SOUTH AFRICAN - Dairy Market 2017

A PROFILE OF THE SOUTH AFRICAN DAIRY MARKET
VALUE CHAIN
2017
Directorate Marketing Tel: 012 319 8455

Private Bag X 15 Fax: 012 319 8131
Arcadia E-mail:MogalaM@daff.gov.za
0007 www.daff.gov.za
TABLE OF CONTENTS
1
1. DESCRIPTION OF THE INDUSTRY ..................................................................................................... 1
1.1. MILK PRODUCTION AREAS .................................................................................................................. 1
1.2. PRODUCTION TRENDS ....................................................................................................................... 2
1.3. EMPLOYMENT .................................................................................................................................. 3
2. MARKET STRUCTURE ...................................................................................................................... 3
2.1. DOMESTIC MARKET AND PRICES ................................................................................................. 4
2.2. EXPORT AND IMPORT OF DAIRY PRODUCTS................................................................................ 5
2.2. EXPORTS ..................................................................................................................................... 6
2.2.1. Export values of milk and dairy products ...................................................................................... 8
2.3. IMPORTS ............................................................................................................................................ 15
2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY .............................................................................. 18
3. EMPOWERMENT PLANS BY THE INDUSTRY .................................................................................... 20
3.1. SUCCESSFUL VENTURES: COMMERCIALLY VIABLE ................................................................................. 20
3.2. TRAINING PROGRAMMES .................................................................................................................. 20
3.3. MAGAZINES ................................................................................................................................... 20
4. BARRIERS TO THE LEVEL OF PARTICIPATION BY THE EMERGING SECTOR .................................... 20
5. OPPORTUNITIES AND WEAKNESSES ............................................................................................. 21
6. MARKET INTELLIGENCE ................................................................................................................ 21
6.1. EXPORT TARIFFS .................................................................................................................................... 21
Product Code ....................................................................................................................................... 22
Trade Regime Description .................................................................................................................... 22
6.2. IMPORT TARIFFS ..................................................................................................................................... 25
7. COMPETITIVENESS OF THE DAIRY INDUSTRY ................................................................................ 34
7.1. EXPORTS .............................................................................................................................................. 34
7.1.1. Milk and cream (neither concentrated nor sweetened) ...................................................................... 34
7.1.2. Milk and cream, concentrated or sweetened .................................................................................... 40
7.1.3. Buttermilk and yoghurt ................................................................................................................... 46
7.1.4. Whey and other natural milk products ............................................................................................. 52
7.1.5. Butter and other fats and oils derived from milk ................................................................................ 58
7.1.6. Cheese and Curd .......................................................................................................................... 64
7.2. IMPORTS ....................................................................................................................................... 70
7.2.1. Milk and cream (neither concentrated nor sweetened) ...................................................................... 70
7.2.2. Milk and cream, concentrated or sweetened .................................................................................... 76
7.2.3. Buttermilk and yoghurt ................................................................................................................... 82
7.2.4. Whey and other natural milk products ............................................................................................. 88
7.2.5. Butter and other fats and oils derived from milk ................................................................................ 94
14.2.6. Cheese and Curd ...................................................................................................................... 100
8. ACKNOWLEDGEMENTS ............................................................................................................... 106
2
1. DESCRIPTION OF THE INDUSTRY
The contribution of milk production in South Africa makes approximately 0.5% to the world milk
production. There are four major dairy breeds in South Africa namely, Holstein, Jersey, Guernsey
and Ayrshire. The industry comprises of number of different economic activities and significant
differences exist between farming methods and processing of dairy products. These activities
involve the production and marketing of raw milk, pasteurized milk and cream, fermented milk,
long-life milk and cream, yoghurt, cheese and its by-product whey, milk powder, sweetened and
unsweetened concentrated milk, butter and butter oil (ghee).
Figure 1: Gross value of fresh milk production

16000
14000
12000
Million Rands
10000
8000
6000
4000
2000
0
2006/07 2007/08 2008/09 2009/10 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16
Years
Source: Statistics and Economic Analysis, DAFF
The gross value of production for milk is dependent on the quantity produced and prices received
by producers. Figure 1 indicates that the gross value of fresh milk has been moving at an
increasing rate and reached its new peak of R15 billion in 2014/15. However, in 2015/16 the gross
value experienced a decrease of 6% due to the drought experienced in 2015 to 2016. There is an
exponential increase of 136% during 2015/16 relative to 2006/07. The average gross value of milk
produced amounted to R10.4 billion for the past ten years.
1.1. Milk production areas
The coastal areas are more suitable for milk production because of mild temperatures as well as
good rainfall ensuring good quality natural and artificial pastures. The inland production areas are
generally climatically less favourable for milk production. Dairy farming in these areas necessitate
intensive and high cost feedlot production systems. Figure 2 shows contribution of provinces to
total milk production in South Africa in 2016.
1
Figure 2: Milk production per province 2016
Gauteng Mpumalanga Limpopo
North West 3% 1%
2%
5%
Free State
7% Western Cape
31%
KwaZulu-Natal
24%
Eastern Cape
28%
Northern Cape
0%
Source: MPO
The Western Cape contributed 31% of the total milk produced in South Africa followed by Eastern
Cape and KwaZulu–Natal with 28% and 24% respectively. This may be because the three
provinces are coastal areas. The Free State contributed 7%, North West 5%, Mpumalanga 3%;
Gauteng 2%; while the Northern Cape and Limpopo provinces shared less than 1%. It is clear from
the figure that the coastal arears contribute about 83% to the total milk production in the country.
This is the case due to the better pasturage amongst other reasons.
1.2. Production trends
South Africa produces some 2.8 million tons per annum over the period of ten years. Irrespective of
the number of producers exiting in milk production, milk production per annum shows a steady
linear upward trend over the period under analysis. However, there was a slight decrease of 0.2%
in 2015/16 from the previous year. The number of dairy cows has been fluctuating throughout the
period under review. The number of cows and milk production has increased by 28% and 23%
respectively from 2006/07 to 2015/16.
2
Figure 3: Milk production and number of cows
3500 1200
3000 1000
No. of cows '000

Thousand tons 2500
800
2000
600
1500
400
1000
500 200
0 0
Production Dairy of Cows '000
Source: Statistics and Economic Analysis, DAFF and LACTODATA
1.3. Employment
The South African dairy industry is important to the job market with over 1 961 milk producers
employing 60 000 farm workers and providing 40 000 people with indirect jobs within the value
chain like milk processing and milling industry.
2. MARKET STRUCTURE
The South African dairy market is divided into 60% liquid and 40% concentrated products.
Pasteurized liquid milk and UHT milk are the major liquid products, while hard and semi-hard
cheese is the major concentrated product. Different types in each category are shown in Figures 4
and 5.
Figure 4: Composition of milk products (Liquid) in 2016

Cream
1%
Other
8% Pasteurised Milk
Yoghurt 34%
Flavoured Milk 12%
2%
UHT
43%
Source: Milk SA, 2017
3
Figure 4 shows that UHT (long life) has the highest percentages of 43% followed by pasteurized
milk with 34%, yoghurt by 12%. Flavoured milk and cream commanded the lowest market share of
liquid milk with 2% and 1% respectively.
Figure 5: Composition of concentrated milk products 2016

FMP Butter
9% 13%
SMP
4% Whey Powder
9%
Buttermilk Powder
1%
Cheese Condensed Milk

57% 7%
Source: Milk SA, 2017
Concentrated milk products consist of 57%, cheese followed by Butter with 13%, FMP and Whey
powder at 9% each, and then condensed milk at 7%, SMP at 4% and Buttermilk powder with 1%.
2.1. DOMESTIC MARKET AND PRICES
Local milk consumption and prices are illustrated in Figure 6.
Figure 6: Consumption and price of fresh milk

2200 5,0
2100 4,0
Rands per Litre
Thousand tons
2000
3,0
1900
2,0
1800
1700 1,0
1600 0,0
Consumption Rands/litre
Source: Statistics and Economic Analysis, DAFF
4
Figure 6 indicates that milk price started low in 2006/07, and then started moving at slight
fluctuation rate from 2007/08 to 2011/12 which followed by an increasing trend up to year 2014/15.
During the period 2015/16 milk price experienced a 4% decline.
Consumption of milk has been fluctuating throughout the period under review and reached the new
peak of 2.1 million tons in 2014/15, followed by a slight decrease of 0.7% in 2015/16. Milk
consumption is driven by global population growth and growth in per capita consumption. Despite
the fluctuating trend, milk consumption has increased by 17% from 2006/07 to 2015/16.
2.2. EXPORT AND IMPORT OF DAIRY PRODUCTS
The most important producers of milk internationally are Asia, the European Union (EU), North
America and Central America. Milk production in South Africa makes a very small contribution
(0.5%) to the world production but in terms of the values of agricultural production in South Africa, it
is the sixth largest agricultural industry
Milk is produced much more cheaply in New Zealand and certain parts of the world than in South
Africa. Imported milk from the EU and US is cheaper than in South Africa because of subsidies in
these countries. Dairy companies in those countries are paid a guaranteed floor price for
designated quantities of dairy products. Dairy companies in both countries are given a subsidy to
bridge the gap between the supported domestic price and world market price. In the EU, dairy
farmers are paid subsidies for the use of certain inputs. The annual imports and exports of dairy
products of South Africa from 2007 to 2016 are shown in Figure 8.
Figure 8: Imports and exports quantity of milk and dairy

products
700
600
Million kilograms
500
400
300
200
100
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Export Import
Source: Quantec EasyData
Figure 8 showed that South Africa was a net importer in 2007 and became a net exporter of milk
and dairy products during the periods 2008 to 2016 . The increase in exports from 2010 to 2012
was due to the attractive international price of milk, which encouraged more exports. Despite fact
that South Africa is a net exporter, the trends show that from 2013 to 2016 the exports are slightly
decreasing while the imports are increasing from 2013 to 2015.
5
2.2. EXPORTS
The dairy industry is an important earner of foreign exchange. In 2014 only, exports of dairy
products amounted to 175 411 tons valued at over R 2, 7 billion. There was a significant increase
in quantity and value of milk and dairy products exported to the world in 2016 compared to 2007.
Figure 9 below shows the exports of dairy products from 2007 to 2016.
Figure 9: Exports of milk and dairy products

700 3000
600 2500
500
Thousand tons
Million Rands
2000
400
1500
300
1000
200
100 500
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Quantity Value
From Figure 9 above, exports quantity fluctuated throughout the period under analysis. Exports of
milk and dairy products experienced the lowest exports during the periods 2007 to 2009 before
increasing substantially in 2010 to 2012 and shown decreasing trend during the following years.
The decrease in quantity experienced in 2009 was due to the low production in the local market.
Exports of dairy product trend shows that it was profitable to export during the period under
analysis except in 2012 as high quantity was exported at a lower value.
6
Figure 10: South african milk and dairy products destination in
Tanzania 2016
2% Zambia Zambia Others
2% 1% 0%
Angola
3%
Zimbabwe
4%
Lesotho
Botswana
11%
41%
Swaziland
11%
Namibia
12% Mozambique
13%
Figure 10 shows that during 2016 Botswana commanded the greatest market share of South
African milk and dairy products exports accounting for 41% followed by Mozambique with 13% and
Namibia 12%, Swaziland and Lesotho with 11% each. The rest of the countries shared remaining
12%. Noteworthy is the fact that most of the South African export market of dairy is SADC
countries.
7
Figure 11: Quantities of milk and dairy products exports by South
Africa
450000000
400000000
350000000
300000000
Kilograms
250000000
200000000
150000000
100000000
50000000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Milk and cream, not concentrated nor sweetened

