Calm was needed to keep a dairy crisis at bay, the Milk Producer's Organisation said on Tuesday.

"The current unfavourable economic circumstances in South Africa will not leave the dairy industry untouched. Everybody in the dairy chain is experiencing pressure, but now is the time to look at the industry with a long-term vision in mind and not to over-react on short-term market indicators, " said the MPO's managing director Etienne Terre'Blanche.

He said that international commodity shortages were being experienced.

"It is expected that low dairy stock levels will continue for some time to come. This means that local producers will have to fill the gap brought about by international shortages and high prices," he said.

Terre'Blanche said that locally there were reports of sporadic shortages while national milk production was still not meeting the demand.

"The industry should not lose sight of the fact that the current world-wide milk shortage offers the South African industry the opportunity to develop new markets outside South Africa's borders, "he said.

Sapa