Estimated reading time: 13 minutes
Milk SA recently released its report on the use of unprocessed milk in dairy products. The report covers the period from 2022 to 2025, and was compiled by the economic desk of the Milk Producers’ Organisation (MPO) as part of Milk SA’s economies and markets project.
A market economy depends on available information, evenly distributed among role-players, enabling the ‘invisible hand’ to allocate production factors optimally. The better the information, the more optimally this invisible hand can function, the report states. The objective of Milk SA and the MPO’s economic desk is to provide market signals and market trends to the dairy industry, organised agriculture, and policymakers, to enhance the functioning of the value chain.
While this report is compiled from sources that are deemed reliable, Milk SA and the MPO cannot take responsibility for any decisions based on the information in this report.
Synopsis of application of unprocessed milk
- The application of unprocessed milk used in dairy products and the production of byproducts (whey and butter) for 2025 are compared to the years from 2022 to 2024, as shown in Table 1.
- A comparison of 2025 with 2024 indicates that the most notable percentage shifts in the utilisation of unprocessed milk across dairy products occurred in sweetened, flavoured, and coloured milk, which increased by 19,26%, while other products – both liquid and concentrated – declined by 11,77%.
- When considering the magnitude of the allocation shift, the most significant increases were in long-life and sterilised milk (45 505 tonnes) and fermented products (15 296 tonnes), while the largest decrease was recorded in fresh milk (36 949 tonnes).
- Although whey manufacturing in 2025 is slightly less than in 2024, considering the overall picture of whey manufacturing, volumes manufactured in 2025 increased by 28,4% compared to 2022, from 19 234 tonnes in 2022 to 24 705 tonnes in 2025.
- The total yearly allocation of unprocessed milk to full cream milk powder (FMP) reflects a flat trajectory, while the allocation to skimmed milk powder (SMP) increased from 79 327 tonnes in 2022 to 94 520 tonnes in 2025, a growth of 19,2%.
- During 2025, manufacturing volumes for butter remained elevated, with only July and October recording lower output compared to 2024. Butter production increased by 40,9% over the period 2022 to 2025, rising from 19 786 tonnes to 27 888 tonnes. This sustained increase in butter production over the past three years significantly reduced imports, which declined from 3 607 tonnes in 2022 to 352 tonnes in 2025 – representing a 90% reduction in butter imports. Consequently, the foreign currency requirement decreased from R314 million in 2022 to R58 million in 2025.
- Overall, the total cumulative use of unprocessed milk in dairy products increased by 0,84% in 2025 when compared to 2024.
- Figures 1 and 2 illustrate the total unprocessed milk used in dairy products and the production of byproducts. Long-life milk and cheese (excluding cottage and cream cheese) account for the bulk of unprocessed milk use, followed by fresh milk and fermented products as a second tier.
- Figures 3 to 11 graphically display the amount of unprocessed milk used for each dairy product. Steady volumes of unprocessed milk used in cheese, excluding cottage and cream cheese during 2022, 2023, 2024, and 2025, are notably different from the more volatile volumes of unprocessed milk allocated towards the other dairy products.
- Figures 12 and 13 illustrate the production of byproducts. In Table 1, the application of unprocessed milk towards dairy products is reflected compared with the corresponding periods over the previous three years. When comparing 2025 with 2024, the most pronounced percentage increases in the utilisation of unprocessed milk were recorded for sweetened, flavoured, and coloured milk, which is up by 19,26%, while other products – both liquid and concentrated – declined by 11,77%.
Major shifts detected
In terms of the magnitude of the allocation shift, the largest increases occurred in long-life and sterilised milk (45 505 tonnes) and fermented products (15 296 tonnes). By contrast, the most significant reduction was observed in fresh milk, which declined by 36 949 tonnes.
Butter manufacturing increased by 12,5% in 2025 compared to 2024, while whey powder manufacturing decreased slightly by 0,1%. Comparing the past four years, butter manufacturing increased by 41% and whey powder by 28%.
