Agriculture
Clover restructure to put shares in the hands of producers─── SABRINA DEAN 15:06 Fri, 03 Feb 2017
Bloemfontein - The dairy giant Clover has revealed plans to give dairy producers up to 74% shares in a new entity that will in future take over the raw milk function.
Clover Industries Limited recently published a cautionary announcement on the Johannesburg Stock Exchange news service platform providing details of its proposed restructuring.
Clover intends shifting its low margin business interests, namely the marketing and selling of non-value added fresh milk, Ultra Pasteurised Milk and Ultra-high temperature, or UHT milk, to a new entity called Dairy Farmers South Africa, or DFSA.
Clover states this is intended to address misconceptions among both market players and producers about the pricing of raw milk.
Clover will initially own 100% of DFSA but intends making 74% of shares available to producers on or after 30 June. Producers will be allocated shares based on raw milk supplies to Clover over the last three years.
- OFM News
