“Milk producers” are milk farmers. “Milk processors” buy milk from producers and process it for the retail market. Some role players, of course, are both, and the reader will find many of these listed under the “Companies involved” heading. In order to survive, many farmers have extended their activities beyond the farmgate and are involved in both the “field” and “fork” parts of the value chain.

This page covers the processing side, the dairy secondary industry: milk powder, flavoured milk, cheese, cottage cheese, feta cheese, maas (Amazi), yoghurt, evaporated and condensed milk, cheese powder, buttermilk, cream, sour cream, butter, and milk itself – pasteurised, long-life or ultra-high temperature treated (UHT).

International business environment


South Africa: imports and exports

  • The annual Lacto Data and monthly Dairy Market Trends provide the latest statistics on the dairy industry, including breakdowns of imports and exports. Find it on www.mpo.co.za. The Quarterly Review, prepared by the MPO and SAMPRO (see “Associations involved” heading), does the same. Find it at www.milksa.co.za.

Local business environment

Find the monthly “Dairy Market Trends” at www.mpo.co.za and the Quarterly Review at www.milksa.co.za.

The South African dairy market is divided into two segments; approximately 62% is utilised as liquid products, with the remaining 38% processed into
concentrate products. The percentage composition of South African liquid products market currently stands as, 43% ultra-high temperature (UHT) milk, 34% pasteurised milk, 12% yoghurt, 8% other, 2% fl avoured milk and 1% cream. Other products include buttermilk. The market for concentrated products on the other hand is inclusive of cheese (65%), butter (16%), SMP (7%) and fresh or whole milk powder (WMP) (12%) (MPO, 2019).

Source: Bureau for Food and Agricultural Policy (BFAP) Baseline 2019-2028

The Bureau for Food and Agricultural Policy (BFAP) Baseline 2019-2028 takes a look at the likely performance of fluid milk products, cheese, butter and milk powder over the next ten years. Find the document at www.bfap.co.za.

Notes on adding value to your milk

Milk is a “cash crop” and most people are users and cash buyers (including your neighbours!) The question is: should you sell fresh milk or add value by producing and selling fermented products (amasi, yoghurt, cream cheese)?


Adding value to your milk

You can nearly double your turnover on the same amount of milk with relatively little extra cost of pasteurising and additives, and definitely make money out of a small-scale dairy.

Some considerations:

  • There is also the cost of additives – culture medium, stabiliser, flavourant (like vanilla) and yellow colouring agent.
  • Keep an eye on Eskom costs in future – pasteurizers chew power!
  • Competition from the “Big boys” means that making milk-powder, long-life milk and butter is not recommended, even if you could afford the very expensive equipment.

What is needed for producing fermented products?

  1. Firstly a nearby market that will buy your product
  2. Electricity from Eskom – not generated off diesel or petrol power (too expensive)!
  3. A Batch Pasteurizer – say big enough for 1 or 2 days milk production 4. A warm room (for Amasi) to mature the fermented product; (or your thermostatically controlled batch pasteurizer for other products like yoghurt).
Source: AXXON

National strategy and government contact

  • The development of small-scale dairy processors featured in the then Department of Trade & Industry’s Industrial Policy Action Plans (IPAPs) for 2015/16 – 2017/18. It was the third of eight Key Action Plans. Find the document at www.thedti.gov.za.
  • Find details of directorates and sub-directorates in the Department of Agriculture, Land Reform and Rural Development (DALRRD) at www.daff.gov.za.
  • Documents relating to Market Requirements and Guidelines can be found on the Directorate Marketing’s web pages on the DALRRD website.

Find the presentation on “Regulations relating to the classification, packing & marking of dairy products & imitation dairy products (R. 260 of 27 March 2015): Agricultural Product Standards Act 1990 (Act No 119 of 1990)” at www.sasdt.co.za.

Associations involved

Training and research

  • Agricultural Colleges like GADI do dairy  processing training. Find the list of these institutions on the “Agricultural education and training” page.
  • Andrew Murray Consulting Tel: 028 312 3064 www.foodengineering.co.za Specialist fields include the processing of dairy products particularly where such unit operations as heat exchange, pasteurisation or evaporation take place.
  • ARC-Animal Production (Irene) Department: Dairy Technology Tel: 012 672 9153/9251 www.arc.agric.za Training and research is done on the processing of yoghurt, cheese, fresh milk and other milk products.
  • Cheese Academy Tel: 084 626 4931 http://cheeseacademy.co.za
  • Cheesemaking South Africa Tel: 084 952 4685 http://cheesemaking.co.za See also related websites http://cheesekits.co.za/ and http://cheeseconsultant.co.za/.
  • Dairy Cheret Tel: 011 314 8612/7/8 http://dairycheret.com Dairy Cheret offers cheese and yoghurt manufacturing courses. They are also the sole supplier of Danisco products.
  • FoodBev Tel: 011 253 7300 www.foodbev.co.za FoodBev is the Sector Education and Training Authority (SETA) responsible for facilitating education and training in the food and beverages manufacturing sector, which includes dairy manyfacturing.
  • SAMPRO Training Tel: 012 991 4164 www.dairytraining.co.za Find lists of training aids and learning material on the website.
  • Stellenbosch University Department of Food Science Tel: 021 808 3578 www.sun.ac.za/foodsci
  • University of Fort Hare (UFH) Agricultural and Rural Development Research Institute (ARDRI) Tel: 040 602 2313 www.ufh.ac.za/centres/ardri ARDI trains livestock farmers to make amasi (sour milk), yogurt and cheese.
  • University of the Free State Department of Microbial, Biochemical and Food Biotechnology Division of Food Science Tel: 051 401 2692 / 3261 www.ufs.ac.za/biotech

Companies involved


Dairies and Milk Processors

For makers of goat and sheep milk cheese, see the “Goat and sheep dairy” page.


Ingredients, equipment & other

Websites and publications


Visit the websites of role players listed on this page.


Some articles

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