Table 1: Cumulative use of unprocessed milk in dairy products. (Source: Milk SA)
| Product/period | Jan-Dec 2022 kg of unprocessed milk used | Jan-Dec 2023 kg of unprocessed milk used | Jan-Dec 2024 kg of unprocessed milk used | Jan-Dec 2025 kg of unprocessed milk used | % change 2025-2024 | Change in milk allocation in mass 2024-2025 |
| Long life & sterilised milk | 1 013 678 785 | 985 010 029 | 994 276 763 | 1 039 781 856 | 4,58% | 45 505 093 |
| Fresh milk | 422 049 352 | 504 029 990 | 518 388 520 | 481 439 951 | -7,13% | -36 948 569 |
| Sweetened, flavoured, and coloured milk | 37 718 108 | 43 187 176 | 46 812 279 | 55 828 107 | 19,26% | 9015 828 |
| Fermented products | 517 248 828 | 445 895 05G | 502 147 357 | 531 498 041 | 5,85% | 29 350 684 |
| Other liquid products | 8 551 549 | 9 587 304 | 7 823 192 | 6 902 5G3 | -11,77% | -920 598 |
| Total unprocessed milk used in liquid products | 1 999 246 621 | 1 987 709 558 | 2 069 448 111 | 2 115 450 548 | 2,22% | 46 002 437 |
| FMP | 17G 643 232 | 173 479 691 | 186 342 563 | 180 216 138 | -3,29% | -6 126 426 |
| SMP | 79 326 937 | 72 701 106 | 91 595 286 | 94 520 158 | 3,19% | 2 924 872 |
| Cheese, excluding cottage and cream cheese | 870 438 999 | 871 850 292 | 914 784 595 | 918 294 541 | 0,38% | 3 509 945 |
| Other concentrated products | 162 47G 428 | 182 158 772 | 148 640 643 | 131 149 276 | -11,77% | -17 491 368 |
| Total unprocessed milk used in concentrated products | 1 291 888 596 | 1 300 189 861 | 1 341 363 088 | 1 324 180 112 | -1,28% | -17 182 976 |
| Total kg unprocessed milk used in dairy products | 3 291 135 217 | 3 287 899 418 | 3 410 811 199 | 3 43G 630 660 | 0,84% | 28 819 461 |
| Dairy market for liquid products % | 60,75% | 60,46% | 60,67% | 61,50% | 1,37% | 46 002 437 |
| Dairy market for concentrated products % | 39,25% | 39,54% | 39,33% | 38,50% | -2,11% | -17 182 976 |
| Whey powder | 19 234 215 | 21 606 293 | 24 723 970 | 24 705 471 | -0,07% | -18 499 |
| Butter | 19 786 048 | 21 218 952 | 24 798 407 | 27 888 151 | 12,46% | 3 089 744 |
Other concentrated products: including cottage cheese, cream cheese, condensed milk, evaporated milk, desserts, and powder blends.
Figures 1 and 2 (source: Milk SA) are graphical displays of the use of unprocessed milk in dairy products, including the byproducts manufactured from dairy products. The graphical display shows that the bulk of unprocessed milk is used for long-life milk and cheese (excluding cottage and cream cheese), with fresh milk and fermented products forming the second tier.
Long-life, sterilised, and fresh milk
Figure 3 (source: Milk SA) illustrates the amount of unprocessed milk used in long-life and sterilised milk. In 2025, less unprocessed milk was used in long-life and sterilised milk in only two of the 12 months compared to 2024.
Figure 4 (source: Milk SA) contains the data on unprocessed milk used in fresh milk for the period 2022 to 2025. For all months in 2025, less unprocessed milk was used for fresh milk than in 2024, except in April.
Sweetened, flavoured, and coloured milk
Figure 5 (source: Milk SA) shows the volume of unprocessed milk used in sweetened, flavoured, and coloured milk. During the last five months of 2023, notably higher volumes were channelled into these products than in 2022. In 2024, allocations spiked in January, March, July, and October.
In 2025, the volume of unprocessed milk allocated to these products exceeded 2024 levels in all months except March and November. August, September, and October 2025 recorded notable new record levels for the period under review.
Fermented products
Figure 6 (source: Milk SA) contains the data on unprocessed milk used in fermented products for the period 2022 to 2025. In all months of 2023, less unprocessed milk was used in fermented products than in 2022, except in April 2023. This trend reversed in 2024, with more unprocessed milk channelled to fermented products for 11 months, except in April, compared to 2023.
In 2025, more unprocessed milk was used for fermented products (May and December) compared to 2024, and that is on the back of higher volumes already allocated for eleven of the twelve months in 2024.
Other liquid products
Figure 7 (source: Milk SA) illustrates the volume of unprocessed milk used in other liquid products. In 2024, allocations to these products began at levels notably higher than in the preceding two years, but declined from July to December to below 2023 levels. In 2025, monthly volumes trended sideways, with most months recording lower allocations than in 2024.
