Manufacture of Dairy Products in South Africa 2025

Carole Veitch | South Africa | 20 March 2025

The Manufacture of Dairy Products in South Africa 2021

Natalie Bryden | South Africa | 25 January 2021

The Manufacture of Dairy Products in South Africa 2019

Marc Bosman | South Africa | 10 April 2019

The Manufacture of Dairy Products in South Africa 2017

Marc Bosman | South Africa | 20 October 2017

The Manufacture of Dairy Products in South Africa 2016

Marc Bosman | South Africa | 11 March 2016

The Manufacture of Dairy Products in South Africa 2014

Brenda Young | South Africa | 21 October 2014

Report Coverage

This report on the manufacture of dairy products in South Africa includes information on the size of the industry, including raw milk production, processors and distributors. There is information on major brands, suppliers, dairy sales revenues, retail prices, notable players and corporate actions. The report also examines influencing factors such as the economy, environmental factors and issues, and technology and innovation. There are profiles of 30 companies including multinationals such as Unilever, Danone, Nestlé and Lactalis, major local companies such as RFG Foods and Libstar, and other players such as Ladismith Cheese, Fair Cape, Woodlands, Douglasdale and Dewfresh.

Introduction

• The dairy industry is an important contributor to the economy, employment and food security.
• Significant consolidation in recent years has made it increasingly difficult for smaller players to compete.
• The number of producers halved since 2014, but milk production has risen significantly.
• Raw milk sales in 2024 surpassed 2019 volumes, and dairy manufacturing revenue increased marginally.
• The industry has been relatively resilient, but challenges include global policy shifts and the disruption of trade, which will affect imported inputs.
• Demand for traditional dairy products is gradually being eroded by the shift to non-dairy alternatives.

Trends

• Advances in dairy farming technologies continue to improve milk yield and quality.
• Consolidation at production and processing levels has been a notable trend over the past two decades and appears set to continue.
• Demand for products with an extended shelf-life remains strong.
• Growing demand for healthy products that are ethically and sustainably produced. Plant-based products continue to make inroads, driven by growing demand for vegan and lactose-free products.
• Lower-priced retail house brands are becoming increasingly competitive.
• Strong focus on sustainability and ecofriendly production and packaging.
• There is a growing demand for healthier dairy products with reduced fat, sugar and additives.

Opportunities

• Artisanal cheesemaking, including cream cheese and cottage cheese.
• Artisanal ice cream.
• Dairy beverages containing probiotics, such as smoothies.
• Production and supply of vegan-friendly and lactose-free dairy substitutes.
• Products made from milk from goats, sheep and water buffalo.
• Protein drinks and fermented milk products such as kefir and maas.

Challenges

• Disease outbreaks.
• Animal welfare concerns.
• Climate-related challenges.
• Milk prices are volatile and fluctuate based on demand.
• Shrinking margins due to price competition from private labels and imports.
• The industry’s impact on the environment.
• Water supply shortages and power outages continue to disrupt operations.

Outlook

• Milk production profitability is expected to stabilise in the medium term.
• Higher domestic consumption is likely to be driven by population growth and an increase in consumer spending power.
• Plant-based dairy alternatives continue to make inroads.
• Despite the industry’s positive growth outlook, the operating environment remains extremely challenging.
• Downside risks include adverse weather conditions, disease outbreaks, economic instability, concerns relating to land reform, the volatile geopolitical environment, global trade wars, fluctuations in global commodity prices and exchange rate volatility.

The Manufacture of Dairy Products in South Africa 2025

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The Manufacture of Dairy Products in South Africa 2019-04-10

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The Manufacture of Dairy Products in South Africa 2017-10-20

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The Manufacture of Dairy Products in South Africa 2016-03-11

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The Manufacture of Dairy Products in South Africa 2014-10-21

