WINDHOEK – Namibia Dairies last Thursday announced that it has entered into a mutual agreement with the Dairy Producers’ Association (DPA) of Namibia on a raw milk price increase for the next 12 months.
Namibia Dairies made the announcement in a media statement issued to Nampa here on Thursday.
“The increase is effective from 01 July 2012. Farmers will receive a 25 cents per litre increase on the current factory gate price,” said Managing Director of Namibia Dairies, Hubertus Hamm, in the statement.
The old factory gate price was N$3,78. Farmers in the east of the country will get an increase of N$4,25, while those in the south will get N$4,45.
He added that as from October 1 2012, Namibia Dairies will in-source all milk transport operations and the parties have agreed to move to a farm gate-based pricing structure.
The MD said Namibia Dairies would pay for the transport cost as it was previously paid by the farmers.
This new pricing structure will also ensure that dairy farmers receive a further net increase of 22 cents from October 1, 2012.
“Effectively, farmers will receive an 11 per cent raw milk price increase going forward,” Hamm explained.
On his part, Chairman of the DPA, Kockie Adriaanse, said he was extremely happy with the new structure, as the price increase would bring relief to farmers who have seen their profits under pressure due to high feed, fuel and energy costs.
“Both parties have agreed on a fair price to ensure farmers are sustainable, the Namibian economy is supported and local production of hormone and antibiotic-free milk is assured for the future,” Adriaanse said.