samilco

Price negotiations:

The milk price plays the most important role in the profitability and sustainability of the local dairy industry. As such, Samilco is constantly in conversation with established as well as new local milk buyers to negotiate market-related milk prices. We enter into these price negotiations on your behalf. Milk committees, which consist of representatives of Samilco and milk buyers serve on a forum which meets regularly where these price negotiations take place. Our General Manager and Technical Manager are also in constant communication with smaller milk buyers, where formal milk committees don’t exist, serving as your voice in the dairy industry.

We currently work with the 14 major milk buyers in South Africa. These are:

• Lancewood
• Lactalis (Parmalat)
• Mooivallei Cheese
• Coega Dairies
• Sundale
• Fair Cape
• Fairview
• La Montanara
• Kleinrivier
• Rhodes Food Group
• Ladismith Cheese
• Fairview
• Roulou
• Nestlé

We also communicate and negotiate with other milk buyers that Samilco members deliver to, including the likes of:

• Woodlands
• Saint Lawrence Jersey Dairy
• Morning Milk
• Zandam
• Alfalfa
• Jireh Dairies

Milk supply agreements:

Samilco supports you not only in price negotiations, but also in finalising milk supply agreements with milk buyers, in order to prevent possible disputes. Remuneration paid to milk producers is calculated according to a milk price structure, which can be complex, and forms part of the delivery agreement with each milk buyer. We therefore draft new agreements and revise existing agreements with the support of our legal representatives.

Open channels with our milk buyers

Our relationships with established milk buyers have been fostered over many years, and we enjoy open communications with them, in order to support you. As such, our ongoing liaison with milk buyers also includes themes such as quality, logistical arrangements, black economic empowerment in agriculture (AgriBEE) and much more, which all takes place on behalf of our members.

Identifying milk buyers:

Because of our indepth involvement in and knowledge of the industry, we identify and have access to potential alternative milk buyers for members – providing alternative market opportunities for you.

Technical support – milk quality:

We are in constant communication with you (both formally and informally) to assist in monitoring milk test results and milk statements, in order to support you to comply with the milk supply agreement you’ve signed with the buyer. We take milk samples, which are tested at accredited laboratories. Should the test results show any deviations, our technical advisor can make recommendations and support you to rectify these as soon as possible. Samilco helps our members to evaluate daily variations in quality – using a model we have specifically designed for this purpose.

Technical support – herd management:

Samilco works with the suppliers of a herd management software programme called Devisa. This arrangement allows us to make this software available to our members at a lower cost, to support producers with smaller herds who may not be able to afford expensive software.

Access to industry information:

Samilco is on top of the latest trends and news in the dairy industry. We collect industry information and make sense of it for you. And we regularly share information with you to support your dairy farming profitability and ensure you can make informed decisions.

Legal support:

Based on Samilco’s statute, we have a mandate to act as your representative in the case of legal disputes, and can provide legal advice to you, provided by our legal representatives.  

Ethical support:

Samilco is responsible to serve as the custos morum (or the guardian of morals and ethics) of our members’ respective milk delivery agreements.