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	5
2.2.	Geographic Position	6
2.3.	Size of the Industry	8
3.	LOCAL	9
3.1.	State of the Industry	9
3.2.	Key Trends	14
3.3.	Key Issues	14
3.4.	Notable Players	15
3.5.	Trade	17
3.6.	Corporate Actions	18
3.7.	Regulations	19
3.8.	Enterprise Development and Social Development	20
4.	AFRICA	21
5.	INTERNATIONAL	24
6.	INFLUENCING FACTORS	27
6.1.	Economic Environment	27
6.2.	Cyclicality	29
6.3.	Labour	30
6.4.	Environmental Issues	31
6.5.	Technology, R&D, Innovation	33
6.6.	Unforeseen Events	34
6.7.	Government Support	34
6.8.	Input Costs	35
7.	COMPETITIVE ENVIRONMENT	36
7.1.	Competition	36
7.2.	Ownership Structure of the Industry	37
7.3.	Barriers to Entry	37
8.	INDUSTRY SUMMARY	38
9.	OUTLOOK	38
10.	INDUSTRY ASSOCIATIONS	39
11.	REFERENCES	39
11.1.	Publications	39
11.2.	Websites	41
	Annexure 1	43
	Industry Legislation	43
	APPENDIX 1	45
	Summary of Notable Players	45
	COMPANY PROFILES	48
	CLOVER S A (PTY) LTD	48
	DAIRY GROUP SA (PTY) LTD	53
	DANONE SOUTHERN AFRICA (PTY) LTD	55
	DARLING ROMERY (PTY) LTD	57
	DENMAR ESTATES (PTY) LTD	59
	DEWFRESH (PTY) LTD	61
	DOUGLASDALE DAIRY (PTY) LTD	63
	DWR HERTZOG	65
	FAIR CAPE DAIRIES (PTY) LTD	67
	FAIRFIELD DAIRY (PTY) LTD	69
	FARMGATE DAIRY (PTY) LTD	71
	FRONERI SOUTH AFRICA (PTY) LTD	73
	GATTIS ICE CREAM (PTY) LTD	75
	LA MONTANARA MELKERY (PTY) LTD	77
	LACTALIS SOUTH AFRICA (PTY) LTD	79
	LADISMITH CHEESE COMPANY (PTY) LTD	82
	LIBSTAR OPERATIONS (PTY) LTD	84
	MOOIVALLEI SUIWEL (PTY) LTD	90
	MOUNTAINVIEW DAIRY (PTY) LTD	92
	NESTLE (SOUTH AFRICA) (PTY) LTD	94
	ORANGE GROVE DAIRY (PTY) LTD	97
	POLAR ICE CREAM COMPANY (PTY) LTD	99
	RFG FOODS (PTY) LTD	101
	SUNDALE FREE RANGE DAIRY (PTY) LTD	105
	TRADEMODEL SEVEN (PTY) LTD	107
	TRANSEM (PTY) LTD	109
	UNILEVER SOUTH AFRICA (PTY) LTD	111
	UNIQUE DAIRY PRODUCTS (PTY) LTD	114

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.

Introduction

This report focuses on the South African manufacture of dairy products, where there has been considerable consolidation 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, contraction in producer numbers, increasingly scarce natural resources due to climate change, changing consumer dietary preferences, increased regulation, and competition from international companies have caused challenges, especially for small producers.

Strengths

• An organised industry, with majority of the dairy players belonging to the Milk Producers Organisation and the South African Milk Processors’ Organisation.
• Growing middle class adopting western diets.
• High demand for dairy products, especially value-added products such as sour milk, yoghurt and cheese.

Weaknesses

• Low producer pricing squeezes farmers’ profits and forces many to exit the industry.
• No protection from global players.
• Political uncertainty and security of tenure related to the land reform process.
• Poor rural road infrastructure makes transport expensive.
• South Africa is a net importer of dairy products.

Opportunities

• Demand for flavoured milk.
• Expansion into African markets, especially for processed products that do not require refrigeration.
• Increased urbanisation leads to more demand for dairy products.
• Increasing demand for products with a long shelf life.
• Niche products such as artisanal cheese.

Threats

• Changing consumer preferences.
• Cheap imports from the EU.
• Climate change.
• Increasing input costs.
• Weak economy.

Outlook

Difficulties in the dairy farming sector are expected to continue due to the effect of rising input costs, weak economic growth, job losses and reduced consumer spending on dairy product demand in addition to competition from international players. The number of milk producers is likely to continue to decrease, and increased market consolidation is likely given the current economic conditions.Concerns over climate change and animal welfare are giving rise to long term trends and are driving the development of plant-based alternatives. Dairy companies have to respond to consumer demands and adapt to changing consumer demographics, behaviours and lifestyles. Product diversification, innovation and brand differentiation will be critical success factors to survival in an increasingly competitive global marketplace.