Milk and cream, concentrated or sweetened
Buttermilk, curdled milk and cream, yoghurt
Whey
Butter and other fats and oils
Cheese and curd
Figure 11 shows the quantities of milk and dairy products exports by South Africa. In total, the milk
and cream (concentrated or sweetened) dominated the export market of milk and dairy products
and commanded the total highest export share of 40%. Milk and cream, not concentrated nor
sweetened commanded the second greatest share of 36% followed by buttermilk with 15.6%
during 2007 to 2016. Whey commanded the lowest export quantities with a share of 2% during the
past decade.
2.2.1. Export values of milk and dairy products
Figures 12 – 21 shows the export of milk and dairy products from Provinces and District
Municipalities.
8
Figure 12: Value of milk and dairy products from provinces
2500000
Thousand Rand 2000000
1500000
1000000
500000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Western Cape 63416 101264138006 97622 75848 102163135389318890678893775792
Eastern Cape 2 0 0 0 0 88 97 4 97 929
Northern Cape 0 0 0 0 0 0 0 1 100 36
Free State 0 0 1665 1646 2406 10155 6632 21896 87313 115723
KwaZulu-Natal 4272 15249 12338 16264 12911 20490 56483 65380 95219 69449
North West 298 391 796 129 0 11 19 577 1518 566
Gauteng 139554269902380244133227143795170034208107217732157200153967
Mpumalanga 14042 11118 3315 10803 24802 50541 99740 113438107178 66808
Limpopo 1875 4526 1182 11402 13305 17438 27330 9799 7672 11962
Figure 12 illustrates that Gauteng Province played a major role in the exports of milk and dairy
products from 2007 to 2016 with a peak value of R2.2 billion in 2014. This may be due to the fact
that Gauteng is the main exit point to the SADC region as most of these exports were destined to
SADC region. Western Cape Province commanded the second highest of milk and dairy products
exports throughout the period under review.
On average, Gauteng commanded R1.26 billion followed at a distance by Western Cape with R248
million, then Mpumalanga and KwaZulu-Natal Provinces which commanded R50 million and R36.8
million respectively. The lowest value of milk and dairy products were recorded in Eastern Cape
and Northern Cape provinces with R 122 000 and R14 000 respectively. Eastern Cape, Northern
Cape and North West recorded fractional exports from 2007 to 2016.
9
Figure 13: Values of milk and dairy products exported from the
Western Cape Province
600000
Thousand Rands 500000
400000
300000
200000
100000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
City of Cape Town 42989 63148 81853 47236 36239 44710 53632 87353 111313165457
West Coast 457 464 1017 0 300 0 0 1080 4264 4689
Cape Winelands 19659 37516 54267 47450 38194 52725 74611 211756524319538073
Overberg 0 0 0 0 0 0 0 111 76 75
Eden 311 71 815 1835 159 625 5508 9093 29506 57289
central Karoo 0 65 54 1101 956 4103 1637 9498 9415 10209
In Western Cape Province, Cape Winelands District Municipality and City of Cape Town
Metropolitan Municipality played an important role in the export of milk and dairy products
throughout the period under analysis. Fractional exports were recorded from West Coast, Central
Karoo and Overberg District Municipalities. There was a drastic increase of export value of milk
and dairy products from Cape Winelands, which accounted for an export share of 77% in 2015 and
69% in 2016.
Figure 14: Value of milk and dairy products exported from the
Eastern Cape Province
80000
70000
Thousand Rands
60000
50000
40000
30000
20000
10000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Cacadu 8002 14982 19619 9552 16815 30547 37014 53744 75270 63626
Joe Gqabi 0 0 0 0 0 0 0 175 102 0
Alfred Nzo 0 0 0 0 0 0 0 133 204 99
Nelson Mandela Bay 4 1451 0 263 297 0 0 11705 57969 74970
Buffalo City 333 0 0 5 0 0 0 0 8 543
10
In Eastern Cape Province, high milk and dairy products exports values have been recorded from
Cacadu District Municipality, which commanded the highest values from 2007 to 2015. Cacadu has
decreased its exports in 2016 by 15%. Nelson Mandela Metropolitan Municipality has upped its
exports and took over the highest position in 2016 with export share of 54%. Irregular exports of
milk and dairy products were recorded in the Nelson Mandela Bay Metropolitan Municipality, Joe
Gqabi, Alfred Nzo and Buffalo City District Municipalities.
Figure 15: Value of milk and dairy products exported from Free
State Province
70000
60000
Thousand rands
50000
40000
30000
20000
10000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Xhariep 0 0 0 0 0 3073 5882 352 320 140
Lejweleputswa 0 0 0 0 0 1 174 3031 12182 33371
Thabo Mofutsanyane 0 0 0 19 33 104 345 3064 17633 18632
Fezile Dabi 0 0 1665 365 0 0 1 3185 11171 4870
Mangaung 0 0 0 1262 2372 6978 230 12264 46008 58711
Intermittent values were recorded from Free State Province in all District Municipalities (Xhariep,
Thabo Mofutsanyane, Fezile Dabi, Lejweleputswa and Mangaung). Mangaung District Municipality
recorded a highest value of R58.7 million in 2016 and Lejweleputswa recorded the second highest
values of R33 million in 2016. These accounted for 51% and 29% respectively. There were no
records of exports from Free State Province during 2007 and 2008.
11
Figure 16: Value of milk and dairy products exported from KwaZulu-
Natal Province
70000
Thousand Rand
60000
50000
40000
30000
20000
10000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Ugu 0 0 63 1 0 0 0 0 0 0
UMgungundlovu 5 0 10 0 50 126 11 11590 31060 26491
Uthukela 0 0 0 0 0 0 0 13 4 18
Zululand 0 0 0 0 0 0 0 2 0 1
Uthungulu 0 0 0 14 0 0 0 17 11 0
iLembe 0 994 786 122 0 0 0 2 51 0
Sisonke 0 0 0 0 0 0 0 0 39 0
eThekwini 4268 14255 11479 16127 12861 20364 56472 53756 64054 42938
Source: Quantec Easy data
In KwaZulu-Natal Province, high milk and dairy products export values have been recorded at
eThekwini Metropolitan Municipality throughout the period of analysis. Other District Municipalities
(Ugu, UMgungundlovu, UThukela, Zululand, UThungulu, Sisonke and iLembe) recorded
intermittent exports of milk and dairy products during the past decade. Milk and dairy products
export values from eThekwini peaked in 2015 with a record of R 64 million. EThekwini has
recorded an export share of over 90% from 2007 to 2013. From 2014 to 2016, Umgungundlovu
recorded higher values of exports, which accounted for 18%, 33% and 38% respectively.
Figure 17: Value of milk and dairy products exported by North West
Province
1200
1000
Thousand Rand
800
600
400
200
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Bojanala 0 0 0 129 0 11 0 443 54 234
Ngaka Modiri Molema 298 0 0 0 0 0 0 131 394 329
Dr Ruth Segomotsi Mompati 0 0 0 0 0 0 0 0 4 1
Dr Kenneth Kaunda 0 391 796 1 0 0 19 3 1066 2
12
Intermittent values were recorded in North West Province from all District Municipalities (Bojanala,
Ngaka Modiri Molema, Dr Ruth Segomotsi Mompati and Dr. Kenneth Kaunda). Dr. Kenneth
Kaunda District Municipality recorded a sharp increase of R796 thousand in 2009 and decreased
substantially in 2010 before experiencing an increase in 2013 and decreasing again in 2014. The
district reached peak in 2015. In total, Dr Kenneth Kaunda has recorded 53% of exports followed
by Ngaka Modiri Molema and Bojanala with 26% and 20% respectively. Lastly, Dr Ruth Segomotsi
Mompati recorded the lowest exports share of less than 1% for the past decade.
Figure 18: Value of milk and dairy products exported from Gauteng
province
2500000
2000000
Thousand Rands
1500000
1000000
500000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Sedibeng 1 1 11 14 51 19 32 554 125 325
West Rand 476 434 1704 39 182 279 416 1991 3733 360
Ekurhuleni 13665 22520 45029 32555 57583 87418 115068 168000 271752 266041
City of Johannesburg 123145 241863 307739 123607 129805 157424 194109 196916 120761 115131
City of Tshwane 2267 5084 25761 63591 82077 38380 24472 37611 88786 121640
In Gauteng Province, high milk and dairy products export values have been recorded for the past
ten years at the City of Johannesburg Metropolitan Municipality with the new peak in 2014 valued
at approximately R2 billion. However, the milk and dairy products export values decreased by 38%
in 2015 and 5% in 2016. Ekurhuleni District Municipality commanded the second level following
City of Johannesburg at a distance. Sedibeng, West Rand, Ekurhuleni, City of Johannesburg and
City of Tshwane recorded regular exports of milk and dairy products. City of Johannesburg
Metropolitan Municipality has recorded export share of over 90% from 2010 to 2016.
13
Figure 19: Value of milk and dairy products exported from
Mpumalanga Province
120000
thousand rands 100000
80000
60000
40000
20000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Gert Sibande 120 0 552 1 0 286 146 5613 16230 5550
Nkangala 0 0 1 13 0 0 0 1 6 122
Ehlanzeni 13922 11118 2762 10790 24801 50255 99594 107824 90942 61136
In Mpumalanga Province, outstanding export values of milk and dairy products were recorded at
Ehlanzeni District Municipality, which recorded exports regularly during the past decade. Irregular
exports of milk and dairy products were recorded from Gert Sibande and Nkangala District
Municipalities. Ehlanzeni District Municipality has reached its peak in 2014 with a record of R107
million, and then showed a decreasing trend in 2015 to 2016.
Figure 20: Value of milk and dairy products exported from Limpopo
Province
30000
25000
Thousand rands
20000
15000
10000
5000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Vhembe 1766 4522 1122 7952 10958 15993 25408 7541 5463 10666
Capricorn 109 3 55 3447 2343 1443 1914 1278 246 545
Waterberg 0 0 0 0 0 0 7 980 1963 750
Greater Sekhukhune 0 1 5 3 4 2 0 0 0 0
Limpopo Province recorded minimal exports of milk and dairy products during 2007 to 2009.
Vhembe and Capricorn District Municipalities recorded exports regularly. Vhembe recorded the
highest exports for the entire decade. Waterberg and Greater Sekhukhune District Municipalities
have recorded intermittent exports. Waterberg District Municipality reached a peak in milk and
dairy products export values and became second highest exporter in 2015, accounting for 26%
share.
14
Figure 21: Value of milk and dairy products exported from
Northern Cape Province
90000
80000
70000
60000
Rands
50000
40000
30000
20000
10000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Namakwa 0 0 0 0 0 40 0 0 14578 22805
Siyanda 0 0 0 0 0 0 0 1307 85621 12974
Source:
Quantec EasyData
Northern Cape Province has not been recording any exports from 2007 to 2011 and in 2013. The
Province attained its peak in 2015 through Siyanda District Municipality with an export share of
85%. However, in 2016, the Municipality dropped significantly and then Namakwa took a lead with
an export share of 64%.
2.3. IMPORTS
South Africa is an importer of dairy products. The average import quantity and value over the past
ten years amounted to 45 347 tons at a value of R1.2 billion over the past 10 years. Figure 22
presents the imports of milk and dairy products from 2007 to 2016.
Figure 22: South Africa imports of milk and dairy products

80 2000
70 1800
1600
60
1400
Thousand tons
Million Rands
50 1200
40 1000
30 800
600
20
400
10 200
0 0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Quantity Value
Source: Quantec Easydata
15
Figure 22 above shows that imports of milk and dairy products fluctuated in both quantity and value
throughout the period under analysis. The import quantity of milk and dairy products reached the
new peak of over 70 454 tons and the value reached a new peak of over R1.8 billion in 2015. The
quantity and value dropped significantly in 2013 and remained constant throughout 2014. This
might be due to the weaker South African Rand. In 2016, both import quantity and value have
declined by 18% and 6%.
Figure 23 below shows the different types of milk and dairy products imported from 2007 to 2016 in
terms of quantity.
Figure 23: Quantities of milk and dairy products imported by South

