| Fri 2 Dec 2011, 16:38 | | CLR/CLRP - Clover Industries Limited - Clover to increase raw milk prices for |
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CLR CLRP
CLR
CLR/CLRP - Clover Industries Limited - Clover to increase raw milk prices for
its producers
Clover Industries Limited
(Incorporated in the Republic of South Africa)
(Registration number 2003/030429/06)
Ordinary Share code: CLR ISIN No: ZAE000152377
Preference Share code: CLRP ISIN No: ZAE000152385
("Clover" and "Group")
CLOVER TO INCREASE RAW MILK PRICES FOR ITS PRODUCERS
Clover shareholders are advised that the Group`s milk producers will receive an
average price rise of 19,5c per litre, effective from 1 January 2012 and a
further increase of 22c per litre with effect from 1 February 2012. The 1
January 2012 increase varies per region with the average being 19,5c for all
milk producers. The 1 February 2012 increase of 22c will be the same for all
regions. These increases will represent 6,5% and 6,9% increases on average
respectively.
This upward adjustment recognises the much higher input costs experienced
throughout the supply chain. The oversupply of milk during autumn and early
winter in certain regions together with the normal seasonal oversupply of milk
during spring and early summer led to lagging competitor selling prices. As a
result, increases to milk producers and consequential selling price increases
could not be implemented earlier.
Despite these increases a milk supply shortage during the autumn and winter 2012
season may occur. The increased raw milk costs will be recovered through selling
price increases.
Johann Vorster, Clover`s Chief Executive Officer, commented: "Although
regrettable that the hard pressed consumer has to be subjected to these
increases, we will continue to monitor the situation to ensure that we pay a
fair milk price to milk producers whilst we continue to invest in marketing,
innovation and facilities to ensure that our products remain relevant and become
more available to customers and consumers. The level of input costs and the
supply of milk may necessitate further price adjustments, both to customers and
producers, in the short term."
Johannesburg
2 December 2011
Sponsor
RAND MERCHANT BANK (A division of FirstRand Bank Limited)
Date: 02/12/2011 16:38:01 Produced by the JSE SENS Department.
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