Milk used in FMP and SMP
Figures 8 and 9 (source: Milk SA) show the amount of unprocessed milk used in FMP and SMP. Comparing the volumes of unprocessed milk channelled to these two products between 2022 and 2025, a zigzag pattern is observed across most months. However, for both powders, more unprocessed milk is allocated during the second half of the years covered in Figures 8 and 9. The total yearly allocation of unprocessed milk to FMP reflects a flat trajectory, while the allocation to SMP increased from 79 327 tonnes in 2022 to 94 520 tonnes in 2025, a growth of 19,2%.
Cheese production
Figure 10 (source: Milk SA) presents data on unprocessed milk used in cheese production over the period 2022 to 2025. In 2025, higher volumes of unprocessed milk were channelled to cheese in seven of the twelve months, while the total annual allocation increased from 870 439 tonnes in 2022 to 918 295 tonnes in 2025, representing growth of 5,5%.
This sustained increase supports the expansion observed in cheese exports. The consistently steady allocation of unprocessed milk to cheese over the review period stands in marked contrast to the more volatile allocation patterns observed across several other dairy products.
Other concentrated products
Figure 11 (source: Milk SA) illustrates the amount of unprocessed milk used in other concentrated products. In 2024, the allocation of unprocessed milk to other concentrated products started at a notably higher level and continued to rise in February, compared to the previous two years. However, since March, these levels started to decline, and from July through December 2024, dropped to levels lower than the same months in 2023. In 2025, a mostly sideways movement in volumes allocated is observed, with most months registering lower volumes than in 2024.
Whey and butter
Figures 12 and 13 (source: Milk SA) indicate the manufacturing of whey and butter. In 2024, whey manufacturing volumes trended higher than in 2023, except in March, when volumes declined. In contrast, during 2025, higher whey manufacturing volumes are evident in only two of the 12 months compared to 2024. Considering the overall picture of whey manufacturing, volumes manufactured in 2025 increased by 28,4% compared to 2022, from 19 234 tonnes in 2022 to 24 705 tonnes in 2025.
In 2024, butter manufacturing exhibited an upward trend compared to 2023, except in March, when volumes declined. This higher level of manufacturing continued into 2025, with only July and October recording lower output than in 2024. Overall, butter production increased by 40,9% between 2022 and 2025, rising from 19 786 tonnes to 27 888 tonnes.
Table 2: Total liquid and concentrated dairy products produced (kg).
| Product/period | Jan-Dec 2022 kg produced | Jan-Dec 2023 kg produced | Jan-Dec 2024 kg produced | Jan-Dec 2025 kg produced | % change 2025 to 2024 |
| Long-life and sterilised milk | 1 013 678 785 | 985 010 029 | 994 276 763 | 1 039 781 856 | 4,58% |
| Fresh milk | 422 049 352 | 504 029 990 | 518 388 520 | 481 439 951 | -7,13% |
| Sweetened, flavoured and coloured milk | 37 718 108 | 43 187 176 | 46 812 279 | 55 828 107 | 19,26% |
| Fermented products | 517 248 828 | 445 895 059 | 502 147 357 | 531 498 041 | 5,85% |
| Other liquid products | 8 551 549 | 9 587 304 | 7 823 192 | 6 902 593 | -11,77% |
| Total liquid dairy products produced (kg) | 1 999 246 621 | 1 987 709 558 | 2 069 448 111 | 2 115 450 548 | 2,22% |
| FMP | 19 947 353 | 19 262 962 | 20 691 239 | 20 010 968 | -3,29% |
| SMP | 6 538 860 | 5 992 698 | 7 550 131 | 7 791 226 | 3,19% |
| Cheese, excluding cottage and cream cheese | 88 631 900 | 88 775 604 | 93 147 362 | 93 504 760 | 0,38% |
| Other concentrated products | 16 544 365 | 18 548 202 | 15 135 239 | 13 354 192 | -11,77% |
| Whey powder | 19 234 215 | 21 606 293 | 24 723 970 | 24 705 471 | -0,07% |
| Butter | 19 786 048 | 21 218 952 | 24 798 407 | 27 888 151 | 12,46% |
| Total concentrated dairy products produced kg | 170 682 742 | 175 404 710 | 186 046 348 | 187 254 768 | 0,65% |
The sustained increase in butter manufacturing over the past three years significantly reduced butter imports, which fell from 3 607 tonnes in 2022 to 352 tonnes in 2025 – a 90% reduction. As a result, the foreign currency requirement associated with butter imports decreased from R314 million in 2022 to R58 million in 2025. – Bertus van Heerden, Milk SA project manager and MPO chief economist, with contributions by Nico Fouché, CEO of Milk SA and De Wet Jonker, office manager and business economist, Sampro