Africa
30000000
25000000
20000000
Kilograms
15000000
10000000
5000000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Milk and cream, not concentrated nor sweetened Milk and cream, concentrated or sweetened
Buttermilk, curdled milk and cream, yoghurt, kephir Whey
Butter and other fats and oils Cheese and curd
Figure 23 shows that milk and cream (concentrated or sweetened), whey and milk and cream (not
concentrated nor sweetened) were among the most imported dairy products in South Africa during
the period under analysis. Milk and cream (concentrated or sweetened) commanded the greatest
quantities of the import market in 2007. Milk and cream (not concentrated and sweetened)
dominated the imports market from 2008 to 2010, 2012, 2015 and 2016 whereas whey recorded
the highest quantities imported during 2011 and 2014. Buttermilk, curdled milk and Butter and
other fats and oils contributed lower to the exports of milk and dairy products for the entire period of
analysis.
Figure 24 below shows the different types of milk and dairy products imported from 2007 to 2016 in
terms of value.
16
Figure 24: Value of milk and dairy products imported by South
Africa
800000000
700000000
600000000
500000000
Rand
400000000
300000000
200000000
100000000
0
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Milk and cream, not concentrated nor sweetened Milk and cream, concentrated or sweetened
Buttermilk, curdled milk and cream Whey
Butter and other fats and oils Cheese and curd
Source: Quantec Easydata
Figure 24 above indicate that cheese and curd, milk and cream (concentrated or sweetened) and
whey commanded the greatest share of milk and dairy products imported by South Africa during
the past decade. On average cheese and curd and milk and cream (concentrated or sweetened)
commanded a share of R418 million and R 285 million per annum respectively. Followed by whey
with R 218 million, butter, other fats and oils at R121 million. Milk and cream not concentrated nor
sweetened at R83 million, and Buttermilk R49 million.
Figure 25 shows the origin of milk and dairy products imported to South Africa in 2016.
17
Figure 25: Countries of origin for milk and dairy products imported
by South Africa during 2016
Belgium
3%
Netherlands Other
3% 11% Poland
Ireland 23%
5%
Germany
7%
France
United Kingdom 17%
8% Uruguay New
10% Zealand
13%
Source: Trade map
Figure 25 above shows that the main supplier of milk and dairy products to South Africa in 2016
was Poland which had an import market share of 23%, followed by France which exported 17%,
then New Zealand with 13%, and Uruguay with 10% of milk and dairy products to South Africa.
Plenty of countries exported minimal amounts of milk and dairy products to South African in 2016.
2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY
Milk production in South Africa is mainly by two sectors; commercial producers, and small and
medium size producers (see Figure 26). Commercial producers sell milk to dairy processors. Small
and medium size producers sell most of their milk directly to consumers and some to processors.
Dairy processors buy milk from farmers and import milk concentrates and produces dairy products
for primary distribution to retailers, exports and for further processing.
18
Figure 26: Marketing Channels.
Exports
Dairy
Commercial Bulk Dairy Products
Dairy farms collection Processors (Cheese,
Butter, etc.) Primary
Small and Distribution
Medium Dairy
Farms
Retailers
Imports Small and Consumers
informal
Secondary trade
dairy Institutions
products
19
3. EMPOWERMENT PLANS BY THE INDUSTRY
The following is a list of ventures/projects/programmes. Media releases were arranged for the dairy industry.
The MPO, in conjunction with the provincial departments and municipalities and other relevant stakeholders
were responsible for these empowerment plans.
3.1. Successful ventures: Commercially viable
Fort Hare Dairy Trust outside Alice in Eastern Cape started in 2004 and the first cow was milked in October
2007. The trust started between a partnership between 70 white farmers from the Tsitsikamma and the
Underberg area – through their company Amandlelo Agri and University of Fort Hare. The University donated
land and the cost of the project was R22 million (R2 million donated by University, R5 million by Amandlelo
and 15 million by Land Bank of which 7.5 million is loan). The farmers signed on an empowerment company
Vuwa Investments which was given 35% stake in the company. The farmers kept 49 % and the rest was
shared among 600 workers from the 70 dairy farms. Today Fort Hare Dairy Trust is a state-of-the-art
commercial dairy farm. It has 800 cow rotary parlour that produces approximately 10 000 litres of milk a day
much of which is supplied to Clover milk company. The farm that requires 600 tons of maize is sourced from
farmers in the Alice area. Every year Amandlelo takes between 10 and 15 black interns. Some of them are
sent to Fort Hare Dairy Trust. Farmers are rewarded with cattle as they pass through different stages. This
will enable them to start their own full time dairy farming (Pretoria News, 17 June 2009).
3.2. Training Programmes
 Agri SETA accredited farm worker training.

 Agri SETA accredited emerging farmer training.
 Workers training funded by MILK SA.
 Training of Extension officers of Department of Agriculture in North West Province and Free State.
3.3. Magazines
Ubisi Mail and Dairy Mail are distributed free of charge to emerging farmers.
4. BARRIERS TO THE LEVEL OF PARTICIPATION BY THE EMERGING SECTOR
 The low profitability of milk production is the major barrier to entry for the emerging farmers.
 Access to credit facilities and financial package specially structured to their needs also plays a role.
 The volatility of the market and the effect of imports in depressing producer prices make it difficult for
the emerging farmers to enter the industry.
 The dynamics of pricing in the dairy industry as well as the shelf life of the products is such that the
farmers are squeezed to accept whatever price that the producers/processors offer them to dispose of
their products.
 The market is dominated by 4 major processors in the milk industry making it extremely difficult for the
emerging farmers to make inroads in the dairy processing industry.
 They lack the necessary capital to invest in dairy equipment. The volume of milk produced may not be
sufficient to invest in capital equipment. To form a cooperative would assist in increasing the volume
through the collection of milk from several small farms. However the infrastructure and the
20
underdeveloped roads and the great distances between farms could be inhibiting factors to go this
route.
 Smaller processors tend to pay higher raw milk prices than the larger processors during periods of
seasonal milk shortages because they lack the bargaining power that the larger processors have.
During periods of surpluses, the large producers dump their products in the retail sector at very low
prices making it difficult for the small processors to compete.
 The big players in the market have facilities to convert raw milk into milk powder, butter, cheese or
long-life milk, which can be stored for longer periods of time. This facility is capital intensive and for the
volumes of raw milk produced by the emerging farmers, it is not really worth it in the long term.
 The farmers/producers lack the expertise, equipment to pasteurize milk. Transport and the quantity are
major deterrents for small farmers to get their products to the big processors. The big
processors/buyers find it not worth the effort to access these farmers due to the road infrastructure and
small inconsistent and small volumes of milk produced.
5. OPPORTUNITIES AND WEAKNESSES
Success in the dairy market depends on two factors namely: quality products and the support of processors.
Successful advertising, exports and the development of new products are also important.
Some consumers like to buy fresh milk direct from producers because the origin of the milk is known. A
strong relationship can be built between producer/s and consumers.
Producers can sell direct to small cafes and street vendors shortening the value chain cutting out some
transaction costs resulting in an increase in profits. This channel will require higher capital and involves more
risks. A sound relationship needs to be in place between the sellers and the buyers.
Since deregulation, the number of smaller milk producers has increased dramatically and processors are
willing to receive milk from the smaller producers. However, this supply channel will require high-level control
measures on hygiene and the producer has to comply with the required standards.
High demand of value added products such as sour milk, yoghurt and cheese can be a market to be
explored. However to go this route would require high investment, market knowledge and the necessary
training.
Packaging to promote brand identification can open an opportunity but this would require market research
and knowledge, training and investment.
6. MARKET INTELLIGENCE
6.1. Export Tariffs
Tariffs that different importing countries applied to milk and dairy products originating from South Africa in
2015 and 2016 are shown in Tables 1 to 6 below.
21
Table 1: Milk and cream (neither concentrated nor sweetened)
Country Product Trade 2015 2016
Code Regime Applied Total Ad Applied Total Ad
Description Tariffs valorem Tariffs valorem
Equivalent Equivalent
Tariff Tariff
(estimated) (estimated)
Botswana; Lesotho; 04011007; Intra SACU 0% 0% 0% 0%
Swaziland & 04011009; rate
Namibia 04011090;
04011000; Preferential 15% 15% 0% 0%
Mozambique
04012090 tariff for SA
04011000: Preferential 0% 0% 0% 0%
Zimbabwe 04012000; tariff for
04013000 South Africa
Source: Market Access Map
Botswana, Lesotho, Swaziland and Namibia allowed the importation of milk and cream (not concentrated or
sweetened) from South Africa duty free during 2015 and 2016 using the Intra SACU rate. The protected
market existed in Mozambique which applied the 15% of preferential tariff for South Africa. However, in 2016
and in 2016, the tariff decreased to 0%. Zimbabwe provided South Africa with 0% preferential tariff during
2015 and 2016.
Table 2: Milk and cream (concentrated or sweetened)

Country Product Trade Regime 2015 2016
code Description Applied Total Ad Applied Total Ad
Tariffs valorem Tariffs valorem
Tariff Tariff
Mozambique 04021010, MFN Duties 0% 0% 0% 0%
04022110
04021090, Preferential tariff for 15% 15% 0% 0%
04029100, South Africa
04029990,
04029910, 0
4022900 &
04022190
04022120 Preferential tariff for 0% 0% 0% 0%
South Africa
Zimbabwe 04021010 Preferential tariff 0% 0% 0% 0%
04022110 & (SADC) for South
04022910 Africa
Botswana; 04021010 Intra SACU rate 0% 0% 0% 0%
Swaziland; Namibia 04021090
& Lesotho 04022110 Intra SACU rate 0% 0% 0% 0%
04022190
04022900
22
Mozambique has applied MFN duties of 0% for HS codes 04021010 and 04022110 for period 2015 and
2016. Preferential tariff for South Africa was applied at 15% in 2015 and 0% in 2016 on the selected HS
codes products in Table 2 above. Zambia applied a preferential tariff (SADC) for South Africa of 0% for
exports of milk and cream (concentrated or sweetened) from South Africa during 2015 and 2016. Botswana,
Swaziland, Namibia and Lesotho have applied an Intra SACU rate of 0% for the mentioned HS codes
products in the table above in 2015 and 2016.
Table 3: Buttermilk, cream, yoghurt, etc.

Country Product Code Trade Regime 2015 2016
Description Applied Total Ad Applied Total Ad
Tariff Tariff
Angola 04031000 & MFN duties 10% 10% 10% 10%
04039000
04031000 Preferential 15% 15% 0% 0%
tariff for South
Africa
Mozambique
Preferential 0% 0% 0% 0%
04039000 tariff for South
Africa
Botswana; 04031000; Intra SACU 0% 0% 0% 0%
Lesotho; 04039010; rate
Namibia & 04039020 &
Swaziland 04039030
South African exports of buttermilk, cream and yoghurt to Angola received 10% MFN duties rate during 2015
and 2016 respectively. Mozambique has charged South Africa a preferential tariff of 15% in 2015 and 0% in
2016 for 04031000 and 0% for HS code 04039000 products in 2015 and 2016. Botswana, Lesotho, Namibia
and Swaziland applied the Intra SACU rate of 0% to buttermilk, curdled milk, cream and yoghurt originating
from South Africa in 2015 and 2016.
Table 4: Whey and natural milk products

Tariff Tariff
Japan 040410111; MFN duties 35% 35% 35% 35%
040410119 MFN duties 25% 25% 25% 25%
Zimbabwe 04041000 & Preferential tariff (SADC) 0% 0% 0% 0%
04049000 for SA
04041000 & Preferential tariff for SA 0% 0% 0% 0%
Zambia
04049000
23
Tariff Tariff
Namibia; 04041000; Intra SACU rate 0% 0% 0% 0%
Botswana & 04049010 &
Lesotho 04049090
Japan has applied the highest tariff of whey and natural milk products originating from South Africa, 35% for
040410111 and 25% for 040410119. Zimbabwe allowed importation of whey from South Africa charging
South Africa 0% tariff for SADC countries.in 2015 and 2016. Zambia applied a preferential tariff for South
Africa of 0% in 2015 and 2016. Namibia, Botswana and Lesotho have applied an Intra SACU rate of 0% for
whey and natural milk product originating from South Africa in 2015 and 2016.
Table 5: Butter and other fats and oils derived from milk
Tariff Tariff
Namibia, 04051000, Intra SACU rate 0% 0% 0% 0%
Botswana and 04052000,
Lesotho 04059000
Mozambique 04051000, Preferential tariff for SA 0% 0% 0% 0%
04052000,
04059090
04059010 Preferential tariff for SA 0% 0% 0% 0%
Mauritius 04051000,
04052000 & MFN duties (Applied) 0% 0% 0% 0%
04059000
04051000, MFN duties (Applied) 40.00% 40.00% 40.00% 40.00%

Zimbabwe 04052000 &
04059000
Namibia, Lesotho and Botswana apply Intra SACU rate of 0% for butter and other fats and oils derived from
milk originating from South Africa. Mozambique has charged South Africa a 0% preferential tariff of the
selected product in Table 14 above. Mauritius has charged South Africa 0% MFN duties on butter and other
fats and oils derived from milk exported to them in 2015 and 2016. The most protected market exists in
Zimbabwe with applied MFN duties of 40% during 2015 and 2016.
24
Table 6: Cheese and curd
Country Product code Trade 2015 2016
Regime Applied Total Ad Applied Total Ad
Description Tariffs valorem Tariffs valorem
Tariff Tariff
Namibia, 04061000; 04062000; Intra SACU 0% 0% 0% 0%
Swaziland & 04063000; 04064000 rate
Botswana & 04069000
04061000; 04062000; Preferential 15% 15% 0% 0%