The Manufacture of Dairy Products in South Africa 2021

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The Manufacture of Dairy Products in South Africa 2017-10-20

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The Manufacture of Dairy Products in South Africa 2016-03-11

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The Manufacture of Dairy Products in South Africa 2014-10-21

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		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

Report Coverage

This report focuses on the South African manufacture of dairy products. It describes the producers and processors across a range of products and the factors influencing their success. There are comprehensive profiles of 34 notable industry players. These include the Coega, Sundale and Woodland dairies in the Eastern Cape, where milk production has more than doubled since 2005, making it the top milk-producing province. Profiles of ice cream makers include those of Froneri (Dairymaid), Gattis and Unique Dairy Products. Companies involved in recent corporate action including Ladismith Cheese Company, which was bought by Sea Harvest in August 2018 for R537m and Clover, which has received a buyout offer from Israeli-owned International Beer Breweries, valuing Clover at R4.8bn, are also profiled.

Introduction

This report focuses on the South African manufacture of dairy products. The industry has experienced a return to growth in volumes of raw milk and other dairy products since 2017 after five years of challenges. These included continuous decline in demand, contraction in producer numbers and concentration of production, lower producer prices, shrinking margins, growing competition from within the sector and other beverage industries, and changing local industry dynamics which continue to cause economic hardship for many, especially small producers. Raw milk production increased by 2.7% in 2017 and almost 4% in 2018. UHT (long-life) milk, fermented milk product maas, or amasi, and packaged cheese sales grew strongly, but sales of butter and yoghurt declined due to high prices. High milk production and reduced demand resulted in increased exports and reduced imports. However in February 2019, Milk Producers’ Organisation (MPO) chief economist Bertus van Heerden reported that December 2018 and January 2019 milk production figures were lower than the year prior, indicating that low producer prices are starting to restrict milk production, which may lead to supply shortages and increased producer prices if supply tightens sufficiently. Rising UHT milk imports are a concern to the industry which is investigating the matter with a view to possibly approaching the International Trade Administration Commission (Itac) for trade protection and tariff dispensation. The industry expects better balance in supply and demand, locally and globally, in 2019, and the MPO advises that supply may tighten and producer prices may improve. The Department of Agriculture, Forestry and Fisheries (DAFF) estimated that fresh milk sales totalled R16.46bn in 2016/2017. The annual market for dairy-based products is estimated at approximately R40bn.

Strengths

• An organised industry, with majority of the dairy players belonging to the Milk Producers Organisation and the South African Milk Processors\' Organisation.
• There is a high demand for dairy products, especially value-added products such as sour milk, yoghurt and cheese.

Weaknesses

• Low producer pricing squeezes farmers’ profits and forces many to exit the industry.
• No protection from global players. Free market principles have led to many players exiting the industry.
• Political uncertainty and security of tenure related to the land reform process.
• The poor state of the country’s infrastructure makes it costly for farmers to transport their products.

Opportunities

• Expansion into African markets, especially for ambient products.
• Increased urbanisation leads to more demand for dairy products.
• Increasing demand for long-life milk which has a shelf life of up to nine months.
• Market growth and improved profitability from the introduction of new products such as flavoured milk.

Threats

• Cheaper imports from countries that receive subsidies.
• Climate change and ongoing drought conditions in the Eastern and Western Cape.
• Declining numbers of milk producers.
• The negative effect of increasing production and input costs and thus lower margins on farmers’ profits.
• Weakening economy with high food inflation and decreasing disposable income.

Outlook

The dairy industry is in transformation, facing challenges and opportunities arising from seasonal factors and changing consumer preferences. Stakeholders believe dairy companies have to respond to consumer demands and adapt to changing consumer demographics, behaviours and lifestyles. Product diversification, innovation and brand differentiation will be critical success factors. Difficulties in the dairy farming sector in the Eastern and Western Cape are expected because of the ongoing severe drought conditions. The number of milk producers is likely to continue to decrease and increased market consolidation is forecast given the current economic conditions. The industry expects its performance in 2019 to be influenced by:
• Declining producer prices, affecting the supply of raw milk and other dairy products;
• Climatic conditions in the summer rainfall areas;
• The effect of weak economic growth on dairy product demand;
• The effect of the exchange rate on imports, international prices and anticipated local production of raw milk and dairy products;
• Trade protection and tariff dispensation against UHT milk imports.

