SA dairy farmers face crunch as distressed transporter owes tens of millions for milk

A milk transport company that is now in business rescue failed to pay dairy farmers millions for milk that it took from them earlier this year.

Desmanda Milk, which has been one of the biggest milk transport companies in the country, missed payments to over 20 dairy farmers in KwaZulu-Natal, the Eastern Cape and the North West, to an estimated value of between R80 and R90 million.

This is according to Fanie Ferreira, CEO of the Milk Producers Organisation (MPO) industry association, who estimates that 10 million litres of milk was taken, but not paid for.