THE Milk Producers' Organisation is calling for a probe into the "huge" inefficiencies taking place in the market.
Organisation chairman Tom Turner said there was a need for an investigation into the value chain from source to retail shelf – facilitated and funded by the government but conducted by an independent organisation‚ possibly an international consulting group.
"Importantly‚" he said‚ "the investigation should probe the huge inefficiencies in the retailers' handling of the product. This represents a direct cost to the producer‚ the processor himself and the consumer."
He pointed to the South African Futures Exchange as an example of how pricing worked for other agricultural commodities such as maize‚ wheat‚ soya and sunflower. He described it as a relatively simple system‚ "because all the crops are harvested over a three-month period‚ stored in silos and everyone can see what's coming in and what's going out."