Mozambique
04063000& 04064000 tariff for SA
04061000; 04062000; Preferential 0% 0% 0% 0%
Zambia 04063000; 04064000 tariff for SA
& 04069000
04061000; 04062000; MFN duties 40% 40% 40% 40%
Zimbabwe 04063000; 04064000 (Applied)
& 04069000
Namibia, Botswana and Swaziland applied an Intra SACU rate of 0% for cheese and curd originating from
South Africa in 2015 and 2016. Mozambique applied a preferential tariff of 15% in 2015 and 0% in 2016 to
South Africa. Zambia applied a preferential tariff of 0% to South African cheese and curd during 2015 and
2016. Zimbabwe was the most protected market for South African exports of cheese and curd with the MFN
duties of 40% during 2015 and 2016.
6.2. Import tariffs
Tables 7 to 12 below present the tariff structure applied by South Africa to imports of milk and dairy products
originating from presented trade agreements in 2017.
Table 7: Milk and cream, neither concentrated nor sweetened

Rate of Duty
Article Description Statistical General EU EFTA SADC MERCOSUR
unit
04.01 Milk and cream, not concentrated nor containing added sugar or other sweetening
matter:
0401.10 Of a fat content, by mass, not exceeding 1 per cent:
25
0401.10.07 Ultra high temperature (UHT) Kg free free free free free
or "long life" milk in
containers holding 1 li or less,
whether or not containing
added minerals, vitamins,
enzymes and similar additives
solely for the purpose of
increasing the nutritional
value and provided these
additives do not exceed 1 per
cent by volume of the final
product
0401.10.09 Other milk, whether or not Kg free free free free free
containing added minerals,
vitamins, enzymes and similar
additives solely for the
purpose of increasing the
nutritional value and
provided these additives do
not exceed 1 per cent by
volume of the final product
0401.10.90 Other Kg free free free free free
0401.20 Of a fat content, by mass, exceeding 1 per cent but not exceeding 6 per cent:
product
0401.40 Of a fat content, by weight exceeding 6 per cent but not exceeding 10 per cent:
26
product
0401.50 Of a fat content by weight, exceeding 10 per cent:
product
Source: SARS, 2017
27
Table 7 above indicates the sub products of milk and cream, not concentrated nor containing added sugar or
other sweetening matter, and their rates of duty applied by South Africa. It is clear from the table that, within
the presented trade agreements (EU, EFTA, SADC and MERCOSUR) and all other countries bringing the
said products into South Africa, imports enter South Africa free of charge. In this case, there is no quota
allocated for these products.
Table 8: Milk and cream, concentrated or sweetened

Rate of Duty
Article Statistical MERCOSU
Description unit General EU EFTA SADC R
04.02
Milk and cream, concentrated or containing added sugar or other sweetening matter:
0402.10 In powder, granules or other solid forms, of a fat content, by mass, not exceeding 1,5 per
cent:
0402.10.10 Not flavoured and Kg 450c/kg 450c/kg 450c/kg free 450c/kg
not containing with a with a with a with a
added sugar or maximum maximum maximum maximum
other sweetening of 96% of 96% of 96% of 96%
matter
0402.10.90 Other Kg 450c/kg 450c/kg 450c/kg free 450c/kg
with a with a with a with a
maximum maximum maximum maximum
of 96% of 96% of 96% of 96%
0402.2 In powder, granules or other solid forms, of a fat content, by mass, exceeding 1,5 per cent:
0402.21 Not containing added sugar or other sweetening matter:
0402.10.10 Not flavoured Kg 450c/kg 450c/kg 450c/kg free 450c/kg
of 96% of 96% of 96% of 96%
of 96% of 96% of 96% of 96%
0402.29 Other Kg 450c/kg 450c/kg 450c/kg free 450c/kg
of 96% of 96% of 96% of 96%
0402.9 Other:
0402.91 Not containing Kg 450c/kg 450c/kg 450c/kg free 450c/kg
added sugar or with a with a with a with a
other sweetening maximum maximum maximum maximum
matter of 96% of 96% of 96% of 96%
0402.99 Other:
28
0402.99.10 In aerosol Kg 450c/kg 450c/kg 450c/kg free 450c/kg
containers with a with a with a with a
of 96% of 96% of 96% of 96%
of 96% of 96% of 96% of 96%
Source: SARS, 2017
Table 8 above indicate the tariff duties applied to trade agreement members of EU, EFTA, SADC,
MERCOSUR and General members on sub products of milk and cream, concentrated or containing added
sugar or other sweetening matter. South Africa applied tariff of R4.50c/kg with a maximum of 96% to trade
agreements (EU, EFTA, MERCOSUR and General member of WTO) and duty free for SADC members. The
total annual quota allocated for these products is 4 470 tons for a rebate of 19.2%.
Table 9: Buttermilk, cream, yoghurt, etc.
Rate of Duty
Statistical
Article Description unit General EU EFTA SADC MERCOSUR
04.03 Buttermilk, curdled milk and cream, yoghurt, kephir and other fermented or acidified milk
and cream, whether or not concentrated or containing added sugar or other sweetening
matter or flavoured or containing added fruit, nuts or cocoa:
0403.10 Yoghurt kg free free free free free

0403.90 Other:
0403.90.10 Flavoured or kg 450c/kg free free free 450c/kg
containing fruits, nuts with a with a
or cocoa maximum maximum of
of 96% 96%
0403.90.20 Cultured milk, not kg 450c/kg free 450c/kg free 450c/kg
concentrated or with a with a with a
containing any sugar maximum maximum maximum of
or other sweetening of 96% of 96% 96%
matter, unflavoured
and not containing
any fruits, nuts or
cocoa (excluding
buttermilk)
0403.90.90 Other: kg 450c/kg free 450c/kg free 450c/kg
with a with a with a
maximum maximum maximum of
of 96% of 96% 96%
Source: SARS, 2017
29
Table 9 above indicate the tariff duties applied to trade agreement members of EU, EFTA, SADC,
MERCOSUR and General members on sub products of Buttermilk, curdled milk and cream, yoghurt, kephir
and other fermented or acidified milk and cream, whether or not concentrated or containing added sugar or
other sweetening matter or flavoured or containing added fruit, nuts or cocoa. South Africa applied duty free
for all countries on HS product 0403.10. On HS product 0403.90.10, the EU, EFTA and SADC received a
duty free and MERCOSUR and General Members received R4.50c/kg with a maximum of 96%. Lastly, for HS
products HS 0403.90.20 and HS 0403.90.90, EFTA, MERCOSUR and General Members received a rate of
duty of R4.50c/kg with a maximum of 96% and EU and SADC received duty free. The total annual quota
allocated for these products is 213 tons with a rebate of 19.2%.
Table 10: Whey and other natural milk products
Rate of Duty
Article Statistical
Description unit General EU EFTA SADC MERCOSUR
04.04 Whey, whether or not concentrated or containing added sugar or other sweetening
matter; products consisting of natural milk constituents, whether or not containing added
sugar or other sweetening matter, not elsewhere specified or included:
0404.10 Whey and

modified Whey,
whether or not
concentrated or
containing
added sugar or 450c/kg 450c/kg 450c/kg 450c/kg
other with a with a with a with a
sweetening maximum maximum maximum maximum of
matter kg of 96% of 96% of 96% free 96%
0404.90 Other
Dairy powder
blends,
containing at
least 30%
(m/m) milk 450c/kg 450c/kg 450c/kg 450c/kg
protein with a with a with a with a
calculated on a maximum maximum maximum maximum of
0404.90.10 fat-free basis kg of 96% of 96% of 96% free 96%
450c/kg 450c/kg 450c/kg 450c/kg
maximum maximum maximum maximum of
0404.90.90 Other kg of 96% of 96% of 96% free 96%
Source: SARS, 2017
The tariff duties applied to trade agreement members of EU, EFTA, SADC, MERCOSUR and General
members on sub products of whey, whether or not concentrated or containing added sugar or other
sweetening matter; products consisting of natural milk constituents, whether or not containing added sugar or
other sweetening matter, not elsewhere specified or included are presented in Table 10 above. South Africa
30
applied tariff of R4.50c/kg with a maximum of 96% to trade agreements (EU, EFTA, MERCOSUR and
General members) and free trade for SADC members. The total annual quota allocated for these products is
2 786 tons with a rebate of 19.2%.
Table 11: Butter and other fats and oils derived from milk
Rate of Duty
Article Statistical
Description unit General EU EFTA SADC MERCOSUR
0405 Butter and other fats and oils derived from milk; dairy spreads:
0405.10.10 In immediate kg 500c/kg 500c/kg 500c/kg free 500c/kg
packaging of a with a with a with a with a
content of 20 maximum maximum maximum maximum of
kg or more of 79% of 79% of 79% 79%
0405.10.90 Other kg 500c/kg 500c/kg 500c/kg free 500c/kg
of 79% of 79% of 79% 79%
0405.20 Dairy spreads kg 500c/kg 500c/kg 500c/kg free 500c/kg

of 79% of 79% of 79% 79%
0405.90 Other kg 500c/kg 500c/kg 500c/kg free 500c/kg
of 79% of 79% of 79% 79%
Source: SARS, 2017
members on sub products of Butter and other fats and oils derived from milk; dairy spreads are presented on
table 11 above. South Africa applied tariff of R5/kg with a maximum of 79% to trade agreements (EU, EFTA,
MERCOSUR and General member) and duty free for SADC members. The total annual quota allocated for
these products is 1 167 tons for a rebate of 15.8%.
Table 12: Cheese and curd

Rate of Duty
Statistica SAD MERCOSU
Article Description l unit General EU EFTA C R
04.06 Cheese and curd:
Fresh (unripened or 500c/kg
500c/kg 500c/kg 500c/kg
uncured) cheese, with a
including whey cheese, maximum
maximu maximu maximu
and curd of 95%
0406.10 Kg m of 95% m of 95% m of 95% free
31
Grated or powdered 500c/kg
500c/kg 500c/kg 500c/kg
cheese, of all kinds with a
maximum
of 95%
Processed cheese, not 500c/kg
500c/kg 500c/kg 500c/kg
grated or powdered with a
maximum
of 95%
Blue-veined cheese and 500c/kg
other cheese containing 500c/kg 500c/kg 500c/kg with a
veins produced by with a with a with a maximum
PENICILLIUM maximu maximu maximu of 95%
0406.40 ROQUEFORTI Kg m of 95% m of 95% m of 95% free
0406.90 Other cheese:
0406.90.1 Cheddar
0406.90.1 Imported from Kg 500c/kg 500c/kg 500c/kg free 500c/kg
1 Switzerland with a with a with a with a
maximu maximu maximu maximum
m of 95% m of 95% m of 95% of 95%
2 with a with a with a with a
m of 95% m of 95% m of 95% of 95%
0406.90.2 Gouda
m of 95% m of 95% m of 95% of 95%
m of 95% m of 95% m of 95% of 95%
0406.90.9 Other
m of 95% m of 95% m of 95% of 95%
m of 95% m of 95% m of 95% of 95%
Source: SARS, 2017
32
members on sub products of Cheese and curd are presented in Table 12 above. South Africa applied tariff of
R5/kg with a maximum of 95% to trade agreements (EU, EFTA, MERCOSUR and General member) and duty
free for SADC members. The total annual quota allocated for these cheese and curd (excluding cheddar and
Gouda cheese) is 1 167 tons for a rebate of 15.8%.
33
7. COMPETITIVENESS OF THE DAIRY INDUSTRY
7.1. Exports
7.1.1. Milk and cream (neither concentrated nor sweetened)
Table 13: List of importing markets for the product exported by South Africa in 2016
South Africa’s exports represent 0.7% of world exports for milk and cream, (not concentrated or sweetened), its ranking in world’s exports is 26.
Select your indicators
Total
imports
Growth in Growth in Growth in Share of Average
Value Share in Ranking of growth in
Trade exported exported exported partner tariff
Importers exported South Quantity partner value of
balance Quantity Unit value value quantity value countries (estimated)
in 2016 Africa's exported countries partner
2016 (USD unit (USD/unit) between between between in world faced by
(USD exports in 2016 in world countries
thousand) 2012-2016 2012-2016 2015-2016 imports South
thousand) (%) imports between
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 49478 39729 100 80657 Tons 613 -6 -9 -12 100 -2