The Manufacture of Dairy Products in South Africa 2019

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Industry Landscape

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The Manufacture of Dairy Products in South Africa 2025-03-20

R 20 000.00(ZAR) estimated $1109.56 (USD)*

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The Manufacture of Dairy Products in South Africa 2021-01-25

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The Manufacture of Dairy Products in South Africa 2017-10-20

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The Manufacture of Dairy Products in South Africa 2016-03-11

R 1 900.00(ZAR) estimated $105.41 (USD)*

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The Manufacture of Dairy Products in South Africa 2014-10-21

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		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Value Chain	3
2.2.	Geographic Position	4
3.	SIZE OF THE INDUSTRY	5
4.	STATE OF THE INDUSTRY	11
4.1.	Local	11
4.1.1.	Corporate Actions	13
4.1.2.	Regulations	14
4.1.3.	Enterprise Development and Social Economic Development	17
4.2.	Continental	19
4.3.	International	23
5.	INFLUENCING FACTORS	27
5.1.	Government Intervention	27
5.2.	Economic Environment	28
5.3.	Rising Operating Costs	28
5.4.	Consumer Trends	30
5.5.	Labour	31
5.6.	Technology, Research and Development (R&D) and Innovation	34
5.7.	Cyclicality	37
5.8.	Environmental Concerns	39
6.	COMPETITION	41
6.1.	Barriers to Entry	43
7.	SWOT ANALYSIS	43
8.	OUTLOOK	44
9.	INDUSTRY ASSOCIATIONS	45
10.	REFERENCES	45
10.1.	Publications	45
10.2.	Websites	46
	APPENDIX 1	48
	Summary of Notable Players	48
	COMPANY PROFILES	52
	BANDINI CHEESE (PTY) LTD	52
	CLOVER SA (PTY) LTD	54
	COEGA DAIRY (PTY) LTD	59
	DANONE SOUTHERN AFRICA (PTY) LTD	61
	DARLING ROMERY (PTY) LTD	63
	DENMAR ESTATES (PTY) LTD	65
	DEWFRESH (PTY) LTD	67
	DOUGLASDALE DAIRY (PTY) LTD	69
	DWR HERTZOG	72
	FAIR CAPE DAIRIES (PTY) LTD	74
	FAIRFIELD DAIRY (PTY) LTD	77
	FAR END DAIRY (PTY) LTD	79
	FARMGATE DAIRY (PTY) LTD	81
	FRONERI SOUTH AFRICA (PTY) LTD	83
	GATTIS ICE CREAM (PTY) LTD	85
	LA MONTANARA MELKERY (PTY) LTD	87
	LADISMITH CHEESE COMPANY (PTY) LTD	89
	LIBSTAR OPERATIONS (PTY) LTD	91
	MOOIVALLEI SUIWEL (PTY) LTD	97
	MOUNTAINVIEW DAIRY CC	99
	NESTLE (SOUTH AFRICA) (PTY) LTD	101
	ORANGE GROVE DAIRY (PTY) LTD	105
	PARMALAT SOUTH AFRICA (PTY) LTD	107
	POLAR ICE CREAM COMPANY (PTY) LTD	109
	RHODES FOOD GROUP (PTY) LTD	111
	SUNDALE FREE RANGE DAIRY (PTY) LTD	116
	TRADEMODEL SEVEN (PTY) LTD	118
	TRANSEM (PTY) LTD	120
	UNILEVER SOUTH AFRICA (PTY) LTD	122
	UNIQUE DAIRY PRODUCTS (PTY) LTD	125
	WESMELK MELKERY (PTY) LTD	127
	WJ KHOURIE	129
	WOODLANDS DAIRY (PTY) LTD	130
	WYNN-WITH MILK FARM (PTY) LTD	134

Report Coverage

The Manufacture of Dairy Products describes current conditions and the actions taken by role players to ensure sustainability in their operations. Detailed statistics regarding the size of the sector and profiles for 40 companies are provided. These include large dairy processor, Clover which has altered the low margin volume driven milk business through the creation of Dairy Farmers South Africa (DFSA), and Unilever South Africa (Pty) Ltd, which has had to deal with the impact of the global consumer move from margarine to butter. Also profiled are three dairies based in the Eastern Cape, which has become the top milk-producing province with 30.6% market share: Coega Dairy (Pty) Ltd; Sundale Free Range Dairy (Pty) Ltd; and Woodlands Dairy (Pty) Ltd. Between them these three dairies employ more than 2,000 people.

