Sales up for 9 dairy products In the second quarter of 2020, and amid Covid19 and the measures to limit the spread of the virus, retail sales in nine dairy products increased significantly relative to the sales in the previous three quarters and the same time last year.
This is according to the quarterly report of the South African Milk Processors Organisation Sampro.
Sampro said in 2019 the retail sales of fresh and longlife milk were lower than in the previous year and almost 50% of the unprocessed milk produced in South Africa is used for the production of fresh and longlife milk.
“In the third quarter of 2020, the quantity of the retail sales of seven of the nine dairy products increased, but at a lower rate than in the second quarter.
“Also, prices of seven of the nine products decreased. To some extent, the higher sales were therefore at the expense of price,” said Sampro.
According to Sampro CEO Alwyn Kraamwinkel, the exceptional performance of the sales of dairy products in the second quarter of 2020 and the performance in the third quarter of 2020 amid the weak economy and the unusual circumstances created by Covid19, is the result of changed behaviour and preferences of particular segments of the consumer market.
Kraamwinkel points out that the changed preferences and behaviour of segments of the consumer market, the reaction is to the circumstances created by Covid19 and measures to limit infections and that it cannot be assumed that the preferences and behaviour will continue unaltered when the impact of Covid19 decreases.
Kraamwinkel also stressed that it cannot be assumed that the lower level of economic activity that Covid19 has brought about and can bring about in future, cannot affect sales of food products, including dairy products.
According to the Sampro report, Milk SA’s figures show that the production of unprocessed milk in the first nine months of 2020, is 0,31% lower than in the same months of 2019.
The sharp and unexpected rise since mid2020 of the prices of maize and soya and the increased prices of feed resulting from it, is significant discouragement for the production of unprocessed milk, it said. Witness Reporter.
Source: The Witness Reporter, published 26 November 2020.