Botswana 11713 11713 23.7 25205 Tons 465 10 -10 -1 49 0.3 33 0
Lesotho 10354 10335 20.9 13437 Tons 771 -10 0 -2 65 0.1 -10 0
Mozambique 7675 7675 15.5 11045 Tons 695 -3 9 20 75 0.1 26

Swaziland 5948 5948 12 12146 Tons 490 -3 10 -12 82 0.08 -3 0
Namibia 5698 5698 11.5 7060 Tons 807 -2 -28 0 77 0.09 -2 0
Zimbabwe 2297 2297 4.6 3040 Tons 756 -34 -30 -78 113 0.03 -35 0
Tanzania 2214 2214 4.5 3722 Tons 595 -4 5 18 96 0.05 -21
Mauritius 857 857 1.7 1513 Tons 566 18 50 43 87 0.07 0 0
Malawi 599 599 1.2 760 Tons 788 16 31 9 166 0 20
Angola 486 486 1 729 Tons 667 18 36 21 44 0.4 2
Comoros 372 372 0.8 611 Tons 609 -1 12 20 155 0.01 -4 0
DRC 358 358 0.7 418 Tons 856 3 22 184 119 0.03 -3 5
Zambia 313 313 0.6 215 Tons 1456 0 4 61 176 0 -20 0
Source: ITC Trademap.
34
Table 13 shows that during 2016, South Africa exported a total of 80 657 tons of milk and cream (not
concentrated or sweetened) at an average value of US$613/unit. South Africa exported greater quantities of
milk and cream (not concentrated or sweetened) to Botswana, Lesotho and Mozambique. The greatest share
of South African milk and cream (not concentrated or sweetened) exports were destined to Botswana which
commanded 23.7% share during the year 2016 followed by Lesotho at 20.9% and then Mozambique at 15.5%.
South Africa’s milk and cream (not concentrated or sweetened) exports decreased by 6% in value and 9% in
quantity between the periods 2012 and 2016. During the same period, exports of milk and cream (not
concentrated or sweetened) to Botswana increased by 10% in value while quantity decreased by 10% and
Lesotho decreased by 10% in value and 0% change in quantity.
Between the periods 2015 and 2016 South Africa’s exports of milk and cream (not concentrated or sweetened)
decreased by 12% in value. During the same period, Botswana and Lesotho decreased by 1% and 2%
respectively in value.
35
Figure 26: Growth in demand for milk and cream exports by South Africa in 2016
Source: ITC Trademap
36
Figure 26 illustrates South Africa’s exports of milk and cream (not concentrated or sweetened) in 2016.
Between 2012 and 2016 South Africa’s milk and cream, not concentrated or sweetened to Singapore, Congo,
Nigeria, Angola, Mauritius, DRC, Zambia, Tanzania and Zimbabwe were growing at a rate that is greater than
their import growth from the world. This means that South Africa is gaining the market in the mentioned
countries.
During the same period, South Africa’s milk and cream (not concentrated or sweetened) exports to Botswana,
Mozambique, Malawi, Namibia, Swaziland and Lesotho were growing at a rate that is less than their imports
from the rest of the world. Therefore, South Africa is losing the market share in those countries. Zimbabwe,
Tanzania and Lesotho represent loses in the dynamic market.
Botswana experienced the highest growth in demand of milk and cream not concentrated nor sweetened
imports during the periods 2012 to 2016. Annual growth of exports to Singapore and Congo was 137% and
119% respectively.
37
Figure 27: Prospects for market diversification for milk and cream exported by South Africa in 2016
38
South Africa is currently exporting large quantities of milk and cream, not concentrated nor
sweetened to Botswana, and it has a market share of 23.67% of South Africa’s exports (see Figure
27). South Africa exports to Botswana are less than that of the world. South Africa can penetrate
Nigeria import market because its annual growth stands at 32%. If South Africa wishes to diversify
its exports of milk and cream (not concentrated or sweetened), Malawi is the other fastest growing
market with an annual imports growth of 20%.
39
7.1.2. Milk and cream, concentrated or sweetened
South Africa's exports represent 0.3% of world exports for milk and cream (concentrated or sweetened), its ranking in world exports is 35.
Total
imports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 47550 23527 100 44225 Tons 1075 -14 -40 -4 100 -6
Botswana 14962 14892 31.5 30534 Tons 490 -20 -43 6 109 0.06 -30 0
Namibia 8265 8229 17.4 4549 Tons 1817 -8 -7 10 119 0.04 -10 0
Mozambique 4076 4076 8.6 2035 Tons 2003 -19 -20 -53 106 0.07 -23
Swaziland 3878 3862 8.2 1933 Tons 2006 -18 -29 -38 148 0.02 -18 0
Zimbabwe 3373 3373 7.1 1006 Tons 3353 -13 -14 39 170 0.01 -48 17.9
Lesotho 3356 3321 7.1 1019 Tons 3293 -6 -16 -36 155 0.02 -6 0
Zambia 2366 1951 5 984 Tons 2404 -27 -13 67 132 0.03 -19 0
Angola 1762 1762 3.7 418 Tons 4215 15 -24 88 51 0.4 -12
DRC 1092 1092 2.3 299 Tons 3652 30 -7 18 71 0.2 -8 5
Tanzania 832 832 1.7 248 Tons 3355 122 96 1040 158 0.02 12
Malawi 759 759 1.6 230 Tons 3300 -8 0 49 146 0.02 -7
Mali 511 511 1.1 134 Tons 3813 10 39 724 72 0.2 -5
Congo 482 482 1 111 Tons 4342 53 -14 122 99 0.09 -12 10.1
Source: ITC calculations based on COMTRADE statistics.
40
Table 14 shows that during 2016 South Africa exported a total of 44225 tons of milk and cream (concentrated
or sweetened) at an average value of US$ 1 075/unit. South Africa exported greater quantities of milk and
cream (concentrated or sweetened) to Botswana, Namibia and Mozambique. The greatest share of South
African milk and cream (concentrated or sweetened) exports were destined to Botswana which commanded
35.1% share during the year 2016 followed by Namibia with 17.4% then Mozambique with 8.6%.
South Africa’s milk and cream (concentrated or sweetened) exports decreased by 14% in value and 40% in
quantity between the periods 2012 and 2016. During the same period, exports of milk and cream
(concentrated or sweetened) to Botswana decreased by 20% in value and 43% in quantity and Namibia
decreased by 8% in value and 7% in quantity during the period 2012 to 2016.
Between the periods 2015 and 2016, South Africa’s exports of milk and cream (concentrated or sweetened)
decreased by 4% in value. During the same period, Botswana and Namibia experienced an increase of 6%
and 10% respectively.
41
Figure 28: Growth in demand for sweetened milk and cream exported by South Africa in 2016
42
Figure 28 illustrates that South Africa’s exports of milk and cream (concentrated or sweetened) represent
0.3% of world exports. Between 2012 and 2016, South Africa’s milk and cream (concentrated or sweetened)
exports to Zambia, Swaziland, Lesotho and Malawi were growing at a rate that is less than their imports
growth from the world.
During the same periods, South Africa was gaining the market shares of milk and cream (concentrated or
sweetened) exports to Seychelles, Tanzania, Congo, Mauritius, DRC, Angola, Mali, Namibia, Mozambique,
Botswana and Zimbabwe because imports from South African were growing at a rate that is greater than their
imports from the rest of the world.
Countries which have the most imports growing demand of South African Milk and Cream (Concentrated and
sweetened) are Seychelles and Tanzania with the annual exports growth of 111% and 122% respectively.
43
Figure 29: Prospects for market diversification for sweetened milk and cream exported by South Africa in 2016
44
Most of South African milk and cream (concentrated and sweetened) were destined to Botswana.
However, this country imported more from South Africa than the rest of the world (see Figure 29).
South Africa can either penetrate Seychelles import market or diversify to Colombia. China, Hong
Kong is the biggest market of milk and cream (concentrated or sweetened) in the world, with the
world’s imports market share of 8.85%.
45
7.1.3. Buttermilk and yoghurt
Table 15: List of importing markets for Buttermilk and yoghurt exported by South Africa in 2016
South Africa’s exports represent 1% of world exports for Buttermilk and yoghurt, its ranking in world exports is 20.
Total
imports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 39993 35204 100 34111 Tons 1172 -6 -6 5 100 -3

Botswana 10652 10652 26.6 10952 Tons 973 4 0 12 51 0.3 1 0
Angola 7483 7483 18.7 2906 Tons 2575 -23 -26 -5 35 0.6 -13
Mozambique 7376 7376 18.4 7052 Tons 1046 1 14 -1 63 0.2 29
Namibia 4544 4544 11.4 4128 Tons 1101 0 -27 63 70 0.1 3 0
Swaziland 3270 2921 8.2 3487 Tons 938 3 6 -11 83 0.08 2 0
Lesotho 2878 2861 7.2 2646 Tons 1088 2 4 -30 90 0.07 2 0
Zambia 848 848 2.1 989 Tons 857 -2 17 55 127 0.02 -1 0
Zimbabwe 768 768 1.9 494 Tons 1555 -22 -17 198 154 0 -45 14.5
Malawi 720 720 1.8 573 Tons 1257 29 46 32 132 0.02 17
Equatorial
Guinea 314 314 0.8 181 Tons 1735 199 104 0.05 1 30
DRC 200 200 0.5 129 Tons 1550 -9 8 -32 140 0.01 -11 10
Seychelles 174 174 0.4 103 Tons 1689 -6 3 -18 116 0.03 3
Nigeria 161 160 0.4 74 Tons 2176 -16 -15 38 45 0.4 -2
Comoros 126 126 0.3 80 Tons 1575 80 52 158 0 30 0
46
Table 15 shows that during 2016 South Africa exported a total of 34 111 tons of buttermilk and yoghurt at an
average value of US$ 1 172/unit. South Africa exported greater quantities of buttermilk and yoghurt to
Botswana, Angola and Mozambique. The greatest share of South African buttermilk and yoghurt exports were
destined to Botswana which commanded 26.6% share during the year 2016 followed at by Angola and
Mozambique with 18.7% and 18.4% respectively.
South Africa’s buttermilk and yoghurt exports have decreased by 6% in value and 6% in quantity from 2012 to
2016. During the same period, exports of buttermilk and yoghurt to Botswana increased by 4% in value and
0% change in quantity; Mozambique increased by 23% in value and 26% in quantity.
Between the periods 2015 and 2016, South Africa’s exports of buttermilk and yoghurt increased by 5% in
value. During the same period, Botswana increased by 12% while Angola and Mozambique decreased by 5%
and 1% respectively in value.
47
Figure 30: Growth in demand for buttermilk and yogurt exported by South Africa in 2016
48
Figure 30 illustrates that South Africa’s exports of buttermilk and yoghurt represent 1% of the world exports in
2016. South Africa was losing the market share of buttermilk and yoghurt in Mozambique, Namibia, Zambia,
Lesotho, Nigeria, Angola and Ghana because its exports were growing at a rate that is less than their import
growth from the rest of the world.
During the same periods, South Africa’s buttermilk and yoghurt exports to United Arab Emirates, Democratic
Republic of Congo, Congo, Botswana, Malawi and Swaziland were growing at a rate that is greater than their
imports from the rest of the world. Therefore, South Africa is gaining the market share in these countries. The
fastest growing market of South African buttermilk and Yogurt exist in Congo with the annual South African
exports of 38%.
49
Figure 31: Prospects for market diversification for buttermilk and yogurt exported by South Africa in 2016
50
South Africa’s exports of buttermilk and yoghurt are dominant in Botswana. If South Africa wishes
to diversify its exports the most attractive markets will be Comoros and Congo (see Figure 31).
Their growth of imports from the world is at 30% and 19% respectively.
51
7.1.4. Whey and other natural milk products
Table 16: List of importing markets for whey and natural milk exported by South Africa in 2016
South Africa's exports represent 0.3% of world exports for whey and natural milk and its ranking in world exports is 34.
Total
imports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 10146 -3674 100 4762 Tons 2131 15 9 54 100 -10