Introduction

The dairy market is divided into 63% liquid, that is milk in all its various forms and flavours, and 37% concentrated products produced by the secondary industry. The South African dairy sector has experienced a decline in most segments of the value chain over the last two years. Milk Producers earned R14bn in 2015/2016, which is 6.6% less than the previous year, and their numbers decreased from 1,683 in January 2016 to 1,593 in January 2017.

Strengths

• An organised industry, with majority of the dairy players belonging to the Producers’ Organisation and the Milk Processors’ Association.
• There is a high demand for dairy products, especially value-added products such as sour milk, yoghurt and cheese

Weaknesses

• Low producer pricing in the dairy industry squeezes farmers’ profits and forces many to exit the industry.
• No protection from global players. Free market principles have led to many players exiting the industry.
• Political uncertainty and security of tenure related to the land reform process.
• The poor state of the country’s infrastructure makes it costly for farmers, who are price-takers, to transport their products.

Opportunities

• Expansion into African markets, especially for ambient products.
• Increased urbanisation leads to more demand for dairy products.
• Increasing demand for UHT milk which has a shelf life of up to nine months.
• Market growth and improved profitability from the introduction of new products such as flavoured milk.

Threats

Outlook

The dairy industry is in transformation, facing challenges and opportunities arising from increasing globalisation and changing consumer preferences. Stakeholders believe dairy companies have to respond to consumer demands and adapt to changing consumer demographics, behaviours and lifestyles. Product diversification, innovation and brand differentiation will be critical success factors. Difficulties in the dairy farming sector in the Eastern and Western Cape are expected because of the ongoing severe drought conditions, the number of Milk Producers is likely to continue to decrease and increased market consolidation is forecast given the current economic conditions.

The Manufacture of Dairy Products in South Africa 2017

Full Report

R 1 900.00(ZAR) estimated $105.41 (USD)*

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Industry Landscape

R 1 330.00(ZAR) estimated $ 73.79 (USD)*

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Historical Reports

The Manufacture of Dairy Products in South Africa 2025-03-20

R 20 000.00(ZAR) estimated $1109.56 (USD)*

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The Manufacture of Dairy Products in South Africa 2021-01-25

R 1 900.00(ZAR) estimated $105.41 (USD)*

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The Manufacture of Dairy Products in South Africa 2019-04-10

R 1 900.00(ZAR) estimated $105.41 (USD)*

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The Manufacture of Dairy Products in South Africa 2016-03-11

R 1 900.00(ZAR) estimated $105.41 (USD)*

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The Manufacture of Dairy Products in South Africa 2014-10-21

R 1 900.00(ZAR) estimated $105.41 (USD)*

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		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	4
4.	STATE OF THE INDUSTRY	15
4.1.	Local	15
4.1.1.	Corporate Actions	17
4.1.2.	Regulations	19
4.1.3.	Enterprise Development and Social Economic Development	21
4.2.	Continental	22
4.3.	International	25
5.	INFLUENCING FACTORS	27
5.1.	Government Intervention	27
5.2.	Economic Environment	28
5.3.	Rising Operating Costs	28
5.4.	Consumer Trends	29
5.5.	Labour	30
5.6.	Technology, Research and Development (R&D) and Innovation	33
5.7.	Cyclicality	34
5.8.	Environmental Concerns	35
6.	COMPETITION	37
6.1.	Barriers to Entry	38
7.	SWOT ANALYSIS	38
8.	OUTLOOK	39
9.	INDUSTRY ASSOCIATIONS	39
10.	REFERENCES	40
10.1.	Publications	40
10.2.	Websites	41
	COMPANY PROFILES	43
	BANDINI CHEESE (PTY) LTD	43
	CLOVER MILKYWAY (PTY) LTD	45
	CLOVER SA (PTY) LTD	47
	COEGA DAIRY (PTY) LTD	51
	Dairy Day (Pty) Ltd	53
	DANONE SOUTHERN AFRICA (PTY) LTD	55
	DARLING ROMERY (PTY) LTD	57
	DENMAR ESTATES (PTY) LTD	59
	DEWFRESH (PTY) LTD	61
	DOUGLASDALE DAIRY (PTY) LTD	63
	DWR HERTZOG	66
	FAIR CAPE DAIRIES (PTY) LTD	68
	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
	HOMSEK (PTY) LTD	80
	HONEYDEW DAIRIES (PTY) LTD	82
	LA MONTANARA MELKERY (PTY) LTD	84
	LADISMITH CHEESE COMPANY (PTY) LTD	86
	LAITCO DAIRIES (PTY) LTD	88
	LIBSTAR OPERATIONS (PTY) LTD	89
	MOOIVALLEI SUIWEL (PTY) LTD	94
	MOUNTAINVIEW DAIRY CC	96
	NESTLE (SOUTH AFRICA) (PTY) LTD	97
	ORANGE GROVE DAIRY (PTY) LTD	101
	PARMALAT SOUTH AFRICA (PTY) LTD	103
	POLAR ICE CREAM COMPANY (PTY) LTD	106
	RHODES FOOD GROUP (PTY) LTD	108
	SONNENDAL DAIRIES (PTY) LTD	112
	SUNDALE FREE RANGE DAIRY (PTY) LTD	114
	TRADEMODEL SEVEN (PTY) LTD	116
	TRANSEM (PTY) LTD	118
	UNILEVER SOUTH AFRICA (PTY) LTD	119
	UNIQUE DAIRY PRODUCTS (PTY) LTD	122
	WESMELK MELKERY (PTY) LTD	124
	WJ KHOURIE	126
	WOODLANDS DAIRY (PTY) LTD	127
	WYNN-WITH MILK FARM (PTY) LTD	131

