Commercial dairy farming requires business acumen, capital and support. Lebogang Mashala spoke to Ronald Rapholo, training and transformation manager at the Milk Producers’ Organisation (MPO), about building sustainable dairy enterprises.
What are the biggest structural barriers facing new-generation dairy farmers entering the formal commercial value chain, and how is the MPO helping them overcome these challenges?
Dairy farming is highly capital intensive, requiring major investment in livestock, infrastructure, feed and animal health. New entrants often struggle to secure finance due to insufficient collateral.
South Africa’s commercial dairy sector operates at significant scale, with Lacto Data (Vol. 29, 2026) reporting an average herd of 809 cows. Emerging farmers face the same compliance standards as larger producers, requiring early investment in infrastructure and specialised knowledge.
As a volume-driven industry with narrow margins, smaller producers are more vulnerable to fluctuations in input costs and milk prices. Dairy farming requires diverse skills, from financial management and animal husbandry to mechanical maintenance and labour.
Through training programmes, technical support and advisory services, the MPO helps emerging farmers build the knowledge and practical skills needed to establish sustainable, commercially viable dairy businesses.
Also read: Regular ‘pedicures’ save dairy cattle in soggy Southern Cape
You often emphasise farming must be run as a business; what financial literacy and cost-management tools does the MPO provide to help emerging dairy farmers achieve profitability?
Farming should never be treated as a hobby.
As with any successful business, profitability depends on understanding and managing costs. Through the MPO’s Economic Desk and its Training Institute, we provide producers with the latest economic trends, production benchmarks and cost norms.
Farmers are trained to monitor key performance indicators such as feed cost per litre of milk, labour costs and other production expenses. A clear understanding of these costs enables farmers to make informed decisions, improve efficiency and build profitable enterprises.
How does the MPO support farmers seeking to add value through agro-processing, such as producing yoghurt?
Value addition presents an important opportunity for new-generation dairy farmers to increase profitability and reduce their dependence on fluctuating raw milk prices.
However, processing requires specialised technical skills, strict quality control and considerable capital.
For small and medium-sized producers, success depends on securing a reliable market before investing in processing facilities.
We therefore encourage farmers to start with relatively easier products such as amasi, yoghurt and selected cheeses, expanding as demand grows.
Also watch: A young farmer’s journey: Dairy farming, discipline and cattle health with Mphathi Zulu
Drawing from your mentorship work with projects such as Phumelela dairy farm, what lessons have been most valuable in supporting emerging dairy farmers?
Competent management and strong leadership are fundamental to any farming enterprise’s success.
Equally important is collaboration with commodity organisations that provide technical expertise, mentorship and industry support. Technical training alone is not enough – ongoing mentorship and guidance in strategic decision-making are essential for building resilient businesses.
Adequate financial support is equally critical during the establishment phase. Emerging dairy farmers need sufficient capital to maintain cash flow and grow their operations, and support programmes should continue until farmers can operate independently and achieve long-term sustainability.
Also read: Cool cows produce more milk: Adapting dairy farming to a hotter climate
With rising feed costs and increasingly unpredictable weather patterns, how is the MPO preparing the next generation of dairy farmers for a changing climate?
Through programmes such as the South African Large Herds Conference and Total Mixed Ration (TMR) training, the MPO equips farmers with practical knowledge on climate-smart production, feed efficiency and resilient farming systems.
Its Economic Desk, MegaMilk platform and newsletters provide regular insights into feed markets, production costs and technical developments, helping farmers make informed decisions.
From a genetics perspective, producers are increasingly selecting smaller-framed cows that require less feed while maintaining longevity and lifetime productivity, making them better suited to the economic and environmental realities of modern dairy farming.
Also read:
From factory floor to cheese production manager – Pamella Dzindikwa’s remarkable dairy career
Combating heat stress in dairy cows: New findings and future directions
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