Japan 5520 5520 54.4 3060 Tons 1804 62 52 143 8 2.9 -7
Namibia 2462 2462 24.3 427 Tons 5766 20 6 -4 73 0.07 21 0
Botswana 651 651 6.4 170 Tons 3829 -2 -30 20 113 0.01 -7 0
Lesotho 422 422 4.2 304 Tons 1388 -3 9 -3 117 0.01 -3 0
Zambia 305 305 3 326 Tons 936 -12 -1 -13 124 0 -15 0
Zimbabwe 252 252 2.5 293 Tons 860 7 27 63 103 0.02 15 0
HK, China 229 229 2.3 28 Tons 8179 941 53 0.2 12 0
DRC 180 180 1.8 83 Tons 2169 65 -2 105 118 0.01 27 5
Swaziland 41 40 0.4 40 Tons 1025 -66 -68 925 126 0 -32 0
Indonesia 24 24 0.2 3 Tons 8000 6 3.7 -10 5
Saint Helena 18 18 0.2 4 Tons 4500 99 41 500 174 0 99
Nigeria 15 15 0.1 8 Tons 1875 -20 12 45 0.2 33
Malawi 11 11 0.1 6 Tons 1833 -21 11 179 0 -25
Mozambique 9 9 0.1 3 Tons 3000 -46 -51 -47 162 0 -34
52
Table 16 shows that during 2016 South Africa exported a total of 4 762 tons of whey and natural milk products
at an average value of US$2 131/unit. South Africa exported greater quantities of whey and natural milk
products to Japan and Namibia. The greatest share of South African whey and natural milk products exports
were destined to Japan which commanded 54.4% share during the year 2016 and Namibia taking 24.3%,
followed at a distance by Botswana with 6.4%.
South Africa’s whey and natural milk products exports increased by 15% in value and 9% in quantity between
the periods 2012 and 2016. During the same periods, exports of whey and natural milk products to Japan
increased by 62% in value and 52% in quantity and Namibia experienced increases of 20% in quantity and
6% in value; while Botswana decreased by 2% in value and 30% in quantity.
Between the periods 2015 and 2016, South Africa’s exports of whey and natural milk products increased by
54% in value. During the same period, Japan increased by 143% while Namibia decreased by 4% and
Botswana increased by 20% respectively in value.
53
Figure 32: Growth in demand for whey exported by South Africa in 2016
54
Figure 32 illustrates that South Africa’s exports of whey and natural milk products represent 0.3% of the world
exports. Between 2012 and 2016 South Africa’s whey and natural milk products exported to Namibia, Lesotho,
Swaziland, Mozambique, Nigeria and Zimbabwe were growing at a rate that is less than their import growth
from the rest of the world. Therefore, South Africa is losing the market share in the mentioned countries.
During the same period, South Africa is gaining the market shares of whey and natural milk products exports
in Japan, DRC, Botswana, Malawi and Zambia because their imports from South Africa were growing at a rate
that is greater than their imports from the rest of the world. Saint Helena annual growth of imports of whey and
a natural milk product from the world is the highest at 99% rate.
55
Figure 33: Prospects for market diversification for whey exported by South Africa in 2016
56
The chart illustrates that Japan is the biggest importer of South African whey and natural milk
products with a share of 54.41% (see Figure 33). The biggest market exists in Indonesia with the
world import share of 3.71%. South Africa might look on developing a new market in Maldives
because its annual import growth is at 148%. The fastest growing market although small exists in
Saint Helena. Saint Helena’s annual import growth is at 148%. Therefore, this market might be the
most attractive market for South Africa’s diversification.
57
7.1.5. Butter and other fats and oils derived from milk
Table 17: List of importing markets for butter and other fats and oils derived from milk exported by South Africa in 2016
South Africa’s export represent 0.1% of world export for butter and other fats and oils derived from milk, its ranking in world exports is 34.
Total
imports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 9347 -7736 100 3277 Tons 2852 -4 -13 -33 100 -1
Namibia 3322 3322 35.5 1354 Tons 2453 -4 -17 -57 96 0.05 -7 0
Mozambique 1637 1637 17.5 560 Tons 2923 4 16 -10 114 0.03 18
Botswana 878 878 9.4 313 Tons 2805 -12 -34 -1 135 0.01 -2 0
Zambia 741 741 7.9 182 Tons 4071 0 3 19 138 0.01 -1 0
Mauritius 732 732 7.8 201 Tons 3642 8 17 -33 78 0.1 -6 0
Zimbabwe 683 683 7.3 194 Tons 3521 -12 2 -13 141 0.01 -19 0.2
Lesotho 322 322 3.4 190 Tons 1695 -22 3 213 168 0 -22 0
Tanzania 261 261 2.8 82 Tons 3183 35 60 -23 131 0.01 20
Malawi 258 258 2.8 62 Tons 4161 8 8 32 176 0 7
Swaziland 173 173 1.9 54 Tons 3204 -33 -28 30 183 0 -33 0
DRC 156 156 1.7 32 Tons 4875 -2 -3 126 108 0.03 -6 20
Saint Helena 59 59 0.6 24 Tons 2458 11 21 -8 198 0 0
Sources: ITC Trademap.
58
Table 17 shows that during 2016 South Africa exported a total of 3 277 tons of butter and other fats derived
from milk at an average value of US$2 852/unit. South Africa exported greater quantities of butter and other
fats derived from milk to Namibia, Mozambique and Botswana. The greatest share of South African butter and
other fats derived from milk exports were destined to Namibia which commanded 35.5% share during the year
2016 followed by Mozambique (17.5%) and then Botswana received a share of 9.4%.
South Africa’s butter and other fats derived from milk exports decreased by 4% in value and 13% in quantity
between the periods 2012 and 2016. During the same period, exports of butter and other fats derived from
milk to Namibia decreased by 4% in value and 17% in quantity. Mozambique increased by 4% in value and
16% in quantity and Botswana decreased by 12% in value and 34% in quantity.
Between the period 2015 and 2016, South Africa’s exports of butter and other fats derived from butter and
other fats and oils decreased by 33% in value. During the same period, Namibia decreased by 57% and
Mozambique decreased by 10% in value.
59
Figure 34: Growth in demand for butter exported by South Africa in 2016
60
Figure 34 illustrates that South Africa’s exports of butter and other fats and oils represent 0.1% of
the world exports. Between 2012 and 2016 South Africa’s butter and other fats exported to United
Arab Emirates, Mozambique, Ghana, Botswana, Angola, Lesotho and Swaziland were growing at a
rate that is less than their import growth from the rest of the world.
During the same period, South Africa’s butter and other fats exports to Tanzania, Seychelles, Saint
Helena, Mauritius, Malawi, Zambia, Namibia and Zimbabwe were growing at a rate that is greater
than their imports from the rest of the world. Swaziland, Zimbabwe and Lesotho represent the
declining market while Ethiopia and Tanzania represent gains in the dynamic market.
The most growing demand of butter and other fats and oils exist in Ethiopia with annual imports
growth of 28% per annum during the period of 2012 to 2016.
61
Figure 35: Prospects for market diversification for butter exported by South Africa in 2016
62
Figure 35 illustrates that South Africa is currently exporting most of its butter and other fats to
Namibia followed by Mozambique but if South Africa needs to diversify its export market, the
biggest market exist in Ethiopia with an annual import growth of 28% and also the fact that South
Africa is currently exporting less than what Ethiopia imports from the world.
63
7.1.6. Cheese and Curd
South Africa’s exports represent 0.1% of world exports of cheese and curd, its ranking in world exports is 44.
Total
imports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 32937 -18719 100 9500 Tons 3467 -1 -8 15 100 -3

Namibia 10924 10924 33.2 2980 Tons 3666 -1 -16 16 94 0.05 -6 0
Mozambique 4441 4441 13.5 1211 Tons 3667 -1 4 33 133 0.01 10
Botswana 4247 4246 12.9 1279 Tons 3321 -7 -19 -10 129 0.02 -4 0
Zambia 3293 3293 10 915 Tons 3599 1 15 29 135 0.01 -1 0
Zimbabwe 3069 3069 9.3 750 Tons 4092 4 14 -2 145 0.01 -4 0
Swaziland 2357 2357 7.2 952 Tons 2476 -4 -8 14 148 0 -4 0
Lesotho 1037 1036 3.1 248 Tons 4181 -6 1 3 170 0 -6 0
Malawi 725 725 2.2 233 Tons 3112 13 24 22 174 0 13
Angola 703 703 2.1 337 Tons 2086 2 22 229 84 0.06 -12
Nigeria 464 464 1.4 164 Tons 2829 -1 9 205 120 0.02 20
DRC 434 434 1.3 116 Tons 3741 12 19 -32 149 0 -7 19.8
Tanzania 242 242 0.7 43 Tons 5628 24 47 55 189 0 -17
Ghana 237 237 0.7 60 Tons 3950 -9 1 200 146 0.01 -6
Uganda 170 170 0.5 55 Tons 3091 9 12 400 193 0 -16
United Arab
Emirates 108 108 0.3 28 Tons 3857 47 86 -64 24 1 1
Sources: ITC Trademap.
64
Table 18 shows that during 2016 South Africa exported a total of 9 500 tons of cheese and curd at an average
value of US$3 467/unit. South Africa exported greater quantities of cheese and curd to Namibia, Mozambique
and Botswana. The greatest share of South African cheese and curd exports were destined to Namibia which
commanded 33.2% share during the year 2016 followed by Mozambique with 13.5% and then Botswana by
12.9%.
South Africa’s exports of cheese and curd decreased by 1% in value and 8% in quantity between the period
2012 and 2016. During the same period, exports of cheese and curd to Namibia decreased by 1% in value
and decreased by 16% in quantity. Mozambique decreased by 1% in value and increased by 4% in quantity
and Botswana decreased by 7% in value and quantity by 19%.
Between the period 2015 and 2016, South Africa’s exports of cheese and curd increased by 15% in value.
During the same period, Namibia increased by 16%, Mozambique increased by 33% and Botswana decreased
by 10%.
65
Figure 36: Growth in demand for cheese and curd from South Africa in 2016
66
Figure 36 illustrates that that South Africa’s exports of cheese and curd represent 0.1% of the world exports.
Between 2012 and 2016 South Africa is losing the market share of cheese and curd exports to Mauritius,
Nigeria, Mozambique, Malawi, Seychelles, Swaziland, Botswana, Lesotho and Ghana because its exports
were growing at a rate that is less than their import growth from the rest of the world.
During the same period, South Africa gained the market share of cheese and curd exports to United Arab
Emirates, Kenya, DRC, Zambia, Namibia, Zimbabwe, Angola, Uganda and Tanzania because these markets
were growing at a rate that is greater than their imports from the rest of the world. The most growing demand
for cheese and curd exist in Nigeria with an annual import growth of 20%.
67
Figure 37: Prospects for market diversification for cheese and curd exported by South Africa in 2016
68
Figure 37 shows that, Namibia, Botswana and Mozambique are the world’s greatest importers of
South African cheese and curd in 2016. They have shares in South African market of 33.17%,
12.9% and 13.48% respectively. If South Africa wishes to diversify, the small and fastest growing
market is Ethiopia. Ethiopia’s annual import growth is at 23% rate. This is the most lucrative market
for South Africa.
69
7.2. Imports
7.2.1. Milk and cream (neither concentrated nor sweetened)
Table 28: List of supplying markets for the product imported by South Africa in 2016
South Africa’s imports represent 0.1% of world imports for milk and cream (not concentrated nor sweetened), its ranking in world imports is 67.
Total
exports
Trade imported imported imported partner tariff
Exporters imported South Quantity partner value of
in 2016 Africa's imported countries partner
2016 (USD unit (USD/unit) between between between in world applied by
(USD imports in 2016 in world countries
thousand) 2012-2016 2012-2016 2015-2016 exports South
thousand) (%) exports between
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 9749 39729 100 19221 Tons 507 3 8 52 100 -6