Report Coverage

The Manufacture of Dairy Products discusses the dairy sector in South Africa, highlighting current conditions and factors influencing the success of the sector. In the report 38 eight industry players are profiled, including the top four dairy market leaders: Clover which has 26% of the market; Lactalis, known as Parmalat; Unilever; and Danone. Also profiled are smaller players such as Farmgate Dairy (Pty) Ltd based in KwaZulu-Natal which employs 60 people, and Western Cape processor, the Polar Ice Cream Company (Pty) Ltd t/a Kulfi.

Introduction

This report focuses on the manufacture of dairy products in South Africa. Annual fresh milk production generates revenue in excess of R10bn and the annual market for dairy-based products exceeds R40bn. The number of milk producers has decreased from 4,184 in 2006 to 1,728 in August 2015, a decline of 59% over nine years while at the same time output and efficiencies have improved. Milk producers employ about 30,000 farm workers and indirectly provide jobs to some 15,000 people.

Strengths

Weaknesses

• Low producer pricing in the dairy industry squeezes farmers’ profits and forces many to exit the industry
• No protection from global players. Free market principles have led to many players exiting the industry.
• Political uncertainty and security of tenure related to the land reform process.
• The poor state of the country’s infrastructure makes it costly for farmers, who are price takers, to transport their products.

Opportunities

Threats

• Cheaper imports from countries that receive subsidies.
• Climate change and the worsening of drought conditions.
• The negative effect of increasing production and input costs and thus lower margins on farmers’ profits.
• Weakening economy with high food inflation and decreasing disposable income.

Outlook

Industry commentators and players concur the industry will remain volatile and under pressure until 2017, due to local and global industry factors. These include an unpredictable climate, the removal of production quotas in Europe, the slowdown in China and the Russian sanctions. Industry body the MPO, financial services company ABSA through its AGRI Trends research and the major global and local industry producers and processors concur that the dairy industry is in transformation, facing challenges and opportunities arising from increasing globalisation. Responding to the increase in demand for milk will be an unprecedented challenge given the population growth and environmental challenges. Stakeholders believe that dairy companies have to respond to consumer demands and adapt to changing consumer demographics, behaviours and lifestyles. Product diversification, innovation and brand differentiation will be critical success factors. In developing markets securing a sustainable high quality milk supply is paramount as is investing in domestic dairy farming and securing reliable and dependable partners. Increased market consolidation can be expected given the prevailing conditions and a decline in the number of Milk Producers is expected.Agriculture remains profitable from an investment and operational perspective despite lower commodity prices, driven by productivity improvements gained through the adoption of new technologies. The agricultural sector is the only sector which has seen sustained growth over the last ten years and which continues to attract investment. The sector is therefore forecast to continue to deliver good returns despite the drought.

