Feed costs sour milk production

On an annual basis, production of milk in Namibia declined during the past quarter mainly due to an increase in the cost of animal feed, but milk output rose on a quarterly basis. Milk production decreased year-on-year by 0.2% to 4.0 million litres during the third quarter of 2023, according to the Bank of Namibia (BoN). The decline was partly owing to stiff competition from cheaper imports. In addition, the industry continued to receive headwinds from a shortage of spent grain, which is used as feed input, and from a substantial increase in the price of lucerne during the quarter under review. Conversely, quarter-on-quarter, milk production rose by 2.1% from 3.9 million litres produced in the previous quarter.



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