Poland 5871 -5871 60.2 12701 Tons 462 67 6 4 4 0
Uruguay 3172 -3161 32.5 6077 Tons 522 -19 -16 45 46 0.1 -21 0
France 403 -403 4.1 227 Tons 1775 136 49 2 9.5 -6 0
Belgium 150 -150 1.5 59 Tons 2542 -21 -3 4 7.6 -7 0
United
Kingdom 51 -51 0.5 48 Tons 1063 -33 -23 -19 10 3.6 -10 0
Ireland 36 -36 0.4 53 Tons 679 30 27 0.6 -19 0
Germany 25 -25 0.3 47 Tons 532 -63 -62 525 1 17.3 -5 0
Lesotho 19 10335 0.2 3 Tons 6333 -48 -70 -93 111 0 -48 0
Denmark 15 -15 0.2 4 Tons 3750 12 2.9 0 0
Brazil 3 -3 0 1 Tons 3000 42 0.2 -7 0
Italy 2 -2 0 1 Tons 2000 24 1 18 0
Korea 1 -1 0 0 Tons 41 0.2 41 0
Canada 1 -1 0 0 Tons 58 0.07 4 0
70
Table 19 shows that during 2016 South Africa imported a total of 19 221 tons of milk and cream
(not concentrated nor sweetened), at an average value of US$ 507/unit. South Africa imported
greater quantities of milk and cream, (not concentrated or sweetened) from Poland, Uruguay, and
France. The greatest share of South African milk and cream (not concentrated or sweetened)
imports originated from Poland which commanded 60.2% share during the year 2016 followed at a
distance by Uruguay with 32.5%.
South Africa’s milk and cream (not concentrated or sweetened) imports increased by 3% in value
and 8% in quantity between the period 2012 and 2016. During the same period, imports of milk and
cream (not concentrated or sweetened) from Uruguay decreased by 19% in value and 16% in
quantity, France increased drastically in quantity by 136%.
Between the period 2015 and 2016 South Africa’s imports of milk and cream (not concentrated or
sweetened) increased by 52% in value. During the same period imports of milk and cream (not
concentrated or sweetened) from Poland to South Africa increased by 67% and Uruguay imports
increased by 45% in value.
71
Figure 38: Competitiveness of suppliers to South Africa for unsweetened milk and cream in 2016
72
Figure 38 illustrates that South Africa’s imports between 2012 and 2016 represent 0.1% of the
world’s imports of milk and cream, not concentrated or sweetened.
During the same period, South Africa is gaining the market share of milk and cream imports from
Uruguay because South Africa’s import growth were growing at a rate that is greater than these
countries’ exports to the rest of the world.
The most competitive market is Uruguay because its annual export growth rate was at -21% during
the period 2012 to 2016, but the biggest market exists in Germany with the world share of 17.32%.
73
Figure 39: Prospects for diversification of suppliers for unsweetened milk and cream imported by South Africa in 2016
74
Figure 39 illustrates that Germany is not a big supplier of South Africa’s market for milk and cream
(not concentrated or sweetened) but it was the world’s greatest exporter of milk and cream (not
concentrated or sweetened) over the period 2012 to 2016. However, Germany’s annual export
growth is very low at -5%. South Africa can easily diversify to Germany for market development.
The second attractive market exists in Korea with the annual export growth of 41%.
75
7.2.2. Milk and cream, concentrated or sweetened
South Africa’s imports represent 0.1% of world imports for milk and cream (concentrated or sweetened), its ranking in world imports is 79
Total
exports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 24023 23527 100 10754 Tons 2234 -12 0 -12 100 -7
France 7104 -7104 29.6 3380 Tons 2102 -8 5 -19 5 5.1 -8 8.9
New
Zealand 5508 -5506 22.9 2640 Tons 2086 -10 3 83 1 25.7 -10 8.9
Belgium 2596 -2596 10.8 1245 Tons 2085 8 24 56 7 4.1 -11 8.9
United
Kingdom 2255 -2255 9.4 1107 Tons 2037 130 166 -75 13 1.9 3 8.9
Germany 1549 -1549 6.4 703 Tons 2203 -33 -24 26 3 8 -6 8.9
Italy 976 -976 4.1 220 Tons 4436 -21 -19 518 41 0.2 7 8.9
Netherlands 948 -948 3.9 279 Tons 3398 -30 -23 7 4 8 -6 8.9
Malaysia 719 -719 3 210 Tons 3424 552 281 168 16 1.4 3 8.9
Ireland 624 -624 2.6 307 Tons 2033 -31 -21 25 14 1.7 -4 8.9
Zambia 415 1951 1.7 34 Tons 12206 101 0 0
Area Nes 372 -366 1.5 181 Tons 2055
76
Table 20 shows that during 2016 South Africa imported a total of 10 754 tons of milk and cream (concentrated
or sweetened), at an average value of US$2 234/unit. South Africa imported greater quantities of milk and
cream, (concentrated or sweetened) from France, New Zealand and Belgium. The greatest share of South
African milk and cream (concentrated or sweetened) imports originated from France which commanded 29.6%
share during the year 2016 followed by New Zealand with 22.9% and Belgium with 10.8%.
South Africa’s milk and cream (not concentrated or sweetened) imports decreased by 12% in value and
remained unchanged in quantity between the period 2012 and 2016. During the same period, imports of milk
and cream (concentrated or sweetened) from France also decreased by 8% in value and increased by 5% in
quantity and New Zealand decreased by 10% in value and increased by 3% in quantity.
Between the period 2015 and 2016, South Africa’s imports of milk and cream (concentrated or sweetened)
decreased by 12% in value. During the same period, France’s milk and cream (concentrated or sweetened)
exports to South Africa decreased by 19% in value and New Zealand increased by 83% in value during the
same period.
77
Figure 40: Competitiveness of suppliers to South Africa for sweetened milk and cream in 2016
78
Figure 40 illustrates that between 2012 and 2016 South Africa’s milk and cream (concentrated or sweetened)
imports from New Zealand, France, Germany, Ireland, Netherlands, Italy and Australia were growing at a rate
that is less than their export growth to the rest of the world.
During the same period, South Africa’s milk and cream, concentrated or sweetened imports from Belgium,
Ukraine, Malaysia and United Kingdom were growing at a rate that is greater than their exports to the rest of
the world. Botswana is the biggest competitive market with an annual growth of 53%.
79
Figure 41: Prospects for diversification of suppliers for sweetened milk and cream imported by South Africa in 2016
80
Figure 41 illustrates that Italy is neither the biggest supplier of South Africa’s market for milk and
cream (concentrated or sweetened) nor the main world exporter. Its share in world exports was at
0.23% per annum over the period 2012 to 2016, with an annual growth rate of 7%. Italy is therefore
the biggest prospective supplier for South Africa’s milk and cream (concentrated or sweetened).
The chart also shows that Botswana is the second prospective import market due to its annual
exports growth rate of 53% during 2012 to 2016. It represents a small possible supplier for South
Africa’s milk and cream (concentrated or sweetened).
81
7.2.3. Buttermilk and yoghurt
South Africa’s imports represent 0.1% of world imports for Buttermilk and yoghurt, its ranking in world’s imports is 71.
Total
exports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 4789 35204 100 2929 Tons 1635 -8 7 18 100 -4

France 1433 -1433 29.9 963 Tons 1488 -12 4 150 2 15.1 -8 0
Germany 977 -977 20.4 363 Tons 2691 -1 4 -1 1 22 -2 0
United
Kingdom 718 -718 15 400 Tons 1795 15 31 -25 11 2.4 1 0
Ireland 695 -695 14.5 476 Tons 1460 17 37 -11 17 1.6 -4 0
Swaziland 349 2921 7.3 373 Tons 936 80 0 0
New
Zealand 320 -320 6.7 197 Tons 1624 -32 -20 -51 13 2.1 -13 8.1
Belgium 91 -91 1.9 64 Tons 1422 -48 -10 4 6.6 -6 0
USA 87 -87 1.8 35 Tons 2486 22 1 123 16 1.6 -17 8.1
Netherlands 49 -49 1 26 Tons 1885 -37 -35 104 10 2.5 -4 0

Italy 24 -24 0.5 4 Tons 6000 -20 -11 100 23 0.6 7 0
Lesotho 17 2861 0.4 11 Tons 1545 53 104 0 53 0
Spain 9 -9 0.2 4 Tons 2250 41 -57 5 4 -4 0
Greece 9 -9 0.2 2 Tons 4500 39 15 -25 7 3.8 16 0
Area Nes 6 -5 0.1 4 Tons 1500
82
Table 21 shows that during 2016 South Africa imported a total of 2 929 tons of buttermilk and yoghurt, at an
average value of US$1 635/unit. South Africa imported greater quantities of milk and cream, (concentrated or
sweetened) from France, Germany and United Kingdom. The greatest share of South African buttermilk and
yoghurt imports originated from France which commanded 29.9% share during the year 2016 followed by
Germany with 20.4% and United Kingdom with 15%.
South Africa’s buttermilk and yoghurt imports decreased by 8% in value and increased by 7% in quantity
between the period 2012 and 2016. During the same period, imports of buttermilk and yoghurt from France
also decreased by 12% in value and increased by 4 in quantity and imports from Germany decreased by 1% in
value and increased by 4% in quantity during the same period.
Between the periods 2015 and 2016, South Africa’s imports of buttermilk and yoghurt increased by 18% in
value. During the same period, France’s buttermilk and yoghurt exports increased by 150%, Germany
decreased by 1% while United Kingdom decreased by 25%.
83
Figure 42: Competitiveness of suppliers to South Africa for buttermilk and yogurt in 2016
84
Figure 42 illustrates that between 2012 and 2016 South Africa’s buttermilk and yoghurt imported from France,
Italy, Thailand, Belgium, New Zealand and Netherland were growing at a rate that is less than their export
growth to the world.
During the same period, South Africa’s buttermilk and yoghurt imports from United States of America, Ireland,
United Kingdom, Greece and Germany were growing at a rate that is greater than their exports to the rest of
the world. Germany is the most competitive market during the period 2012 and 2016 due to its world market
share of 22.04%.
85
Figure 43: Prospects for diversification of suppliers for buttermilk and yogurt imported by South Africa in 2016
86
France is the biggest supplier of buttermilk and yoghurt and has a share of 29.92% of South
African’s imports (see Figure 43). France has an annual export growth of -8%. South Africa can
diversify to the fastest growing markets of buttermilk and yoghurt in Lesotho with an annual export
growth of 53%.
87
7.2.4. Whey and other natural milk products
South Africa’s imports represent 0.4% of world’s imports for whey and natural milk products; its ranking in world imports is 36.
Total
exports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 13820 -3674 100 7082 Tons 1951 -15 -6 -44 100 -9
France 7442 -7442 53.8 4246 Tons 1753 -9 4 -35 2 13.1 -7 1.6
USA 2252 -2252 16.3 468 Tons 4812 -15 -13 -39 1 15.4 -10 9.3
Germany 1288 -1288 9.3 364 Tons 3538 0 3 -62 4 11.8 -13 1.6
Argentina 804 -804 5.8 500 Tons 1608 -62 -5 12 1.8 -17 9.3
Netherlands 705 -705 5.1 348 Tons 2026 50 68 -60 5 7.8 -13 1.6
Denmark 435 -435 3.1 702 Tons 620 -22 -16 -64 7 3.9 7 1.6
Belgium 403 -403 2.9 87 Tons 4632 17 2 34 13 1.7 -16 1.6
Ireland 365 -365 2.6 250 Tons 1460 -50 -41 711 9 3 -9 1.6
Estonia 70 -70 0.5 84 Tons 833 35 0.3 -8 1.6
United
Kingdom 30 -30 0.2 6 Tons 5000 -3 57 11 2.2 2 1.6
Hungary 23 -23 0.2 25 Tons 920 20 0.9 17 1.6
New
Zealand 2 -2 0 0 Tons -88 -33 3 12 -7 9.3
88
Table 22 shows that during 2016 South Africa imported a total of 7 082 tons of whey and natural
milk products, at an average value of US$1 951/unit. South Africa imported greater quantities of
whey and natural milk products from France, United States of America and Germany. The greatest
share of South African whey and natural milk products’ imports originated from France which
commanded 53.8% share during the year 2016 followed by United States of America with 16.3%
and Germany with 9.3%.
South Africa’s whey and natural milk products imports decreased by 15% in value and 16% in
quantity between the period 2012 and 2016. During the same period, imports of whey and natural
milk products from France decreased by 9% in value and increased by 4% in quantity. Imports
from United States of America has decreased by 15% in value and 13% in quantity. Germany
experienced no change in value and increased by 3% in quantity during 2012 to 2016.
Between the period 2015 and 2016 South Africa’s imports of whey and natural milk products
experienced a decrease of 44% in value. During the same period, France’ whey and natural milk
products exports to South Africa decreased by 35% in value while imports from United States of
America decreased by 39% in value.
89
Figure 44: Competitiveness of suppliers to South Africa for whey in 2016
90
Figure 44 illustrates that between 2012 and 2016 South Africa’s whey and natural milk products
imported from Argentina, USA, Denmark, United Kingdom, Ireland, France and New Zealand were
growing at a rate that is less than their export growth to the rest of the world.
During the same period, South Africa’s whey and natural milk products imported from Netherlands,
Belgium and Germany were growing at a rate that is greater than their exports to the rest of the
world.
The most competitive supplier of whey and natural milk products is Denmark which has an annual
export growth of 7% followed by United Kingdom with 2%.
91
Figure 45: Prospects for diversification of suppliers for whey imported by South Africa in 2016
92
South Africa is already importing from the biggest exporters of whey and natural milk products
which are USA, France and Germany. USA has a world market share of 15.35%. France has
13.09% while Germany has a world market share of 11.82% during 2016. They have share of
South Africa’s import market of 16.3%, 53.85% and 9.32% respectively.
93
7.2.5. Butter and other fats and oils derived from milk
South Africa’s imports represent 0.3% of world imports for butter and other fats and oils derived from milk, its ranking in world’s imports is 51.
Total
exports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 17083 -7736 100 5358 Tons 3188 -3 2 16 100 -1