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		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	4
4.	STATE OF THE INDUSTRY	12
4.1.	Local	12
4.1.1.	Corporate Actions	16
4.1.2.	Regulations	17
4.1.3.	Enterprise Development and Social Economic Development	18
4.2.	Continental	19
4.3.	International	24
5.	INFLUENCING FACTORS	26
5.1.	Government Intervention	26
5.2.	Labour	27
5.3.	Economic Environment	29
5.4.	Rising Input Costs	30
5.5.	Cyclicality	32
5.6.	Consumer Trends	33
5.7.	Technology, Research and Development (R&D) and Innovation	33
5.8.	Environmental Concerns	35
6.	COMPETITION	36
6.1.	Barriers to Entry	38
7.	SWOT ANALYSIS	38
8.	OUTLOOK	39
9.	INDUSTRY ASSOCIATIONS	40
10.	REFERENCES	40
10.1.	Publications	40
10.2.	Websites	42
	COMPANY PROFILES	44
	Bandini Cheese (Pty) Ltd	44
	Clover Milkyway (Pty) Ltd	46
	Clover SA (Pty) Ltd	48
	Coega Dairy (Pty) Ltd	52
	DairyBelle (Pty) Ltd	54
	Danone Southern Africa (Pty) Ltd	56
	Darling Romery (Pty) Ltd	59
	Denmar Estates (Pty) Ltd	61
	Dewfresh (Pty) Ltd	63
	Douglasdale Dairy (Pty) Ltd	65
	DWR Hertzog	67
	Fair Cape Dairies (Pty) Ltd	69
	Fairfield Dairy (Pty) Ltd	71
	Farmgate Dairy (Pty) Ltd	73
	Gattis Ice Cream (Pty) Ltd	75
	Homsek (Pty) Ltd	77
	Homsek Ultra (Pty) Ltd	79
	Honeydew Dairies (Pty) Ltd	81
	La Montanara Melkery (Pty) Ltd	83
	Ladismith Cheese Company (Pty) Ltd	85
	Laitco Dairies (Pty) Ltd	87
	Libstar Operations (Pty) Ltd	89
	Montic Dairy (Pty) Ltd	92
	Mooivallei Suiwel (Pty) Ltd	94
	Mountainview Dairy CC	96
	Nestle (South Africa) (Pty) Ltd	98
	Orange Grove Dairy (Pty) Ltd	101
	Parmalat South Africa (Pty) Ltd	103
	Polar Ice Cream Company (Pty) Ltd	106
	Rhodes Food Group (Pty) Ltd	108
	Sonnendal Dairies (Pty) Ltd	111
	Sundale Free Range Dairy (Pty) Ltd	113
	Trademodel Seven (Pty) Ltd	115
	Transem (Pty) Ltd	117
	Unilever South Africa (Pty) Ltd	119
	Unique Dairy Products (Pty) Ltd	122
	Wesmelk Melkery (Pty) Ltd	124
	Woodlands Dairy (Pty) Ltd	125
	Wynn-With Milk Farm (Pty) Ltd	128

Introduction

This report focuses on the manufacture of dairy products. The production of fresh milk generates R10bn in revenue each year and the annual market for dairy-based products is approximately R40bn. Over the years the number of milk producers in South Africa has\ndecreased by 53% from 4,184 in 2006 to 1,961 in 2014. At the same time efficiencies have improved, with South African national dairy production for 2013 at 2.817 billion litres, up 2.2% on 2012. Demand for dairy products shows positive growth with the\nexception being fresh milk where there is a shift to UHT milk. Milk producers employ about 30,000 farm workers and indirectly provide jobs to some 15,000 people.

Strengths

• An organised industry, with majority of the dairy players\nbelonging to the Producers’ Organisation and the Milk\nProcessors’ Association.
• There is a high demand for dairy products, especially value\nadded products such as sour milk, yoghurt and cheese.

Weaknesses

• Low producer pricing in the dairy industry squeezes farmer’s profits and forces many to exit the industry.
• No protection from global players. Free market principles have led to many players exiting the industry.
• Political uncertainty and security of tenure related to the land reform process.
• The poor state of the country’s infrastructure makes it costly for farmers to transport their products.

Opportunities

• Expansion into African markets, especially for ambient\nproducts
• Increased urbanisation leads to more demand for dairy\nproducts.
• Increasing demand for UHT milk which has a shelf life of\nup to nine months.
• Market growth and improved profitability from the\nintroduction of new products such as flavoured milk.

Threats

• Cheaper imports from countries that receive subsidies.
• The negative effect of increasing production and input costs and thus lower margins on farmers’ profits.
• Weakening economy with high food inflation and decreasing disposable income.

