Dairy processing

“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 chapter 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).

Contents

International business environment
Local business environment
Notes on adding value to your milk
National strategy and government contact
Associations involved
Training and research
Companies involved
Websites and publications

International business environment

  • www.fil-idf.org, website of the International Dairy Federation provides global dairy statistics.
  • A sister website, www.dairy-sustainability-initiative.org provides “a global framework for a holistic approach to sustainability in the dairy value chain”.
  • Find the current world production, market and trade reports at www.fas.usda.gov/commodities/dairy.
  • Global Dairy Trade www.globaldairytrade.info/
  • 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.
  • The Bureau for Food and Agricultural Policy (BFAP) Baseline 2018-2027 includes an overview of global milk and dairy products (see from page 75). Find the document at www.bfap.co.za.
  • Rabobank produces a Dairy Quarterly. See www.rabobank.com.

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 milk market can be disaggregated into 2 segments: Liquid milk products (including pasteurised milk, UHT milk, yoghurt and buttermilk) account for just over 60% of total dairy consumption, while concentrated products (including cheese, butter, milk powders and condensed milk) make up the remaining 40%. The share of liquid milk products has increased consistently over the past decade, from 55% in 2007, to 61% in 2017.
  • Over the next decade the market will continue to trade in a fine balance between supply and demand. Therefore, given the high sensitivity to climate and macroeconomic factors that influence demand, prices are likely to remain volatile going forward.
  • Supported by rising income levels and swift urbanisation, cheese consumption increased by 81% over the past 10 years.
    Source: Bureau for Food and Agricultural Policy (BFAP) Baseline 2018-2027

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 features in the Department of Trade & Industry’s Industrial Policy Action Plans (IPAPs) for 2015/16 – 2017/18. It is 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, Forestry and Fisheries (DAFF) at www.daff.gov.za.
  • Documents relating to Market Requirements and Guidelines can be found on the Directorate Marketing’s web pages on the DAFF 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 in the “Agricultural education and training” chapter.
  • 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 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 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” chapter.

 

Ingredients, equipment & other

Websites and publications

 

Visit the websites of role players listed in this chapter.

 

Some articles

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