New
Zealand 8483 -8483 49.7 3169 Tons 2677 -7 -1 -4 1 24.6 0 7.2
Ireland 5767 -5767 33.8 1497 Tons 3852 8 18 124 3 9.3 -1 7.2
Denmark 1100 -1100 6.4 222 Tons 4955 9 15 11 8 3.2 -6 7.2
United
Kingdom 957 -957 5.6 326 Tons 2936 306 325 -53 9 3.1 3 7.2
France 408 -408 2.4 76 Tons 5368 74 75 93 6 6.1 1 7.2
Netherlands 216 -216 1.3 41 Tons 5268 142 2986 2 15.7 5 7.2
Belgium 145 -145 0.8 25 Tons 5800 -25 -18 867 4 8.5 0 7.2
India 2 -2 0 0 Tons -89 17 0.6 5 7.2
Italy 2 -2 0 0 Tons -34 19 0.6 -1 7.2
Greece 1 -1 0 0 Tons 52 0.03 30 7.2
Namibia 3322 96 0 -16 0
94
Table 23 shows that during 2016 South Africa imported a total of 5 358 tons of butter and other
fats, at an average value of US$3 188/unit. South Africa imported greater quantities of butter and
other fats from New Zealand, Ireland and Denmark. The greatest share of South African butter and
other fats imports originated from New Zealand, which commanded 49.7% share during the year
2016, followed by Ireland by 33.8% and Denmark by 6.4%.
South Africa’s butter and other fats imports decreased by 3% in value and increased by 2% in
quantity between the period 2012 and 2016. During the same period, imports of butter and other
fats from New Zealand decreased by 7% in value and 1% in quantity while Ireland increased by 8%
in value and 18% in quantity. Denmark increased by 9% in value and 15% in quantity.
Between the periods 2015 and 2016, South Africa’s imports of butter and other fats increased by
16% in value. During the same period, New Zealand’s butter and other fats exports to South Africa
decreased by 4% in value while imports from Ireland increased by 124%.
95
Figure 46: Competitiveness of suppliers to South Africa for butter in 2016
96
Figure 46 illustrates that between 2012 and 2016 South Africa’s butter and other fats imported from
New Zealand, Belgium and Italy were growing at a rate that is less than their export growth to the
rest of the world.
During the same period, South Africa’s butter and other fats imports from Denmark, France,
Ireland, Netherlands and United Kingdom were growing at a rate that is greater than their exports
to the rest of the world. Netherlands is the most competitive supplier of butter and other fats
because its world market share is 15.73% and its annual exports growth increased by 5% and its
annual growth of butter and other fats to South Africa was 142%
97
Figure 47: Prospects for diversification of suppliers for butter imported by South Africa in 2016
98
Figure 47 illustrates that New Zealand is the main supplier of world’s butter and other fats. If South
Africa wishes to diversify from New Zealand, Greece will be the prospective supplier due to its
exports annual growth of 30%. It is a small market with a world market share of 0.03% but South
Africa might have a chance to develop a new market. The biggest market is New Zealand with the
world market share of 24.56%.
99
14.2.6. Cheese and Curd
South Africa’s imports represent 0.2% of world imports for Cheese and curd, its ranking in world imports is 60
Total
exports
(%, p.a.) (%, p.a.) (%, p.a.) (%) Africa (%)
2012-2016
(%, p.a.)
World 51656 -18719 100 13262 Tons 3895 -4 3 7 100 -3

Germany 9152 -9152 17.7 2778 Tons 3294 17 28 5 1 13.9 -7 6.3
United
Kingdom 8258 -8258 16 2596 Tons 3181 18 41 249 11 2.6 1 6.3
New
Zealand 6379 -6379 12.3 1824 Tons 3497 4 9 -7 7 4.6 1 6.3
Italy 5373 -5373 10.4 682 Tons 7878 -2 6 8 4 10.1 0 6.3
France 5241 -5241 10.1 964 Tons 5437 -11 -11 1 3 12.4 -4 6.3
Netherlands 3647 -3647 7.1 1016 Tons 3590 5 18 -1 2 12.5 -3 6.3

Denmark 2742 -2742 5.3 461 Tons 5948 -4 -5 -4 5 5.5 -1 6.3
Poland 2588 -2588 5 896 Tons 2888 99 5 105 12 2.5 -4 6.3
Austria 2046 -2046 4 532 Tons 3846 27 28 16 15 2.1 -1 6.3
Ireland 1902 -1902 3.7 594 Tons 3202 -29 -22 -63 9 2.9 -5 6.3
Australia 1696 -1696 3.3 361 Tons 4698 -17 -16 2 13 2.3 -6 6.3
Morocco 1211 -1211 2.3 310 Tons 3906 -5 4 -48 31 0.4 -7 6.3
100
Table 24 shows that during 2016, South Africa imported a total of 13 262 tons of cheese and curd,
at an average value of US$3 895/unit. South Africa imported greater quantities of cheese and curd
from Germany, United Kingdom and New Zealand. The greatest share of South African cheese
and curd imports originated from Germany which commanded 17.7% share during the year 2016
followed by United Kingdom with 16% share and New Zealand with 12.3%.
South Africa’s imports of cheese and curd decreased by 4% in value and increase by 3% in
quantity between the period 2012 and 2016. During the same period, imports of cheese and curd
from Germany increased by 17% in value and 28% in quantity. Imports from United Kingdom
increased by 18% in value and 41% in quantity and imports from New Zealand increased by 4% in
value and by 9% in quantity.
Between the periods 2015 and 2016, South Africa’s imports of cheese and curd increased by 7% in
value. During the same period, Germany’s cheese and curd exports to South Africa increased by
5% in value and imports from United Kingdom increased by 249% in value while those from New
Zealand decreased by 7%.
101
Figure 48: Competitiveness of suppliers to South Africa for cheese and curd in 2016
102
Figure 48 illustrates that between 2012 and 2016 South Africa’s cheese and curd imported from
Greece, Switzerland, Spain, Ireland, Denmark, France, Italy, United State of America and Australia
were growing at a rate that is less than their export growth to the rest of the world.
During the same period, South Africa’s cheese and curd imports from New Zealand, Morocco,
Netherlands, Germany, Canada, Lithuania, Austria, and United Kingdom were growing at a rate
that is greater than their exports to the rest of the world. The most competitive suppliers of cheese
and curd are Spain and Greece with the annual growth import shares of 9% and 6% respectively
during the period 2012 to 2016.
103
Figure 49: Prospects for diversification of suppliers for cheese and curd imported by South Africa in 2016
104
South Africa’s imports of Cheese and Curd are from the biggest and fastest growing markets in the
world, which are Germany, France and Netherlands. There is no need for South Africa to diversify
its cheese and curd import market. It can only look for chances to penetrate more in Spain because
Spain’s exports to the world are still greater than its exports to South Africa.
105
8. ACKNOWLEDGEMENTS
1. Statistics and Economic Analysis. Dr Koos Coetzee

www.daff.gov.za. 012-8435600
www.mpo.co.za
2. Clover Roodepoort
South Africa 9. National Agricultural Marketing Council
1715 (NAMC).
Tel: +27 (11) 471 1400 Tel: (012) 3411115
Fax: +27 (11) 471 1504 Fax: (012) 3411911
www.clover.co.za www.namc.co.za
3. Competition Commission 10. Nestle

Tel: 012 394 3300 P O Box 50661,
Fax: 012 394 0169 Randburg,
www.comptrib.co.za. 2125
Fax: (011) 889 6559
4. Dairy Belle (PTY) LTD 086 009 6116 (General)
Private Bag 208 086 009 6789 (Nutrition)
Bryanston 0800 001 691 (Pet Care)
2021 www.nestle.co.za
Tel: 011 840 4000
Fax: 011 514 0084 11. Parmalat SA(PTY)LTD
www.dairybelle.co.za Stellenbosch
7600
5. International Trade Centre Tel: +27 21 809 1400
www.trademap.org Fax: +27 21 809 1518
www.parmalat.co.za
6. LactoData
www.dairyconnect.co.za. 12. Quantec.
www.Quantec.co.za.
7. MacMap
www.macmap.org 13. Trade & Industrial Policy
Strategies (TIPS)
www.tips.org.za.
8. Milk Producers Organization (MPO)
Disclaimer:
This document and its contents have been compiled by the Department of Agriculture, Forestry and Fisheries for the
purpose of detailing the dairy industry. The views expressed in this document are those of the Department of
Agriculture, forestry and fisheries with regard to agricultural industry, unless otherwise stated and, therefore the
Department of Agriculture, forestry and fisheries does not accept responsibility for any errors in such information and
anyone acting on such information does so entirely at his or her own risk.
106

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A PROFILE OF THE SOUTH AFRICAN DAIRY MARKET

Directorate Marketing Tel: 012 319 8455

Figure 1: Gross value of fresh milk production

Source: Statistics and Economic Analysis, DAFF

1.1. Milk production areas

1.2. Production trends

No. of cows '000

Production Dairy of Cows '000

Source: Statistics and Economic Analysis, DAFF and LACTODATA

Figure 4: Composition of milk products (Liquid) in 2016

Figure 5: Composition of concentrated milk products 2016

Cheese Condensed Milk

Source: Milk SA, 2017

2.1. DOMESTIC MARKET AND PRICES

Local milk consumption and prices are illustrated in Figure 6.

Figure 6: Consumption and price of fresh milk

Source: Statistics and Economic Analysis, DAFF

2.2. EXPORT AND IMPORT OF DAIRY PRODUCTS

Figure 8: Imports and exports quantity of milk and dairy

Source: Quantec EasyData

Figure 9: Exports of milk and dairy products

Source: Quantec EasyData

Source: Quantec EasyData

Milk and cream, not concentrated nor sweetened

2.2.1. Export values of milk and dairy products

Thousand Rand 2000000

Source: Quantec EasyData

Source: Quantec EasyData

Source: Quantec EasyData

Source: Quantec Easy data

Source: Quantec EasyData

Source: Quantec EasyData

Source: Quantec EasyData

Figure 22: South Africa imports of milk and dairy products

Source: Quantec Easydata

Figure 23: Quantities of milk and dairy products imported by South

Buttermilk, curdled milk and cream, yoghurt, kephir Whey

Butter and other fats and oils Cheese and curd

Source: Quantec EasyData

Buttermilk, curdled milk and cream Whey

Butter and other fats and oils Cheese and curd

Source: Quantec Easydata

Source: Trade map

2.5. MARKETING CHANNELS IN THE DAIRY INDUSTRY

3.1. Successful ventures: Commercially viable

3.2. Training Programmes

 Agri SETA accredited farm worker training.

4. BARRIERS TO THE LEVEL OF PARTICIPATION BY THE EMERGING SECTOR

5. OPPORTUNITIES AND WEAKNESSES

6.1. Export Tariffs

Table 2: Milk and cream (concentrated or sweetened)

Table 3: Buttermilk, cream, yoghurt, etc.

Table 4: Whey and natural milk products

04051000, MFN duties (Applied) 40.00% 40.00% 40.00% 40.00%

04061000; 04062000; Preferential 15% 15% 0% 0%

6.2. Import tariffs

Table 7: Milk and cream, neither concentrated nor sweetened

Table 8: Milk and cream, concentrated or sweetened

0403.10 Yoghurt kg free free free free free

0404.10 Whey and

0405.20 Dairy spreads kg 500c/kg 500c/kg 500c/kg free 500c/kg

Table 12: Cheese and curd