Outlook

Consumer demand for dairy continues to grow at about 4% per year and higher dairy product consumption is expected as a result of increased urbanisation and electrification. However, the number of farmers producing dairy is expected to continue its downward trend due to the lack of protection measures for farmers who struggle with low margins. Low milk producer prices will not sufficiently cover cost price increases and will not be enough to encourage growth in production which has slowed.The dominance of the three major processors is expected to continue and African markets hold promise. Emerging markets have fast rates of urbanisation, rising incomes, population growth changes in diet and economic growth and this leads to higher global dairy demand. Africa is expected to see an increase in liquid dairy product (LDP) consumption of more than 50%, climbing to almost 25 billion litres in 2020. The Tetra Pak Dairy Index 2014 says that Africa will see the biggest change in the flavoured milk category, with 7.1% growth across the continent. However, investments will need to be made in infrastructure to promote the sale of ambient products because of the current lack of refrigeration in most African countries.

The Manufacture of Dairy Products in South Africa 2014

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The Manufacture of Dairy Products in South Africa 2019-04-10

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The Manufacture of Dairy Products in South Africa 2017-10-20

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The Manufacture of Dairy Products in South Africa 2016-03-11

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[ Close ]

		PAGE
1.	INTRODUCTION	1
2.	DESCRIPTION OF THE INDUSTRY	1
2.1.	Industry Supply Chain	2
2.2.	Geographic Position	3
3.	SIZE OF THE INDUSTRY	4
4.	STATE OF THE INDUSTRY	7
4.1.	Local	7
4.1.1.	Corporate Actions	10
4.1.2.	Regulations & Government Trade Agreements	11
4.1.3.	Enterprise Development and Social Economic Development	12
4.2.	Continental	14
4.3.	International	15
5.	INFLUENCING FACTORS	16
5.1.	Economic Environment	16
5.2.	Rising Input Costs	17
5.3.	Supply Chain Optimisation	17
5.4.	Consumer Trends	17
5.5.	Labour	18
5.6.	Land Reform Policy	19
5.7.	Cyclicality	19
5.8.	Information Technology	19
5.9.	Technology	20
5.10.	Environmental Concerns	20
6.	COMPETITION	21
6.1.	Barriers to Entry	21
6.2.	Research and Development (R&D) and Innovation	22
7.	SWOT ANALYSIS	22
8.	OUTLOOK	23
9.	INDUSTRY ASSOCIATIONS	23
10.	REFERENCES	24
10.1.	Publications	24
10.2.	Websites	24
	APPENDIX 1	26
	Summary of Major Players in the Industry	26

Manufacture Dairy Products South Africa

The Manufacture of Dairy Products in South Africa 2025

The Manufacture of Dairy Products in South Africa 2021

The Manufacture of Dairy Products in South Africa 2019

The Manufacture of Dairy Products in South Africa 2017

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The Manufacture of Dairy Products in South Africa 2014

Report Info

Report Coverage

Introduction

Trends

Opportunities

Challenges

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Manufacture of Dairy Products in South Africa 2021-01-25

The Manufacture of Dairy Products in South Africa 2019-04-10

The Manufacture of Dairy Products in South Africa 2017-10-20

The Manufacture of Dairy Products in South Africa 2016-03-11

The Manufacture of Dairy Products in South Africa 2014-10-21

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Manufacture of Dairy Products in South Africa 2025-03-20

The Manufacture of Dairy Products in South Africa 2019-04-10

The Manufacture of Dairy Products in South Africa 2017-10-20

The Manufacture of Dairy Products in South Africa 2016-03-11

The Manufacture of Dairy Products in South Africa 2014-10-21

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Manufacture of Dairy Products in South Africa 2025-03-20

The Manufacture of Dairy Products in South Africa 2021-01-25

The Manufacture of Dairy Products in South Africa 2017-10-20

The Manufacture of Dairy Products in South Africa 2016-03-11

The Manufacture of Dairy Products in South Africa 2014-10-21

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Historical Reports

The Manufacture of Dairy Products in South Africa 2025-03-20

The Manufacture of Dairy Products in South Africa 2021-01-25

The Manufacture of Dairy Products in South Africa 2019-04-10

The Manufacture of Dairy Products in South Africa 2016-03-11

The Manufacture of Dairy Products in South Africa 2014-10-21

Table of Contents

Report Coverage

Introduction

Strengths

Weaknesses

Opportunities

Threats

Outlook

Full Report Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. Full Industry reports also profile all major players operating in the industry.

Industry Landscape Country or Region-specific industry reports on 400 + key industries across the African continent identifying supply chain, influencing factors, SWOT and other key industry drivers. The Overview reports do not include profiles of major players.

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape

Full Report

Industry Landscape